Question 1

The group of users of accounting information charged with achieving the goals of the business is its

Accepted Answer

A)  auditors. 
B)  investors. 
C)  managers. 
D)  creditors. 
A)  auditors. 
B)  investors. 
C)  managers. 
D)  creditors.

Question 2

The concern about international companies adopting SOX-type standards centers on

Accepted Answer

A)  cost-benefit analysis. 
B)  ethics issues. 
C)  the governing authorities. 
D)  comparability. 
A)  cost-benefit analysis. 
B)  ethics issues. 
C)  the governing authorities. 
D)  comparability.

Question 3

The _________________ is prepared by an independent auditor stating the auditor's opinion as to the fairness of the presentation of the financial statements.

Accepted Answer

The answer of The _________________ is prepared by an independent...

Question 4

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $100,000 increase 
B)  $50,000 decrease 
C)  $50,000 increase 
D)  $75,000 decrease 
A)  $100,000 increase 
B)  $50,000 decrease 
C)  $50,000 increase 
D)  $75,000 decrease

Question 5

The right to receive money in the future is called a(n)

Accepted Answer

A)  account payable. 
B)  account receivable. 
C)  liability. 
D)  revenue. 
A)  account payable. 
B)  account receivable. 
C)  liability. 
D)  revenue.

Question 6

Stockholders' equity

Accepted Answer

A)  is usually equal to cash on hand. 
B)  is equal to liabilities and retained earnings. 
C)  includes retained earnings and common stock. 
D)  is shown on the income statement. 
A)  is usually equal to cash on hand. 
B)  is equal to liabilities and retained earnings. 
C)  includes retained earnings and common stock. 
D)  is shown on the income statement.

Question 7

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Accepted Answer

A)  $240,000. 
B)  $200,000. 
C)  $160,000. 
D)  $180,000. 
A)  $240,000. 
B)  $200,000. 
C)  $160,000. 
D)  $180,000.

Question 8

The balance sheet

Accepted Answer

A)  summarizes the changes in retained earnings for a specific period of time. 
B)  reports the changes in assets, liabilities, and stockholders' equity over a period of time. 
C)  reports the assets, liabilities, and stockholders' equity at a specific date. 
D)  presents the revenues and expenses for a specific period of time. 
A)  summarizes the changes in retained earnings for a specific period of time. 
B)  reports the changes in assets, liabilities, and stockholders' equity over a period of time. 
C)  reports the assets, liabilities, and stockholders' equity at a specific date. 
D)  presents the revenues and expenses for a specific period of time.

Question 9

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Accepted Answer

A) True 
 B)False

Question 10

Operating activities involve putting the resources of the business into action to generate a profit.

Accepted Answer

A) True 
 B)False

Question 11

Stockholders' equity can be described as claims of

Accepted Answer

A)  creditors on total assets. 
B)  owners on total assets. 
C)  customers on total assets. 
D)  debtors on total assets. 
A)  creditors on total assets. 
B)  owners on total assets. 
C)  customers on total assets. 
D)  debtors on total assets.

Question 12

The partnership form of business organization

Accepted Answer

A)  is a separate legal entity. 
B)  is a common form of organization for service-type businesses. 
C)  enjoys an unlimited life. 
D)  has limited liability. 
A)  is a separate legal entity. 
B)  is a common form of organization for service-type businesses. 
C)  enjoys an unlimited life. 
D)  has limited liability.

Question 13

The conceptual framework that underlines IFRS

Accepted Answer

A)  is very similar to that used to develop GAAP. 
B)  does not define assets or liabilities. 
C)  does not define equity. 
D)  does not define income or expenses. 
A)  is very similar to that used to develop GAAP. 
B)  does not define assets or liabilities. 
C)  does not define equity. 
D)  does not define income or expenses.

Question 14

Which of the following would not be considered an internal user of accounting data for the Xanadu 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 15

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are financial statements related to the accounting equation?

Accepted Answer

The basic accounting equation is express

Question 16

Which of the following is not a principal type of business activity?

Accepted Answer

A)  Operating 
B)  Investing 
C)  Financing 
D)  Delivering 
A)  Operating 
B)  Investing 
C)  Financing 
D)  Delivering

Question 17

Marvin Services Corporation had the following accounts and balances: $$\begin{array} { l r l r } 
\text { Accounts payable } & \$ 18,000 & \text { Equipment } & \$ 21,000 \
\text { Accounts receivable } & 3,000 & \text { Land } & 21,000 \
\text { Buildings } & ? & \text { Unearned service revenue } & 6,000 \
\text { Cash } & 9,000 & \text { Total stockholders' equity } & ?
\end{array}$$ If total stockholder's equity was $57,000, what would be the balance of the Buildings Account?

Accepted Answer

A)  $21,000 
B)  $81,000 
C)  $87,000 
D)  $27,000 
A)  $21,000 
B)  $81,000 
C)  $87,000 
D)  $27,000

Question 18

Stockholders' equity is comprised of

Accepted Answer

A)  common stock and dividends. 
B)  common stock and retained earnings. 
C)  dividends and retained earnings. 
D)  net income and retained earnings. 
A)  common stock and dividends. 
B)  common stock and retained earnings. 
C)  dividends and retained earnings. 
D)  net income and retained earnings.

Question 19

Retained earnings is

Accepted Answer

A)  the stockholders' claim on total assets. 
B)  equal to cash. 
C)  equal to revenues. 
D)  the amount of net income kept in the corporation for future use. 
A)  the stockholders' claim on total assets. 
B)  equal to cash. 
C)  equal to revenues. 
D)  the amount of net income kept in the corporation for future use.

Question 20

All of the following are advantages for choosing a proprietorship for a business except

Accepted Answer

A)  a proprietorship is a simple form of business to set up. 
B)  a proprietorship gives the owner control of the business. 
C)  proprietorship receive more favorable tax treatment. 
D)  transfer of ownership is easily achieved through stock sales. 
A)  a proprietorship is a simple form of business to set up. 
B)  a proprietorship gives the owner control of the business. 
C)  proprietorship receive more favorable tax treatment. 
D)  transfer of ownership is easily achieved through stock sales.

The group of users of accounting information charged with achieving the goals of the business is its

The concern about international companies adopting SOX-type standards centers on

The _________________ is prepared by an independent auditor stating the auditor's opinion as to the fairness of the presentation of the financial statements.

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

The right to receive money in the future is called a(n)

Stockholders' equity

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

The balance sheet

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Operating activities involve putting the resources of the business into action to generate a profit.

Stockholders' equity can be described as claims of

The partnership form of business organization

The conceptual framework that underlines IFRS

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

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are financial statements related to the accounting equation?

Which of the following is not a principal type of business activity?

Stockholders' equity is comprised of

Retained earnings is

All of the following are advantages for choosing a proprietorship for a business except

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

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Exam 1: Introduction to Financial Statements

The group of users of accounting information charged with achieving the goals of the business is its

The concern about international companies adopting SOX-type standards centers on

The _________________ is prepared by an independent auditor stating the auditor's opinion as to the fairness of the presentation of the financial statements.

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

The right to receive money in the future is called a(n)

Stockholders' equity

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

The balance sheet

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Operating activities involve putting the resources of the business into action to generate a profit.

Stockholders' equity can be described as claims of

The partnership form of business organization

The conceptual framework that underlines IFRS

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

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are financial statements related to the accounting equation?

Which of the following is not a principal type of business activity?

Stockholders' equity is comprised of

Retained earnings is

All of the following are advantages for choosing a proprietorship for a business except

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments and Acquisitions in Accounting

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