大學(xué)《會(huì)計(jì)學(xué)原理》經(jīng)典練習(xí)題

True/FalseQuestionsAccountingisaninformationtsystemthatidentifies,records,andcommunicatesrelevant,reliable,andcomparableformationaboutanorganization^businessactivities.TRUEAnaccountinginformationsystemcommunicatesdatatohelpbusinessesmakebetterdecisions.TRUEManagerialaccountingistheareaofaccountingthatprovidesinternalreportstoassistthedecisionmakingneedsofinternalusers.TRUEInternaloperatingactivitiesincluderesearchanddevelopment,distribution,andhumanresources.TRUEExternalusersincludelenders,shareholders,customers,andregulators.TRUERegulatorsoftenhavelegalauthorityovercertainactivitiesoforganizations.TRUEInternalusersincludelenders,shareholders,brokersandmanagers.FALSEOpportunitiesinaccountingincludeauditing,consulting,marketresearch,andtaxplanning.TRUEIdentifyingtheproperethicalpathiseasy.FALSEGoodethicsaregoodbusiness.TRUE//.TheSarbanes-OxleyAct(SOX)doesnotrequirepubliccompaniestoapplybothaccountingoversightandstringentinternalcontrols.FALSEOwnersofacorporationarecalledshareholdersorstockholders.TRUEInthepartnershipformofbusiness,theownersarecalledstockholders.FALSEAsoleproprietorshipisoneormoreindividualssellingproductsorservicesforprofit.FALSEAccountinginformationiscommunicatedtovariouspartiesthroughfinancialstatements.TRUETheFinancialAccountingStandardsBoardistheprivategroupthatsetsbothbroadandspecificaccountingprinciples.TRUEThebusinessentityprinciplemeansthatabusinesswillcontinueoperatingforanindefiniteperiodoftime.FALSEGenerallyacceptedaccountingprinciplesarethebasicassumptions,concepts,andguidelinesforpreparingfinancialstatements.TRUEThebusinessentityprinciplemeansthatabusinessisaccountedforseparatelyfromotherbusinessentities,includingitsownerorowners.TRUEAsageneralrule,revenuesshouldnotberecognizedintheaccountingrecordsuntilitisreceivedincash.FALSESpecificaccountingprinciplesarebasicassumptions,concepts,andguidelinesforpreparingfinancialstatementsandariseoutoflong-usedaccountingpractice.FALSEGeneralaccountingprinciplesarisefromlong-usedaccountingpractice.TRUEAsoleproprietorshipisabusinessownedbyoneormorepersons.FALSEUnlimitedliabilityisanadvantageofasoleproprietorship.FALSEUnderstandinggenerallyacceptedaccountingprinciplesisnotnecessarytouseandinterpretfinancialstatements.FALSETheInternationalAccountingStandardsboard(IASB)hastheauthoritytoimposeitsstandardsoncompaniesaroundtheworld.FALSETheideathatabusinesswillcontinuetooperateuntilitcansellitsassetstopayitscreditorsunderliesthegoing-concernassumption.FALSEAlimitedliabilitycompanyoffersthelimitedliabilityofapartnershiporproprietorshipandthetaxtreatmentofacorporation.FALSETheSecuritiesandExchangeCommission(SEC)isthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic.TRUETheSecuritiesandExchangeCommission(SEC)istheprivategroupthatsetsbothbroadandspecificaccountingstandards.FALSEThethreecommonformsofbusinessownershipincludesoleproprietorship,partnership,andnon-profit.FALSEThethreemajortypesofbusinessactivitiesareoperating,financing,andinvesting.TRUEPlanningisdefininganorganization'sideas,goals,andactions.TRUEStrategicmanagementistheprocessofdeterminingtherightmixofoperatingactivitiesforthetypeoforganization,itsplans,anditsmarkets.TRUEPlanningactivitiesarethemeansanorganizationusestopayforresourceslikeland,buildings,andequipmenttocarryoutitsplans.FALSEve:C6Thethreemajoractivitiesofabusinessarerecording,financing,andinvesting.FALSEInvestingactivitiesaretheacquiringandsellingofresourcesthatanorganizationusestoacquireandsellitsproductsorservices.TRUE:C6Ownerfinancingreferstoresourcescontributedbycreditorsorlenders.FALSERevenuesareincreasesinequityfromacompany'searningactivities.TRUEAnetlossoccurswhenrevenuesexceedexpenses.FALSENetincomeoccurswhenrevenuesexceedexpenses.TRUEExpensesdecreaseequityandarethecostsofassetsorservicesusedtoearnrevenues.TRUELiabilitiesaretheowner'sclaimonassets.FALSEAssetsaretheresourcesownedorcontrolledbyabusiness.TRUEWithdrawalsareexpenses.FALSETheaccountingequationcanberestatedas:Assets-Equity=Liabilities.TRUETheaccountingequationimpliesthat:Assets+Liabilities=Equity.FALSEThebalancesheetisalsocalledthestatementoffinancialpositionbecauseitdescribesthefinancialpositionofthebusinessatapointintime.TRUEsyRevenuesoccurwhenexpensesexceedassets.FALSEAcompanymightprovideaserviceorproductoncredit."Oncredit"impliesthatthecashpaymentwilloccuronalaterdate.TRUEOwner'sinvestmentsaregrossincreasesinequityfromacompany'searningsactivities.FALSEThelegitimateclaimsofabusiness'screditorstakeprecedenceovertheclaimsofthebusinessowner.TRUENetincomeistheexcessofexpensesoverrevenues,whereasnetlossistheexcessofrevenuesoverexpenses.FALSEEverybusinesstransactionleavestheaccountingequationinbalance.TRUEAnexternaltransactionisanexchangeofvaluewithinanorganization.FALSEFromanaccountingperspective,aneventisahappeningthataffectsanentity'saccountingequation,butcannotbemeasured.FALSEOwnefsequityisincreasedwhencashisreceivedfromcustomersinpaymentofpreviouslyrecordedaccountsreceivable.FALSEAnowner'sinvestmentinabusinessalwayscreatesanasset(cash),aliability(notepayable),andowner'sequity(investment.)FALSE7().Netassetsalwaysincreasewhenrevenueisrecorded.TRUEReturnonassetsisoftenstatedinratioformastheamountofaveragetotalassetsdividedbyincome.FALSEReturnonassetsisalsoknownasreturnoninvestment.TRUEReturnonassetsisusefultodecisionmakersforevaluatingmanagement,analyzingandforecastingprofits,andinplanningactivities.TRUEReebok'snetincomeof$117millionandaverageassetsof$1,400millionresultsinareturnonassetsof8.36%.TRUEReturnonassetsmeasurestheeffectivenessofanorganization'sabilitytogenerateprofitusingitsassets.TRUEt:A4Riskistheamountofuncertaintyaboutthereturnweexpecttoearn.TRUEg:A4Generallythelowertherisk,thelowerthereturnthatcanbeexpected.TRUEg:A4U.S.GovernmentTreasurybondsprovidehighreturnandlowrisktoinvestors.FALSEg:A4Thefourbasicfinancialstatementsincludethebalancesheet,incomestatement,statementofowner'sequity,andstatementofcashflows.TRUEsyAnincomestatementreportsoninvestingandfinancingactivities.FALSEAbalancesheetcoversaperiodoftimesuchasamonthoryear.FALSETheincomestatementisafinancialstatementthatshowsrevenuesearnedandexpensesincurredduringaspecifiedperiodoftime.TRUEThestatementofcashflowsshowstheneteffectofrevenuesandexpensesforareportingperiod.FALSETheincomestatementshowsthefinancialpositionofabusinessonaspecificdate.FALSEThefirstsectionoftheincomestatementreportscashfromoperations.FALSEThebalancesheetisbasedontheaccountingequation.TRUEOwner'scontributionsandwithdrawalsarereportedontheincomestatement.FALSEInvestingactivitiesinvolvethebuyingandsellingofassetssuchaslandandequipmentthatareheldforlong-termuseinthebusiness.TRUEOperatingactivitiesincludelong-termborrowingandrepayingcashfromlenders,andcashinvestmentsorwithdrawalsbytheowner.FALSEThepurchaseofsuppliesappearsonthestatementofcashflowsasaninvestingactivitybecauseitinvolvesthepurchaseofassets.FALSETheincomestatementreportsonoperatingactivitiesatapointintime.FALSEThestatementofcashflowsreportsoncashflowsseparatedintooperating,investing,andfinancingactivitiesoveraperiodoftime.TRUEChuckTaylorinvested$175,000cashinFastForward.Thisamountwouldbereportedinthestatementofcashflowsunderfinancingactivities.TRUEChuckTaylorwithdrew$6,000incashfromFastForward.Thisamountshouldbeincludedasanexpenseontheincomestatement.FALSEMultipleChoiceQuestionsAccountingisaninformationtsystemthat:Identifiesbusinessactivities.Recordsbusinessactivities.Communicatesbusinessactivities.Helpspeoplemakebetterdecisions.Allofthese.TechnologyHasreplacedaccounting.Hasnotchangedtheworkthataccountantsdo.Hascloselylinkedaccountingwithconsulting,planning,andotherfinancialservices.Inaccountinghasreplacedtheneedfordecisionmakers.Inaccountingisonlyavailabletolargecorporations.AACSB:TechnologyyAICPAFN:LeveragingTechnology:C1Theprimaryobjectiveoffinancialaccountingis:Toservethedecision-makingneedsofinternalusers.Toprovidefinancialstatementstohelpexternalusersanalyzeanorganization^activities.Tomonitorandcontrolcompanyactivities.Toprovideinformationonboththecostsandbenefitsoflookingafterproductsandservices.Toknowwhat,when,andhowmuchtoproduce.sy:C2Internalusersofaccountinginformationinclude:Shareholders.B?Managers.Lenders.Suppliers.Customers.Theareaofaccountingaimedatservingthedecisionmakingneedsofinternalusersis:A.Financialaccounting.B?Managerialaccounting.Externalauditing.SECreporting.Bookkeeping.:C2Theoperatingfunctionsofabusinessinclude:Researchanddevelopment.Purchasing.Marketing.Distribution.E?Allofthese.sy:C2C3Careeropportunitiesinaccountinginclude:Auditing.Managementconsulting.Taxaccounting.Costaccounting.Allofthese.:C3Careeropportunitiesinaccountinginclude:A.Budgeting.Auditing.Costaccounting.InternalAuditing.Allofthese.sy:C3Accountingcertificationsincludethe:CertifiedPublicAccountant.CertifiedManagementAccountant.CertifiedInternalAuditor.PersonalFinancialSpecialistAllofthese.yACertifiedPublicAccountantMustmeeteducationandexperiencerequirementsMustpassanexaminationMustexhibitethicalcharacterMayalsobeaCertifiedManagementAccountant.Allofthese.:C3Ethicalbehaviorrequires:Thatauditors*paynotdependonthefiguresintheclientsreports.Auditorstoinvestinbusinessestheyaudit.Analyststoreportinformationfavorabletotheircompanies.Managerstouseaccountinginformationtobenefitthemselves.Allofthese.AACSB:EthicsI:C4Socialresponsibility:Isaconcernfortheimpactofouractionsonsociety.Isacodethathelpsindealingwithconfidentialinformation.IsrequiredbytheSEC.Requiresthatallbusinessesconductsocialaudits.Allofthese.AACSB:Ethicsy108.AACSB:Ethicsy:C4:C5Businessescantakethefollowingform(s):Soleproprietorship.Commonstock.Partnership.D?AandConly.E.Allofthese.:C5Acorporation:Isabusinesslegallyseparatefromitsowners.IscontrolledbytheFASB.Hasshareholderswhohaveunlimitedliabilityfortheactsofthecorporation.Isthesameasalimitedliabilitypartnership.Allofthese.:C5Therulesadoptedbytheaccountingprofessionasguidesinpreparingfinancialstatementsare:Comprisedofbothgeneralandspecificprinciples.Knownasgenerallyacceptedaccountingprinciples.AbbreviatedasGAAP.Intendedtomakeinformationinfinancialstatementsrelevant,reliable,andcomparable.Allofthese.sy:C5Thecommitteethatattemptstocreatemoreharmonyamongtheaccountingpracticesofdifferentcountriesbyidentifyingpreferredpracticesandencouragingtheirworldwideacceptanceisthe:AICPA.FASB.C.CAP.D.SEC.E.IASB.A1CPABB:Global:C5Theprivategroupthatcurrentlyhastheauthoritytoestablishgenerallyacceptedaccountingprinciplesisthe:APB.FASB.AAA.AICPA.SEC.Theaccountingassumptionthatrequireseverybusinesstobeaccountedforseparatelyfromotherbusinessentities,includingitsownerorownersisknownasthe:Objectivityprinciple.Businessentityassumption.Going-concernassumption.Revenuerecognitionprinciple.Costprinciple.:C5Therulethatrequiresfinancialstatementstoreflecttheassumptionthatthebusinesswillcontinueoperatinginsteadofbeingclosedorsold,unlessevidenceshowsthatitwillnotcontinue,isthe:Going-concernprinciple.Businessentityprinciple.Objectivityprinciple.CostPrinciple.Monetaryunitprinciple.Rulesadoptedbytheaccountingprofessionasguidesinmeasuring,recording,andreportingthefinancialconditionandactivitiesofabusiness:Arecomprisedofbothgeneralandspecificprinciples.Areknownasgenerallyacceptedaccountingprinciples.AreabbreviatedasGAAP.Arisefrombothlong-usedpracticesandfromrulingsofauthoritativegroups.E?Allofthese.:C5Toincludethepersonalassetsandtransactionsofabusiness*sownerintherecordsandreportsofthebusinesswouldbeinconflictwiththe:Objectivityprinciple.Realizationprinciple.Businessentityprinciple.Going-concernprinciple.Revenuerecognitionprinciple.:C5Theaccountingprinciplethatrequiresaccountinginformationtobebasedonactualcostandrequiresassetsandservicestoberecordedinitiallyatthecashorcash-equivalentamountgiveninexchange,isthe:Accountingequation.Costprinciple.Going-concernprinciple.Realizationprinciple.Businessentityprinciple.:C5Generallyacceptedaccountingprinciples:Arebasedonlongusedaccountingpractices.Arebasicassumptions,concepts,andguidelinesinpreparingfinancialstatements.Aredetailedrulesusedinreportingonbusinesstransactionsandevents.Arisefromtherulingsofauthoritativebodies.E?Allofthese.:C5Theobjectivityprinciple:Meansthatinformationissupportedbyindependent,unbiasedevidence.Meansthatinformationcanbebasedonwhatthepreparerthinksistrue.Meansthatfinancialstatementsshouldcontaininformationthatisoptimistic.Meansthatabusinessmaynotreorganizerevenueuntilcashisreceived.Allofthese.:C5Therulethat(1)requiresrevenuetoberecognizedatthetimeitisearned,(2)allowstheinflowofassetsassociatedwithrevenuetobeinaformotherthancash,and(3)measurestheamountofrevenueasthecashplusthecashequivalentvalueofanynoncashassetsreceivedfromcustomersinexchangeforgoodsorservices,iscalledthe:Going-concernprinciple.Costprinciple.Revenuerecognitionprinciple.Objectivityprinciple.Businessentityprinciple:C5Thequestionofwhenrevenueshouldberecognizedontheincomestatement(accordingtoGAAP)isaddressedbythe:A,Revenuerecognitionprinciple.B.Going-concernprinciple.CObjectivityprinciple.Businessentityprinciple.Costprinciple.:C5TheInternationalAccountingStandardsBoard(IASB)HopestocreateharmonyamongaccountingpracticesofdifferentcountriesIsthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic.Hastheauthoritytoimposeitsstandardsoncompanies.Istheonlysourceofgenerallyacceptedaccountingprinciples(GAAP).OnlyappliestocompaniesthataremembersoftheEuropeanUnion.sAICPABB:Global:C5TheMaximumExperienceCompanyacquiredabuildingfor$500,000.MaximumExperiencehadthebuildingappraised,andfoundthatthebuildingwaseasilyworth$575,000.Thesellerhadpaid$300,000forthebuilding6yearsago.WhichaccountingprinciplewouldrequireMaximumExperienceusetorecordthebuildingonitsrecordsat$5(X),()()0?MonetaryunitprincipleGoing-concernprincipleCostprincipleBusinessentityprincipleRevenuerecognitionprinciple:C5Alimitedpartnership:Includesageneralpartnerwithunlimitedliability.Issubjecttodoubletaxation.Hasownerscalledstockholders.Isthesameasacorporation.Mayonlyhavetwopartners.:C5Apartnership:Isalsocalledasoleproprietorship.Hasunlimitedliability.Hastohaveawrittenagreementinordertobelegal.Isalegalorganizationseparatefromitsowners.Hasownerscalledshareholders.Accordingtogenerallyacceptedaccountingprinciples,acompany'sbalancesheetshouldshowthecompany'sassetsat:A,Thecashequivalentvalueofwhatwasgivenuporreceived.Thecurrentmarketvalueoftheassetreceivedinallcases.Thecashpaidonly,evenifsomethingotherthancashwasgivenintheexchange.Thebestestimateofacertifiedinternalauditor.Theobjectivevaluetoexternalusers.:C5133.Whichofthefollowingaccountingprincipleswouldrequirethatallgoodsandservicespurchasedberecordedatcost?Going-concernprinciple.Continuing-concernprinciple.Costprinciple.Businessentityprinciple.Considerationprinciple.135.Ifaparceloflandthatwasoriginallypurchasedfor$85,000isofferedforsaleat$150,000,isassessedfortaxpurposesat$95,000,isrecognizedbyitspurchasersaseasilybeingworth$140,000,andissoldfor$137,000,thelandaccounttransactionamounttohandlethesaleofthelandintheseller'sbooksis:$85,000increase$85,000decreaseC.$137,000increaseD.$137,000decreaseE.Noneofthese136.Ifaparceloflandthatwasoriginallypurchasedfor$85,000isofferedforsaleat$150,000,isassessedfortaxpurposesat$95,000,isrecognizedbyitspurchasersaseasilybeingworth$140,(XX),andissoldfor$137,0(X).Whatistheeffectofthesaleontheaccountingequationfortheseller?A?Assetsincrease$52,0(X);owner'sequityincreases$52,000Assetsincrease$85,000;owner'sequityincreases$85,(XX)Assetsincrease$137,000;owner'sequityincreases$137,000Assetsincrease$140,000;owner'sequityincreases$140,000Noneofthese$137,000-$85,000=$52,000:C5137.Ifaparceloflandthatwasoriginallypurchasedfor$85,000isofferedforsaleat$150,000,isassessedfortaxpurposesat$95,000,isrecognizedbyitspurchasersaseasilybeingworth$140,000,andissoldfor$137,000.Atthetimeofthesale,assumethatthesellerstillowed$30,000toTrustOneBankonthelandthatwaspurchasedfor$85,000.Immediatelyafterthesale,thesellerpaidofftheloantoTrustOneBank.Whatistheeffectofthesaleandthepayoffoftheloanontheaccountingequation?A.Assetsincrease$52,0(X);owner'sequityincreases$22,000;liabilitiesdecrease$30,000B.Assetsincrease$52,000;owner'sequityincreases$30,(XX);liabilitiesdecrease$3(),(XX)CAssetsincrease$22,0(X);owner'sequityincreases$52,000;liabilitiesdecrease$30,000D.Assetsdecrease$30,000;owner'sequitydecreases$30,000;liabilitiesdecrease$30,000E.Assetsdecrease$55,000;owner'sequitydecreases$55,000;liabilitiesdecrease$30,000$137,000-$85,000-30,000=22,000Anexampleofanoperatingactivityis:Payingwages.Purchasingofficeequipment.Borrowingmoneyfromabank.Sellingstock.Payingoffaloan.:C6Planningactivities:Arethemeansorganizationsusetopayforresources.Involvetheacquiringanddisposingofresourcesthatanorganizationusestoacquireandsellitsproductsorservices.Involvedefiningtheideas,goals,andactionsofanorganization.Arethecarryingoutofanorganization^plans.Involveusingresourcestoresearch,develop,purchase,produce,andmarketproductsandservices.y:C6Operatingactivities:Arethemeansorganizationsusetopayforresourceslikeland,buildingsandequipment.Involveusingresourcestoresearch,develop,purchase,produce,distributeandmarketproductsandservices.Involveacquiringanddisposingofresourcesthatabusinessusestoacquireandsellitsproductsorservices.Arealsocalledassetmanagement.Arealsocalledstrategicmanagement.$y:C6Themajoractivitiesofabusinessinclude:Operating.Financing.Investing.Allofthese.:C6Anexampleofaninvestingactivityis:Payingwagesofemployees.Withdrawalsbytheowner.C?Purchaseofland.Sellinginventory.Contributionfromowner.:C6NetIncome:Decreasesequity.Representstheamountofassetsownersputintoabusiness.Equalsassetsminusliabilities.Istheexcessofrevenuesoverexpenses.Representsowners*claimsagainstassets.yAssets=$192,000+$300,000=$492,000Resourcesownedorcontrolledbyacompanythatareexpectedtoyieldfuturebenefitsare:Assets.Revenues.Liabilities.Owner'sEquity.Expenses.Grossincreasesinequityfromacompany'searningsactivitiesare:A.Assets.B.Revenues.C.Liabilities.D.Owner'sEquity.EExpenses.Netincomeis:Assetsminusliabilities.Theexcessofrevenuesoverexpenses.Anasset.Thesameasrevenue.Theexcessofexpensesoverequity.Thedifferencebetweenacompany'sassetsanditsliabilities,ornetassetsis:Netincome.Expense.Equity.Revenue.Netloss.syCreditors1claimsontheassetsofacompanyarecalled:Netlosses.Expenses.Revenues.Equity.Liabilities.yDecreasesinequitythatrepresentcostsofassetsorservicesusedtoearnrevenuesarecalled:Liabilities.Equity.Withdrawals.Expenses.Owner'sInvestment.syThedescriptionoftherelationbetweenacompany'sassets,liabilities,andequity,whichisexpressedasAssets=Liabilities+Equity,isknownasthe:Incomestatementequation.Accountingequation.Businessequation.Returnonequityratio.Netincome.syAssets=Liabilities+Equityisknownasthe:Incomestatementequation.Costprinciple.Objectivityprinciple.Accountingequation.Transactionprinciple.Expenses:Increaseequity.Aregrossincreasesinequityfromacompany'searningactivity.Arethecostsofassetsorservicesusedtoearnrevenues.Occurwhenequityexceedsrevenue.Arecreditorsclaimsonassets.Netincome:Occurswhenrevenuesexceedexpenses.Isthesameasrevenue.Equalsresourcesownedorcontrolledbyacompany.Occurswhenexpensesexceedassets.Representsassetstakenfromacompanyforanownefspersonaluse.syRevenuesare:Thesameasnetincome.Theexcessofexpensesoverassets.ResourcesownedorcontrolledbyacompanyThegrossincreaseinequityfromacompany*searningactivities.Thecostsofassetsorservicesused.yAccountingIsaninformationtsystem.Identifies,records,andcommunicatesinformationaboutbusinessactivitiesHelpspeoplemakebetterdecisionsInvolvesinterpretinginformationanddesigninginformationsystemstoprovideusefulreportsthatmonitorandcontrolacompany'sactivities.AllofthesesyIfassetsare$99,000andliabilitiesare$32,000,thenequityequals:$32,000.$67,000.$99,(XX).$131,000.$198,00().Equity=$99,000-$32,0(X)=$67,0(X)yAnothernameforequityis:Netincome.Expenses.CNetassets.D.Revenue.E.Netloss.Theexcessofexpensesoverrevenuesforaperiodis:Netassets.Equity.Netloss.Netincome.Aliability.Whichofthefollowingstatementsistrueaboutassets?Theyareeconomicresourcesownedorcontrolledbythebusiness.Theyareexpectedtoprovidefuturebenefitstothebusiness.Theyappearonthebalancesheet.Claimsonthemcanbesharedbetweencreditorsandowners.Allofthese.syApaymenttoanowneriscalleda(n):A.Liability.B?Withdrawal.C.Expense.D.Contribution.E.Investment.yDistributionsbyabusinesstoitsownersarecalled:A?Withdrawals.Expenses.Assets.Retainedearnings.NetIncome.Thebalancesheetequationis:Revenuesminusexpensesequalsnetincome.Debitsequalcredits.Thebookkeepingphaseofaccounting.Anothernamefortheaccountingequation.Assetsminusliabilitiesandequity.syTheassetsofacompanytotal$700,000;theliabilities,$200,000.Whataretheclaimsoftheowners?A.$9(X),000.B.$700,000.C.$50(),000.D.$200,000.E.Itisimpossibletodetermineunlesstheamountofthisowners'investmentisknown.$700,000-$200,000=$500,000OnJune30ofthecurrentyear,theassetsandliabilitiesofPhoenixPhildellareasfollows:Cash$20,500;AccountsReceivable,$7,250;Supplies,$650;Equipment,$12,000;AccountsPayable,$9,300.Whatistheamountofowner'sequityasofJuly1ofthecurrentyear?A.$8,300B.$13,050C.$20,500D.$31,100E.$40,400$20,500+$7,250+$650+$12,0(X)-$9,300=$31,100Assetscreatedbysellinggoodsandservicesoncreditare:A.Accountspayable.B,Accountsreceivable.C.Liabilities.D.Expenses.E.Equity.Anexchangeofvaluebetweentwoentitiesiscalled:Theaccountingequation.Recordkeepingorbookkeeping.Abusinesstransaction.Anasset.NetIncome.PhotometerCompanypaidoff$30,000ofitsaccountspayableincash.Whatwouldbetheeffectsofthistransactionontheaccountingequation?Assets,$30,000increase;liabilities,noeffect;equity,$30,000increase.Assets,$30,000decrease;liabilities,$30,000decrease;equity,noeffect.Assets,$30,000decrease;liabilities,$30,(X)()increase;equity,noeffect.Assets,noeffect;liabilities,$30,000decrease;equity,$30,(XX)increase.Assets,$30,000decrease;liabilities,noeffect;equity$30,000decrease.yHowwouldtheaccountingequationofBostonCompanybeaffectedbythebillingofaclientfor$10,000ofconsultingworkcompleted?A.+$l(),(X)0accountsreceivable,-$10,000accountspayable.B.+$l(),0(X)accountsreceivable,+$10,000accountspayable.C.+$10,000accountsreceivable,+$10,000cash.D.+$10,000accountsreceivable,+$10,000revenue.E.+$10,000accountsreceivable,-$10,000revenue.ZionCompanyhasassetsof$600,000,liabilitiesof$250,000,andequityof$350,000.Itbuysofficeequipmentoncreditfor$75,000.Whatwouldbetheeffectsofthistransactionontheaccountingequation?Assetsincreaseby$75,000andexpensesincreaseby$75,000.Assetsincreaseby$75,0(X)andexpensesdecreaseby$75,(X)0.Liabilitiesincreaseby$75,0(X)andexpensesdecreaseby$75,(X)0.Assetsdecreaseby$75,000andexpensesdecreaseby$75,000.E?Assetsincreaseby$75,0(X)andliabilitiesincreaseby$75,00().yViscountCompanycollected$42,000cashonitsaccountsreceivable.Theeffectsofthistransactionasreflectedintheaccountingequationare:Totalassetsdecreaseandequityincreases.Bothtotalassetsandtotalliabilitiesdecrease.Totalassets,totalliabilities,andequityareunchanged.Bothtotalassetsandequityareunchangedandliabilitiesincrease.Totalassetsincreaseandequitydecreases.Iftheliabilitiesofabusinessincreased$75,000duringaperiodoftimeandtheowner'sequityinthebusinessdecreased$30,000duringthesameperiod,theassetsofthebusinessmusthave:Decreased$105,000.Decreased$45,000.Increased$30,000.D?Increased$45,000.E.Increased$105,(XX).ChangeinAssets=ChangeinLiabilities+ChangeinOwner'sEquityChangeinAssets=$75,000+(-$30,000)=+$45,000174.Iftheassetsofabusinessincreased$89,000duringaperiodoftimeanditsliabilitiesincreased$67,000duringthesameperiod,equityinthebusinessmusthave:A?Increased$22,000.Decreased$22,000.Increased$89,000.Decreased$156,000.Increased$156,000.ChangeinAssets=ChangeinLiabilities+ChangeinEquityChangeinOwner'sequity=+$89,000-$67,000=+$22,000Iftheliabilitiesofacompanyincreased$74,000duringa