Question 1

Gross profit is the excess of sales over all expenses.

Accepted Answer

A) True 
 B)False

Question 2

The linking of revenues with the expenses incurred to generate them

Accepted Answer

The answer of The linking of revenues with the expenses...

Question 3

San Francisco Company paid $2,700 for 6 months' insurance, covering the period of April 1 to September 30.At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account.The balance in the Prepaid Insurance account as of April 30 is_____.

Accepted Answer

A) $-0- 
B) $900 
C) $1,800 
D) $2,250 
A) $-0- 
B) $900 
C) $1,800 
D) $2,250

Question 4

A corporation is not a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 5

The ownership claim arising from the reinvestment of previous profits

Accepted Answer

Retained e

Question 6

The matching concept matches _____.

Accepted Answer

A) the dollar amount of expenses and the dollar amount of revenues 
B) expenses and related revenues in the same time period 
C) the revenues earned and the revenues realized 
D) the dollar amount of total assets and the dollar amount of total liabilities and total owners' equity 
A) the dollar amount of expenses and the dollar amount of revenues 
B) expenses and related revenues in the same time period 
C) the revenues earned and the revenues realized 
D) the dollar amount of total assets and the dollar amount of total liabilities and total owners' equity

Question 7

Amounts owed to creditors for purchases on open accounts

Accepted Answer

The answer of Amounts owed to creditors for purchases on...

Question 8

Identify which one of the following statements is always true.

Accepted Answer

A) An increase in an asset account must increase a liability or owners' equity account. 
B) An increase in an asset account must decrease another asset account. 
C) A decrease in an asset account must increase a liability or owners' equity account. 
D) None of these answers is correct. 
A) An increase in an asset account must increase a liability or owners' equity account. 
B) An increase in an asset account must decrease another asset account. 
C) A decrease in an asset account must increase a liability or owners' equity account. 
D) None of these answers is correct.

Question 9

To accumulate a receivable or payable during a given period, even though no explicit transaction occurs

Accepted Answer

The answer of To accumulate a receivable or payable during...

Question 10

The _____ is also called the statement of financial position.

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows 
A) income statement 
B) balance sheet 
C) statement of retained earnings 
D) statement of cash flows

Question 11

Research and development costs are initially _____.

Accepted Answer

A) recorded as assets, and written off in a systematic way over a period of years 
B) recorded as assets, and are expensed when the goods produced are sold 
C) recorded as assets, and are expensed when they are paid in cash 
D) expensed 
A) recorded as assets, and written off in a systematic way over a period of years 
B) recorded as assets, and are expensed when the goods produced are sold 
C) recorded as assets, and are expensed when they are paid in cash 
D) expensed

Question 12

Oakland Company owns a fixed asset with an original cost of $100,000.Piston Company estimates it will use the asset for 5 years, at which time the asset can be sold for $10,000.The annual depreciation expense is_____.

Accepted Answer

A) $20,000 
B) $10,000 
C) $18,000 
D) $-0- 
A) $20,000 
B) $10,000 
C) $18,000 
D) $-0-

Question 13

San Gabriel Company paid 6 months' insurance in advance, covering the period of July1 to December 31.The total payment was $5,400.At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account.The balance in the Prepaid Insurance account as of September 30 is_____.

Accepted Answer

A) $-0- 
B) $2,700 
C) $1,800 
D) $3,600 
A) $-0- 
B) $2,700 
C) $1,800 
D) $3,600

Question 14

Selecting the method of measurement that yields the gloomiest immediate results

Accepted Answer

Conservati

Question 15

Assume that Shack Company's paid-in capital at the beginning of the period was $475,000.Shack Company's total revenues and total expenses were $870,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Shack Company's ending paid-in capital is_____.

Accepted Answer

A) $475,000 
B) $825,000 
C) $250,000 
D) $320,000 
A) $475,000 
B) $825,000 
C) $250,000 
D) $320,000

Question 16

_____ would not appear on the financial statements for a sole proprietorship.

Accepted Answer

A) Paid-in Capital 
B) Cost of Goods Sold 
C) Accumulated Depreciation 
D) Unearned Sales Revenues 
A) Paid-in Capital 
B) Cost of Goods Sold 
C) Accumulated Depreciation 
D) Unearned Sales Revenues

Question 17

_____ would result in a decrease in income under both the accrual and cash basis.

Accepted Answer

A) The recognition of last period's rent 
B) The payment of this period's rent 
C) The payment of next period's rent 
D) The cash purchase of inventory 
A) The recognition of last period's rent 
B) The payment of this period's rent 
C) The payment of next period's rent 
D) The cash purchase of inventory

Question 18

The body that sets generally accepted accounting principles in the United States

Accepted Answer

Financial

Question 19

A company's top management decides when to pay dividends and how much to pay.

Accepted Answer

A) True 
 B)False

Question 20

Liabilities are the entity's economic obligation to owners.

Accepted Answer

A) True 
 B)False

Gross profit is the excess of sales over all expenses.

The linking of revenues with the expenses incurred to generate them

San Francisco Company paid $2,700 for 6 months' insurance, covering the period of April 1 to September 30.At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account.The balance in the Prepaid Insurance account as of April 30 is_____.

A corporation is not a separate legal entity.

The ownership claim arising from the reinvestment of previous profits

The matching concept matches _____.

Amounts owed to creditors for purchases on open accounts

Identify which one of the following statements is always true.

To accumulate a receivable or payable during a given period, even though no explicit transaction occurs

The _____ is also called the statement of financial position.

Research and development costs are initially _____.

Oakland Company owns a fixed asset with an original cost of $100,000.Piston Company estimates it will use the asset for 5 years, at which time the asset can be sold for $10,000.The annual depreciation expense is_____.

Selecting the method of measurement that yields the gloomiest immediate results

Assume that Shack Company's paid-in capital at the beginning of the period was $475,000.Shack Company's total revenues and total expenses were $870,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Shack Company's ending paid-in capital is_____.

_____ would not appear on the financial statements for a sole proprietorship.

_____ would result in a decrease in income under both the accrual and cash basis.

The body that sets generally accepted accounting principles in the United States

A company's top management decides when to pay dividends and how much to pay.

Liabilities are the entity's economic obligation to owners.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, Techniques, and Conventions

Gross profit is the excess of sales over all expenses.

The linking of revenues with the expenses incurred to generate them

San Francisco Company paid $2,700 for 6 months' insurance, covering the period of April 1 to September 30.At the time of the payment, the entire amount was used to increase the balance in the Prepaid Insurance account.The balance in the Prepaid Insurance account as of April 30 is_____.

A corporation is not a separate legal entity.

The ownership claim arising from the reinvestment of previous profits

The matching concept matches _____.

Amounts owed to creditors for purchases on open accounts

Identify which one of the following statements is always true.

To accumulate a receivable or payable during a given period, even though no explicit transaction occurs

The _____ is also called the statement of financial position.

Research and development costs are initially _____.

Oakland Company owns a fixed asset with an original cost of $100,000.Piston Company estimates it will use the asset for 5 years, at which time the asset can be sold for $10,000.The annual depreciation expense is_____.

Selecting the method of measurement that yields the gloomiest immediate results

Assume that Shack Company's paid-in capital at the beginning of the period was $475,000.Shack Company's total revenues and total expenses were $870,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Shack Company's ending paid-in capital is_____.

_____ would not appear on the financial statements for a sole proprietorship.

_____ would result in a decrease in income under both the accrual and cash basis.

The body that sets generally accepted accounting principles in the United States

A company's top management decides when to pay dividends and how much to pay.

Liabilities are the entity's economic obligation to owners.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters