Question 1
A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
a) Inventory
b) Total Assets
c) Total Liabilities
d) Accounts Receivable
e) Revenue
Question 2
A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
a) Total Stockholders’ Equity
b) Current Liabilities
c) Cash from Operations
d) Inventory
e) Cost of Goods Sold
Question 3
A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
a) Cash from Operations
b) Revenue
c) Accounts Receivable
d) Total Assets
e) Total Stockholders’ Equity
Question 4
A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
a) Total Liabilities
b) Total Assets
c) Accounts Receivable
d) Cash from Operations
e) Revenue
Question 5
A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
a) Revenue
b) Additional Paid in Capital
c) Total Liabilities
d) Cash from Operations
e) Total Assets
Question 6
A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this bank loan transaction? (check all that apply)
a) Notes Payable
b) Cash from Investing
c) Interest Payable
d) Revenue
e) Current Assets
Question 7
A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
a) Cash from Financing
b) Net Income
c) Dividend Expenses
d) Retained Earnings
e) Total Liabilities
Question 8
A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
a) Prepaid Insurance
b) Unearned Revenue
c) Current Assets
d) Total Stockholders’ Equity
e) Insurance Expense
Question 9
At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
a) Prepaid Advertising
b) Cost of Goods Sold
c) Total Liabilities
d) Cash from Operations
e) Advertising Expense
Question 10
A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
a) Cash from Financing
b) Notes Payable
c) Total Assets
d) Cash from Investing
e) Inventory
Question 11
At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
a) Cash from Operations
b) Total Assets
c) SG&A Expense
d) Accumulated Depreciation
e) Total Liabilities
Question 12
A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
a) Net Income
b) Total Assets
c) Cash from Operations
d) Equipment
e) Cash from Investing
