1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity....

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Accounting

1. The accounting equation is defined as: a. Common Stock +Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses =Net Income. c. Revenues - Expenses - Dividends = Retained Earnings.d. Assets = Liabilities + Stockholders’ Equity.
2. On January 1, Art Inc. started the year with a $492,000balance in Retained Earnings and a $605,000 balance in CommonStock. During the year, the company earned net income of $92,000,paid a dividend of $15,200, and issued more common stock for$27,500. What is total stockholders' equity at the end of the year?a. $1,231,700. b. $1,097,000. c. $1,201,300. d. $1,588,300.
3. Which financial statement is typically prepared first? a.Balance sheet. b. Income statement. c. Statement of stockholders’equity. d. Statement of cash flows.
4. Which of the following would increase assets and increaseliabilities? a. Provide services to customers on account. b.Purchase office supplies on account. c. Pay dividends tostockholders. d. Receive a utility bill but do not pay itimmediately. 2 / 10
5. The Unearned Revenue account is shown in which statement? a.Income statement. b. Statement of cash flows. c. Balance sheet. d.Statement of stockholders’ equity.
6. Consider the following accounts: Utility Expense AccountsPayable Service Revenue Common Stock How many of these accounts areincreased with credits? a. One. b. Two. c. Three. d. Four.
7. Schooner Inc. purchased equipment by signing a note payable.This transaction would be recorded as: a. Debit Equipment, creditCash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable,credit Equipment. d. Debit Equipment, credit Notes Payable.
8. Air France collected cash on February 4 from the sale of aticket to a customer on January 26. The flight took place on April5. According to the revenue recognition principle, in which monthshould Air France have recognized this revenue? a. January. b.February. c. April. d. Evenly in each of the three months.
9. Which of the following regarding adjusting entries iscorrect? a. Adjusting entries are recorded for all externaltransactions. b. Adjusting entries are recorded to make sure allcash inflows and outflows are recorded in the current period. c.Adjusting entries are needed because we use accrual-basisaccounting. d. After adjusting entries, all temporary accountsshould have a balance of zero. 3 / 10
10. An adjusted trial balance: a. Is a list of all accounts andtheir balances after adjusting entries. b. Is a list of allaccounts and their balances before adjusting entries. c. Is a listof all accounts and their balances after closing entries. d. Is atrial balance adjusted for cash-basis accounting.

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1 The accounting equation is defined as d Assets Liabilities Stockholders Equity 2 What is total stockholders equity at the end of the year Total stockholders equity 492000 605000 92000 15200 27500 1201300 See Answer

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1. The accounting equation is defined as: a. Common Stock +Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses =Net Income. c. Revenues - Expenses - Dividends = Retained Earnings.d. Assets = Liabilities + Stockholders’ Equity.2. On January 1, Art Inc. started the year with a $492,000balance in Retained Earnings and a $605,000 balance in CommonStock. During the year, the company earned net income of $92,000,paid a dividend of $15,200, and issued more common stock for$27,500. What is total stockholders' equity at the end of the year?a. $1,231,700. b. $1,097,000. c. $1,201,300. d. $1,588,300.3. Which financial statement is typically prepared first? a.Balance sheet. b. Income statement. c. Statement of stockholders’equity. d. Statement of cash flows.4. Which of the following would increase assets and increaseliabilities? a. Provide services to customers on account. b.Purchase office supplies on account. c. Pay dividends tostockholders. d. Receive a utility bill but do not pay itimmediately. 2 / 105. The Unearned Revenue account is shown in which statement? a.Income statement. b. Statement of cash flows. c. Balance sheet. d.Statement of stockholders’ equity.6. Consider the following accounts: Utility Expense AccountsPayable Service Revenue Common Stock How many of these accounts areincreased with credits? a. One. b. Two. c. Three. d. Four.7. Schooner Inc. purchased equipment by signing a note payable.This transaction would be recorded as: a. Debit Equipment, creditCash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable,credit Equipment. d. Debit Equipment, credit Notes Payable.8. Air France collected cash on February 4 from the sale of aticket to a customer on January 26. The flight took place on April5. According to the revenue recognition principle, in which monthshould Air France have recognized this revenue? a. January. b.February. c. April. d. Evenly in each of the three months.9. Which of the following regarding adjusting entries iscorrect? a. Adjusting entries are recorded for all externaltransactions. b. Adjusting entries are recorded to make sure allcash inflows and outflows are recorded in the current period. c.Adjusting entries are needed because we use accrual-basisaccounting. d. After adjusting entries, all temporary accountsshould have a balance of zero. 3 / 1010. An adjusted trial balance: a. Is a list of all accounts andtheir balances after adjusting entries. b. Is a list of allaccounts and their balances before adjusting entries. c. Is a listof all accounts and their balances after closing entries. d. Is atrial balance adjusted for cash-basis accounting.