assets in accounting coursera week 4 quiz answers

Cash, accounts receivable, and cash receipts quiz

1. If you collect cash for a $500 sale, what accounts increase by $500?

  • Assets and equity
  • Equity and liabilities
  • Liabilities and expenses
  • Expenses and equity

2. Your company had a beginning cash balance of $10,000 in October. You sold $5,500 in services for cash, and invoices worth $4,000. What is your company’s cash balance at the end of October?

  • $15,500
  • $14.000 
  • $19,500

3. Your company had a beginning equity balance of $8,000 in November. You sold $6,000 in services for cash, and invoices worth $3,500. What is your company’s equity balance at the end of November?

  • $14,000
  • $17,500
  • $11,500

4. How is the accounting equation useful for detecting entry or calculation errors?

  • It always reveals missing journal entries.
  • An unbalanced equation can tip you off that an error exists somewhere.
  • It always reveals if a payment is applied to the wrong invoice.
  • It never allows debits to be recorded as assets.

PP&E Concepts Quiz

5. Big Boss Building Company purchased some construction equipment to keep up with demand. The new bookkeeper booked this as an expense. Is this correct?

  • Yes
  • No

6. Aubergine’s Antiques took out a capital lease for a moving van to transport heavier antiques. Will they be able to depreciate this equipment?

  • Yes
  • No

7. Adé just purchased $75 worth of new staplers for her Honey Helpers Bees business. She wants to book this as a noncurrent asset. Is that the correct way to book it?

  • Yes
  • No

8. Jason’s Medicinal Juniper Farm recently leased a stump drilling machine for 12 months on an operating lease. Will he be able to account for disposition of this equipment at the end of the lease?

  • Yes
  • No

Assets in Accounting Case Study Quiz

9. Body and Swole made __________ in net income from May 1 - July 31.

  • $1,785.46
  • $2,979.46
  • $1,475.46
  • -$1,250.46

10. What was the total COGS for Body and Swole on the trial balance?

  • $100
  • $180
  • $50
  • 80

11. The total debits for the trial balance equals:

(Format your answer as $xx,xxx.xx)

12. On the inventory tracking tab, because of finding the inventory error, the updated net income for May - July is _____________. (Format your answer as $x,xxx.xx)

$3,009.46

13. On the inventory tracking tab, because of finding the inventory error, the updated net income for August - October is ________________. (Format your answer as $x,xxx.xx)

$2,610.00

14. Body and Swole check their inventory at the end of every month as part of their management system. This kind of management system is called:

  • Perpetual
  • Periodic
  • Proactive
  • Episodic

15. If a vendor has not paid a business for services or goods rendered, and the two parties come to an agreement regarding terms to recover the unpaid balance (including time frame and interest). That agreement is called a ___________________.

  • Promissory Note
  • Notes Receivable
  • Notes Payable
  • Contra-Account

16. What was Body and Swole’s total assets on the balance sheet at the end of July?

  • $38,785
  • $40,285
  • $41,785
  • $37,285

17. When entering a promissory note in the journal as a notes receivable, each entry for a payment received includes all of the following except:

  • The interest on the total original principal.
  • The interest paid on principal owed (the remaining balance).
  • A debit to the cash account for the principal and interest paid.
  • A credit to the notes receivable account for the principal paid.

18. Body and Swole purchased $25,000 worth of equipment to open its doors. The expected life of their equipment is 5 years. Using straight line depreciation, what would they report as their equipment’s annual depreciation? (Format your answer as $x,xxx)

$5,000

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