ACG2011 Pretest
Spring 2016

1.|Which of the following is an asset?|
A)|Mortgage payable|
B)|Investments|
C)|Common stock|
*D)|Retained earnings|

2.|Which of the following is not a liability?|
A)|Unearned Service Revenue|
B)|Accounts Payable|
*C)|Accounts Receivable|
D)|Interest Payable|

3.|Net income results when|
A)|Assets > Liabilities.|
B)|Revenues = Expenses.|
*C)|Revenues > Expenses.|
D)|Revenues < Expenses.|

4.|Marvin Services Corporation had the following accounts and balances:Accounts payable|$18,000||Equipment|$21,000|Accounts receivable|3,000||Land|21,000|Buildings|?||Unearned service revenue|6,000|Cash|9,000||Total stockholders' equity|?|If total stockholder's equity was $57,000, what would be the balance of the Buildings Account?|
A)|$21,000|
B)|$81,000|
C)|$87,000|
*D)|$27,000|

5.|Marvin Services Corporation had the following accounts and balances:Accounts payable|$18,000||Equipment|$21,000|Accounts receivable|3,000||Land|21,000|Buildings|?||Unearned service revenue|6,000|Cash|9,000||Total stockholders' equity|?|If the balance of the Buildings account was $51,000, what would be the total of liabilities and stockholders' equity?|
A)|$102,000|
*B)|$105,000|
C)|$81,000|
D)|$75,000|

6.|Receiving payment of a portion of an accounts receivable will|
*A)|not affect total assets.|
B)|increase liabilities.|
C)|increase stockholders' equity.|
D)|decrease net income.|

7.|Howard Company had a transaction that caused a $5,000 increase in both assets and total liabilities. This transaction could have been a(n)|
*A)|purchase of office equipment for $12,000, paying $7,000 cash and issuing a note payable for the balance.|
B)|investment of $5,000 cash in the business by the stockholders.|
C)|purchase of office equipment for $5,000 cash.|
D)|repayment of a $5,000 bank loan.|

8.|Which of the