Question 1

Budke Corporation paid dividends of $5000.As a result of this event the

Accepted Answer

A) Dividends account was increased by $5000. 
B) Dividends account was decreased by $5000. 
C) Cash account was increased by $5000. 
D) Cash was increased and the Dividends account was decreased by $5000. 
A) Dividends account was increased by $5000. 
B) Dividends account was decreased by $5000. 
C) Cash account was increased by $5000. 
D) Cash was increased and the Dividends account was decreased by $5000.

Question 2

Characteristics associated with faithfully representative accounting information are

Accepted Answer

A) verifiable and timely. 
B) verifiable and neutral. 
C) complete and neutral. 
D) relevance and verifiable. 
A) verifiable and timely. 
B) verifiable and neutral. 
C) complete and neutral. 
D) relevance and verifiable.

Question 3

The concept that a business has a reasonable expectation of remaining in business for the foreseeable future is called the

Accepted Answer

A) economic entity assumption. 
B) monetary unit assumption. 
C) periodicity assumption. 
D) going concern assumption. 
A) economic entity assumption. 
B) monetary unit assumption. 
C) periodicity assumption. 
D) going concern assumption.

Question 4

The cost constraint weighs the cost that companies incur to provide a type of information against the information's benefit to financial statement users.

Accepted Answer

A) True 
 B)False

Question 5

Accounting information should be verifiable in order to enhance

Accepted Answer

A) comparability. 
B) faithful representation. 
C) consistency. 
D) relevance. 
A) comparability. 
B) faithful representation. 
C) consistency. 
D) relevance.

Question 6

The purchase of an asset for cash

Accepted Answer

A) increases assets and stockholders' equity. 
B) increases assets and liabilities. 
C) decreases assets and increases liabilities. 
D) leaves total assets unchanged. 
A) increases assets and stockholders' equity. 
B) increases assets and liabilities. 
C) decreases assets and increases liabilities. 
D) leaves total assets unchanged.

Question 7

Dividends are classified as an expense.

Accepted Answer

A) True 
 B)False

Question 8

Sunset & Vine Wine Shop ordered a case of wine for Jeff May one of its customers.Jeff will pay for the wine when he picks it up in a week.Analyze the effect of this event on the following tabular analysis.

Accepted Answer

A) Increase Cash and increase Revenue. 
B) Increase Accounts Receivable and increases Revenue. 
C) Increase Accounts Payable and increases Expenses. 
D) This event is not a transaction entered into the tabular analysis. 
A) Increase Cash and increase Revenue. 
B) Increase Accounts Receivable and increases Revenue. 
C) Increase Accounts Payable and increases Expenses. 
D) This event is not a transaction entered into the tabular analysis.

Question 9

The income statement reports on the profitability of a company at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 10

The periodicity assumption states that the business will remain in operation for the foreseeable future.

Accepted Answer

A) True 
 B)False

Question 11

Long Leaf Company's tabular analysis at the beginning of April consisted of the following balances:   How would Long Leaf record the payment of the total amounts due to its creditors in the tabular analysis?

Accepted Answer

A) Decrease Cash by $500 and decrease Accounts Payable by $500. 
B) Decrease Cash by $500 and decrease Accounts Receivable by $500. 
C) Increase Cash by $2500 and decrease Accounts Receivable by $2500. 
D) Increase Cash by $2500 and decrease Accounts Payable by $2500. 
A) Decrease Cash by $500 and decrease Accounts Payable by $500. 
B) Decrease Cash by $500 and decrease Accounts Receivable by $500. 
C) Increase Cash by $2500 and decrease Accounts Receivable by $2500. 
D) Increase Cash by $2500 and decrease Accounts Payable by $2500.

Question 12

Relevant accounting information

Accepted Answer

A) is information that has been audited. 
B) must be reported within the operating cycle or one year whichever is longer. 
C) has been objectively determined. 
D) is information that is capable of making a difference in a business decision. 
A) is information that has been audited. 
B) must be reported within the operating cycle or one year whichever is longer. 
C) has been objectively determined. 
D) is information that is capable of making a difference in a business decision.

Question 13

The monetary unit assumption has led to an increase in the notes to financial statements.

Accepted Answer

A) True 
 B)False

Question 14

Generally accepted accounting principles

Accepted Answer

A) are accounting rules formulated by the Internal Revenue Service. 
B) are sound in theory but rarely used in real life. 
C) are accounting rules that are recognized as a general guide for financial reporting. 
D) have eliminated all errors in accounting. 
A) are accounting rules formulated by the Internal Revenue Service. 
B) are sound in theory but rarely used in real life. 
C) are accounting rules that are recognized as a general guide for financial reporting. 
D) have eliminated all errors in accounting.

Question 15

The two fundamental qualities of useful information are

Accepted Answer

A) relevance and faithful representation. 
B) verifiability and timeliness. 
C) comparability and flexibility. 
D) understandability and consistency. 
A) relevance and faithful representation. 
B) verifiability and timeliness. 
C) comparability and flexibility. 
D) understandability and consistency.

Question 16

At February 1 2022 the balance in Goebel Inc.'s supplies account was $3500.During February Goebel purchased supplies of $3000 and used supplies of $4000.At the end of February the balance in the Supplies account should be

Accepted Answer

A) $3500 
B) $4500 
C) $10500 
D) $2500 
A) $3500 
B) $4500 
C) $10500 
D) $2500

Question 17

Unearned Service Revenue is classified as a liability on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

Crabtree Company's tabular analysis at the beginning of August included the following balances:   How would Crabtree record the collection of the receivables in the tabular analysis?

Accepted Answer

A) Increase Cash by $2000 and increase Revenues by $2000. 
B) Decrease Cash by $1500 and decrease Accounts Payable by $1500. 
C) Increase Cash by $2000 and decrease Accounts Receivable by $2000. 
D) Increase Cash by $1500 and decrease Accounts Receivable by $1500. 
A) Increase Cash by $2000 and increase Revenues by $2000. 
B) Decrease Cash by $1500 and decrease Accounts Payable by $1500. 
C) Increase Cash by $2000 and decrease Accounts Receivable by $2000. 
D) Increase Cash by $1500 and decrease Accounts Receivable by $1500.

Question 19

Jenna Jeffries started her business baking dog treats by investing cash of $1000.During May its first month of operations Jenna's Barkery had revenues of $3000 all of which was collected in cash.She paid her assistant $1000 in cash and purchased $200 of supplies on account.The business paid cash dividends of $500.Use the following tabular analysis to determine the total assets at the end of the month.

Accepted Answer

A) $700 
B) $1500 
C) $2500 
D) $2700 
A) $700 
B) $1500 
C) $2500 
D) $2700

Question 20

A new account is opened for each transaction entered into by a business firm.

Accepted Answer

A) True 
 B)False

Budke Corporation paid dividends of $5000.As a result of this event the

Characteristics associated with faithfully representative accounting information are

The concept that a business has a reasonable expectation of remaining in business for the foreseeable future is called the

The cost constraint weighs the cost that companies incur to provide a type of information against the information's benefit to financial statement users.

Accounting information should be verifiable in order to enhance

The purchase of an asset for cash

Dividends are classified as an expense.

Sunset & Vine Wine Shop ordered a case of wine for Jeff May one of its customers.Jeff will pay for the wine when he picks it up in a week.Analyze the effect of this event on the following tabular analysis.

The income statement reports on the profitability of a company at a specific point in time.

The periodicity assumption states that the business will remain in operation for the foreseeable future.

Long Leaf Company's tabular analysis at the beginning of April consisted of the following balances: How would Long Leaf record the payment of the total amounts due to its creditors in the tabular analysis?

Relevant accounting information

The monetary unit assumption has led to an increase in the notes to financial statements.

Generally accepted accounting principles

The two fundamental qualities of useful information are

At February 1 2022 the balance in Goebel Inc.'s supplies account was $3500.During February Goebel purchased supplies of $3000 and used supplies of $4000.At the end of February the balance in the Supplies account should be

Unearned Service Revenue is classified as a liability on the balance sheet.

Crabtree Company's tabular analysis at the beginning of August included the following balances: How would Crabtree record the collection of the receivables in the tabular analysis?

A new account is opened for each transaction entered into by a business firm.

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 3: The Accounting Information System

Budke Corporation paid dividends of $5000.As a result of this event the

Characteristics associated with faithfully representative accounting information are

The concept that a business has a reasonable expectation of remaining in business for the foreseeable future is called the

The cost constraint weighs the cost that companies incur to provide a type of information against the information's benefit to financial statement users.

Accounting information should be verifiable in order to enhance

The purchase of an asset for cash

Dividends are classified as an expense.

Sunset & Vine Wine Shop ordered a case of wine for Jeff May one of its customers.Jeff will pay for the wine when he picks it up in a week.Analyze the effect of this event on the following tabular analysis.

The income statement reports on the profitability of a company at a specific point in time.

The periodicity assumption states that the business will remain in operation for the foreseeable future.

Long Leaf Company's tabular analysis at the beginning of April consisted of the following balances: How would Long Leaf record the payment of the total amounts due to its creditors in the tabular analysis?

Relevant accounting information

The monetary unit assumption has led to an increase in the notes to financial statements.

Generally accepted accounting principles

The two fundamental qualities of useful information are

At February 1 2022 the balance in Goebel Inc.'s supplies account was $3500.During February Goebel purchased supplies of $3000 and used supplies of $4000.At the end of February the balance in the Supplies account should be

Unearned Service Revenue is classified as a liability on the balance sheet.

Crabtree Company's tabular analysis at the beginning of August included the following balances: How would Crabtree record the collection of the receivables in the tabular analysis?

A new account is opened for each transaction entered into by a business firm.

Introduction to Financial Statements

A Further Look at Financial Statements

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters