ACC211 Exam 1 | QUESTIONS AND ANSWERS | 2025/2026
Ch1 MCQs 1
A company is considering purchasing a parcel of land $147,000
that was originally acquired by the seller for $90,000.
While the land is currently offered for sale at $160,000, it is
considered by the purchaser as easily being worth
$150,000, and is finally purchased for $147,000, the land
should be recorded in the purchaser's books at:
If a company uses $1,540 of its cash to purchase supplies, One asset increases $1,540 and another asset decreases $1,540, causing no effect.
the effect on the accounting equation would be:
If a company receives $13,500 from a client for services Assets increase $13,500 and equity increases $13,500.
provided, the effect on the accounting equation would
be:
If a company purchases equipment costing $4,300 on Assets increase $4,300 and liabilities increase $4,300.
credit, the effect on the accounting equation would be:
If equity is $430,000 and liabilities are $201,000, then $631,000.
assets equal:
If assets are $390,000 and liabilities are $198,000, then $192,000.
equity equals:
If assets are $108,000 and liabilities are $37,000, then $71,000.
equity equals:
, The assets of a company total $710,000; the liabilities, $505,000.
$205,000. What is the amount of equity?
On May 31 of the current year, the assets and liabilities $33,050.
of Riser, Incorporated are as follows: Cash $22,000;
Accounts Receivable, $7,500; Supplies, $850; Equipment,
$12,250; Accounts Payable, $9,550. What is the amount of
equity as of May 31 of the current year?
On August 31 of the current year, the assets and liabilities $32,650.
of Gladstone, Incorporated are as follows: Cash $30,600;
Supplies, $650; Equipment, $10,400; Accounts Payable,
$9,000. What is the amount of equity as of August 31 of the
current year?
Saddleback Company paid off $35,000 of its accounts Assets decrease $35,000; liabilities decrease $35,000.
payable in cash. What would be the effects of this
transaction on the accounting equation?
If Dallas Company billed a client for $23,000 of Revenue increases $23,000.
consulting work completed, the accounts receivable
asset increases by $23,000 and:
Echo Company has assets of $624,000, liabilities of Assets increase by $87,000 and liabilities increase by $87,000.
$262,000, and equity of $362,000. It buys office equipment
on credit for $87,000. What would be the effects of this
transaction on the accounting equation?
If the liabilities of a business increased $101,000 during a Increased $58,000.
period of time and equity in the business decreased
$43,000 during the same period, the assets of the
business must have:
If the assets of a business increased $115,000 during a Increased $35,000.
period of time and its liabilities increased $80,000 during
the same period, equity in the business must have:
If the liabilities of a company increased $78,000 during a Assets would have increased $57,000.
period of time and equity in the company decreased
$21,000 during the same period, what was the effect on
the assets?
If assets are $401,000 and equity is $138,000, then liabilities $263,000.
are:
Rush Company had net income of $174 million and 9.2%.
average total assets of $1,890 million. Its return on assets
(ROA) is:
Ch1 MCQs 1
A company is considering purchasing a parcel of land $147,000
that was originally acquired by the seller for $90,000.
While the land is currently offered for sale at $160,000, it is
considered by the purchaser as easily being worth
$150,000, and is finally purchased for $147,000, the land
should be recorded in the purchaser's books at:
If a company uses $1,540 of its cash to purchase supplies, One asset increases $1,540 and another asset decreases $1,540, causing no effect.
the effect on the accounting equation would be:
If a company receives $13,500 from a client for services Assets increase $13,500 and equity increases $13,500.
provided, the effect on the accounting equation would
be:
If a company purchases equipment costing $4,300 on Assets increase $4,300 and liabilities increase $4,300.
credit, the effect on the accounting equation would be:
If equity is $430,000 and liabilities are $201,000, then $631,000.
assets equal:
If assets are $390,000 and liabilities are $198,000, then $192,000.
equity equals:
If assets are $108,000 and liabilities are $37,000, then $71,000.
equity equals:
, The assets of a company total $710,000; the liabilities, $505,000.
$205,000. What is the amount of equity?
On May 31 of the current year, the assets and liabilities $33,050.
of Riser, Incorporated are as follows: Cash $22,000;
Accounts Receivable, $7,500; Supplies, $850; Equipment,
$12,250; Accounts Payable, $9,550. What is the amount of
equity as of May 31 of the current year?
On August 31 of the current year, the assets and liabilities $32,650.
of Gladstone, Incorporated are as follows: Cash $30,600;
Supplies, $650; Equipment, $10,400; Accounts Payable,
$9,000. What is the amount of equity as of August 31 of the
current year?
Saddleback Company paid off $35,000 of its accounts Assets decrease $35,000; liabilities decrease $35,000.
payable in cash. What would be the effects of this
transaction on the accounting equation?
If Dallas Company billed a client for $23,000 of Revenue increases $23,000.
consulting work completed, the accounts receivable
asset increases by $23,000 and:
Echo Company has assets of $624,000, liabilities of Assets increase by $87,000 and liabilities increase by $87,000.
$262,000, and equity of $362,000. It buys office equipment
on credit for $87,000. What would be the effects of this
transaction on the accounting equation?
If the liabilities of a business increased $101,000 during a Increased $58,000.
period of time and equity in the business decreased
$43,000 during the same period, the assets of the
business must have:
If the assets of a business increased $115,000 during a Increased $35,000.
period of time and its liabilities increased $80,000 during
the same period, equity in the business must have:
If the liabilities of a company increased $78,000 during a Assets would have increased $57,000.
period of time and equity in the company decreased
$21,000 during the same period, what was the effect on
the assets?
If assets are $401,000 and equity is $138,000, then liabilities $263,000.
are:
Rush Company had net income of $174 million and 9.2%.
average total assets of $1,890 million. Its return on assets
(ROA) is:
