ACCT 212 Week 2 Quiz

 ACCT 212 Week 2 Quiz | Devry University

Question 1

 (CO 2) A company received cash in exchange for issuing stock. This transaction increased assets and

A.      increased expenses.  

B.      increased revenues.  

C.      increased liabilities.  

D.      increased equity.

Question 2

 (CO 2) Which of the following transactions will increase stockholders' equity?

A.      The company pays a dividend to its shareholders.  

B.      The company issues common stock to new shareholders.  

C.      The president of the company buys a new personal automobile.  

D.      The company makes a payment on account.

Question 3

 (CO 2) When a company pays an amount it owes a creditor  

A.      assets are decreased and net income is decreased.  

B.      assets are decreased and liabilities are increased.  

C.      liabilities are decreased and net income is increased.  

D.      assets are decreased and liabilities are decreased.

Question 4

 (CO 2) The left side of a T-account is always the  

A.      increase side.  

B.      decrease side.  

C.      debit side.  

D.      credit side.

Question 5

 (CO 2) An account is increased by a debit and has a debit balance. This account is  

A.      an expense account.  

B.      a liability account.  

C.      an asset account.  

D.      both an expense account and an asset account.

Question 6

 (CO 2) Accounting transactions are initially recorded in the  

A.      T-account.  

B.      ledger.  

C.      journal.  

D.      financial statements.

Question 7

 (CO 3) Under accrual accounting, the impact of a business transaction is recorded  

A.      as it occurs.  

B.      when cash is received or paid.  

C.      at the end of the accounting period.  

D.      only if the amount of the transaction is material.

Question 8

 (CO 3) The event that triggers revenue recognition for the sale of goods is the  

A.      date a contract is signed.  

B.      date cash is received.  

C.      transfer of control of the goods to the purchaser.  

D.      completion of the services.

Question 9

 (CO 3) The balance sheet reports  

A.      assets, liabilities, and stockholders' equity.  

B.      the changes in retained earnings.  

C.      assets, liabilities, revenues, and expenses.  

D.      revenues and expenses.

Question 10

 (CO 3) After the closing entries are prepared,  

A.      all asset accounts will have a zero balance.  

B.      the retained earnings account will have the correct ending balance.  

C.      the temporary accounts will have debit balances.  

D.      all liability accounts will have a zero balance.