liabilities and equity in accounting coursera week 4 quiz answers
Accounts Payable, Cash Payments, Sales Tax Payable Practice Quiz
1. Moe's Fro Yo makes a payment on a long-term note. What is the effect on the accounting equation?
- Assets would decrease. Liabilities would decrease. There would be no effect on Equity.
- There would be no effect on Assets. Liabilities would increase, and equity would increase.
- Assets would increase. Liabilities would decrease. There would be no effect on Equity.
- No effect on Assets. Liabilities would increase. The Equity would decrease.
2. Gene's Gummy Shoppe purchased inventory from a vendor on credit and will pay the invoice at a later date when it is due. What is the effect on the accounting equation?
- Assets would decrease. Liabilities would increase. Equity would increase.
- Assets would increase. Liabilities would decrease. There would be no effect on Equity.
- Assets would increase. Liabilities would decrease. Equity would decrease.
- Assets would increase. Liabilities would increase. There is no effect on Equity.
3. Harry's Handsome Cuts, a barber, hired Candy's Consultants, a consulting firm, to do consulting work. Candy's Consultants has billed Harry's Handsome Cuts $5,000, which will be due in August. What is the effect on the accounting equation?
- Assets would decrease. Liabilities would increase. Equity will increase.
- No change to Assets, Liabilities would increase, Equity would decrease.
- No change to Assets, Liabilities would decrease, Equity would increase.
- Assets would increase, no change to Liabilities, Equity would decrease.
Practice with Payroll Practice Quiz
4. True or False: The more you pay out to employees in wages and salaries the less cash you’ll have on hand in your assets to pay off liabilities.
- True
- False
5. Which of the following best describes the journal entry for recording employee wages?
- Debit both wage expense and cash and credit all employee deductions
- A debit to cash and a credit to all employee deductions and wage expense
- A debit to all employee deductions and a credit to wage expense and cash
- A debit to wage expense and a credit to all employee deductions and cash
6. Which of the following best describes the journal entry for recording the employer’s expense?
- A debit to all taxes payable and a credit to payroll tax
- A credit to both payroll tax and to all taxes payable
- A debit to payroll tax and a credit to all taxes payable
- A debit to both payroll tax and to all taxes payable
Practice with Bank Loans and Equity Practice Quiz
7. Greenwald’s Groceries took a loan for $20,000 to cover a new deli slicer. The effect of this transaction on the accounting equation will be:
- Assets and Equity increase
- Assets and liabilities decrease depending on how much the current assets are
- Assets and Liabilities increase by $20,000
- Assets and liabilities decrease by $20,000
8. Using the accounting equation, if assets and liabilities both decrease by $4,000, what is the effect on owner's equity?
- No Effect
- Decreases by $8,000
- Increases by $8,000
9. Using the accounting equation, if owner equity increases by $10,000 and liabilities decrease by $20,000, what do assets change by?
- No change
- Increase by $10,000
- Decrease by 10,000
10. Using the accounting equation, if liabilities increase by $6,000 and equity reduces by $10,000, what is the change in assets?
- Decrease of $4,000
- Increase of 4,000
- No change
11. If All Pumped Up Bounce House Rentals total liabilities decreased by $75,000, and the owner’s equity increased by $15,000 over a certain period of time. The total assets must change by what amount and direction during the same period?
- $60,000 decrease
- $60,000 increase
- $75,000 decrease
- $90,000 increase
Liabilities and Equity in Accounting Case Study Assessment
12. Crankshaft Customs made __________ in net income from September 1 - September 30.
- $11,615
- $29,800
- $9,685
- $11,115
13. What was the total Revenue in September for Crankshaft Customs?
- $100,000
- $8,000
- $52,000
- $29,800
14. The total debits for the trial balance equal: (format your response as xxxxx)
101,650
15. On the Sales Tax Liability tab, the amount owed to Tucson City is ____. (format your response as xxx and don't use any symbols)
$180
16. On Sept. 25, $3,000 is ______ to the Prepaid subscriptions account to realize this prepaid revenue.
- debited
- credited
17. Crankshaft customs had $26,100 in cash on Sept. 1. What was the change in the cash balance at the end of the month?
- +$1,235
- -$1,235
- +$1,625
- -$1,625
18. Which of the following is not accounted for in the financial statements you prepared for Crankshaft Customs?
- Vehicle Loan Payable
- FICA Tax Payable
- Sales Tax Payable
- SUTA Tax Payable
19. What were Crankshaft Customs’ total liabilities on September 30?
- $65,785
- $41,785
- $45,850
- $55,850
20. As of Sept 30, what is the balance of the bank line of credit account?
- $3,200
- $1,600
- $800
- $0
21. On September 30, what was Edward Johnson’s net earnings?
- $7,500
- $8,000
- $9,000
- $8,500