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ACCT 2001 CHAPTER 3 ACTUAL EXAM
PREP 2026 ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND
REVISED
If a company performed services to customers and received cash, then...
a. Assets will increase
b. Liability will increase
c. Liability will decrease
d. Stockholders' equity will decrease - ANSWER- a. Assets will increase
During 2017, Hart Company buys $5,000 of equipment on account. The
impact on the accounting equation is:
a. An increase to assets and decrease to liabilities.
b. An increase to assets and increase to liabilities.
c. A decrease to assets and increase to liabilities
d. An increase to assets and increase to equity. - ANSWER- b. An
increase to assets and increase to liabilities.
Which of the following is a true statement?
a. Debits increase assets and revenues
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b. Debits decrease assets and revenues
c. Credits decrease assets and increase revenues
d. Credits decrease assets and revenues - ANSWER- c. Credits decrease
assets and increase revenues
Which accounts normally have credit balances?
a. Assets, Revenues, Expense
b. Revenues, Dividends, Liabilities
c. Revenues, Stockholders' Equity, Liabitlieis
d. Assets, Common Stock, Retained Earnings - ANSWER- c. Revenues,
Stockholders' Equity, Liabitlieis
Which account normally have debit balances?
a. Liabilities
b. Common Stock
c. Revenue
d. Expense - ANSWER- d. Expense
Which of the following would be considered an economic event that
requires an accounting transaction?
the hiring of a new employee
B:
corporate decisions about new product lines
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c. the purchase of new computers
D:
creation of prototypes to accompany a bid for work - ANSWER- c. the
purchase of new computers
When a company performs a service for which it has not been paid, it
will create a(n)
a. account receivable.
B:
account payable.
C:
dividend.
D:
liability. - ANSWER- a. account receivable.
The first step in the recording process is to
A:
ACCT 2001 CHAPTER 3 ACTUAL EXAM
PREP 2026 ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A GRADED
WITH EXPERT FEEDBACK |NEW AND
REVISED
If a company performed services to customers and received cash, then...
a. Assets will increase
b. Liability will increase
c. Liability will decrease
d. Stockholders' equity will decrease - ANSWER- a. Assets will increase
During 2017, Hart Company buys $5,000 of equipment on account. The
impact on the accounting equation is:
a. An increase to assets and decrease to liabilities.
b. An increase to assets and increase to liabilities.
c. A decrease to assets and increase to liabilities
d. An increase to assets and increase to equity. - ANSWER- b. An
increase to assets and increase to liabilities.
Which of the following is a true statement?
a. Debits increase assets and revenues
,2|Page
b. Debits decrease assets and revenues
c. Credits decrease assets and increase revenues
d. Credits decrease assets and revenues - ANSWER- c. Credits decrease
assets and increase revenues
Which accounts normally have credit balances?
a. Assets, Revenues, Expense
b. Revenues, Dividends, Liabilities
c. Revenues, Stockholders' Equity, Liabitlieis
d. Assets, Common Stock, Retained Earnings - ANSWER- c. Revenues,
Stockholders' Equity, Liabitlieis
Which account normally have debit balances?
a. Liabilities
b. Common Stock
c. Revenue
d. Expense - ANSWER- d. Expense
Which of the following would be considered an economic event that
requires an accounting transaction?
the hiring of a new employee
B:
corporate decisions about new product lines
, 3|Page
c. the purchase of new computers
D:
creation of prototypes to accompany a bid for work - ANSWER- c. the
purchase of new computers
When a company performs a service for which it has not been paid, it
will create a(n)
a. account receivable.
B:
account payable.
C:
dividend.
D:
liability. - ANSWER- a. account receivable.
The first step in the recording process is to
A:
