ACC 201 Exam Study Questions with 100%
Correct Verified Answers
Refer to the above data. At the beginning of August, 2006, owners' equity in Waldorf.
was $180,000. Given the transactions of August, 2006, what will owners' equity be at
the end of the month?
a. $186,000.
b. $193,500.
c. $208,500.
d. $180,000. - Answer d. $180,000
If a company pays $17,000 for an expense with cash:
a. Total assets will decrease.
b. Retained earnings will decrease.
c. Owners' equity will decrease.
d. All three of the above statements are true. - Answer d. All three of the above
statements are true
11If a company purchases equipment for $70,000 cash:
aa Total assets will increase by $70,000.
bb. Total assets will decrease by $70,000.
cc. Total assets will remain the same.
dd. The company's total owners' equity will decrease. - Answer c. Total assets will
remain the same.
, Which of the following transactions does not affect the total assets of Alapocas Corp.?
a. Dividends are paid by Alapocas.
b. A bill is received for telephone service used by Alapocas during the past month.
c. Customers are billed for sales made on credit by Alapocas.
d. A new computer is purchased on credit by Alapocas. - Answer b. A bill is received for
telephone service used by Alapocas during the past month.
Which of the following transactions affects the liabilities for Mears, Inc.?
a. Supplies are purchased for cash by Mears.
b. Mears places an order for merchandise with a supplier; the merchandise will be
shipped to Mears in 60 days.
c. The owners of Mears invest $100,000 in the company.
d. Payment is made for a bank loan which Mears had obtained 6 months ago. - Answer
d. Payment is made for a bank loan which Mears had obtained 6 months ago.
The owner of Maine Lobster Restaurant purchased a new car for his daughter who is
away at college at a cost of $39,000 and reported this amount as Delivery Vehicle in the
restaurant's balance sheet. The reporting of this item in this manner violated the:
a. Cost principle.
b. Business entity concept
c. Objectivity principle.
d. Going-concern assumption. - Answer b. Business entity concept
In a ledger, debit entries cause:
a. Increases in owners' equity, decreases in liabilities, and increases in assets.
b. Decreases in liabilities, increases in assets, and decreases in owners' equity.
c. Decreases in assets, decreases in liabilities, and increases in owners' equity.
Correct Verified Answers
Refer to the above data. At the beginning of August, 2006, owners' equity in Waldorf.
was $180,000. Given the transactions of August, 2006, what will owners' equity be at
the end of the month?
a. $186,000.
b. $193,500.
c. $208,500.
d. $180,000. - Answer d. $180,000
If a company pays $17,000 for an expense with cash:
a. Total assets will decrease.
b. Retained earnings will decrease.
c. Owners' equity will decrease.
d. All three of the above statements are true. - Answer d. All three of the above
statements are true
11If a company purchases equipment for $70,000 cash:
aa Total assets will increase by $70,000.
bb. Total assets will decrease by $70,000.
cc. Total assets will remain the same.
dd. The company's total owners' equity will decrease. - Answer c. Total assets will
remain the same.
, Which of the following transactions does not affect the total assets of Alapocas Corp.?
a. Dividends are paid by Alapocas.
b. A bill is received for telephone service used by Alapocas during the past month.
c. Customers are billed for sales made on credit by Alapocas.
d. A new computer is purchased on credit by Alapocas. - Answer b. A bill is received for
telephone service used by Alapocas during the past month.
Which of the following transactions affects the liabilities for Mears, Inc.?
a. Supplies are purchased for cash by Mears.
b. Mears places an order for merchandise with a supplier; the merchandise will be
shipped to Mears in 60 days.
c. The owners of Mears invest $100,000 in the company.
d. Payment is made for a bank loan which Mears had obtained 6 months ago. - Answer
d. Payment is made for a bank loan which Mears had obtained 6 months ago.
The owner of Maine Lobster Restaurant purchased a new car for his daughter who is
away at college at a cost of $39,000 and reported this amount as Delivery Vehicle in the
restaurant's balance sheet. The reporting of this item in this manner violated the:
a. Cost principle.
b. Business entity concept
c. Objectivity principle.
d. Going-concern assumption. - Answer b. Business entity concept
In a ledger, debit entries cause:
a. Increases in owners' equity, decreases in liabilities, and increases in assets.
b. Decreases in liabilities, increases in assets, and decreases in owners' equity.
c. Decreases in assets, decreases in liabilities, and increases in owners' equity.
