Question 1

The origins of accounting are attributed to Luca Pacioli, a famous mathematician.

Accepted Answer

A) True 
 B)False

Question 2

Liabilities of a company would not include

Accepted Answer

A) notes payable. 
B) accounts payable. 
C) salaries and wages payable. 
D) cash. 
A) notes payable. 
B) accounts payable. 
C) salaries and wages payable. 
D) cash.

Question 3

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 4

Druganaut Company buys a $21,000 van on credit. The transaction will affect the

Accepted Answer

A) income statement only. 
B) balance sheet only. 
C) income statement and retained earnings statement only. 
D) income statement, retained earnings statement, and balance sheet. 
A) income statement only. 
B) balance sheet only. 
C) income statement and retained earnings statement only. 
D) income statement, retained earnings statement, and balance sheet.

Question 5

The balance sheet is frequently referred to as

Accepted Answer

A) an operating statement. 
B) the statement of financial position. 
C) the statement of cash flows. 
D) the statement of retained earnings. 
A) an operating statement. 
B) the statement of financial position. 
C) the statement of cash flows. 
D) the statement of retained earnings.

Question 6

A net loss will result during a time period when

Accepted Answer

A) assets exceed liabilities. 
B) assets exceed stockholders' equity. 
C) expenses exceed revenues. 
D) revenues exceed expenses. 
A) assets exceed liabilities. 
B) assets exceed stockholders' equity. 
C) expenses exceed revenues. 
D) revenues exceed expenses.

Question 7

Stockholders' equity is often referred to as

Accepted Answer

A) residual equity. 
B) leftovers. 
C) spoils. 
D) second equity. 
A) residual equity. 
B) leftovers. 
C) spoils. 
D) second equity.

Question 8

At the time an asset is acquired, cost and fair value should be the same.

Accepted Answer

A) True 
 B)False

Question 9

The final step in solving an ethical dilemma is to

Accepted Answer

A) identify and analyze the principal elements in the situation. 
B) recognize an ethical situation. 
C) identify the alternatives and weigh the impact of each alternative on stakeholders. 
D) recognize the ethical issues involved. 
A) identify and analyze the principal elements in the situation. 
B) recognize an ethical situation. 
C) identify the alternatives and weigh the impact of each alternative on stakeholders. 
D) recognize the ethical issues involved.

Question 10

A partnership must have more than one owner.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following will not cause a change in the stockholders' equity of a business?

Accepted Answer

A) An increase in prepaid expenses. 
B) An increase in retained earnings. 
C) The sale of common stock. 
D) The declaration and payment of dividends. 
A) An increase in prepaid expenses. 
B) An increase in retained earnings. 
C) The sale of common stock. 
D) The declaration and payment of dividends.

Question 12

Financial information that is capable of making a difference in a decision is

Accepted Answer

A) faithfully representative. 
B) relevant. 
C) convergent. 
D) generally accepted. 
A) faithfully representative. 
B) relevant. 
C) convergent. 
D) generally accepted.

Question 13

A dividend is

Accepted Answer

A) a distribution of the company's earnings to its stockholders. 
B) equal to liabilities minus stockholders' equity. 
C) equal to assets minus stockholders' equity. 
D) equal to revenues less expenses 
A) a distribution of the company's earnings to its stockholders. 
B) equal to liabilities minus stockholders' equity. 
C) equal to assets minus stockholders' equity. 
D) equal to revenues less expenses

Question 14

Martin Corporation purchased land in 2007 for $290,000. In 2015, it purchased a nearly identical parcel of land for $460,000. In its 2015 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the

Accepted Answer

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

Question 15

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

In order to possess future service potential, an asset must have physical substance.

Accepted Answer

A) True 
 B)False

Question 17

Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $500,000 in computer repair revenues, $300,000 in expenses, and Mofro paid dividends of $50,000. The net income reported by Mofro's Computer Repair Shop for the year was

Accepted Answer

A) $100,000. 
B) $150,000. 
C) $200,000. 
D) $250,000. 
A) $100,000. 
B) $150,000. 
C) $200,000. 
D) $250,000.

Question 18

As of June 30, 2015, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2015?

Accepted Answer

A) $40,000 
B) $60,000 
C) $100,000 
D) $140,000 
A) $40,000 
B) $60,000 
C) $100,000 
D) $140,000

Question 19

Financial statements are the major means of communicating accounting information to interested parties.

Accepted Answer

A) True 
 B)False

Question 20

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.

The origins of accounting are attributed to Luca Pacioli, a famous mathematician.

Liabilities of a company would not include

Druganaut Company buys a $21,000 van on credit. The transaction will affect the

The balance sheet is frequently referred to as

A net loss will result during a time period when

Stockholders' equity is often referred to as

At the time an asset is acquired, cost and fair value should be the same.

The final step in solving an ethical dilemma is to

A partnership must have more than one owner.

Which of the following will not cause a change in the stockholders' equity of a business?

Financial information that is capable of making a difference in a decision is

A dividend is

Martin Corporation purchased land in 2007 for $290,000. In 2015, it purchased a nearly identical parcel of land for $460,000. In its 2015 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

In order to possess future service potential, an asset must have physical substance.

As of June 30, 2015, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2015?

Financial statements are the major means of communicating accounting information to interested parties.

Preparing tax returns and engaging in tax planning is performed by

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, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Accounting in Action

The origins of accounting are attributed to Luca Pacioli, a famous mathematician.

Liabilities of a company would not include

Druganaut Company buys a $21,000 van on credit. The transaction will affect the

The balance sheet is frequently referred to as

A net loss will result during a time period when

Stockholders' equity is often referred to as

At the time an asset is acquired, cost and fair value should be the same.

The final step in solving an ethical dilemma is to

A partnership must have more than one owner.

Which of the following will not cause a change in the stockholders' equity of a business?

Financial information that is capable of making a difference in a decision is

A dividend is

Martin Corporation purchased land in 2007 for $290,000. In 2015, it purchased a nearly identical parcel of land for $460,000. In its 2015 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

In order to possess future service potential, an asset must have physical substance.

As of June 30, 2015, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2015?

Financial statements are the major means of communicating accounting information to interested parties.

Preparing tax returns and engaging in tax planning is performed by

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, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters