Accounting Chapter One Quiz

10 Questions | Total Attempts: 65

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Accounting Chapter One Quiz

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Questions and Answers
  • 1. 
    On November 23, Terrier Repair Service extended an offer of $50,000 for land that had been priced for sale at $58,500. On December 2, Terrier Repair Service accepted the seller’s counteroffer of $54,000. On December 27, the land was assessed at a value of $60,000 for property tax purposes. On April 1, Terrier Repair Service was offered $65,000 for the land by a national retail chain. At what value should the land be recorded in Terrier Repair Service’s records?
  • 2. 
    Lynn Doyle is the owner and operator of Star LLC, a motivational consulting business. At the end of its accounting period, December 31, 2009, Star has assets of $650,000 and liabilities of $193,000. Using the accounting equation, determine the following amounts:  Calculate Owner’s equity, as of December 31, 2009
  • 3. 
    Indicate whether the following company is primarily a service, merchandise, or manufacturing business. WALMART
    • A. 

      Service

    • B. 

      Merchandise

    • C. 

      Manufacturing

  • 4. 
    Indicate whether the following company is primarily a service, merchandise, or manufacturing business. Ford Motor Co.
    • A. 

      Service

    • B. 

      Merchandise

    • C. 

      Manufacturing

  • 5. 
    Indicate whether the following company is primarily a service, merchandise, or manufacturing business. JetBlue
    • A. 

      Service

    • B. 

      Merchandise

    • C. 

      Manufacturing

  • 6. 
    Chalet Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Chalet Sports is owned and operated by Cliff Owen, a well-known sports enthusiast and hunter. Cliff’s wife, Judy, owns and operates Joliet Boutique, a women’s clothing store. Cliff and Judy have established a trust fund to finance their children’s college education. The trust fund is maintained by City Bank in the name of the children, John and Morgan. For the following transaction, identify which of the entities listed should record the transaction in its records.Judy purchased two dozen spring dresses from a Seattle designer for a special spring sale.
    • A. 

      Chalet Sports

    • B. 

      City Bank & Trust Fund

    • C. 

      Joliet Boutique

    • D. 

      None of the Above

  • 7. 
    Chalet Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Chalet Sports is owned and operated by Cliff Owen, a well-known sports enthusiast and hunter. Cliff’s wife, Judy, owns and operates Joliet Boutique, a women’s clothing store. Cliff and Judy have established a trust fund to finance their children’s college education. The trust fund is maintained by City Bank in the name of the children, John and Morgan. For  the following transaction, identify which of the entities listed should record the transaction in its records. Cliff paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Chalet Sports.
    • A. 

      Chalet Sports

    • B. 

      City Bank Trust Fund

    • C. 

      Joliet Boutique

    • D. 

      None of the Above

  • 8. 
    The total assets and total liabilities of Coca-Cola and PepsiCo are shown below.                                                  Coca Cola (in mill.)              PepsiCo (in mill.) Assets                                                $29,936                                     $29,930Liabilities                                             13,043                                       14,483  Determine the owners’ equity:   Coca-Cola (in mill.) $   _________________      
  • 9. 
    The total assets and total liabilities of Coca-Cola and PepsiCo are shown below.                                                         Coca-Cola (in mill.)       PepsiCo (in mill.)Assets                                                     $29,936                               $29,930Liabilities                                                  13,043                                  14,483   Determine the owners’ equity:     PepsiCo (in millions) $   _________________  
  • 10. 
    Determine the missing amount for each of the following:       Assets =   Liabilities +   Owners’ Equity $ 125,000 = $   _____________  + $ 39,500
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