ACCT105 Week 2 Quiz SCORE 100 PERCENT

Question 1 of 10
10.0/ 10.0 Points
Since a particular journal entry has equal debits and credits, this entry must be correct.



A. True

B. False






Question 2 of 10
10.0/ 10.0 Points
The type of analysis that shows the percentage that each item in a financial statement is of some significant total such as total assets or sales is called:

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A. Horizontal analysis
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B. Vertical analysis
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C. Balance sheet analysis
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D. None of the above




Question 3 of 10
10.0/ 10.0 Points
Which of the following statements about the accounting equation is not true?

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A. A transaction may add to both sides of the equation.
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B. A transaction may add to two items on the same side of the equation.
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C. A transaction may transfer between the terms on one side of the equation and have no effect on the other side of the equation.
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D. A transaction may subtract from both sides of the equation.




Question 4 of 10
10.0/ 10.0 Points
If only two liability accounts are affected by a transaction, the balance of one account must be increased and the balance of the other decreased in recording this transaction.



A. True
B. False






Question 5 of 10
10.0/ 10.0 Points
Which of the following is (are) descriptive of an asset?

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A. It is something of value because it can be used to produce products of the business.
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B. It has value because it has service potential.
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C. It is owned and/or under the control of the business.
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D. (a), (b), and (c) are all correct.




Question 6 of 10
10.0/ 10.0 Points
A $150 debit to Office Equipment was entered in the account as a $150 credit. This error caused the trial balance to be out of balance by:

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A. $75
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B. $150
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C. $450
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D. $300
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E. None of these




Question 7 of 10
10.0/ 10.0 Points
Which of the following is not a business asset?

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A. Cash.
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B. Capital stock.
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C. Equipment.
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D. Accounts receivable.
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E. All of the above are business assets.




Question 8 of 10
10.0/ 10.0 Points
Revenue is the difference between the selling price of a service and the cost of providing such service.



A. True

B. False




Question 9 of 10
10.0/ 10.0 Points
Even though an expense is recognized on the income statement, it may not require an equivalent outlay of cash in the same period.


A. True
B. False


Question 10 of 10
10.0/ 10.0 Points
If $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business:

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A. The stockholders' equity is increased.
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B. Total assets are decreased.
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C. Total liabilities are decreased.
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D. None of the above.