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Accounting I-Semester Test 14-15(Part II)

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1.
1 point
After each transaction, the basic accounting equation should remain in balance.
2.
1 point
Salan Optical is owned by Ali Salan. The transactions below all took place on April 15. Match the following codes with each transaction.

Transaction: Salan bought equipment for use in the business with cash, $1,850.
3.
1 point
A business transaction affects at least two accounts.
4.
1 point
____ is the legal document giving a business the right to operate as a corporation.
5.
1 point
In a(n) ____, people are free to produce the goods and services they choose.
6.
1 point
If Paul Abdou deposits $30,000 in a checking account in the name of his business, the two accounts affected are _______.
7.
1 point
The account, Accounts Receivable, is an example of a(n) ______.
8.
1 point
The owner's claims to the assets of a business are liabilities.
9.
1 point
The increases and decreases caused by business transactions are recorded in specific accounts.
10.
1 point
Each of the following is a business expense except a payment for ______.
11.
1 point
The total financial claims do not have to equal the total cost of the property.
12.
1 point
Income earned from the sale of goods and services is called ______.
13.
1 point
A business that two or more people agree to own together is a(n) ____.
14.
1 point
"Assets = Liabilities + Owner's Equity" is called the _____.
15.
1 point
____ are the rules accountants follow when recording and reporting accounting information.
16.
1 point
"Assets + Liabilities = Owner's Equity" is another way to express the basic accounting equation.
17.
1 point
______ are the prices paid for the goods and services used to operate a business.
18.
1 point
If a business spends more money to operate than it earns from the sale of goods or services, it is operating at a(n) ____.
19.
1 point
An economic event that causes a change in assets, liabilities, or owner's equity is called a(n) _______.
20.
1 point
If the creditor's financial claim to property totals $1,000 and the owner's financial claim to property totals $11,000, the property value is _______.
21.
1 point
An account is a record of only the increases in the balance of a specific item such as cash or equipment.
22.
1 point
The debts of a business are called its ______.
23.
1 point
When an owner takes cash or other assets out of a business for personal use, the transaction is called a(n) ______.
24.
1 point
_____ is the amount of money owed to a business's creditors.
25.
1 point
A(n) ____ is a business organization that must get permission from the state to operate.
26.
1 point
A business is operating at a(n) ____ if it earns more money than it spends.
27.
1 point
Under the ____ accounting assumption, a business owner must keep the financial records for the business separate from personal records.
28.
1 point
Salan Optical is owned by Ali Salan. The transactions below all took place on April 15. Match the following codes with each transaction.

Transaction: Received cash for an eye exam.
29.
1 point
The free enterprise system is based on the right to own property.
30.
1 point
____ is concerned with preparing reports for external users such as investors or creditors.
31.
1 point
____ summarize information about the financial status of a business.
32.
1 point
The total amount of money to be received in the future for goods or services sold on credit is the ________.
33.
1 point
One of the purposes of accounting is to provide financial information about property and the rights to that property.
34.
1 point
A(n) ____ buys finished goods and sells them to individuals or other businesses.
35.
1 point
Anything of value that is owned or controlled by an individual or a business is called ______.
36.
1 point
A business that produces items to sell to individuals and other businesses, namely merchandising businesses, is known as a(n) ____.
37.
1 point
Salan Optical is owned by Ali Salan. The transactions below all took place on April 15. Match the following codes with each transaction.

Transaction: Made a partial payment on account for office furniture purchased earlier.
38.
1 point
A creditor has a financial claim to the assets of a business.
39.
1 point
A business transaction that involves a purchase on account is considered to be a(n) _________.
40.
1 point
All of the following account titles are asset titles except ______.
41.
1 point
A business with a single owner is a(n) ____.
42.
1 point
Salan Optical is owned by Ali Salan. The transactions below all took place on April 15. Match the following codes with each transaction.

Transaction: Paid wages for optical assistants.
43.
1 point
The word equities refers to claims against the assets of a business by _____.
44.
1 point
The ____ is designed to collect, document, and report on the financial transactions affecting the business.
45.
1 point
____ is concerned with preparing information for internal users.
46.
1 point
Any property or item of value owned by a business is a(n) _____.
47.
1 point
A business that provides a needed service for a fee is called a(n) ____.
48.
1 point
The purchase of a desk on account will increase Office Furniture and will also increase_______.
49.
1 point
____ is money invested in a business by its owner(s) or the money provided by banks or investors.
50.
1 point
The owner's investment in the business is represented by the _____ account.
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