Question 1

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called

Accepted Answer

A)  the accounting equation. 
B)  bookkeeping. 
C)  a business transaction. 
D)  an audit. 
E)  a gift. 
A)  the accounting equation. 
B)  bookkeeping. 
C)  a business transaction. 
D)  an audit. 
E)  a gift.

Question 2

Private enterprises are all required to report using International Financial Reporting Standards (IFRS).

Accepted Answer

A) True 
 B)False

Question 3

The internal functions of a business include

Accepted Answer

A)  research and development 
B)  purchasing 
C)  marketing 
D)  servicing 
E)  All of these 
A)  research and development 
B)  purchasing 
C)  marketing 
D)  servicing 
E)  All of these

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The purpose of an audit is to add credibility to the financial statements.

Accepted Answer

A) True 
 B)False

Question 6

Select the appropriate financial statement for each of the following accounts.(a) Income statement(b) Statement of changes in equity(c) Balance sheet(d) Statement of cash flows ____ (1) Cash ____ (2) Withdrawals ____ (3) Notes payable ____ (4) Service revenue ____ (5) John Jay, capital ____ (6) Accounts receivable ____ (7) Prepaid Rent ____ (8) Supplies Expense

Accepted Answer

(1) c, d (2) b (3) c

Question 7

Explain why ethics and social responsibility are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 8

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 9

A liability expressed by a written promise to make a future payment is usually called an account payable.

Accepted Answer

A) True 
 B)False

Question 10

A partnership

Accepted Answer

A)  is also called a sole proprietorship 
B)  has unlimited liability. 
C)  has to have a written agreement in order to be legal 
D)  is a legal organization separate from its owners 
E)  is a non-business organization 
A)  is also called a sole proprietorship 
B)  has unlimited liability. 
C)  has to have a written agreement in order to be legal 
D)  is a legal organization separate from its owners 
E)  is a non-business organization

Question 11

Business events do not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Accepted Answer

A) True 
 B)False

Question 13

Prepare a balance sheet in good form at December 31, 2020 for Draydon Insurance Co. from the following items:

Accepted Answer

The answer of Prepare a balance sheet in good form...

Question 14

The accounting equation can be stated as

Accepted Answer

A)  Assets = non-owner equity + equity 
B)  Liabilities = assets - equity 
C)  Assets = liabilities + equity 
D)  Equity = assets - liabilities 
E)  All of these 
A)  Assets = non-owner equity + equity 
B)  Liabilities = assets - equity 
C)  Assets = liabilities + equity 
D)  Equity = assets - liabilities 
E)  All of these

Question 15

A loss arises when revenues are higher than expenses.

Accepted Answer

A) True 
 B)False

Question 16

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

Question 17

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

Accepted Answer

A) True 
 B)False

Question 18

Match between columns
                        Premises: Promptness of customer payment of bills.
Verification that external reports are accurate.
The ability of a company to repay its loans.
Computation of taxes.
The level of sales necessary to break even.
Fairness of wages.
The amount of current income.
Profit outlook.

Accepted Answer

The Answer of Lenders and Suppliers and Employees and Shareholders is...

Question 19

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances:
  
-From the information given in reference, prepare a statement of changes in equity for 2020.

Accepted Answer

The answer of The records of Cohen's Toy Repair Co....

Question 20

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called

Private enterprises are all required to report using International Financial Reporting Standards (IFRS).

The internal functions of a business include

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

The purpose of an audit is to add credibility to the financial statements.

Explain why ethics and social responsibility are an integral part of accounting.

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

A liability expressed by a written promise to make a future payment is usually called an account payable.

A partnership

Business events do not affect the accounting equation.

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Prepare a balance sheet in good form at December 31, 2020 for Draydon Insurance Co. from the following items:

The accounting equation can be stated as

A loss arises when revenues are higher than expenses.

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriate amounts into the accounting equation format.

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances: -From the information given in reference, prepare a statement of changes in equity for 2020.

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 1: Accounting in Business

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called

Private enterprises are all required to report using International Financial Reporting Standards (IFRS).

The internal functions of a business include

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

The purpose of an audit is to add credibility to the financial statements.

Explain why ethics and social responsibility are an integral part of accounting.

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

A liability expressed by a written promise to make a future payment is usually called an account payable.

A partnership

Business events do not affect the accounting equation.

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Prepare a balance sheet in good form at December 31, 2020 for Draydon Insurance Co. from the following items:

The accounting equation can be stated as

A loss arises when revenues are higher than expenses.

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriate amounts into the accounting equation format.

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances: -From the information given in reference, prepare a statement of changes in equity for 2020.

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters