Question 1

The expense recognition principle is also known as the cost principle.

Accepted Answer

A) True 
 B)False

Question 2

The records of Roadmaster Auto Rentals show the following information as of December 31.The sole stockholder,Rob Fletcher received dividends of $52,000 during the year.Prepare a December income statement,a December statement of retained earnings,and a December 31 balance sheet.

Accepted Answer

The answer of The records of Roadmaster Auto Rentals show...

Question 3

________,which is one part of accounting,is the recording of transactions and events,either manually or electronically.

Accepted Answer

Record-kee

Question 4

Billington Corp borrows $80,000 cash from Second National Bank.How does this transaction affect the accounting equation for Billington?

Accepted Answer

A) Assets would decrease $80,000 and liabilities would decrease $80,000. 
B) Assets would decrease $80,000 and equity would increase $80,000. 
C) Assets would increase $80,000 and equity would decrease $80,000. 
D) Assets would increase $80,000 and liabilities would increase $80,000. 
E) Liabilities would decrease $80,000 and equity would increase $80,000. 
A) Assets would decrease $80,000 and liabilities would decrease $80,000. 
B) Assets would decrease $80,000 and equity would increase $80,000. 
C) Assets would increase $80,000 and equity would decrease $80,000. 
D) Assets would increase $80,000 and liabilities would increase $80,000. 
E) Liabilities would decrease $80,000 and equity would increase $80,000.

Question 5

Resources such as cash distributed to the owners of a corporation are called ________.

Accepted Answer

The answer of Resources such as cash distributed to the...

Question 6

________ explains changes in the stockholders' claim on the business's assets from net income or loss,and dividends over a period of time.

Accepted Answer

The statem

Question 7

To include the personal assets and transactions of a business's stockholders in the records and reports of the business would be in conflict with the:

Accepted Answer

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

Question 8

How does the going-concern principle affect reporting asset values of a business?

Accepted Answer

The going-concern principle means that f

Question 9

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Accepted Answer

A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash. 
A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash.

Question 10

After each business transaction is recorded,the accounting equation remains in balance.

Accepted Answer

A) True 
 B)False

Question 11

Owners of a corporation are called shareholders or stockholders.

Accepted Answer

A) True 
 B)False

Question 12

Define risk and return and discuss the relation between them.

Accepted Answer

Net income is often related to return,wh

Question 13

The four common forms of business ownership include sole proprietorship,partnership,corporation,and non-profit.

Accepted Answer

A) True 
 B)False

Question 14

What is the balance sheet? What is its purpose?

Accepted Answer

The balance sheet is one of the four req

Question 15

Risk is:

Accepted Answer

A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the return expected to be earned. 
D) Unrelated to return expected. 
E) Derived from the idea of getting something back from an investment. 
A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the return expected to be earned. 
D) Unrelated to return expected. 
E) Derived from the idea of getting something back from an investment.

Question 16

A partnership is a business owned by two or more people.

Accepted Answer

A) True 
 B)False

Question 17

The revenue recognition 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 18

A net loss occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 19

When expenses exceed revenues,the resulting change in equity is called:

Accepted Answer

A) Net assets. 
B) Negative equity. 
C) Net loss. 
D) Net income. 
E) A liability. 
A) Net assets. 
B) Negative equity. 
C) Net loss. 
D) Net income. 
E) A liability.

Question 20

There are three major types of business activities.________activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

Accepted Answer

The answer of There are three major types of business...

The expense recognition principle is also known as the cost principle.

The records of Roadmaster Auto Rentals show the following information as of December 31.The sole stockholder,Rob Fletcher received dividends of $52,000 during the year.Prepare a December income statement,a December statement of retained earnings,and a December 31 balance sheet.

________,which is one part of accounting,is the recording of transactions and events,either manually or electronically.

Billington Corp borrows $80,000 cash from Second National Bank.How does this transaction affect the accounting equation for Billington?

Resources such as cash distributed to the owners of a corporation are called ________.

________ explains changes in the stockholders' claim on the business's assets from net income or loss,and dividends over a period of time.

To include the personal assets and transactions of a business's stockholders in the records and reports of the business would be in conflict with the:

How does the going-concern principle affect reporting asset values of a business?

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

After each business transaction is recorded,the accounting equation remains in balance.

Owners of a corporation are called shareholders or stockholders.

Define risk and return and discuss the relation between them.

The four common forms of business ownership include sole proprietorship,partnership,corporation,and non-profit.

What is the balance sheet? What is its purpose?

Risk is:

A partnership is a business owned by two or more people.

The revenue recognition principle:

A net loss occurs when revenues exceed expenses.

When expenses exceed revenues,the resulting change in equity is called:

There are three major types of business activities.________activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

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

The expense recognition principle is also known as the cost principle.

The records of Roadmaster Auto Rentals show the following information as of December 31.The sole stockholder,Rob Fletcher received dividends of $52,000 during the year.Prepare a December income statement,a December statement of retained earnings,and a December 31 balance sheet.

________,which is one part of accounting,is the recording of transactions and events,either manually or electronically.

Billington Corp borrows $80,000 cash from Second National Bank.How does this transaction affect the accounting equation for Billington?

Resources such as cash distributed to the owners of a corporation are called ________.

________ explains changes in the stockholders' claim on the business's assets from net income or loss,and dividends over a period of time.

To include the personal assets and transactions of a business's stockholders in the records and reports of the business would be in conflict with the:

How does the going-concern principle affect reporting asset values of a business?

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

After each business transaction is recorded,the accounting equation remains in balance.

Owners of a corporation are called shareholders or stockholders.

Define risk and return and discuss the relation between them.

The four common forms of business ownership include sole proprietorship,partnership,corporation,and non-profit.

What is the balance sheet? What is its purpose?

Risk is:

A partnership is a business owned by two or more people.

The revenue recognition principle:

A net loss occurs when revenues exceed expenses.

When expenses exceed revenues,the resulting change in equity is called:

There are three major types of business activities.________activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

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