Chap 1 Quiz - BA211
Content
Assignment Print View
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Score: 12
out of 12 points (100%)
award:
1 out of
1.00 point
On October 15, 2008, Myers Legal Services signed a $80,000 contract with a client to provide Legal services to the
client in 2009. Which accounting principle would require Myers Legal Services to record the Legal fees revenue in 2009
and not 2008?
Cost principle
Business entity principle
Monetary unit principle
Going-concern principle
Revenue recognition principle
award:
1 out of
1.00 point
If equity is $340,000 and liabilities are $199,000, then assets equal:
$141,000.
$539,000.
$738,000.
$199,000.
$340,000.
Assets = $199,000 + $340,000 = $539,000
award:
1 out of
1.00 point
A company has assets of $441,000 and equity is $136,000, then liabilities are:
$136,000.
$577,000.
$441,000.
$305,000.
$713,000.
Liabilities = $441,000 - $136,000 = $305,000
7/26/2014 9:21 AM
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award:
1 out of
1.00 point
How would the accounting equation of Boston Company be affected by the billing of a client for $70,000 of consulting
work completed?
+$70,000 accounts receivable, -$70,000 accounts payable.
+$70,000 accounts receivable, +$70,000 accounts payable.
+$70,000 accounts receivable, +$70,000 cash.
+$70,000 accounts receivable, +$70,000 consulting revenue.
+$70,000 accounts receivable, - $70,000 consulting revenue.
award:
1 out of
1.00 point
Beta Corporation purchased $80,000 worth of land by paying $8,000 cash and signing a $72,000 mortgage. Prior to this
transaction the corporation had assets, liabilities and owners' equity in the amounts of $134,000; $24,000; and $110,000
respectively. What is the total amount of Beta Corporation's assets after this transaction has been recorded?
$292,000
$134,000
$126,000
$206,000
$214,000
134,000 (assets prior to transaction) + 80,000 (land) – (8,000) cash = 206,000
award:
1 out of
1.00 point
Wright had cash inflows from operations $63,000; cash outflows from investing activities of $43,000; and cash inflows
from financing of $30,000. The net change in cash flows was:
$10,000 increase.
$136,000 decrease.
$136,000 increase.
$50,000 increase.
$50,000 decrease.
$63,000 - $43,000 + $30,000 = $50,000 increase
7/26/2014 9:21 AM
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award:
1 out of
1.00 point
Kevin has beginning equity of $251,000, net income of $53,000, dividends of $43,000 and investments by owners in
exchange for stock of $5,800. Its ending equity is:
$208,000.
$251,000.
$266,800.
$235,200.
$241,000.
$251,000 + $53,000 - $43,000 + $5,800 = $266,800
award:
1 out of
1.00 point
A parcel of land is offered for sale at $146,000, is assessed for tax purposes at $108,000, is recognized by its
purchasers as being worth $136,000, and is purchased for $133,000. The land should be recorded in the purchaser's
books at:
$139,000.
$133,000.
$108,000.
$146,000.
$136,000.
award:
1 out of
1.00 point
The Maximum Experience Company acquired a building for $600,000. Maximum Experience had an appraisal done,
and found that the building was worth $625,000. The seller had paid $450,000 for the building 6 years ago. Which
accounting principle would prescribe that Maximum Experience record the building on its records at $600,000?
Monetary unit principle
Business entity principle
Revenue recognition principle
Cost principle
Going-concern principle
7/26/2014 9:21 AM
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award:
1 out of
1.00 point
Rutland had income of $190 million and average assets of $2,700 million. Its return on assets is:
rev: 06_17_2011
190.00%.
7.04%.
0.70%.
14.21%.
15.54%.
$190 million/$2,700 million = 7.04%
award:
1 out of
1.00 point
Nike has net income of $18,990, and assets at the beginning of the year of $190,000. Its assets at the end of the year
total $249,000. Compute its return on assets.
9.99%.
8.65%.
12.85%.
11.56%.
7.63%.
$18,990/[($190,000 + $249,000)/2] = 18,990/219,500 = 8.65%
award:
1 out of
1.00 point
A company reported total equity of $146,000 on its December 31, 2008, balance sheet. The following information is
available for the year ended December 31, 2009:
2009 Revenues
2009 Expenses
Liabilities, at December 31, 2009
$250,000
163,000
85,000
What are the total assets of the company at December 31, 2009?
$413,000.
$233,000.
$148,000.
$318,000.
$172,000.
2009 net income = $250,000 - $163,000 = $87,000
2009 year-end equity = $146,000 + $87,000 = $233,000
2009 year-end assets = $233,000 + $85,000 = $318,000
7/26/2014 9:21 AM
1 of 4
http://ezto.mheducation.com/hm_accounting.tpx?todo=printview
Score: 12
out of 12 points (100%)
award:
1 out of
1.00 point
On October 15, 2008, Myers Legal Services signed a $80,000 contract with a client to provide Legal services to the
client in 2009. Which accounting principle would require Myers Legal Services to record the Legal fees revenue in 2009
and not 2008?
Cost principle
Business entity principle
Monetary unit principle
Going-concern principle
Revenue recognition principle
award:
1 out of
1.00 point
If equity is $340,000 and liabilities are $199,000, then assets equal:
$141,000.
$539,000.
$738,000.
$199,000.
$340,000.
Assets = $199,000 + $340,000 = $539,000
award:
1 out of
1.00 point
A company has assets of $441,000 and equity is $136,000, then liabilities are:
$136,000.
$577,000.
$441,000.
$305,000.
$713,000.
Liabilities = $441,000 - $136,000 = $305,000
7/26/2014 9:21 AM
Assignment Print View
2 of 4
http://ezto.mheducation.com/hm_accounting.tpx?todo=printview
award:
1 out of
1.00 point
How would the accounting equation of Boston Company be affected by the billing of a client for $70,000 of consulting
work completed?
+$70,000 accounts receivable, -$70,000 accounts payable.
+$70,000 accounts receivable, +$70,000 accounts payable.
+$70,000 accounts receivable, +$70,000 cash.
+$70,000 accounts receivable, +$70,000 consulting revenue.
+$70,000 accounts receivable, - $70,000 consulting revenue.
award:
1 out of
1.00 point
Beta Corporation purchased $80,000 worth of land by paying $8,000 cash and signing a $72,000 mortgage. Prior to this
transaction the corporation had assets, liabilities and owners' equity in the amounts of $134,000; $24,000; and $110,000
respectively. What is the total amount of Beta Corporation's assets after this transaction has been recorded?
$292,000
$134,000
$126,000
$206,000
$214,000
134,000 (assets prior to transaction) + 80,000 (land) – (8,000) cash = 206,000
award:
1 out of
1.00 point
Wright had cash inflows from operations $63,000; cash outflows from investing activities of $43,000; and cash inflows
from financing of $30,000. The net change in cash flows was:
$10,000 increase.
$136,000 decrease.
$136,000 increase.
$50,000 increase.
$50,000 decrease.
$63,000 - $43,000 + $30,000 = $50,000 increase
7/26/2014 9:21 AM
Assignment Print View
3 of 4
http://ezto.mheducation.com/hm_accounting.tpx?todo=printview
award:
1 out of
1.00 point
Kevin has beginning equity of $251,000, net income of $53,000, dividends of $43,000 and investments by owners in
exchange for stock of $5,800. Its ending equity is:
$208,000.
$251,000.
$266,800.
$235,200.
$241,000.
$251,000 + $53,000 - $43,000 + $5,800 = $266,800
award:
1 out of
1.00 point
A parcel of land is offered for sale at $146,000, is assessed for tax purposes at $108,000, is recognized by its
purchasers as being worth $136,000, and is purchased for $133,000. The land should be recorded in the purchaser's
books at:
$139,000.
$133,000.
$108,000.
$146,000.
$136,000.
award:
1 out of
1.00 point
The Maximum Experience Company acquired a building for $600,000. Maximum Experience had an appraisal done,
and found that the building was worth $625,000. The seller had paid $450,000 for the building 6 years ago. Which
accounting principle would prescribe that Maximum Experience record the building on its records at $600,000?
Monetary unit principle
Business entity principle
Revenue recognition principle
Cost principle
Going-concern principle
7/26/2014 9:21 AM
Assignment Print View
4 of 4
http://ezto.mheducation.com/hm_accounting.tpx?todo=printview
award:
1 out of
1.00 point
Rutland had income of $190 million and average assets of $2,700 million. Its return on assets is:
rev: 06_17_2011
190.00%.
7.04%.
0.70%.
14.21%.
15.54%.
$190 million/$2,700 million = 7.04%
award:
1 out of
1.00 point
Nike has net income of $18,990, and assets at the beginning of the year of $190,000. Its assets at the end of the year
total $249,000. Compute its return on assets.
9.99%.
8.65%.
12.85%.
11.56%.
7.63%.
$18,990/[($190,000 + $249,000)/2] = 18,990/219,500 = 8.65%
award:
1 out of
1.00 point
A company reported total equity of $146,000 on its December 31, 2008, balance sheet. The following information is
available for the year ended December 31, 2009:
2009 Revenues
2009 Expenses
Liabilities, at December 31, 2009
$250,000
163,000
85,000
What are the total assets of the company at December 31, 2009?
$413,000.
$233,000.
$148,000.
$318,000.
$172,000.
2009 net income = $250,000 - $163,000 = $87,000
2009 year-end equity = $146,000 + $87,000 = $233,000
2009 year-end assets = $233,000 + $85,000 = $318,000
7/26/2014 9:21 AM
