Flag this Question Question 1 1 pts The standards that indicate how companies record and report economic events in the financial statements are…

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Question 11 pts

The standards that indicate how companies record and report economic events in the financial statements are 

Internal Revenue Service regulations.

Generally Accepted Accounting Principles.

Securities Exchange Commission regulations.

Financial Statement regulations.

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Question 21 pts

The cost principle requires that when assets are acquired, they be recorded at

appraisal value.

historical cost.

market price.

exchange price paid.

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Question 31 pts

_ and _ are assets, _ is a liability and _ is an owner’s equity accounts.

Cash, accounts payable, notes payable, owner’s drawings.

Accounts receivable, prepaid rent, accounts payable, unearned revenue.

Buildings, supplies, accounts receivable, owner’s drawings.

Prepaid insurance, accounts receivable, unearned revenue, owner’s capital.

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Question 41 pts

Revenues would result from

performance of a service.

initial investment of cash by owner.

collection from a customer on account.

payment of supplies purchased.

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Question 51 pts

The accounting equation for Gudgeyes Enterprises is as follows:

  Assets          Liabilities      Owner’s Equity

$120,000    =  $60,000      +     $60,000

If Gudgeyes collects $12,000 from a customer on account, the accounting equation after the transaction will be 

$120,000 = $60,000 +$60,000

$132,000 = $60,000 +$72,000

$132,000 = $66,000 +$66,000

$132,000 = $72,000 +$60,000

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Question 61 pts

Purchase of $500 supplies on account

increases an asset $500; decreases an asset $500.

increases an asset $500; increases a liability $500.

decreases a liability $500; increases owner’s equity $500.

decreases an asset $500; decreases a liability $500.

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Question 71 pts

Owner’s capital at the end of the period is equal to

owner’s capital at the beginning of the period plus net income minus liabilities.

owner’s capital at the beginning of the period plus net income minus drawings.

net income.

assets plus liabilities.

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Question 81 pts

A balance sheet

summarizes the changes in owner’s equity for a specific period of time.

reports the changes in assets, liabilities, and owner’s equity over a period of time.

reports the assets, liabilities, and owner’s equity at a specific date.

reports the revenues and expenses for a specific period of time.

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Question 91 pts

Carla’s Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $250,000 in expenses, and Carla withdrew $45,000. Carla’s Capital balance at the end of the year was

$200,000.

$230,000.

$290,000.

$245,000.

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Question 101 pts

A net loss will result during a time period when

liabilities exceed assets.

drawings exceed investments.

expenses exceed revenues.

revenues exceed expenses.

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