Question 1

When assets are distributed to the owners of a corporation, these distributions are termed

Accepted Answer

A)  depletions. 
B)  consumptions. 
C)  dividends. 
D)  a credit line. 
A)  depletions. 
B)  consumptions. 
C)  dividends. 
D)  a credit line.

Question 2

Match between columns
                        Premises: Amounts owed to suppliers for goods and services purchased
Amounts owed to bank
Amounts due from customers
Party to whom money is owed

Accepted Answer

The Answer of Accounts receivable and Note payable and Accounts is...

Question 3

The assumption that the unit of measure remains sufficiently constant over time is part of the

Accepted Answer

A)  economic entity assumption. 
B)  cost principle. 
C)  historical cost principle. 
D)  monetary unit assumption. 
A)  economic entity assumption. 
B)  cost principle. 
C)  historical cost principle. 
D)  monetary unit assumption.

Question 4

Which of the following would not be considered an external user of accounting data for the GHI Company?

Accepted Answer

A)  Internal Revenue Service Agent. 
B)  Management. 
C)  Creditors. 
D)  Customers. 
A)  Internal Revenue Service Agent. 
B)  Management. 
C)  Creditors. 
D)  Customers.

Question 5

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Accepted Answer

A)  joint venture. 
B)  partnership. 
C)  corporation. 
D)  proprietorship. 
A)  joint venture. 
B)  partnership. 
C)  corporation. 
D)  proprietorship.

Question 6

Internal users of accounting information include all of the following except

Accepted Answer

A)  company officers. 
B)  investors. 
C)  marketing managers. 
D)  production supervisors. 
A)  company officers. 
B)  investors. 
C)  marketing managers. 
D)  production supervisors.

Question 7

The primary accounting standard-setting body in the United States is the

Accepted Answer

A)  Financial Accounting Standards Board. 
B)  International Accounting Standards Board. 
C)  Internal Revenue Service. 
D)  Securities and Exchange Commission. 
A)  Financial Accounting Standards Board. 
B)  International Accounting Standards Board. 
C)  Internal Revenue Service. 
D)  Securities and Exchange Commission.

Question 8

GAAP stands for

Accepted Answer

A)  Generally Accepted Auditing Procedures. 
B)  Generally Accepted Accounting Principles. 
C)  Generally Accepted Auditing Principles. 
D)  Generally Accepted Accounting Procedures. 
A)  Generally Accepted Auditing Procedures. 
B)  Generally Accepted Accounting Principles. 
C)  Generally Accepted Auditing Principles. 
D)  Generally Accepted Accounting Procedures.

Question 9

The starting point of the accounting process is

Accepted Answer

A)  communicating information to users. 
B)  identifying economic events. 
C)  recording economic events. 
D)  None of these answers are correct. 
A)  communicating information to users. 
B)  identifying economic events. 
C)  recording economic events. 
D)  None of these answers are correct.

Question 10

Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000. During the year, the business recorded $48,000 in catering revenues and $30,000 in expenses. Stahl issued stock of $9,000 and paid dividends of $15,000 during the year. The net income reported by Stahl Consulting for the year was:

Accepted Answer

A)  $3,000. 
B)  $12,000. 
C)  $18,000. 
D)  $27,000. 
A)  $3,000. 
B)  $12,000. 
C)  $18,000. 
D)  $27,000.

Question 11

The income statement is sometimes referred to as the statement of operations.

Accepted Answer

A) True 
 B)False

Question 12

A balance sheet reports the assets and liabilities of a company for a specific period of time.

Accepted Answer

A) True 
 B)False

Question 13

Owners of business firms are the only people who need accounting information.

Accepted Answer

A) True 
 B)False

Question 14

If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $50,000 decrease 
B)  $10,000 decrease 
C)  $10,000 increase 
D)  $50,000 increase 
A)  $50,000 decrease 
B)  $10,000 decrease 
C)  $10,000 increase 
D)  $50,000 increase

Question 15

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

Accepted Answer

A)  they are both governmental agencies. 
B)  the SEC is a private organization of accountants. 
C)  the SEC often mandates guidelines when no accounting principles exist. 
D)  the SEC and FASB rarely cooperate in developing accounting standards. 
A)  they are both governmental agencies. 
B)  the SEC is a private organization of accountants. 
C)  the SEC often mandates guidelines when no accounting principles exist. 
D)  the SEC and FASB rarely cooperate in developing accounting standards.

Question 16

Communication of economic events is the part of the accounting process that involves

Accepted Answer

A)  identifying economic events. 
B)  quantifying transactions into dollars and cents. 
C)  preparing accounting reports. 
D)  recording and classifying information. 
A)  identifying economic events. 
B)  quantifying transactions into dollars and cents. 
C)  preparing accounting reports. 
D)  recording and classifying information.

Question 17

Windsor Service had the following financial information at the end of 2018.   Instructions:
Prepare a 2018 income statement, 2018 retained earnings statement, and a 12/31/18 balance sheet for Windsor Service.

Accepted Answer

The answer of Windsor Service had the following financial information...

Question 18

U.S. standards are referred to as

Accepted Answer

A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.
IFRS 
A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.
IFRS

Question 19

Which of the following is true regarding the corporate form of business organization?

Accepted Answer

A)  Corporations are the most prevalent form of business organization. 
B)  Corporate businesses are generally smaller in size than partnerships and proprietor-ships. 
C)  The revenues of corporations are greater than the combined revenues of partnerships and proprietorships. 
D)  Corporations are separate legal entities organized exclusively under federal law. 
A)  Corporations are the most prevalent form of business organization. 
B)  Corporate businesses are generally smaller in size than partnerships and proprietor-ships. 
C)  The revenues of corporations are greater than the combined revenues of partnerships and proprietorships. 
D)  Corporations are separate legal entities organized exclusively under federal law.

Question 20

U.S. standards are developed by the

Accepted Answer

A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.
IFRS. 
A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.
IFRS.

When assets are distributed to the owners of a corporation, these distributions are termed

The assumption that the unit of measure remains sufficiently constant over time is part of the

Which of the following would not be considered an external user of accounting data for the GHI Company?

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Internal users of accounting information include all of the following except

The primary accounting standard-setting body in the United States is the

GAAP stands for

The starting point of the accounting process is

The income statement is sometimes referred to as the statement of operations.

A balance sheet reports the assets and liabilities of a company for a specific period of time.

Owners of business firms are the only people who need accounting information.

If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

Communication of economic events is the part of the accounting process that involves

Windsor Service had the following financial information at the end of 2018. Instructions: Prepare a 2018 income statement, 2018 retained earnings statement, and a 12/31/18 balance sheet for Windsor Service.

U.S. standards are referred to as

Which of the following is true regarding the corporate form of business organization?

U.S. standards are developed by the

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 1: Accounting in Action

When assets are distributed to the owners of a corporation, these distributions are termed

The assumption that the unit of measure remains sufficiently constant over time is part of the

Which of the following would not be considered an external user of accounting data for the GHI Company?

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Internal users of accounting information include all of the following except

The primary accounting standard-setting body in the United States is the

GAAP stands for

The starting point of the accounting process is

The income statement is sometimes referred to as the statement of operations.

A balance sheet reports the assets and liabilities of a company for a specific period of time.

Owners of business firms are the only people who need accounting information.

If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

Communication of economic events is the part of the accounting process that involves

Windsor Service had the following financial information at the end of 2018. Instructions: Prepare a 2018 income statement, 2018 retained earnings statement, and a 12/31/18 balance sheet for Windsor Service.

U.S. standards are referred to as

Which of the following is true regarding the corporate form of business organization?

U.S. standards are developed by the

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters