Bsbwor501 Quiz 1
Name:
Take home exam 1 Due by September 21st 11:59 pm CT
Worth total 30 pts.: 15 True/False and 3 problems
Please submit this one Word file template with your name typed on your document and your file saved with your initial of your first name and last name with Take home exam 1. Please upload to the Take home 1 assignment link.
The purpose of this take home exam is to give you the opportunity to practice your accounting skills before taking the proctored exam 1. This take home exam covers Chapters 1-3. These chapters are important foundation chapters and if you cannot understand these chapters it will impact your performance in later chapters. Please let me know if you have questions.
15 True False Total 7.5 pt. --1/2 pt. each. …show more content…
The going concern assumption infers that a company will continue to operate into the future.
Answer:T
5. A company in the process of liquidation is considered to be under the going concern assumption.
Answer:T
6. There are more corporations than sole proprietorships and partnerships in the United States.
Answer:F
7. The three main business activities are financing, operating, and investing.
Answer:T
8. Internal users of accounting information include present creditors and management.
Answer:F
9. The income statement summarizes the assets, liabilities and stockholders’ equity for a period of time.
Answer:F
10. The four basic financial statements are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows.
Answer:T
11. When a company recognizes the portion of supplies used during a year, the effect is to decrease net income.
Answer:T 12. Adjusting entries are prepared using the accrual basis of accounting for preparing financial …show more content…
Accrued revenue is recognized when cash is received.
Answer:F
14. Most companies use the accrual basis of accounting because it is required under generally accepted accounting principles.
Answer:T
15. Three months before its year-end, a company signed a $250,000, 12%, 8-month note. Principal and interest will be paid at maturity. No interest should be accrued at year-end because the company has no obligation to pay the interest until the note matures.
Answer:F
Problem 1 Worth total 7 pts.—1/2 pts. for each account
Health Clinic began business as a corporation in 2014. Several transactions which occurred early in 2014 are described below.
Required: Record each transaction in proper journal form, excluding written explanations in the journal set up below the transactions.
Jan. 23, 2014
Stockholders invested $70,000 in the business and received shares of common stock as evidence of ownership.
Feb. 1, 2014
Rent of $1,600 was paid for the month of February.
Feb. 7, 2014
Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days.
Feb. 14, 2014
Fees totaling $5,400 were billed to patients on account and are due within 30
Take home exam 1 Due by September 21st 11:59 pm CT
Worth total 30 pts.: 15 True/False and 3 problems
Please submit this one Word file template with your name typed on your document and your file saved with your initial of your first name and last name with Take home exam 1. Please upload to the Take home 1 assignment link.
The purpose of this take home exam is to give you the opportunity to practice your accounting skills before taking the proctored exam 1. This take home exam covers Chapters 1-3. These chapters are important foundation chapters and if you cannot understand these chapters it will impact your performance in later chapters. Please let me know if you have questions.
15 True False Total 7.5 pt. --1/2 pt. each. …show more content…
The going concern assumption infers that a company will continue to operate into the future.
Answer:T
5. A company in the process of liquidation is considered to be under the going concern assumption.
Answer:T
6. There are more corporations than sole proprietorships and partnerships in the United States.
Answer:F
7. The three main business activities are financing, operating, and investing.
Answer:T
8. Internal users of accounting information include present creditors and management.
Answer:F
9. The income statement summarizes the assets, liabilities and stockholders’ equity for a period of time.
Answer:F
10. The four basic financial statements are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows.
Answer:T
11. When a company recognizes the portion of supplies used during a year, the effect is to decrease net income.
Answer:T 12. Adjusting entries are prepared using the accrual basis of accounting for preparing financial …show more content…
Accrued revenue is recognized when cash is received.
Answer:F
14. Most companies use the accrual basis of accounting because it is required under generally accepted accounting principles.
Answer:T
15. Three months before its year-end, a company signed a $250,000, 12%, 8-month note. Principal and interest will be paid at maturity. No interest should be accrued at year-end because the company has no obligation to pay the interest until the note matures.
Answer:F
Problem 1 Worth total 7 pts.—1/2 pts. for each account
Health Clinic began business as a corporation in 2014. Several transactions which occurred early in 2014 are described below.
Required: Record each transaction in proper journal form, excluding written explanations in the journal set up below the transactions.
Jan. 23, 2014
Stockholders invested $70,000 in the business and received shares of common stock as evidence of ownership.
Feb. 1, 2014
Rent of $1,600 was paid for the month of February.
Feb. 7, 2014
Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days.
Feb. 14, 2014
Fees totaling $5,400 were billed to patients on account and are due within 30