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- Download: http://solutionzip.com/downloads/20-mcq-the-sarbanes-oxley-act-was-passed-to/
- Question 1 of 20
- 5.0 Points
- The Sarbanes-Oxley Act was passed to
- A. prevent fraud at public companies.
- B. replace all of the old accounting procedures with new ones.
- C. improve the accuracy of the company’s financial reporting.
- D. Both A and C
- Question 2 of 20
- 5.0 Points
- Which of the following would result if the business purchased supplies on credit?
- A. Supplies would increase, and Cash would decrease.
- B. Supplies would increase, and Capital would increase.
- C. Supplies would increase, and Accounts Payable would increase.
- D. The purchase of supplies isn’t a business transaction.
- Question 3 of 20
- 5.0 Points
- How does the purchase of office equipment on account affect the accounting equation?
- A. Assets increase, and liabilities decrease.
- B. Assets increase, and owner’s equity increases.
- C. Assets increase, and liabilities increase.
- D. Liabilities increase, and owner’s equity decreases.
- Question 4 of 20
- 5.0 Points
- Logan’s Motor Sports buys $30,000 of equipment on credit. Which of the following is a true statement?
- A. Total assets increase.
- B. Total assets are unchanged.
- C. Total liabilities decrease.
- D. Total liabilities are unchanged.
- Question 5 of 20
- 5.0 Points
- Bob purchased a new computer for the company on account. The transaction will
- A. increase Computer and increase Capital.
- B. decrease Cash and increase Accounts Payable.
- C. decrease Cash and increase Computer.
- D. increase Computer and increase Accounts Payable.
- Question 6 of 20
- 5.0 Points
- If total liabilities are $1,000 and total assets are $8,000, owner’s equity must be
- A. $7,000.
- B. $3,000.
- C. $10,000.
- D. $13,000.
- Question 7 of 20
- 5.0 Points
- Assets are equal to
- A. liabilities + owner’s equity.
- B. liabilities – owner’s equity.
- C. liabilities – revenues.
- D. revenues – expenses.
- Question 8 of 20
- 5.0 Points
- Strum Hardware has total assets of $50,000. What are the total assets if new equipment is purchased for $10,000 cash?
- A. $45,000
- B. $50,000
- C. $55,000
- D. $60,000
- Question 9 of 20
- 5.0 Points
- Katie’s Vegetarian Restaurant, with total assets of $90,000, borrows $15,000 from the bank. Which of the following is a true statement upon borrowing the money?
- A. Total assets are now $105,000.
- B. Total assets are now $80,000.
- C. Total assets are now $15,000.
- D. Total assets are now $75,000.
- Question 10 of 20
- 5.0 Points
- Which transaction would cause one asset to increase and another asset to decrease?
- A. The owner invested cash in the business.
- B. The business paid a creditor.
- C. The business incurred an expense on credit.
- D. The business bought supplies for cash.
- Question 11 of 20
- 5.0 Points
- Which of the following is an advantage of a sole proprietorship form of business?
- A. There’s limited personal risk.
- B. The business can continue indefinitely.
- C. The owner makes all the decisions.
- D. All of the above
- Question 12 of 20
- 5.0 Points
- A legal firm would be considered a
- A. merchandise company.
- B. manufacturer.
- C. service company.
- D. None of the above
- Question 13 of 20
- 5.0 Points
- Which of the following is not a type of business organization?
- A. Corporation
- B. Partnership
- C. Sole proprietorship
- D. Operation
- Question 14 of 20
- 5.0 Points
- Mary invested cash in her new business. Which effect will this have?
- A. Increase an asset; increase a liability
- B. Decrease an asset; increase a liability
- C. Increase an asset; increase owner’s equity
- D. Increase an asset; decrease owner’s equity
- Question 15 of 20
- 5.0 Points
- Which of the following would result if a business purchased equipment with a 40% down payment in cash?
- A. Equipment would increase, and Cash would decrease.
- B. Accounts Payable would increase.
- C. Since the equipment hasn’t been paid in full, there’s nothing to record.
- D. Both A and B
- Question 16 of 20
- 5.0 Points
- The claims of creditors against the assets are
- A. expenses.
- B. revenues.
- C. liabilities.
- D. owner’s equity.
- Question 17 of 20
- 5.0 Points
- Bonnie’s Baskets purchases $4,000 worth of office equipment on account. This causes
- A. Cash and Capital to decrease.
- B. Office Equipment and Accounts Payable to increase.
- C. Office Equipment to decrease and Accounts Payable to increase.
- D. Accounts Payable to increase and Capital to decrease.
- Question 18 of 20
- 5.0 Points
- The purchase of supplies for cash would affect which account category?
- A. Assets
- B. Liabilities
- C. Capital
- D. Expense
- Question 19 of 20
- 5.0 Points
- If total liabilities are $18,000 and owner’s equity is $21,000, the total assets must be
- A. $39,000.
- B. $5,000.
- C. $20,000.
- D. $17,000.
- Question 20 of 20
- 5.0 Points
- The balance sheet contains
- A. liabilities, expenses, and capital.
- B. assets, liabilities, and revenues.
- C. expenses, assets, and cash.
- D. assets, liabilities, and owner’s equity.
- Download: http://solutionzip.com/downloads/20-mcq-the-sarbanes-oxley-act-was-passed-to/
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