Download Multiple-choice for Fall 2007: Carter 1/19/07

Problem 1c: Accounting Equation: Effects of Transactions
1. Miguel Abiti invested $10,000 in Abiti’s Consulting, Inc. Miguel received 10,000
shares of $1 par common stock in return for his investment. By addition and subtraction,
show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and sources of
resources.
Total
Resources
Total
Sources of Resources
A)
+ $10,000
+ $10,000
B)
- $10,000
- $10,000
C)
+ $10,000
- $10,000
D)
- $10,000
+ $10,000
E)
+ $10,000 & - $10,000
2. Abiti’s Consulting purchased $400 of supplies. No cash was paid for the supplies, but
Abiti’s Consulting agreed to pay cash within the next 30 days. By addition and
subtraction, show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and
sources of resources.
Total
Resources
Total
Sources of Resources
A)
- $400
+ $400
B)
+ $400 & - $400
+ $0
C)
- $400
- $400
D)
+ $400
+ $400
E)
+ $400
- $400
2
3. Abiti’s Consulting provided $2,000 of consulting services to a customer. The
customer did not pay cash for the services, but agreed to pay cash within the next 30
days. By addition and subtraction, show the effects of the transaction on Abiti’s
Consulting, Inc.'s resources and sources of resources.
Total
Resources
Total
Sources of Resources
A)
- $2,000
- $2,000
B)
+ $2,000
+ $2,000
C)
+ $2,000
- $2,000
D)
- $2,000
+ $2,000
E)
+ $2,000 & - $2,000
+ $0
4. Abiti’s Consulting paid $600 to Thomas Bishop for assistance in providing services on
the consulting project mentioned in part 3 above. (In part 3, Abiti’s Consulting had
provided $2,000 of consulting services to a customer. The customer did not pay cash for
the services, but agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and
sources of resources.
Total
Resources
Total
Sources of Resources
A)
+ $600 & - $600
+ $0
B)
+ $600
- $600
C)
+ $600
+ $600
D)
- $600
- $600
E)
- $600
+ $600
3
5. Abiti’s Consulting paid cash for one-half of the supplies purchased in part 2 above.
The company will pay the remaining amount due next month. (In part 2, Abiti’s
Consulting had purchased $400 of supplies. No cash was paid for the supplies, but
Abiti’s Consulting agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and
sources of resources.
Total
Resources
Total
Sources of Resources
A)
+ $200
+ $200
B)
+ $200
- $200
C)
- $200
- $200
D)
- $200
+ $200
E)
+ $200 & - $200
+ $0
6. Abiti’s Consulting provided $1,300 of consulting services to a customer who paid cash
for the services. By addition and subtraction, show the effects of the transaction on
Abiti’s Consulting, Inc.'s resources and sources of resources.
Total
Resources
Total
Sources of Resources
A)
+ $1,300
- $1,300
B)
- $1,300
+ $1,300
C)
+ $1,300 & - $1,300
+ $0
D)
- $1,300
- $1,300
E)
+ $1,300
+ $1,300
4
7. $1,500 cash was received from the customer mentioned in part 3 above. The
remaining $500 will be paid by the customer next week. (In part 3, Abiti’s Consulting
had provided $2,000 of consulting services to a customer. The customer did not pay cash
for the services, but agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and
sources of resources.
Total
Resources
Total
Sources of Resources
A)
- $1,500
- $1,500
B)
+ $1,500
- $1,500
C)
- $1,500
+ $1,500
D)
+ $1,500
+ $1,500
E)
+ $1,500 & - $1,500
+ $0
8. Abiti’s Consulting declared and paid a $150 cash dividend. By addition and
subtraction, show the effects of the transaction on Abiti’s Consulting, Inc.'s resources and
sources of resources.
Total
Resources
Total
Sources of Resources
A)
- $150
+ $150
B)
+ $150 & - $150
+ $0
C)
+ $150
+ $150
D)
+ $150
- $150
E)
- $150
- $150
5
9. Abiti’s Consulting paid the phone bill for $40 of telephone services used during June.
By addition and subtraction, show the effects of the transaction on Abiti’s Consulting,
Inc.'s resources and sources of resources.
Total
Resources
Total
Sources of Resources
A)
+ $40 & - $40
+ $0
B)
+ $40
+ $40
C)
+ $40
- $40
D)
- $40
- $40
E)
- $40
+ $40
10. Miguel Abiti invested $10,000 in Abiti’s Consulting, Inc. Miguel received 10,000
shares of $1 par common stock in return for his investment. By addition and subtraction,
show the effects of the transaction on the accounting equation of Abiti’s Consulting, Inc.
Cash
Total Resources
Assets
Accounts
Receivable Supplies
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
A)
+ $10,000
+ $10,000
B)
- $10,000
- $10,000
C)
+ $10,000
D)
- $10,000
E)
- $10,000
+ $10,000
+ $10,000
- $10,000
6
11. Abiti’s Consulting purchased $400 of supplies. No cash was paid for the supplies,
but Abiti’s Consulting agreed to pay cash within the next 30 days. By addition and
subtraction, show the effects of the transaction on the accounting equation of Abiti’s
Consulting, Inc.
Cash
A)
Total Resources
Assets
Accounts
Receivable Supplies
- $400
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
+ $400
B)
+ $400
C)
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
- $400
+ $400
+ $400
D)
+ $400
E)
+ $400
+ $400
+ $400
12. Abiti’s Consulting provided $2,000 of consulting services to a customer. The
customer did not pay cash for the services, but agreed to pay cash within the next 30
days. By addition and subtraction, show the effects of the transaction on the accounting
equation of Abiti’s Consulting, Inc.
Cash
A)
Total Resources
Assets
Accounts
Receivable Supplies
+ $2,000
+ $2,000
B)
+ $2,000
C)
+ $2,000
D)
+ $2,000
E)
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
+ $2,000
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
- $2,000
+ $2,000
+ $2,000
+ $2,000
7
13. Abiti’s Consulting paid $600 to Thomas Bishop for assistance in providing services
on the consulting project mentioned in part 12 above. (In part 12, Abiti’s Consulting had
provided $2,000 of consulting services to a customer. The customer did not pay cash for
the services, but agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on the accounting equation of Abiti’s
Consulting, Inc.
Cash
Total Resources
Assets
Accounts
Receivable Supplies
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
A)
- $600
- $600
B)
- $600
+ $600
C)
- $600
- $600
D)
- $600
+ $600
E)
+ $600
- $600
8
14. Abiti’s Consulting paid cash for one-half of the supplies purchased in part 11 above.
The company will pay the remaining amount due next month. (In part 11, Abiti’s
Consulting had purchased $400 of supplies. No cash was paid for the supplies, but
Abiti’s Consulting agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on the accounting equation of Abiti’s
Consulting, Inc.
Cash
A)
- $200
B)
- $200
Total Resources
Assets
Accounts
Receivable Supplies
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
- $200
+ $200
C)
- $200
- $200
D)
- $200
- $200
E)
- $200
+ $200
15. Abiti’s Consulting provided $1,300 of consulting services to a customer who paid
cash for the services. By addition and subtraction, show the effects of the transaction on
the accounting equation of Abiti’s Consulting, Inc.
Cash
A)
+ $1,300
B)
+ $1,300
C)
Total Resources
Assets
Accounts
Receivable Supplies
+ $1,300
E)
+ $1,300
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
+ $1,300
- $1,300
+ $1,300
D)
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
+ $1,300
- $1,300
+ $1,300
9
16. $1,500 cash was received from the customer mentioned in part 12 above. The
remaining $500 will be paid by the customer next week. (In part 12, Abiti’s Consulting
had provided $2,000 of consulting services to a customer. The customer did not pay cash
for the services, but agreed to pay cash within the next 30 days.) By addition and
subtraction, show the effects of the transaction on the accounting equation of Abiti’s
Consulting, Inc.
Cash
A)
+ $1,500
Total Resources
Assets
Accounts
Receivable Supplies
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
- $1,500
B)
+ $1,500
C)
+ $1,500
D)
+ $1,500
E)
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
+ $1,500
+ $1,500
+ $1,500
+ $1,500
+ $1,500
17. Abiti’s Consulting declared and paid a $150 cash dividend. By addition and
subtraction, show the effects of the transaction on the accounting equation of Abiti’s
Consulting, Inc.
Cash
Total Resources
Assets
Accounts
Receivable Supplies
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
A)
- $150
B)
- $150
C)
- $150
- $150
D)
- $150
+ $150
E)
- $150
- $150
+ $150
- $150
10
18. Abiti’s Consulting paid the phone bill for $40 of telephone services used during June.
By addition and subtraction, show the effects of the transaction on the accounting
equation of Abiti’s Consulting, Inc.
Cash
A)
- $40
B)
- $40
C)
- $40
D)
- $40
Total Resources
Assets
Accounts
Receivable Supplies
E)
Sources of
Borrowed
Resources
Liabilities
Accounts
Payable
Sources of
Sources of
Owner
Management
Invested
Generated
Resources
Resources
Stockholders’ Equity
Common
Retained
Stock
Earnings
+ $40
- $40
- $40
+ $40
+ $40
- $40
19. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: resources resulting from services
provided to customers = $3,300, resources used up to provide services to customers =
$640, and dividends = $150. Determine the dollar amount of Abiti’s Consulting, Inc.'s
total resources at the end of June.
A)
B)
C)
D)
E)
$11,810
$200
$12,710
$10,000
$2,660
11
20. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: resources resulting from services
provided to customers = $3,300, resources used up to provide services to customers =
$640, and dividends = $150. Determine the dollar amount of resources on hand at the
end of June that Abiti’s Consulting, Inc. obtained through borrowing.
A)
B)
C)
D)
E)
$12,710
$10,000
$2,660
$11,810
$200
21. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: resources resulting from services
provided to customers = $3,300, resources used up to provide services to customers =
$640, and dividends = $150. Determine the dollar amount of resources on hand at the
end of June that Abiti’s Consulting, Inc. obtained through the owner’s investments.
A)
B)
C)
D)
E)
$12,710
$10,000
$2,660
$11,810
$200
22. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: resources resulting from services
provided to customers = $3,300, resources used up to provide services to customers =
$640, and dividends = $150. Determine the Abiti’s Consulting, Inc.'s net income for
June.
A)
B)
C)
D)
E)
$2,660
$11,810
$3,300
$2,510
$12,710
12
23. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: net income = $2,660 and dividends
= $150. Determine the net dollar amount of resources that Abiti’s Consulting, Inc.
generated through management operations in June.
A)
B)
C)
D)
E)
$3,300
$2,510
$12,710
$2,660
$11,810
24. At the end of June, the Abiti’s Consulting, Inc.’s accounting system showed the
following amounts: cash = $11,810, accounts receivable = $500, supplies = $400,
accounts payable = $200, common stock = $10,000, and retained earnings = $2,510. The
retained earnings amount was based on the following: net income = $2,660 and dividends
= $150. Determine the dollar amount of resources on hand at the end of June that Abiti’s
Consulting, Inc. obtained through management operations and kept in the company.
A)
B)
C)
D)
E)
$11,810
$3,300
$2,510
$12,710
$2,660