Question 1

As of December 31, 2015, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2015?

Accepted Answer

A) $22,000. 
B) $20,000. 
C) $42,000. 
D) $62,000. 
A) $22,000. 
B) $20,000. 
C) $42,000. 
D) $62,000.

Question 2

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 3

A problem with the monetary unit assumption is that

Accepted Answer

A) the dollar has not been stable over time. 
B) the dollar has been stable over time. 
C) the dollar is a common medium of exchange. 
D) it is impossible to account for international transactions. 
A) the dollar has not been stable over time. 
B) the dollar has been stable over time. 
C) the dollar is a common medium of exchange. 
D) it is impossible to account for international transactions.

Question 4

The United States and the international standard-setting environment are primarily driven by meeting the needs of

Accepted Answer

A) investors and creditors. 
B) tax authorities. 
C) central government planners. 
D) academic researchers. 
A) investors and creditors. 
B) tax authorities. 
C) central government planners. 
D) academic researchers.

Question 5

The monetary unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records.

Accepted Answer

A) True 
 B)False

Question 6

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

Accepted Answer

A) $105,000. 
B) $135,000. 
C) $165,000. 
D) $180,000. 
A) $105,000. 
B) $135,000. 
C) $165,000. 
D) $180,000.

Question 7

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 8

The private sector organization involved in developing accounting principles is the

Accepted Answer

A) Feasible Accounting Standards Body. 
B) Financial Accounting Studies Board. 
C) Financial Accounting Standards Board. 
D) Financial Auditors' Standards Body. 
A) Feasible Accounting Standards Body. 
B) Financial Accounting Studies Board. 
C) Financial Accounting Standards Board. 
D) Financial Auditors' Standards Body.

Question 9

The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are steps in analyzing ethics cases in financial reporting except

Accepted Answer

A) identify and analyze the principle elements in the situation. 
B) contact law enforcement regarding any violations of corporate ethics codes 
C) identify the alternatives and weigh the impact of each alternative on various stakeholders. 
D) recognize an ethical situation and the ethical issues involved. 
A) identify and analyze the principle elements in the situation. 
B) contact law enforcement regarding any violations of corporate ethics codes 
C) identify the alternatives and weigh the impact of each alternative on various stakeholders. 
D) recognize an ethical situation and the ethical issues involved.

Question 11

John and Sam met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a

Accepted Answer

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

Question 12

Which of the following events is not a business transaction?

Accepted Answer

A) Issuance of stock in exchange for cash. 
B) Hired employees. 
C) Incurred utility expenses for the month. 
D) Earned revenue for services provided. 
A) Issuance of stock in exchange for cash. 
B) Hired employees. 
C) Incurred utility expenses for the month. 
D) Earned revenue for services provided.

Question 13

The accounting process is correctly sequenced as

Accepted Answer

A) identification, communication, recording. 
B) recording, communication, identification. 
C) identification, recording, communication. 
D) communication, recording, identification. 
A) identification, communication, recording. 
B) recording, communication, identification. 
C) identification, recording, communication. 
D) communication, recording, identification.

Question 14

A balance sheet shows

Accepted Answer

A) revenues, liabilities, and stockholders' equity. 
B) expenses, dividends, and stockholders' equity. 
C) revenues, expenses, and dividends. 
D) assets, liabilities, and stockholders' equity. 
A) revenues, liabilities, and stockholders' equity. 
B) expenses, dividends, and stockholders' equity. 
C) revenues, expenses, and dividends. 
D) assets, liabilities, and stockholders' equity.

Question 15

Accounting communicates financial information about a business enterprise to both internal and external users.

Accepted Answer

A) True 
 B)False

Question 16

Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?

Accepted Answer

A) $280,000. 
B) $340,000. 
C) $370,000. 
D) $400,000. 
A) $280,000. 
B) $340,000. 
C) $370,000. 
D) $400,000.

Question 17

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

Accepted Answer

A) The appointment of a new CPA firm to perform an audit. 
B) The purchase of a new computer. 
C) The sale of store equipment. 
D) Payment of income taxes. 
A) The appointment of a new CPA firm to perform an audit. 
B) The purchase of a new computer. 
C) The sale of store equipment. 
D) Payment of income taxes.

Question 18

The basic accounting equation may be expressed as

Accepted Answer

A) Assets = Equities. 
B) Assets - Liabilities = Stockholders' Equity. 
C) Assets = Liabilities + Stockholders' Equity. 
D) All of these answers are correct. 
A) Assets = Equities. 
B) Assets - Liabilities = Stockholders' Equity. 
C) Assets = Liabilities + Stockholders' Equity. 
D) All of these answers are correct.

Question 19

During the year 2015, Dilego Company earned revenues of $90,000, had expenses of $56,000, purchased assets with a cost of $10,000 and paid dividends of $6,000. Net income for the year is

Accepted Answer

A) $18,000. 
B) $24,000. 
C) $28,000. 
D) $34,000. 
A) $18,000. 
B) $24,000. 
C) $28,000. 
D) $34,000.

Question 20

Retained earnings at the end of the period is equal to

Accepted Answer

A) retained earnings at the beginning of the period plus net income minus liabilities. 
B) retained earnings at the beginning of the period plus net income minus dividends. 
C) net income. 
D) assets plus liabilities. 
A) retained earnings at the beginning of the period plus net income minus liabilities. 
B) retained earnings at the beginning of the period plus net income minus dividends. 
C) net income. 
D) assets plus liabilities.

As of December 31, 2015, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2015?

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

A problem with the monetary unit assumption is that

The United States and the international standard-setting environment are primarily driven by meeting the needs of

The monetary unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records.

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

All of the following are services offered by public accountants except

The private sector organization involved in developing accounting principles is the

The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

All of the following are steps in analyzing ethics cases in financial reporting except

John and Sam met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a

Which of the following events is not a business transaction?

The accounting process is correctly sequenced as

A balance sheet shows

Accounting communicates financial information about a business enterprise to both internal and external users.

Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

The basic accounting equation may be expressed as

During the year 2015, Dilego Company earned revenues of $90,000, had expenses of $56,000, purchased assets with a cost of $10,000 and paid dividends of $6,000. Net income for the year is

Retained earnings at the end of the period is equal to

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

As of December 31, 2015, Calexico Company has assets of $42,000 and stockholders' equity of $20,000. What are the liabilities for Calexico Company as of December 31, 2015?

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

A problem with the monetary unit assumption is that

The United States and the international standard-setting environment are primarily driven by meeting the needs of

The monetary unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records.

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

All of the following are services offered by public accountants except

The private sector organization involved in developing accounting principles is the

The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

All of the following are steps in analyzing ethics cases in financial reporting except

John and Sam met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a

Which of the following events is not a business transaction?

The accounting process is correctly sequenced as

A balance sheet shows

Accounting communicates financial information about a business enterprise to both internal and external users.

Black Keys Company began the year with stockholders' equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000. What was Black Keys' stockholders' equity at the end of the year?

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

The basic accounting equation may be expressed as

During the year 2015, Dilego Company earned revenues of $90,000, had expenses of $56,000, purchased assets with a cost of $10,000 and paid dividends of $6,000. Net income for the year is

Retained earnings at the end of the period is equal to

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