ACCT 2101 Exam 1 Study Guide Chapters 1 – 3 questions with answers 2022

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1.The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) a. account payable. b. account receivable. c. revenue. d. expense. 2.... The right to receive money in the future is called a(n) a. account payable. b. account receivable. c. liability. d. revenue. 3.Which of the following is not a principal type of business activity? a. Operating b. Investing c. Financing d. Delivering 4.Borrowing money is an example of a(n) a. delivering activity. b. financing activity. c. investing activity. d. operating activity. 5.Which activities involve acquiring the resources to run the business? a. Delivering b. Financing c. Investing d. Operating 6.Which activities involve putting the resources of the business into action to generate a profit? a. Delivering b. Financing c. Investing d. Operating 7.When expenses exceed revenues, which of the following is true? a. a net loss results b. a net income results c. assets equal liabilities d. assets are increased 8.The retained earnings statement shows all of the following except: a. The amounts of changes in retained earnings during the period. b. The causes of changes in retained earnings during the period. c. The time period following the one shown for the income statement. d. Beginning retained earnings on the first line of the statement. 9.Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $225,000 from customers. What was Jackson’s net cash provided by operating activities? a. $75,000 (225000-135000-15000) b. $15,000 c. $90,000 d. $69,000 10.Which of the following financial statements is divided into major categories of operating, investing, and financing activities? a. The income statement. b. The balance sheet. c. The retained earnings statement. d. The statement of cash flows. [Show More]

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