Question 1
Retained earnings will be increased by the amount in the dividend account.
Question 2
When a business borrows money, it incurs a(n):
Question 3
A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:
Question 4
Any given transaction must affect at least two different parts of the accounting equation.
Question 5
The first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415), and the ending cash balance to be $3,425. The net cash from financing activities must be:
Question 6
What is the primary object of most businesses?
Question 7
The balance sheet represents the accounting equation.
Question 8
When an account receivable is collected in cash, the total assets of the business increase.
Question 9
The payment of a liability:
Question 10
The stockholders' equity of a company should equal the sum of its total assets and total liabilities.
Question 11
Paying expenses affects which financial statement elements?
Question 12
Shares of ownership are evidenced by issuing:
Question 13
Accounting is thought to be the "language of business" because business information is communicated to stakeholders.
Question 14
Buying equipment for cash affects which account/accounts?
Question 15
Miscellaneous expenses are expenses that have an undetermined amount to be paid.
Question 16
The "rules" of accounting are called:
Question 17
Which principle determines the amount initially entered into the records for purchases?
Question 18
Which of the following is not considered to be a liability?
Question 19
The branch of accounting related to the management's financial decisions is known as financial accounting.
Question 20
Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?