achivmt test answ1
Post on 08-Mar-2016
214 Views
Preview:
DESCRIPTION
TRANSCRIPT
21stE
TEST 1A (Concluded)
9th Edition
Financial and Managerial AccountingWarren/Reeve
Chapter Test 1A
A
PROBLEMSANALYSISOFTRANSACTIONS
INSTRUCTIONS: Indicate the effect of each of the following transactions for the current month on assets, liabilities, and owners equity by inserting + for increase and for decrease in the appropriate columns at the right.
Answers
ALOE
0.Received cash from owner as original investment
++0. ____
1.Received cash for services provided (sold)
1. ____
2.Purchased equipment for cash
2. ____
3.Paid utilities for month
3. ____
4.Paid creditors on account
4. ____
5.Received cash for service sold to cash customers
5. ____
6.Purchased land by signing a nine-month, non-interest-bearing note payable
6. ____
7.Charged customers for service sold on account
7. ____
8.Paid miscellaneous expenses
8. ____
9.Paid first installment due on the non-interest-bearing note payable
9. ____
10.Purchased office supplies on account
10. ____
11.Paid cash to owner on withdrawal
11. ____
12.Recorded cost of supplies used during the month
12. ____
FILL-IN-THE-BLANKPRINCIPLESANDTERMINOLOGY
INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column.
Answers
0.A business entity owned by two or more individuals is referred to as a
partnership0. ____
1.A business that changes basic inputs into products is referred to as a
1. ____
2.The least common form of business entity is a
2. ____
3.If revenues exceed expenses, the difference is called
3. ____
4.The resources owned by a business are called
4. ____
continued
Answers
5.The owner of equity in a partnership is called (n)
5. ____
6.The authoritative body that currently has primary responsibility forthe development of GAAP is
6. ____
7.The excess of expenses over revenues is referred to as
7. ____
8.Amounts owed by a business to others are referred to as
8. ____
9.Resources consumed or services used in the process of earningrevenue are called
9. ____
10.Land was offered for sale at $75,000. If you paid $65,000 for the land,the amount that you would record for the purchase of the land in theaccounting records is
$
10. ____
11.Insurance premiums paid in advance are considered to be assets and are called
11. ____
12.Assets are financed by two sources:(1) owners equity and (2)
12. ____
13.The liabilities that result from purchases on account are referred to as
13. ____
14.If operations for an accounting period resulted in fees for cash of $15,000 and fees on account for $40,000, the amount of revenue for the period was
$
14. ____
15.If operations for an accounting period resulted in fees for cash of $19,000, fees on account of $7,000, and expenses paid in cashof $50,000, did the business incur a net income or a net loss forthe period?
15. ____
16.What was the amount of net income or net loss indicated in Question 15?$16. ____
17.A statement detailing the change in cash during a period of time is a
17. ____
18.Principles that guide the conduct of businesses are referred to as
18. ____
19.In the accounting equation, liabilities plus owners equity equals
19. ____
20.The form of the balance sheet with the liability and owners equitysections presented next to the assets section is called
20. ____
21.If liabilities are $75,000 and owners equity is $35,000, the amount ofthe assets is
$
21. ____
22.If assets are $190,000 and owners equity is $50,000, the amountof the liabilities is
$
22. ____
23.If total assets increased by $30,000 and liabilities increased by $20,000 during the period, the amount and direction (increase or decrease) of the periods change in owners equity was
$
23. ____
24.The owners equity at the beginning of the period was $45,000; at the end of the period, assets were $140,000 and liabilities were $71,000. If the owner made no additional investments or withdrawals during the period, did the business incur a net income or a net loss for the period?
24. ____
25.What was the amount of net income or net loss indicated in Question 24?$25. ____
26.If assets are $110,000 and owners equity is $37,000, the amountof liabilities is
$
26. ____
NOTE: No credit is given for a partially correct answer.
ACHIEVEMENTTESTSOLUTIONSCHAPTER1
TEST1A
Problems
ALOE
1.+
+
2.+,
3.
4.
5.+
+
6.++
7.+
+
8.
9.
10.++
11.
12.
Fill-in-the-Blank
1.manufacturing business
2.partnership
3.net income
4.assets
5.partner
6.Financial Accounting Standards Board (FASB)
7.net loss
8.liabilities
9.expenses
10.$65,000
11.prepaid expenses
12.liabilities
13.accounts payable
14.$55,000
15.net loss
16.$24,000
17.cash flows statement
18.ethics
19.assets
20.account form
21.$110,000
22.$140,000
23.$10,000 increase
24.net income
25.$24,000
26.$73,000
For
Scoring
For
Scoring
For
Scoring
345
top related