ACCT 110
QUIZ 1
COMPILED BY: DX__LTM
Questions credited to: Dr. Amr Abdel halim
Note: This is not the actual quiz document
file.
MCQ
1. Financial accounting provides economic and financial information for all
of the following except:
a. creditors.
c. managers.
b. investors.
d. other external users.
2. A small neighborhood barber shop that is operated by its owner would
likely be organized as a:
a. joint venture.
b. partnership.
c. corporation.
d. proprietorship.
3. A basic assumption of accounting that requires activities of an entity be
kept separate from the activities of its owner is referred to as the:
a. stand alone concept.
b. monetary unit assumption.
c. corporate form of ownership.
d. economic entity assumption.
4. Liabilities of a company are owed to:
a. debtors.
b. benefactors.
c. creditors.
d. underwriters.
5. Owner's equity can be described as:
a. creditorship claim on total assets.
b. ownership claim on total assets.
c. benefactor's claim on total assets.
d. debtor claim on total assets.
6. Revenues would not result from:
a. sale of merchandise.
b. initial investment of cash by owner.
c. performance of services.
d. rental of property.
7. If total liabilities increased by $4,000, then:
a. assets must have decreased by $4,000.
b. owner's equity must have increased by $4,000.
c. assets must have increased by $4,000, or owner's equity must have
decreased by $4,000.
d. assets and owner's equity each increased by $2,000.
8. If an individual asset is increased, then:
a. there must be an equal decrease in a specific liability.
b. there must be an equal decrease in owner's equity.
c. there must be an equal decrease in another asset.
d. none of these is possible.
9. As of December 31, 2008, Anders Company has assets of $35,000 and
owner's equity of $20,000. What are the liabilities for Anders Company
as of December 31, 2008?
a. $15,000 b. $10,000 c. $25,000 d. $20,000
10.Morreale Beaver Company buys a $12,000 van on credit. The transaction
will affect the:
a. income statement only.
b. statement of financial position only.
c. income statement and owner's equity statement only.
d. income statement, owner's equity statement, and statement of financial
position.
Exercise