Question 1

Operating activities include:

Accepted Answer

A) interest paid on a bank loan. 
B) the buying or selling of land,buildings,equipment,and other long-term investments. 
C) the repayment of loan proceeds to the bank. 
D) obtaining a bank loan to cover the payment of wages,rent and other operating costs. 
A) interest paid on a bank loan. 
B) the buying or selling of land,buildings,equipment,and other long-term investments. 
C) the repayment of loan proceeds to the bank. 
D) obtaining a bank loan to cover the payment of wages,rent and other operating costs.

Question 2

TreeTop Nursery sold $7,500 of goods to customers of which $4,500 has been collected.TreeTop should report revenues of:

Accepted Answer

A) $7,500. 
B) $4,500. 
C) $3,000. 
D) $0. 
A) $7,500. 
B) $4,500. 
C) $3,000. 
D) $0.

Question 3

The income statement would report the amount of:

Accepted Answer

A) cash at the end of the year. 
B) supplies used up during the current year. 
C) dividends distributed to owners during the current year. 
D) unpaid employee wages at the end of the year. 
A) cash at the end of the year. 
B) supplies used up during the current year. 
C) dividends distributed to owners during the current year. 
D) unpaid employee wages at the end of the year.

Question 4

What is the missing amount for Notes Payable?

Accepted Answer

A) $207,100 
B) $437,800 
C) $1,439,200 
D) $3,347,700 
A) $207,100 
B) $437,800 
C) $1,439,200 
D) $3,347,700

Question 5

Operating activities,investing activities,and financing activities are presented on the:

Accepted Answer

A) balance sheet. 
B) statement of cash flows. 
C) statement of retained earnings. 
D) income statement. 
A) balance sheet. 
B) statement of cash flows. 
C) statement of retained earnings. 
D) income statement.

Question 6

People or organizations to whom a business owes money are considered:

Accepted Answer

A) owners of a business. 
B) creditors of a business. 
C) stockholders of a business. 
D) customers of a business. 
A) owners of a business. 
B) creditors of a business. 
C) stockholders of a business. 
D) customers of a business.

Question 7

Mauricio invested $30,000 in Pizza Aroma in exchange for its stock.Pizza Aroma now has:

Accepted Answer

A) a liability. 
B) retained earnings. 
C) common stock. 
D) net income. 
A) a liability. 
B) retained earnings. 
C) common stock. 
D) net income.

Question 8

The main goal of an accounting system is to:

Accepted Answer

A) capture information about a business so that it can be reported to decision makers. 
B) earn a profit for the company's stockholders. 
C) prove that assets equal liabilities plus stockholders' equity. 
D) provide initial financing for a new startup. 
A) capture information about a business so that it can be reported to decision makers. 
B) earn a profit for the company's stockholders. 
C) prove that assets equal liabilities plus stockholders' equity. 
D) provide initial financing for a new startup.

Question 9

Coast Company has 5,000 items of building supplies on hand that cost $150,000;a bill from the vendor for $50,000 of these supplies has not yet been paid.The company expects to earn $400,000 for its services when it uses the building supplies.The company's balance sheet would include an asset,Supplies,in the amount of:

Accepted Answer

A) $5,000. 
B) $100,000. 
C) $150,000. 
D) $400,000. 
A) $5,000. 
B) $100,000. 
C) $150,000. 
D) $400,000.

Question 10

Puffin Co.began the year with assets of $120,000 and liabilities of $90,000.During the year assets increased by $14,400 and liabilities decreased by $10,800. What is the amount of Puffin's stockholders' equity at the beginning of the year?

Accepted Answer

A) $0 
B) $30,000 
C) $210,000 
D) $120,000 
A) $0 
B) $30,000 
C) $210,000 
D) $120,000

Question 11

What amount is represented by letter L in the statement of cash flows?

Accepted Answer

A) $318,000 
B) $170,000 
C) ($170,000) 
D) ($318,000) 
A) $318,000 
B) $170,000 
C) ($170,000) 
D) ($318,000)

Question 12

The unit of measure assumption states that:

Accepted Answer

A) results of business activities should be reported in an appropriate monetary unit. 
B) assets should be recorded at cost. 
C) a business's financial reports include only the activities of the business. 
D) assets equal liabilities plus stockholder's equity. 
A) results of business activities should be reported in an appropriate monetary unit. 
B) assets should be recorded at cost. 
C) a business's financial reports include only the activities of the business. 
D) assets equal liabilities plus stockholder's equity.

Question 13

A stock that does not pay a dividend is an undesirable investment.

Accepted Answer

A) True 
 B)False

Question 14

Accounts receivable are:

Accepted Answer

A) amounts the company expects to pay for previous credit sales. 
B) amounts the company expects to collect for previous credit sales. 
C) always less than the company's cash. 
D) reported in the liabilities section of the balance sheet. 
E) reported on the income statement. 
A) amounts the company expects to pay for previous credit sales. 
B) amounts the company expects to collect for previous credit sales. 
C) always less than the company's cash. 
D) reported in the liabilities section of the balance sheet. 
E) reported on the income statement.

Question 15

Match the acronym with the description that best reflects it.(There are more descriptions than acronyms. )
-SEC

Accepted Answer

A) The U.S.agency that must approve mergers between very large publicly owned corporations. 
B) The U.S.Board that approves the rules for auditing publicly owned companies. 
C) The organization that establishes business laws in the U.S. 
D) The Board that establishes the accounting rules that govern American owned corporations. 
E) This organization regulates activities associated with the stock market such as the reporting of financial data by publicly owned companies.
F)The national professional organization of accountants.
G)Rules of financial accounting created by the FASB for use in the United States.
H)A set of laws established to strengthen corporate reporting in the United States.
I)The Board that establishes international accounting standards.
J)The U.S.agency that certifies foreign accounting firms to practice in the U.S. 
A) The U.S.agency that must approve mergers between very large publicly owned corporations. 
B) The U.S.Board that approves the rules for auditing publicly owned companies. 
C) The organization that establishes business laws in the U.S. 
D) The Board that establishes the accounting rules that govern American owned corporations. 
E) This organization regulates activities associated with the stock market such as the reporting of financial data by publicly owned companies.
F)The national professional organization of accountants.
G)Rules of financial accounting created by the FASB for use in the United States.
H)A set of laws established to strengthen corporate reporting in the United States.
I)The Board that establishes international accounting standards.
J)The U.S.agency that certifies foreign accounting firms to practice in the U.S.

Question 16

A company's financial records at the end of the year included the following amounts: $\begin{array}{lr}
\text { Cash } & \$ 70,000 \
\text { Accounts Receivable } & 28,000 \
\text { Supplies } & 4,000 \
\text { Accounts Payable } & 10,000 \
\text { Notes Payable } & 5,000 \
\text { Retained Earnings, beginning of year } & 17,000 \
\text { Common Stock } & 40,000 \
\text { Service Revenue } & 53,000 \
\text { Wages Expense } & 8,000 \
\text { Advertising Expense } & 5,000 \
\text { Rent Expense } & 10,000
\end{array}$ What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year?

Accepted Answer

A) $30,000 
B) $57,000 
C) $87,000 
D) $102,000 
A) $30,000 
B) $57,000 
C) $87,000 
D) $102,000

Question 17

Which of the following would not be reported as an asset on the balance sheet?

Accepted Answer

A) Accounts Receivable 
B) Supplies 
C) Retained Earnings 
D) Cash 
A) Accounts Receivable 
B) Supplies 
C) Retained Earnings 
D) Cash

Question 18

Which of the following expressions of the accounting equation is correct?

Accepted Answer

A) Liabilities + Assets = Stockholders' Equity 
B) Stockholders' Equity + Assets = Liabilities 
C) Assets = Liabilities - Stockholders' Equity 
D) Stockholders' Equity = Assets - Liabilities 
A) Liabilities + Assets = Stockholders' Equity 
B) Stockholders' Equity + Assets = Liabilities 
C) Assets = Liabilities - Stockholders' Equity 
D) Stockholders' Equity = Assets - Liabilities

Question 19

What amount is represented by letter J in the statement of cash flows?

Accepted Answer

A) ($84,000) 
B) $84,000 
C) ($4,000) 
D) $44,000 
A) ($84,000) 
B) $84,000 
C) ($4,000) 
D) $44,000

Question 20

Who has primary responsibility for making sure that a company's financial statements follow GAAP?

Accepted Answer

A) Management 
B) Independent auditors (CPAs) 
C) The Securities and Exchange Commission (SE
C)  
D) The Public Company Accounting Oversight Board (PCAO
B)  
A) Management 
B) Independent auditors (CPAs) 
C) The Securities and Exchange Commission (SE
C)  
D) The Public Company Accounting Oversight Board (PCAO
B)

Operating activities include:

TreeTop Nursery sold $7,500 of goods to customers of which $4,500 has been collected.TreeTop should report revenues of:

The income statement would report the amount of:

What is the missing amount for Notes Payable?

Operating activities,investing activities,and financing activities are presented on the:

People or organizations to whom a business owes money are considered:

Mauricio invested $30,000 in Pizza Aroma in exchange for its stock.Pizza Aroma now has:

The main goal of an accounting system is to:

Puffin Co.began the year with assets of $120,000 and liabilities of $90,000.During the year assets increased by $14,400 and liabilities decreased by $10,800. What is the amount of Puffin's stockholders' equity at the beginning of the year?

What amount is represented by letter L in the statement of cash flows?

The unit of measure assumption states that:

A stock that does not pay a dividend is an undesirable investment.

Accounts receivable are:

Match the acronym with the description that best reflects it.(There are more descriptions than acronyms. ) -SEC

Which of the following would not be reported as an asset on the balance sheet?

Which of the following expressions of the accounting equation is correct?

What amount is represented by letter J in the statement of cash flows?

Who has primary responsibility for making sure that a company's financial statements follow GAAP?

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 1: Business Decisions and Financial Accounting

Operating activities include:

TreeTop Nursery sold $7,500 of goods to customers of which $4,500 has been collected.TreeTop should report revenues of:

The income statement would report the amount of:

What is the missing amount for Notes Payable?

Operating activities,investing activities,and financing activities are presented on the:

People or organizations to whom a business owes money are considered:

Mauricio invested $30,000 in Pizza Aroma in exchange for its stock.Pizza Aroma now has:

The main goal of an accounting system is to:

Puffin Co.began the year with assets of $120,000 and liabilities of $90,000.During the year assets increased by $14,400 and liabilities decreased by $10,800. What is the amount of Puffin's stockholders' equity at the beginning of the year?

What amount is represented by letter L in the statement of cash flows?

The unit of measure assumption states that:

A stock that does not pay a dividend is an undesirable investment.

Accounts receivable are:

Match the acronym with the description that best reflects it.(There are more descriptions than acronyms. ) -SEC

Which of the following would not be reported as an asset on the balance sheet?

Which of the following expressions of the accounting equation is correct?

What amount is represented by letter J in the statement of cash flows?

Who has primary responsibility for making sure that a company's financial statements follow GAAP?

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters