ACC101 UPDATED Actual Exam
Questions and CORRECT Answers
b = 199,000 - 132,000 = 67,000 - CORRECT ANSWER✔✔- QN=1 If assets are $199,000
and liabilities are $132,000, then equity equals
a. $32,000.
b. $67,000.
c. $99,000.
d. $131,000.
e. $198,000.
b - CORRECT ANSWER✔✔- QN=2 A cash outflow from the company into its owner is
called a(n):
a. Liability.
b. Withdrawal.
c. Expense.
d. Profit.
e. Investment.
a - CORRECT ANSWER✔✔- QN=3 Liability created by purchasing goods and services on
credit (tín dụng) are:
a. Accounts payable.
b. Accounts receivable.
c. Liabilities.
d. Expenses.
e. Equity.
b - CORRECT ANSWER✔✔- QN=4 Photometer Company paid off $30,000 of its accounts
payable in cash. What would be the effects of this transaction on the accounting equation?
a. Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
b. Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
,c. Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
d. Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
e. Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.
d - CORRECT ANSWER✔✔- QN=5 How does Lead Company record by the billing of a
client for $15,000 of service completed?
a. +$15,000 accounts receivable, -$15,000 accounts payable.
b. +$15,000 accounts receivable, +$15,000 accounts payable.
c. +$15,000 accounts receivable, +$15,000 cash.
d. +$15,000 accounts receivable, +$15,000 revenue.
e. +$15,000 accounts receivable, -$15,000 revenue.
d - CORRECT ANSWER✔✔- QN=6 Moffat Company has assets of $600,000, liabilities of
$250,000, and equity of $350,000. What is the entry need to record when Moffat Company
bill of a client for $25,000 of contract completed?
a. +$25,000 accounts receivable, -$25,000 accounts payable.
b. +$25,000 accounts receivable, +$25,000 accounts payable.
c. +$25,000 accounts receivable, +$25,000 cash.
d. +$25,000 accounts receivable, +$25,000 revenue.
e. +$25,000 accounts receivable, -$25,000 revenue.
a - CORRECT ANSWER✔✔- QN=7 The balance in the prepaid insurance account before
adjustment at the end of the year is $4,800, which represents the insurance premiums for four
months. The premiums were paid on November 1. The adjusting entry required on December
31 is:
a. Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.
b. Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.
c. Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200.
d. Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200
e. Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.
,b - CORRECT ANSWER✔✔- QN=8 A company might buy a service or product on credit.
"On credit" implies that the cash payment will occur:
a. On buying day
b. on a later date
c. on previous day
d. No due date
e. No obligation to pay
a - CORRECT ANSWER✔✔- QN=9 Provide descriptions for this transaction:
Increase cash $1,000 and Increase equity $,1000
a. Investment of cash in business by owner or performed services for cash
b. Investment of cash in business by owner
c. Performed services for cash
d. Collected cash from customers
e. None of these
b - CORRECT ANSWER✔✔- QN=10 Provide descriptions for this transaction:
Increase cash $4,000 and Increase CONTRIBUTED CAPITAL $4000
a. Investment of cash in business by owner or performed services for cash
b. Investment of cash in business by owner
c. Performed services for cash
d. Collected cash from customers
e. None of these
b - CORRECT ANSWER✔✔- QN=11 Provide descriptions for this transaction:
Debit office supplies $8,000 and credit liability $,8000
a. Buying office supplies by cash $8,000
b. Buying office supplies on credit $8,000
c. Arrange office supplies contract on credit $8,000
d. Arrange office supplies contract by cash $8,000
, e. None of these
a - CORRECT ANSWER✔✔- QN=12 Provide descriptions for this transaction:
Decrease cash $3500 and Decrease equity $3500
a. Withdraw cash from the business by owner or paid cash for an expense
b. Withdraw cash from the business by owner
c. paid cash for an expense
d. Collected cash from customers
e. None of these
b - CORRECT ANSWER✔✔- QN=13 Items used in business operations, such as office pens
and paper are several samples of:
a. Office expense
b. Office supplies
c. Office equipment
d. Prepayment
e. None of these
c - CORRECT ANSWER✔✔- QN=14 The difference between a company's assets and its
liabilities, or net assets is:
a. Net income.
b. Expense.
c. Equity.
d. Revenue.
e. Net loss.
a - CORRECT ANSWER✔✔- QN=15 Resources owned or controlled by a company that are
expected to yield future benefits are:
