Question 1

Revenues are

Accepted Answer

A)  the cost of assets consumed during the period. 
B)  gross increases in stockholders' equity resulting from business activities. 
C)  the cost of services used during the period. 
D)  actual or expected cash outflows. 
A)  the cost of assets consumed during the period. 
B)  gross increases in stockholders' equity resulting from business activities. 
C)  the cost of services used during the period. 
D)  actual or expected cash outflows.

Question 2

The basic accounting equation states that Assets = Liabilities.

Accepted Answer

A) True 
 B)False

Question 3

The hiring of a new company president is an economic event recorded by the financial information system.

Accepted Answer

A) True 
 B)False

Question 4

International 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 5

All of the following are services offered by public accountants except

Accepted Answer

A)  budgeting. 
B)  auditing. 
C)  tax planning. 
D)  consulting. 
A)  budgeting. 
B)  auditing. 
C)  tax planning. 
D)  consulting.

Question 6

The Securities and Exchange Commission oversees U.S. financial markets and accounting standard-setting bodies.

Accepted Answer

A) True 
 B)False

Question 7

If supplies that have been purchased are used in the course of business, then

Accepted Answer

A)  a liability will increase. 
B)  an asset will increase. 
C)  stockholders' equity will decrease. 
D)  stockholders' equity will increase. 
A)  a liability will increase. 
B)  an asset will increase. 
C)  stockholders' equity will decrease. 
D)  stockholders' equity will increase.

Question 8

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, common stock of $4,000 was issued and the company earned net income of $14,000. If stockholders' equity at October 31 totals $80,000, what amount of dividends were paid during the month?

Accepted Answer

A)  $0 
B)  $4,000 
C)  $8,000 
D)  $10,000 
A)  $0 
B)  $4,000 
C)  $8,000 
D)  $10,000

Question 9

Accounting is an information system that identifies, _____________, and _____________ the economic events of an organization.

Accepted Answer

records co

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. Stockholders' equity changed by what amount from the beginning of the year to the end of the year?

Accepted Answer

A)  $3,000. 
B)  $9,000. 
C)  $12,000. 
D)  $45,000. 
A)  $3,000. 
B)  $9,000. 
C)  $12,000. 
D)  $45,000.

Question 11

The three major services rendered by a certified public accountant are ______________, ________________, and management ________________.

Accepted Answer

auditing t

Question 12

Preparing tax returns and engaging in tax planning is performed by

Accepted Answer

A)  public accountants only. 
B)  private accountants only. 
C)  both public and private accountants. 
D)  IRS accountants only. 
A)  public accountants only. 
B)  private accountants only. 
C)  both public and private accountants. 
D)  IRS accountants only.

Question 13

Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company.

Accepted Answer

A) True 
 B)False

Question 14

Use the following information to calculate for the year ended December 31, 2018 (a) net income, (b) ending retained earnings, and (c) total assets.

Accepted Answer

(a) $13000

Question 15

Match between columns
                        Premises: Government agency that can mandate accounting rules.
Ownership is limited to one person.
Economic events recorded by accountants.
Consumed assets or services.
Quantifying goals and objectives.
Future economic benefits.
Offers expert accounting service to the general public.
Activities of an entity must be kept separate from its owner's activities.
A separate legal entity under state laws.
Creditor and ownership claims against the assets of the business.

Accepted Answer

The Answer of Equities and Expenses and Transaction and CPA is...

Question 16

Private accountants are accountants who are not employees of business enterprises.

Accepted Answer

A) True 
 B)False

Question 17

Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Retained Earnings Statement (RE):

Accepted Answer

The answer of Indicate in the space provided by each...

Question 18

Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE).
_____ 1. Accounts receivable
_____ 2. Accounts payable
_____ 3. Common stock
_____ 4. Supplies
_____ 5. Utilities expense
_____ 6. Cash
_____ 7. Notes payable
_____ 8. Equipment

Accepted Answer

1. A 5. SE

Question 19

Ted Leo is the proprietor (owner) of Ted's, a retailer of golf apparel. When recording the financial transactions of Ted's, Ted does not record an entry for a car he purchased for personal use. Ted took out a personal loan to pay for the car. What accounting concept guides Ted's behavior in this situation?

Accepted Answer

A)  Pay back concept 
B)  Economic entity assumption 
C)  Cash basis concept 
D)  Monetary unit assumption 
A)  Pay back concept 
B)  Economic entity assumption 
C)  Cash basis concept 
D)  Monetary unit assumption

Question 20

The concern about international companies adopting SOX-type standards centers on

Accepted Answer

A)  cost-benefit analysis. 
B)  ethics issues. 
C)  the governing authorities. 
D)  comparability.
IFRS. 
A)  cost-benefit analysis. 
B)  ethics issues. 
C)  the governing authorities. 
D)  comparability.
IFRS.

Revenues are

The basic accounting equation states that Assets = Liabilities.

The hiring of a new company president is an economic event recorded by the financial information system.

International standards are referred to as

All of the following are services offered by public accountants except

The Securities and Exchange Commission oversees U.S. financial markets and accounting standard-setting bodies.

If supplies that have been purchased are used in the course of business, then

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, common stock of $4,000 was issued and the company earned net income of $14,000. If stockholders' equity at October 31 totals $80,000, what amount of dividends were paid during the month?

Accounting is an information system that identifies, _, and _ the economic events of an organization.

The three major services rendered by a certified public accountant are , , and management __.

Preparing tax returns and engaging in tax planning is performed by

Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company.

Use the following information to calculate for the year ended December 31, 2018 (a) net income, (b) ending retained earnings, and (c) total assets.

Private accountants are accountants who are not employees of business enterprises.

Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Retained Earnings Statement (RE):

Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE). ___ 1. Accounts receivable _ 2. Accounts payable _ 3. Common stock _ 4. Supplies _ 5. Utilities expense _ 6. Cash _ 7. Notes payable ___ 8. Equipment

The concern about international companies adopting SOX-type standards centers on

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

Revenues are

The basic accounting equation states that Assets = Liabilities.

The hiring of a new company president is an economic event recorded by the financial information system.

International standards are referred to as

All of the following are services offered by public accountants except

The Securities and Exchange Commission oversees U.S. financial markets and accounting standard-setting bodies.

If supplies that have been purchased are used in the course of business, then

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, common stock of $4,000 was issued and the company earned net income of $14,000. If stockholders' equity at October 31 totals $80,000, what amount of dividends were paid during the month?

Accounting is an information system that identifies, _____________, and _____________ the economic events of an organization.

The three major services rendered by a certified public accountant are ______________, ________________, and management ________________.

Preparing tax returns and engaging in tax planning is performed by

Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company.

Use the following information to calculate for the year ended December 31, 2018 (a) net income, (b) ending retained earnings, and (c) total assets.

Private accountants are accountants who are not employees of business enterprises.

Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Retained Earnings Statement (RE):

Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE). _____ 1. Accounts receivable _____ 2. Accounts payable _____ 3. Common stock _____ 4. Supplies _____ 5. Utilities expense _____ 6. Cash _____ 7. Notes payable _____ 8. Equipment

The concern about international companies adopting SOX-type standards centers on

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

Accounting is an information system that identifies, _, and _ the economic events of an organization.

The three major services rendered by a certified public accountant are , , and management __.

Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE). ___ 1. Accounts receivable _ 2. Accounts payable _ 3. Common stock _ 4. Supplies _ 5. Utilities expense _ 6. Cash _ 7. Notes payable ___ 8. Equipment