Question 1

Resources a company owns or controls that are expected to yield future benefits are:

Accepted Answer

A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Owner's Equity. 
E) Expenses. 
A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Owner's Equity. 
E) Expenses.

Question 2

Return on assets is also known as return on investment.

Accepted Answer

A) True 
 B)False

Question 3

As a general rule,revenues should not be recognized in the accounting records when earned,but rather when cash is received.

Accepted Answer

A) True 
 B)False

Question 4

A ____________________ is a business that is owned by only one person.

Accepted Answer

The answer of A ____________________ is a business that is...

Question 5

Risk is the _________________ about the return an investor expects to earn.

Accepted Answer

The answer of Risk is the _________________ about the return...

Question 6

Strategic management is the process of determining the right mix of operating activities for the type of organization,its plans,and its market.

Accepted Answer

A) True 
 B)False

Question 7

From an accounting perspective,an event is a happening that affects the accounting equation,but cannot be measured.

Accepted Answer

A) True 
 B)False

Question 8

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

Accepted Answer

A) Assets increase $4,500 and liabilities decrease $4,500. 
B) Equity decreases $4,500 and liabilities increase $4,500. 
C) Liabilities decrease $4,500 and assets increase $4,500. 
D) Assets increase $4,500 and liabilities increase $4,500. 
E) Equity increases $4,500 and liabilities decrease $4,500. 
A) Assets increase $4,500 and liabilities decrease $4,500. 
B) Equity decreases $4,500 and liabilities increase $4,500. 
C) Liabilities decrease $4,500 and assets increase $4,500. 
D) Assets increase $4,500 and liabilities increase $4,500. 
E) Equity increases $4,500 and liabilities decrease $4,500.

Question 9

The business entity assumption means that a business is accounted for separately from other business entities,including its owner or owners.

Accepted Answer

A) True 
 B)False

Question 10

Accounting is an information and measurement system that does all of the following except:

Accepted Answer

A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Helps people make better decisions. 
A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Helps people make better decisions.

Question 11

A balance sheet covers activities over a period of time such as a month or year.

Accepted Answer

A) True 
 B)False

Question 12

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 13

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 14

Internal operating activities include research and development,distribution,and human resources.

Accepted Answer

A) True 
 B)False

Question 15

If assets are $365,000 and equity is $120,000,then liabilities are:

Accepted Answer

A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000. 
A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000.

Question 16

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

Accepted Answer

A) Time-period assumption. 
B) Business entity assumption. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Cost principle. 
A) Time-period assumption. 
B) Business entity assumption. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Cost principle.

Question 17

An example of an investing activity is:

Accepted Answer

A) Paying wages of employees. 
B) Withdrawals by the owner. 
C) Purchase of land. 
D) Selling inventory. 
E) Contribution from owner. 
A) Paying wages of employees. 
B) Withdrawals by the owner. 
C) Purchase of land. 
D) Selling inventory. 
E) Contribution from owner.

Question 18

The private-sector group that currently has the authority to establish generally accepted accounting principles in the United States is the:

Accepted Answer

A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) SEC. 
A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) SEC.

Question 19

Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 20

The ____________________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Accepted Answer

The answer of The ____________________ describes a company's revenues and...

Exam 1: Accounting in Business

Resources a company owns or controls that are expected to yield future benefits are:

Return on assets is also known as return on investment.

As a general rule,revenues should not be recognized in the accounting records when earned,but rather when cash is received.

A ____________________ is a business that is owned by only one person.

Risk is the _________________ about the return an investor expects to earn.

Strategic management is the process of determining the right mix of operating activities for the type of organization,its plans,and its market.

From an accounting perspective,an event is a happening that affects the accounting equation,but cannot be measured.

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

The business entity assumption means that a business is accounted for separately from other business entities,including its owner or owners.

Accounting is an information and measurement system that does all of the following except:

A balance sheet covers activities over a period of time such as a month or year.

The income statement shows the financial position of a business on a specific date.

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Internal operating activities include research and development,distribution,and human resources.

If assets are $365,000 and equity is $120,000,then liabilities are:

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

An example of an investing activity is:

The private-sector group that currently has the authority to establish generally accepted accounting principles in the United States is the:

Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

The ____________________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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