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?