Question 1

A company has Liabilities of $23,700 and Stockholders' Equity of $56,800. How much does the company have in Assets?

Accepted Answer

A) $56,800 
B) $33,100 
C) $80,500 
D) $23,700 
A) $56,800 
B) $33,100 
C) $80,500 
D) $23,700

Question 2

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A) Ease of formation 
B) Limited liability of owner 
C) Ease of raising capital 
D) Unlimited life 
A) Ease of formation 
B) Limited liability of owner 
C) Ease of raising capital 
D) Unlimited life

Question 3

A company has $79,000 in Assets and $26,000 in Liabilities. How much does the company have in Stockholders' Equity?

Accepted Answer

A) $26,000 
B) $53,000 
C) $105,000 
D) $79,000 
A) $26,000 
B) $53,000 
C) $105,000 
D) $79,000

Question 4

Taking an inventory of goods on hand would be representative of what accounting concept or principle?

Accepted Answer

A) Going concern 
B) Objectivity 
C) Business entity 
D) Cost 
A) Going concern 
B) Objectivity 
C) Business entity 
D) Cost

Question 5

Cash and Accounts Receivable are both a part of:

Accepted Answer

A) Assets. 
B) Retained Earnings. 
C) Liabilities. 
D) Common Stock. 
A) Assets. 
B) Retained Earnings. 
C) Liabilities. 
D) Common Stock.

Question 6

One of the newer forms of business is a:

Accepted Answer

A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) limited liability company. 
A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) limited liability company.

Question 7

Beginning Retained Earnings are $356,000; sales are $529,000; expenses are $44,400; and dividends paid are $3,000. How much is the amount in ending Retained Earnings?

Accepted Answer

A) $356,000 
B) $353,000 
C) $840,600 
D) $837,600 
A) $356,000 
B) $353,000 
C) $840,600 
D) $837,600

Question 8

GAAP tries to ensure that accounting information is:

Accepted Answer

A) accurate, relevant, and factual. 
B) relevant, understandable, and reliable. 
C) understandable, realizable, and error-free. 
D) reliable, historical, and accurate. 
A) accurate, relevant, and factual. 
B) relevant, understandable, and reliable. 
C) understandable, realizable, and error-free. 
D) reliable, historical, and accurate.

Question 9

Beginning Retained Earnings are $78,000; sales are $30,300; expenses are $84,000 and dividends paid are $4,500. How much is the net income or loss for the company?

Accepted Answer

A) $25,800 
B) ($53,700) 
C) ($58,200) 
D) $0 
A) $25,800 
B) ($53,700) 
C) ($58,200) 
D) $0

Question 10

Financial statements are prepared primarily for internal company use.

Accepted Answer

A) True 
 B)False

Question 11

Net income and profit are the same thing.

Accepted Answer

A) True 
 B)False

Question 12

Beginning Retained Earnings are $87,000; sales are $31,800; expenses are $37,000; and dividends paid are $3,700. How much is the amount in ending Retained Earnings?

Accepted Answer

A) $78,100 
B) $83,300 
C) $118,800 
D) $87,000 
A) $78,100 
B) $83,300 
C) $118,800 
D) $87,000

Question 13

A business with one owner is called a sole proprietorship and it must be a service business.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a written promise to pay?

Accepted Answer

A) Account receivable 
B) Account payable 
C) Note payable 
D) Dividend payable 
A) Account receivable 
B) Account payable 
C) Note payable 
D) Dividend payable

Question 15

Which of the following events would be recorded in the financial accounting records of Green Pastures Lawn Service, Inc.?

Accepted Answer

A) Green Pastures mows 125 lawns. 
B) Green Pastures buys 5 new lawn mowers from Discount Lawn Equipment, Inc. 
C) Discount Lawn Equipment, Inc. sells 2 mowers to Green Pasture's competitor, Best Lawns, Inc. 
D) Events A and B should both be recorded in the financial accounting records of Green Pastures. 
A) Green Pastures mows 125 lawns. 
B) Green Pastures buys 5 new lawn mowers from Discount Lawn Equipment, Inc. 
C) Discount Lawn Equipment, Inc. sells 2 mowers to Green Pasture's competitor, Best Lawns, Inc. 
D) Events A and B should both be recorded in the financial accounting records of Green Pastures.

Question 16

Which of the following business forms is similar to a corporation in regard to owner liability?

Accepted Answer

A) All businesses are the same with regard to owner liability. 
B) Limited liability company 
C) Sole proprietorship 
D) Partnership 
A) All businesses are the same with regard to owner liability. 
B) Limited liability company 
C) Sole proprietorship 
D) Partnership

Question 17

Purchasing equipment is considered an operating activity on the Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 18

The cost of money is above all else a function of

Accepted Answer

A) interest rates. 
B) risk. 
C) exchange rates. 
D) rate of return. 
A) interest rates. 
B) risk. 
C) exchange rates. 
D) rate of return.

Question 19

The Statement of Retained Earnings is prepared to determine the final amount of Retained Earnings shown on the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 20

A limited liability company (LLC)is a legal entity like a corporation, but the income is taxed like a sole proprietorship or partnership.

Accepted Answer

A) True 
 B)False

A company has Liabilities of $23,700 and Stockholders' Equity of $56,800. How much does the company have in Assets?

Which of the following is an advantage of a sole proprietorship?

A company has $79,000 in Assets and $26,000 in Liabilities. How much does the company have in Stockholders' Equity?

Taking an inventory of goods on hand would be representative of what accounting concept or principle?

Cash and Accounts Receivable are both a part of:

One of the newer forms of business is a:

Beginning Retained Earnings are $356,000; sales are $529,000; expenses are $44,400; and dividends paid are $3,000. How much is the amount in ending Retained Earnings?

GAAP tries to ensure that accounting information is:

Beginning Retained Earnings are $78,000; sales are $30,300; expenses are $84,000 and dividends paid are $4,500. How much is the net income or loss for the company?

Financial statements are prepared primarily for internal company use.

Net income and profit are the same thing.

Beginning Retained Earnings are $87,000; sales are $31,800; expenses are $37,000; and dividends paid are $3,700. How much is the amount in ending Retained Earnings?

A business with one owner is called a sole proprietorship and it must be a service business.

Which of the following is a written promise to pay?

Which of the following events would be recorded in the financial accounting records of Green Pastures Lawn Service, Inc.?

Which of the following business forms is similar to a corporation in regard to owner liability?

Purchasing equipment is considered an operating activity on the Statement of Cash Flows.

The cost of money is above all else a function of

The Statement of Retained Earnings is prepared to determine the final amount of Retained Earnings shown on the Balance Sheet.

A limited liability company (LLC)is a legal entity like a corporation, but the income is taxed like a sole proprietorship or partnership.

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Business, Accounting, and You

A company has Liabilities of $23,700 and Stockholders' Equity of $56,800. How much does the company have in Assets?

Which of the following is an advantage of a sole proprietorship?

A company has $79,000 in Assets and $26,000 in Liabilities. How much does the company have in Stockholders' Equity?

Taking an inventory of goods on hand would be representative of what accounting concept or principle?

Cash and Accounts Receivable are both a part of:

One of the newer forms of business is a:

Beginning Retained Earnings are $356,000; sales are $529,000; expenses are $44,400; and dividends paid are $3,000. How much is the amount in ending Retained Earnings?

GAAP tries to ensure that accounting information is:

Beginning Retained Earnings are $78,000; sales are $30,300; expenses are $84,000 and dividends paid are $4,500. How much is the net income or loss for the company?

Financial statements are prepared primarily for internal company use.

Net income and profit are the same thing.

Beginning Retained Earnings are $87,000; sales are $31,800; expenses are $37,000; and dividends paid are $3,700. How much is the amount in ending Retained Earnings?

A business with one owner is called a sole proprietorship and it must be a service business.

Which of the following is a written promise to pay?

Which of the following events would be recorded in the financial accounting records of Green Pastures Lawn Service, Inc.?

Which of the following business forms is similar to a corporation in regard to owner liability?

Purchasing equipment is considered an operating activity on the Statement of Cash Flows.

The cost of money is above all else a function of

The Statement of Retained Earnings is prepared to determine the final amount of Retained Earnings shown on the Balance Sheet.

A limited liability company (LLC)is a legal entity like a corporation, but the income is taxed like a sole proprietorship or partnership.

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters