Question 1

Revenue is properly recognized:

Accepted Answer

A) When the customer makes an order. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale or when services have been performed. 
E) When cash from a sale is received. 
A) When the customer makes an order. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale or when services have been performed. 
E) When cash from a sale is received.

Question 2

Generally,the lower the risk,the higher the return that can be expected.

Accepted Answer

A) True 
 B)False

Question 3

The accounting concept that requires financial statement information to be supported by independent,unbiased evidence is:

Accepted Answer

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

Question 4

Risk is the uncertainty about the return we will earn.

Accepted Answer

A) True 
 B)False

Question 5

Jet Styling has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

Accepted Answer

The answer of Jet Styling has the following beginning cash...

Question 6

The full disclosure principle:

Accepted Answer

A) Prescribes that accounting information is based on actual cost. 
B) Provides guidance on when a company must recognize revenue. 
C) Prescribes that a company report the details behind financial statements that would impact users' decisions. 
D) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
A) Prescribes that accounting information is based on actual cost. 
B) Provides guidance on when a company must recognize revenue. 
C) Prescribes that a company report the details behind financial statements that would impact users' decisions. 
D) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Question 7

Creditors' claims on the assets of a company are called:

Accepted Answer

A) Net losses. 
B) Expenses. 
C) Revenues. 
D) Equity. 
E) Liabilities. 
A) Net losses. 
B) Expenses. 
C) Revenues. 
D) Equity. 
E) Liabilities.

Question 8

U.S.Government Treasury bonds provide low return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 9

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Accepted Answer

A) True 
 B)False

Question 10

An exchange of value between two entities that yields a change in the accounting equation is called:

Accepted Answer

A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income. 
A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income.

Question 11

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

Marsha Bogswell is the sole stockholder of Bogswell Legal Services.Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services?

Accepted Answer

A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Expense recognition (Matching)principle. 
A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Expense recognition (Matching)principle.

Question 13

The accounting equation is ________.

Accepted Answer

Assets = L

Question 14

Cornelia's Closet has the following account balances for the dates given:
October 1 October 31
Cash $40,000 60,000
Accounts Receivable 40,000 38,000
Accounts payable 6,000 ?
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Accepted Answer

October 1^st Equity = $

Question 15

A partnership:

Accepted Answer

A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Is legally required to have a written agreement. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders. 
A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Is legally required to have a written agreement. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders.

Question 16

________ is net income divided by average total assets.

Accepted Answer

The answer of ________ is net income divided by average...

Question 17

Determine the net income of a company for which the following information is available for the month of July.

Accepted Answer

A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000. 
A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000.

Question 18

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

Accepted Answer

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

Question 19

Return on assets (ROA)is useful in evaluating management,analyzing and forecasting profits,and planning activities.

Accepted Answer

A) True 
 B)False

Question 20

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Accepted Answer

Measuremen

Revenue is properly recognized:

Generally,the lower the risk,the higher the return that can be expected.

The accounting concept that requires financial statement information to be supported by independent,unbiased evidence is:

Risk is the uncertainty about the return we will earn.

Jet Styling has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

The full disclosure principle:

Creditors' claims on the assets of a company are called:

U.S.Government Treasury bonds provide low return and low risk to investors.

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

An exchange of value between two entities that yields a change in the accounting equation is called:

The balance sheet is based on the accounting equation.

Marsha Bogswell is the sole stockholder of Bogswell Legal Services.Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services?

The accounting equation is ________.

A partnership:

________ is net income divided by average total assets.

Determine the net income of a company for which the following information is available for the month of July.

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

Return on assets (ROA)is useful in evaluating management,analyzing and forecasting profits,and planning activities.

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 1: Introducing Financial Statements

Revenue is properly recognized:

Generally,the lower the risk,the higher the return that can be expected.

The accounting concept that requires financial statement information to be supported by independent,unbiased evidence is:

Risk is the uncertainty about the return we will earn.

Jet Styling has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

The full disclosure principle:

Creditors' claims on the assets of a company are called:

U.S.Government Treasury bonds provide low return and low risk to investors.

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

An exchange of value between two entities that yields a change in the accounting equation is called:

The balance sheet is based on the accounting equation.

Marsha Bogswell is the sole stockholder of Bogswell Legal Services.Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services?

The accounting equation is ________.

A partnership:

________ is net income divided by average total assets.

Determine the net income of a company for which the following information is available for the month of July.

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

Return on assets (ROA)is useful in evaluating management,analyzing and forecasting profits,and planning activities.

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters