Question 1

Who is responsible for preparing a companys financial statements? Company management The company's tax department The Financial Accounting Standards Board The company's external auditor The audit committee of the Board of Directors

Question 2
Which of the following is an asset? (check all that apply) Common Stock Retained Earnings Cash Prepaid Rent Notes Payable

Question 3
What are Ending Retained Earnings in the table below? Total Assets Total Liabilities Total Stockholders Equity Beginning Retained Earnings Ending Retained Earnings Dividends Revenues Expenses Net Income Cash
Not enough information

300 120

30 ? 10 190 140

50

20 70 50 -20

Question 4
Which of the following transactions violates the balance sheet equation? (check all that apply) Reduce cash and reduce a liability Increase cash and increase an expense Increase cash and reduce inventory (a non-cash asset) Increase revenues and reduce a liability Increase cash and reduce a liability

Question 5
Which of the following are liabilities? (check all that apply) Salaries Payable Retained Earnings Prepaid Rent Common Stock Employment Contracts

Question 6
Which of the following accounts would be increased with a Credit? (check all that apply) Additional Paid-in Capital Revenue Inventory Prepaid Rent Notes Payable

Question 7

Which of these journal entries represent paying cash to reduce a liability? (check all that apply) Dr. Cash 1000 1000

Cr. Notes Payable

Dr. Land Cr. Cash

100 100

Dr. Income Taxes Payable Cr. Cash

500 500

Dr. Cash

300 300

Cr. Accounts Payable

Dr. Retained Earnings Cr. Cash

500 500

Question 8
Which journal entry reflects the following transaction?:

BOC sold 10,000 shares of $1 par value stock to investors for $5 per share.

Dr. Common Stock Dr. Additional Paid-in Capital Cr. Cash

10,000 40,000 50,000

Dr. Cash Cr. Common Stock

10,000 10,000

Dr. Cash

50,000

Cr. Common Stock

10,000

Cr. Additional Paid-in Capital 40,000

Dr. Cash Cr. Common Stock

50,000 40,000

Cr. Additional Paid-in Capital 10,000

Dr. Cash Cr. Common Stock

50,000 50,000

Question 9
Which journal entry reflects the following transaction?:

BOC bought a $75,000 piece of equipment with cash.

Dr. Cash 75,000 Cr. Inventory 75,000 Dr. Prepaid Expense 75,000 Cr. Cash 75,000 Dr. Inventory Cr. Cash 75,000 75,000

Dr. Cash 75,000 Cr. Equipment 75,000 Dr. Equipment 75,000 Cr. Cash 75,000

Question 10
Which journal entry reflects the following transaction?:

BOC paid $3,000 upfront for next year's rent.

Dr. Rent Expense Cr. Cash 3,000 3,000

Dr. Cash Cr. Prepaid Rent Dr. Cash Cr. Rent Expense Dr. Prepaid Rent Cr. Cash Dr. Rent Revenue Cr. Cash

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000