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Econ 314 - Quiz 1 - Term 2

1) The document is a quiz with 8 multiple choice questions about accounting entries for various business transactions. 2) The questions involve identifying the appropriate financial statement and whether the transaction results in an increase or decrease. 3) The financial statements included are the income statement, balance sheet, and cash flow statement.

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Jamie Woods
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278 views2 pages

Econ 314 - Quiz 1 - Term 2

1) The document is a quiz with 8 multiple choice questions about accounting entries for various business transactions. 2) The questions involve identifying the appropriate financial statement and whether the transaction results in an increase or decrease. 3) The financial statements included are the income statement, balance sheet, and cash flow statement.

Uploaded by

Jamie Woods
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PASS
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Name: KEY 4
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Date: 1/11/2011 6
NO PASS
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Quiz 1 - Accounting
Instructions: Write the number of each item in the appropriate section(s) of the appropriate financial statements
below and indicate whether it is an increase or decrease.

Income Statement Balance Sheet Cash Flow


Operating Revenue: Assets: Operations:

Operating Expenses: Investment:


Liabilities:

Taxable Income: Finance:

Owner Equity:

Net Income: Net Cash Fllow:

1 Purchase equipment for your outdoor landscaping business using cash.


2 Business is booming, so you hire an assistant landscaper.
3 Grandma donates her old Ford pick-up to the company to use as a company car
4 The business has gotten too large to operate out of your garage; you rent a small commercial space to
store equipment.
5 A loyal customer needs her trees pruned but cannot pay right now; she promises to pay you when she
gets her paycheck in one week.
6 You pledge to make monthly donations in cash to the local arboretum for the next year
7 You open a new line of credit to purchase a riding lawnmower.
8 A tornado hits the town and dozens of trees are knocked down; you have over twice as much business
than you would have during a normal week.
New Revenue ≠ Asset Balance Sheet MUST balance!
Change in Income Statement
NOT reflected in cash statement
New Revenue ≠ Asset Balance Sheet MUST balance!
Change in Income Statement
NOT reflected in cash statement

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