Question 1

A basic assumption of accounting assumes that the dollar is

Accepted Answer

A)  unrelated to business transactions. 
B)  a poor measure of economic activities. 
C)  the common unit of measure for all business transactions. 
D)  useless in measuring an economic event. 
A)  unrelated to business transactions. 
B)  a poor measure of economic activities. 
C)  the common unit of measure for all business transactions. 
D)  useless in measuring an economic event.

Question 2

Owner's capital at the end of the period is equal to

Accepted Answer

A)  owner's capital at the beginning of the period plus net income minus liabilities. 
B)  owner's capital at the beginning of the period plus net income minus drawings. 
C)  net income. 
D)  assets plus liabilities. 
A)  owner's capital at the beginning of the period plus net income minus liabilities. 
B)  owner's capital at the beginning of the period plus net income minus drawings. 
C)  net income. 
D)  assets plus liabilities.

Question 3

If total liabilities increased by $4,000, then

Accepted Answer

A)  assets must have decreased by $4,000. 
B)  owner's equity must have increased by $4,000. 
C)  assets must have increased by $4,000, or owner's equity must have decreased by $4,000. 
D)  assets and owner's equity each increased by $2,000. 
A)  assets must have decreased by $4,000. 
B)  owner's equity must have increased by $4,000. 
C)  assets must have increased by $4,000, or owner's equity must have decreased by $4,000. 
D)  assets and owner's equity each increased by $2,000.

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

Presented below are balance sheet items for Wilson Company at December 31, 2009.   
Compute each of the following:
1. Total assets.
2. Total liabilities.

Accepted Answer

1. Total assets = $115,000 ($3

Question 6

At October 1, Smithson Enterprises reported owner's equity of $35,000. During October, the owner made additional investments of $5,000 and the company posted a net loss of $3,000. If owner's equity at October 31 totals $35,000, what amount of owner drawings were made during the month?

Accepted Answer

A)  $0 
B)  $2,000 
C)  $3,000 
D)  $5,000 
A)  $0 
B)  $2,000 
C)  $3,000 
D)  $5,000

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Listed below in alphabetical order are the balance sheet items of Pieter Company at December 31, 2009. Prepare a balance sheet and include a complete heading.

Accepted Answer

The answer of Listed below in alphabetical order are the...

Question 9

Determine the missing items.

Accepted Answer

a. $23,000

Question 10

Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS).
1. Cash
2. Service Revenue
3. Notes Payable
4. Interest Expense
5. Accounts Receivable

Accepted Answer

1. Balance Sheet (BS)
2. Incom

Question 11

Liabilities

Accepted Answer

A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation. 
A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation.

Question 12

On June 1, 2009, Bush Company prepared a balance sheet that shows the following:   
Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Accepted Answer

The answer of On June 1, 2009, Bush Company prepared...

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

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

Accepted Answer

A)  they are both governmental agencies. 
B)  the SEC is a private organization of accountants. 
C)  the SEC often mandates guidelines when no accounting principles exist. 
D)  the SEC and FASB rarely cooperate in developing accounting standards. 
A)  they are both governmental agencies. 
B)  the SEC is a private organization of accountants. 
C)  the SEC often mandates guidelines when no accounting principles exist. 
D)  the SEC and FASB rarely cooperate in developing accounting standards.

Question 15

The primary purpose of the statement of cash flows is to report

Accepted Answer

A)  a company's investing transactions. 
B)  a company's financing transactions. 
C)  information about cash receipts and cash payments of a company. 
D)  the net increase or decrease in cash. 
A)  a company's investing transactions. 
B)  a company's financing transactions. 
C)  information about cash receipts and cash payments of a company. 
D)  the net increase or decrease in cash.

Question 16

One item is omitted in each of the following summaries of balance sheet and income statement data for three different sole proprietorships, X, Y, and Z. Determine the amounts of the missing items, identifying each proprietorship by letter.

Accepted Answer

The answer of One item is omitted in each of...

Question 17

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

Accepted Answer

auditing,

Question 18

The _________________ assumption requires that the activities of an entity be kept separate from the activities of its owner.

Accepted Answer

The answer of The _________________ assumption requires that the activities...

Question 19

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 20

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 owner's equity. 
A)  an operating statement. 
B)  the statement of financial position. 
C)  the statement of cash flows. 
D)  the statement of owner's equity.

Exam 1: Accounting in Action

A basic assumption of accounting assumes that the dollar is

Owner's capital at the end of the period is equal to

If total liabilities increased by $4,000, then

A net loss will result during a time period when

Presented below are balance sheet items for Wilson Company at December 31, 2009. Compute each of the following: 1. Total assets. 2. Total liabilities.

At October 1, Smithson Enterprises reported owner's equity of $35,000. During October, the owner made additional investments of $5,000 and the company posted a net loss of $3,000. If owner's equity at October 31 totals $35,000, what amount of owner drawings were made during the month?

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

Listed below in alphabetical order are the balance sheet items of Pieter Company at December 31, 2009. Prepare a balance sheet and include a complete heading.

Determine the missing items.

Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS). 1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable

Liabilities

On June 1, 2009, Bush Company prepared a balance sheet that shows the following: Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

The accounting process is correctly sequenced as

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

The primary purpose of the statement of cash flows is to report

One item is omitted in each of the following summaries of balance sheet and income statement data for three different sole proprietorships, X, Y, and Z. Determine the amounts of the missing items, identifying each proprietorship by letter.

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

The _________________ assumption requires that the activities of an entity be kept separate from the activities of its owner.

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

The balance sheet is frequently referred to as

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 Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

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