Question 1

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 2

Eli's Electronic Repair Shop started the year with total assets of $300000 and total liabilities of $200000. During the year the business recorded $400000 in electronic repair revenues $300000 in expenses and Eli withdrew $50000. The net income reported by Eli's Electronic Repair Shop for the year was

Accepted Answer

A)  $100000. 
B)  $150000. 
C)  $250000. 
D)  $300000. 
A)  $100000. 
B)  $150000. 
C)  $250000. 
D)  $300000.

Question 3

The internal control standards applicable to Sarbanes-Oxley apply to

Accepted Answer

A)  all U.S. and international companies. 
B)  U.S. and international companies listed on U.S. exchanges. 
C)  International companies listed on U.S. exchanges. 
D)  U.S. companies listed on U.S. exchanges. 
A)  all U.S. and international companies. 
B)  U.S. and international companies listed on U.S. exchanges. 
C)  International companies listed on U.S. exchanges. 
D)  U.S. companies listed on U.S. exchanges.

Question 4

A net loss will result during a time period when

Accepted Answer

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

Question 5

The purchase of store equipment for cash reduces assets and owner's equity by an equal amount.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

auditing t

Question 7

The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar.

Accepted Answer

A) True 
 B)False

Question 8

As of June 30 2016 Little Giantz Company has assets of $100000 and owner's equity of $60000. What are the liabilities for Little Giantz Company as of June 30 2016?

Accepted Answer

A)  $40000 
B)  $60000 
C)  $100000 
D)  $160000 
A)  $40000 
B)  $60000 
C)  $100000 
D)  $160000

Question 9

Luis Consulting started the year with total assets of $60000 and total liabilities of $17000. During the year the business recorded $48000 in consulting revenues and $36000 in expenses. Luis made an additional investment of $8000 and withdrew cash of $9000 during the year. The net income reported by Luis Consulting for the year was:

Accepted Answer

A)  $3000. 
B)  $12000. 
C)  $18000. 
D)  $27000. 
A)  $3000. 
B)  $12000. 
C)  $18000. 
D)  $27000.

Question 10

When an owner withdraws cash or other assets from a business for personal use these withdrawals are termed

Accepted Answer

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

Question 11

Which of the following would not be considered an internal user of accounting data for the LMN Company?

Accepted Answer

A)  President of the company. 
B)  Production manager. 
C)  Merchandise inventory clerk. 
D)  President of the employees' labor union. 
A)  President of the company. 
B)  Production manager. 
C)  Merchandise inventory clerk. 
D)  President of the employees' labor union.

Question 12

Selected transactions for Mountain Goats Tree Service are listed below.
1. Made cash investment to start business.
2. Paid for monthly advertising.
3. Purchased supplies on account.
4. Billed customers for services performed.
5. Withdrew cash for owner's personal use.
6. Received cash from customers billed in (4).
7. Incurred utilities expense on account.
8. Purchased additional supplies for cash.
9. Received cash from customers when service was performed.
Instructions
List the numbers of the above transactions and describe the effect of each transaction on assets
liabilities and owner's equity. For example the first answer is: (1) Increase in assets and increase in owner's equity.

Accepted Answer

1. Increase in assets and increase in ow

Question 13

The ________________ reports the assets liabilities and owner's equity of a business enterprise at a specific date.
Answers to

Accepted Answer

The answer of The ________________ reports the assets liabilities and...

Question 14

If expenses are paid in cash then

Accepted Answer

A)  assets will increase. 
B)  liabilities will decrease. 
C)  owner's equity will increase. 
D)  assets will decrease. 
A)  assets will increase. 
B)  liabilities will decrease. 
C)  owner's equity will increase. 
D)  assets will decrease.

Question 15

Which of the following is not an advantage of the corporate form of business organization?

Accepted Answer

A)  Limited liability of stockholders 
B)  Transferability of ownership 
C)  Unlimited personal liability for stockholders 
D)  Unlimited life 
A)  Limited liability of stockholders 
B)  Transferability of ownership 
C)  Unlimited personal liability for stockholders 
D)  Unlimited life

Question 16

Identify the impact on the accounting equation of each of the following transactions.
1. Purchase office supplies on account.
2. Paid secretary weekly salary.
3. Purchased office furniture for cash.
4. Received monthly utility bill to be paid at later time.

Accepted Answer

1. Increase assets and increas

Question 17

For the items listed below fill in the appropriate code letter to indicate whether the item is an asset liability or owner's equity item.

Accepted Answer

The answer of For the items listed below fill in...

Question 18

Which of the following would not be considered internal users of accounting data for a company?

Accepted Answer

A)  The president of a company. 
B)  The controller of a company. 
C)  Creditors of a company. 
D)  Salesmen of the company. 
A)  The president of a company. 
B)  The controller of a company. 
C)  Creditors of a company. 
D)  Salesmen of the company.

Question 19

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 20

Capital is

Accepted Answer

A)  an owner's permanent investment in the business. 
B)  equal to liabilities minus owner's equity. 
C)  equal to assets minus owner's equity. 
D)  equal to liabilities plus drawings. 
A)  an owner's permanent investment in the business. 
B)  equal to liabilities minus owner's equity. 
C)  equal to assets minus owner's equity. 
D)  equal to liabilities plus drawings.

Exam 1: Accounting in Action

Match the items below by entering the appropriate code letter in the space provided.

The internal control standards applicable to Sarbanes-Oxley apply to

A net loss will result during a time period when

The purchase of store equipment for cash reduces assets and owner's equity by an equal amount.

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

The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar.

As of June 30 2016 Little Giantz Company has assets of $100000 and owner's equity of $60000. What are the liabilities for Little Giantz Company as of June 30 2016?

When an owner withdraws cash or other assets from a business for personal use these withdrawals are termed

Which of the following would not be considered an internal user of accounting data for the LMN Company?

The ________________ reports the assets liabilities and owner's equity of a business enterprise at a specific date. Answers to

If expenses are paid in cash then

Which of the following is not an advantage of the corporate form of business organization?

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to be paid at later time.

For the items listed below fill in the appropriate code letter to indicate whether the item is an asset liability or owner's equity item.

Which of the following would not be considered internal users of accounting data for a company?

A problem with the monetary unit assumption is that

Capital is

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

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