SUMMER2018 ACCT30121 Quiz 1 Polars 1 Which of che Followi ng

SUMMER2018 ACCT301-21 Quiz 1 Polars 1. Which of che Followi ng groups has primary responsibility for establishing generally accepted accounting principles for businesses in the United States? A. the US Congress l. the Securities the Financial Accounting Seandards Board and Exchange Commission D. the Intemal Revenue Service 2 Ohio Company provided services to a customer for $1,700 cash. As a result of this event, A. total assets decreased B. total liabilities increased C refained earnings increased D. cash flows from financing activities increased. 3. A creditor B. provides labor resources to a business. A. provides financial l resources to a business in exchange for an ownership interest. C. lends financial resources to a business. D. is a resource user 4. The recognition of an expense may be accompanied by which of the following? A. an increase in assets B a decrease in liabilities C. a decrease in revenue D. an increase in liabilities 5. Jones Company started the accounting period with $500 in supplies. During the period the company purchased $1,100 of supplies on account. At the end of the accounting period there was $700 of supplies on hand. Based on this information, the amount of supplies expense appearing on the end-of-period income statement would be A. $1,600. B. $1,100. C. $900. D. $400.

Solution

Q1. Answer is C. Financial Accounting Standard baord Q2. Answer is C. Retained earnings increased. Q3. Answer is C. lends financial resources to the business Q4. Answer is D. An increase in liabilities Q5. Answer is C. $ 900 Explanation: Supplies in beginning 500 Add: Purchase 1100 Less: ending balance 700 Supplies expense 900