Untitled Quiz

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Questions and Answers

What is the total amount Data Care has purchased from Acme Supply Company?

$1,800
$1,200
$1,600 (correct)
$2,000

What type of supplies did Data Care purchase from Acme Supply Company?

Computer paper and other supplies (correct)
Furniture
Stationery only
Office electronics

When is Data Care expected to pay their bill to Acme Supply Company?

In September
In July
In October (correct)
In December

How long are the supplies expected to last for Data Care?

Several months (B) Signup and view all the answers

Which company supplies the computer paper and other supplies to Data Care?

Acme Supply Company (C) Signup and view all the answers

What was the net cash provided by operating activities for the month ended September 30, 2022?

$1,350 (D) Signup and view all the answers

What is the total liabilities and owner’s equity as reported?

$18,050 (C) Signup and view all the answers

Which of the following represents the cash at the end of the period?

$8,050 (D) Signup and view all the answers

What was the amount of cash invested by the owner during the month?

$15,000 (C) Signup and view all the answers

How much cash was used for purchasing equipment?

$7,000 (A) Signup and view all the answers

What are the segments called that are used to report on the periodic progress of an entity?

Accounting periods (B) Signup and view all the answers

Why are accounting periods considered arbitrary?

They can vary in length depending on the company's fiscal policies. (C) Signup and view all the answers

What is the purpose of dividing an entity's life into accounting periods?

To report on periodic progress over time. (C) Signup and view all the answers

Which statement best describes the characteristics of accounting periods?

They are of equal length and serve reporting needs. (A) Signup and view all the answers

What can be a consequence of not using accounting periods in reporting?

Loss of track of financial performance over time. (B) Signup and view all the answers

What is the value of the largest option presented?

$100,000 (C) Signup and view all the answers

What is the effect of collecting a $500 Accounts Receivable?

Increases an asset $500; decreases an asset $500. (A) Signup and view all the answers

Which option reflects an amount that is less than $90,000?

$85,000 (B) Signup and view all the answers

What is the primary purpose of a statement of cash flows?

To provide information on cash receipts and payments for a specific period (C) Signup and view all the answers

Which of the following does the statement of cash flows NOT directly report?

Total assets at year end (A) Signup and view all the answers

What is the total increase in assets when a $500 Accounts Receivable is collected?

$500 increase (B) Signup and view all the answers

Which of the following does NOT occur when collecting an Accounts Receivable?

A liability increases. (B) Signup and view all the answers

In what type of report would you find details about cash payments made during a financial period?

Statement of cash flows (B) Signup and view all the answers

Which component is not included in the statement of cash flows?

Shareholder equity changes (D) Signup and view all the answers

What type of information does the statement of cash flows emphasize?

Cash transactions during the reporting period (B) Signup and view all the answers

What formula represents the basic accounting equation?

Assets = Liabilities + Owner’s Equity (B) Signup and view all the answers

Which of the following components is NOT part of the owner's equity?

Accounts Payable (D) Signup and view all the answers

Which financial statement details the revenues and expenses of a business?

Income Statement (B) Signup and view all the answers

In the owner's equity section, which component reduces the owner's equity?

Drawings (D) Signup and view all the answers

What is the relationship between assets, liabilities, and owner's equity at a specific date?

Owner's equity is the difference between assets and liabilities. (C) Signup and view all the answers

Flashcards

Purchase amount

Data Care bought $1,600 worth of supplies.

Supplier

Acme Supply Company provided the supplies.