ACCT105 Week 1 Quiz SCORE 100 PERCENT

Question 1 of 10
10.0/ 10.0 Points
The payment of cash to the supplier of services previously accounted for as a purchase on account would:

•
A. Increase an asset and increase a liability.
•
B. Increase an asset and increase stockholders’ equity.
•
C. Increase one asset and decrease another asset.
•
D. Decrease an asset and decrease a liability.
•
E. None of the above.




Question 2 of 10
10.0/ 10.0 Points
Investment of additional cash in the business by the stockholders would:

•
A. Decrease an asset and decrease a liability.
•
B. Increase an asset and increase a liability.
•
C. Increase an asset and increase stockholders’ equity.
•
D. Increase one asset and decrease another asset.
•
E. None of the above.




Question 3 of 10
10.0/ 10.0 Points
In accounting, the resources of a business organization are called:

•
A. Assets.
•
B. Proprietorship.
•
C. Creditors’ equity.
•
D. Stockholders’ equity.
•
E. None of the above.




Question 4 of 10
10.0/ 10.0 Points
The receipt of cash on account from customers would:

•
A. Decrease an asset and decrease a liability.
•
B. Increase one asset and decrease another asset.
•
C. Increase an asset and increase stockholders’ equity.
•
D. Increase an asset and increase a liability.
•
E. None of the above.




Question 5 of 10
10.0/ 10.0 Points
The accounting equation should be in balance only at the end of the year when the income of the period is determined.



A. True

B. False






Question 6 of 10
10.0/ 10.0 Points
The creditors of an organization are the companies and individual customers who owe the business for goods and services purchased on account.



A. True

B. False






Question 7 of 10
10.0/ 10.0 Points
Cash is increased when an outstanding account receivable is collected.



A. True
B. False






Question 8 of 10
10.0/ 10.0 Points
The payment of business debts:

•
A. Increases a liability account.
•
B. Increases stockholders’ equity.
•
C. Has no effect on stockholders’ equity.
•
D. Increases assets.




Question 9 of 10
10.0/ 10.0 Points
The purchase of equipment for cash would:

•
A. Decrease an asset and decrease a liability.
•
B. Increase an asset and increase a liability.
•
C. Increase one asset and decrease another asset.
•
D. Increase an asset and increase stockholders’ equity.
•
E. None of the above.




Question 10 of 10
10.0/ 10.0 Points
The statement of cash flows shows cash inflows and cash outflows from (select the false statement):

•
A. Operating activities.
•
B. Investing activities.
•
C. Intangible activities.
•
D. Financing activities.

ANSWER WILL BE SENT BY EMAIL.