Quiz 5

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School

Monarch Institute *

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Course

321

Subject

Accounting

Date

May 22, 2024

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docx

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Uploaded by IrinaLomas

Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following flows shows the correct order of accounting transactions through the accounting records? Select one: a. Source documents, Journal, Ledgers, Trial Balance, Financial Reports Correct Correct b. Source documents, Trial Balance, Journal, Ledgers, Financial Reports c. Source documents, Ledgers, Journal, Financial Reports, Trial Balance d. Source documents, Journal, Trial Balance, Financial Reports, Ledgers Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text If a business has the following account balances Cash $1,000, Motor Vehicle $25,000, Plant $3,000, Bank Loan $20,000, Inventories $10,000, Accounts Receivable (Debtors) $5,000 and Accounts Payable (Creditors) $4,000, what is the value of Owner's Equity? Select one: a. $15,000 b. $88,000 c. $20,000 Correct Correct d. $28,000 Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text A business owner commenced a business with cash of $30,000. The owner then purchased inventories on credit for $15,000 plus inventories for cash $5,000. A bank loan of $4,000 was obtained to purchase a new computer $4,000. What is the Owner's Equity after these transactions? Select one: a. $25,000 b. $50,000 c. $30,000 Correct Correct d. $45,000 Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text What is the extended accounting equation? Select one: a. Assets + Revenue = Liabilities + Owner's Equity - Expenses

b. Assets = Liabilities + Owner's Equity + Revenue - Expenses Correct Correct c. Assets + Revenue - Expenses = Liabilities + Owner's Equity d. Assets = Liabilities - Owner's Equity + Revenue - Expenses Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text What is the equation for Net Profit? Select one: a. Profit = Cash Receipts - Cash Payments b. Profit = Assets - Liabilities c. Profit = Revenue + Expenses d. Profit = Revenue - Expenses Correct Correct Question 6 Correct Mark 1.00 out of 1.00 Flag question Question text What is the effect of the payment of wages on the extended accounting equation? Select one: a. Assets decrease; Expense increase Correct Correct b. Assets increase; Liabilities decrease c. Assets decrease; Revenue increases d. Assets increase; Expenses increase Question 7 Correct Mark 1.00 out of 1.00 Flag question Question text If a business provides a service for cash, what is the effect on the extended accounting equation? Select one: a. Increase Assets and decrease Revenue b. Increase Assets and increase Revenue Correct Correct c. Increase Liabilities and increase Revenue d. Increase Assets and increase Liabilities Question 8 Correct Mark 1.00 out of 1.00 Flag question Question text An alternate name for a ledger is: Select one: a. an account Correct

Correct b. a journal c. a statement d. a Trial Balance Question 9 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following describes the principles of double entry accounting? Select one: a. Debits always increase the balance of an account b. Credits are written on the left side of the ledger account c. Debits are written on the right side of the ledger account d. For every debit there must be a corresponding credit Correct Correct Question 10 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is true about debits? Select one: a. They increase assets and decrease expenses b. They decrease both assets and expenses c. They increase assets and decrease liabilities Correct Correct d. They increase both assets and liabilities Question 11 Correct Mark 1.00 out of 1.00 Flag question Question text A revenue account: Select one: a. is decreased by credits b. is increased by credits Correct Correct c. is increased by debits d. has a normal balance of a debit Question 12 Correct Mark 1.00 out of 1.00 Flag question Question text The accounting term "posting" refers to: Select one: a. preparing the Financial Statements

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