Accounting Basics Quiz_Chap 1 (1)_Dr. Richard Ngo
Authored by Richard Ngo
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University
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20 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Accounting is an information and measurement system that identifies, records, and communicates an organization's business activities.
true
false
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Internal users of accounting information do not directly run the organization and have limited access to its accounting information.
true
false
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:
Assets increase $1,300 and liabilities decrease $1,300.
One asset increases $1,300 and another asset decreases $1,300, causing no effect.
Assets decrease $1,300 and equity decreases $1,300.
Assets decrease $1,300 and equity increases $1,300.
Assets increase $1,300 and liabilities increase $1,300.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
External users include lenders, shareholders, customers, and regulators.
true
false
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?
Assets would have increased $55,000.
Assets would have decreased $55,000.
Assets would have increased $93,000.
Assets would have decreased $93,000.
None of the above.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An accounting system captures relevant data about transactions and then classifies, records, and reports data.
true
false
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation?
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged.
There would be no effect on the accounts because the accounts are affected by the same amount.
Assets would increase $38,000 and liabilities would decrease $38,000.
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