ACCOUNTING 211 - CH 1 SB EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Paying administrative salaries with cash affects which of the following financial statements?
Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Total liabilities on the balance sheet - Answers Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Selling inventory for cash results in which of the following? Assume inventory is sold for more than it
cost to produce
Increases liabilities.
The transaction does not affect net income.
The transaction does not affect total assets.
The transaction does not affect liabilities.
Increases net income.
Decreases liabilities.
Decreases net income.
The transaction does not affect stockholders' equity.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Decreases stockholders' equity. - Answers The transaction does not affect liabilities.
Increases net income.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Increases total assets.
Indirect costs ___
should be expensed immediately
are not used to produce products
cannot be cost-effectively traced to products - Answers cannot be cost-effectively traced to products
If upstream or downstream costs are not included in determining the cost of products, products will
be ___
overcosted
appropriately costed
undercosted - Answers undercosted
Costs incurred in the process of making products, including direct materials, direct labor and
manufacturing overhead are __ costs.
downstream
midstream
upstream - Answers midstream
A hospital is an example of a ___ company.
service
manufacturing
merchandising - Answers service
Paying administrative salaries with cash results in which of the following?
The transaction does not affect stockholders' equity.
Increases stockholders' equity.
The transaction does not affect net income.
Paying administrative salaries with cash affects which of the following financial statements?
Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Total liabilities on the balance sheet - Answers Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Selling inventory for cash results in which of the following? Assume inventory is sold for more than it
cost to produce
Increases liabilities.
The transaction does not affect net income.
The transaction does not affect total assets.
The transaction does not affect liabilities.
Increases net income.
Decreases liabilities.
Decreases net income.
The transaction does not affect stockholders' equity.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Decreases stockholders' equity. - Answers The transaction does not affect liabilities.
Increases net income.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Increases total assets.
Indirect costs ___
should be expensed immediately
are not used to produce products
cannot be cost-effectively traced to products - Answers cannot be cost-effectively traced to products
If upstream or downstream costs are not included in determining the cost of products, products will
be ___
overcosted
appropriately costed
undercosted - Answers undercosted
Costs incurred in the process of making products, including direct materials, direct labor and
manufacturing overhead are __ costs.
downstream
midstream
upstream - Answers midstream
A hospital is an example of a ___ company.
service
manufacturing
merchandising - Answers service
Paying administrative salaries with cash results in which of the following?
The transaction does not affect stockholders' equity.
Increases stockholders' equity.
The transaction does not affect net income.
