1) Target is considered a __Merchandizing_ type of business. a. Manufacturing b.

Question

1) Target is considered a __Merchandizing_ type of business.

a. Manufacturing
b. Merchandizing
c. not-for-profit
d. service

2) Under this concept, business activities are kept separate from activities of the owner:

a. Business Entity
b. Cost
c. Matching
d. Accrual



3) Acme Inc. currently has assets of $500,000, liabilities of $100,000, and owner’s equity of
$400,000. Which of the following transactions would increase assets to $600,000?

a. Additional owner investment of $100,000
b. Getting a bank loan for $100,000
c. Financing a $100,000 plot of land with a $100,000 mortgage.
d. All of the above are correct.



4) The accounting equation may also be expressed as
a. Liabilities – Assets = Owner’s Equity
b. Owner's Equity = Assets + Liability
c. Assets – Liabilities = Owner’s Equity
d. Assets – Net Income = Owner's Equity



5) Acme Inc. purchased land for $50,000 cash. Which element or elements would not be affected by this transaction?

a. Owner’s Equity
b. Assets
c. Assets and Liabilities
d. Liabilities and Owner’s Equity


6) Which one of these transactions does not affect Owner’s Equity?

a. Owner’s withdrawal
b. Payment from customer for services rendered on account.
c. Incurred expense
d. Payoff of bank loan


7) The matching concept applies to what financial statement?

a. Income Statement
b. Statement of Cash Flows.
c. Statement of Owner’s Equity
d. Balance Sheet



8) Which of these accounts has a normal credit balance?

a. Asset
b. Owner’s Drawing
c. Revenue
d. Expense


9) The first stage of the accounting cycle is:

a. Journalizing
b. Posting
c. Trial Balance
d. Closing


10) The posting reference column in a journal is used to designate the:

a. Journal page number
b. The type of account the transaction affects (A, L, OE)
c. The account number to be posted to
d. Ledger page number

please check my answer if my incorrect explain i will rate
1/ b
2/ a
3/ d
4/ c
5/d
6/b
7/a
8/c
9/ a
10/ a

Explanation / Answer

They're all correct. Here are the answers I got before looking at yours: 1. b 2. a 3. d 4. c 5. d 6. b 7. a 8. c 9. a 10. a

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