Question 1

Lowe's and Home Depot would be examples of corporate merchandising businesses.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following types of organization would primarily sell goods?

Accepted Answer

A) Merchandising business 
B) Service business 
C) Manufacturing business 
D) Both Merchandising and Manufacturing businesses sell goods. 
A) Merchandising business 
B) Service business 
C) Manufacturing business 
D) Both Merchandising and Manufacturing businesses sell goods.

Question 3

Crispy's is famous for their cupcakes. Crispy'sTotal Assets were $350,000 and Total Liabilities were $135,500. How much was Crispy's Stockholders' Equity?

Accepted Answer

A) $485,500 
B) $350,000 
C) $214,500 
D) Some other number 
A) $485,500 
B) $350,000 
C) $214,500 
D) Some other number

Question 4

Gwen owns an antique store. In her accounting records, she includes her car-which is solely used for personal purposes. Which principle is Gwen violating?

Accepted Answer

A) Personal property 
B) Cost 
C) Reliability 
D) Business entity 
A) Personal property 
B) Cost 
C) Reliability 
D) Business entity

Question 5

Select balance sheet data for Snow, Inc. is presented below:  
Snow paid $3,000 in dividends during this period. What is the net income for February?

Accepted Answer

A) $8,000 
B) $115,000 
C) $18,000 
D) Cannot be determined from the information given. 
A) $8,000 
B) $115,000 
C) $18,000 
D) Cannot be determined from the information given.

Question 6

The Statement of Retained Earnings is used to report:

Accepted Answer

A) accumulated dividends paid out to shareholders. 
B) accumulated net profits not paid out in dividends. 
C) beginning and ending cash balances. 
D) beginning and ending revenues for the period. 
A) accumulated dividends paid out to shareholders. 
B) accumulated net profits not paid out in dividends. 
C) beginning and ending cash balances. 
D) beginning and ending revenues for the period.

Question 7

According to the cost principle, if an appraised value is known - it should be used for recording purposes.

Accepted Answer

A) True 
 B)False

Question 8

Business owners expect to be compensated for both time and risk.

Accepted Answer

A) True 
 B)False

Question 9

When revenue exceeds cost, it is referred to as:

Accepted Answer

A) loss. 
B) profit. 
C) value. 
D) risk. 
A) loss. 
B) profit. 
C) value. 
D) risk.

Question 10

Which of the following does NOT describe Stockholders' Equity?

Accepted Answer

A) Profits retained in the business 
B) Money lent to a business 
C) The owners' claim on the assets of a company 
D) Money invested in a business by its owners 
A) Profits retained in the business 
B) Money lent to a business 
C) The owners' claim on the assets of a company 
D) Money invested in a business by its owners

Question 11

Which of the following is NOT an asset?

Accepted Answer

A) Net income 
B) Inventory 
C) Buildings 
D) Cash 
A) Net income 
B) Inventory 
C) Buildings 
D) Cash

Question 12

A company has $83,000 in Liabilities and $118,000 in Stockholders' Equity. What is the value of the company's Assets?

Accepted Answer

A) $35,000 
B) $118,000 
C) $201,000 
D) Not enough information provided 
A) $35,000 
B) $118,000 
C) $201,000 
D) Not enough information provided

Question 13

Revenues, expenses and dividends are all 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 14

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Accepted Answer

A) True 
 B)False

Question 15

Which would NOT be an example of a for-profit business?

Accepted Answer

A) Toys 'R Us 
B) Red Robin 
C) Petsmart 
D) Red Cross 
A) Toys 'R Us 
B) Red Robin 
C) Petsmart 
D) Red Cross

Question 16

Elle Wolfe is the owner of Sassycat Groomers, a pet grooming facility. She reports the business income on her personal tax return. What type and legal form of business would Sassycat be considered?

Accepted Answer

A) Retail & Sole proprietorship 
B) Service & Corporation 
C) Merchandising & Partnership 
D) Service & Sole proprietorship 
A) Retail & Sole proprietorship 
B) Service & Corporation 
C) Merchandising & Partnership 
D) Service & Sole proprietorship

Question 17

Financial information that is verifiable violates the principle of objectivity.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following financial statements illustrates the accounting equation?

Accepted Answer

A) Statement of Retained Earnings 
B) Income Statement 
C) Balance Sheet 
D) Statement of Cash Flows 
A) Statement of Retained Earnings 
B) Income Statement 
C) Balance Sheet 
D) Statement of Cash Flows

Question 19

A company has $129,000 in Assets and $65,000 in Liabilities. How much does the company have in Stockholders' Equity?

Accepted Answer

A) $194,000 
B) $129,000 
C) $65,000 
D) $64,000 
A) $194,000 
B) $129,000 
C) $65,000 
D) $64,000

Question 20

Accrual accounting recognizes business transactions when cash is received or paid.

Accepted Answer

A) True 
 B)False

Lowe's and Home Depot would be examples of corporate merchandising businesses.

Which of the following types of organization would primarily sell goods?

Crispy's is famous for their cupcakes. Crispy'sTotal Assets were $350,000 and Total Liabilities were $135,500. How much was Crispy's Stockholders' Equity?

Gwen owns an antique store. In her accounting records, she includes her car-which is solely used for personal purposes. Which principle is Gwen violating?

Select balance sheet data for Snow, Inc. is presented below: Snow paid $3,000 in dividends during this period. What is the net income for February?

The Statement of Retained Earnings is used to report:

According to the cost principle, if an appraised value is known - it should be used for recording purposes.

Business owners expect to be compensated for both time and risk.

When revenue exceeds cost, it is referred to as:

Which of the following does NOT describe Stockholders' Equity?

Which of the following is NOT an asset?

A company has $83,000 in Liabilities and $118,000 in Stockholders' Equity. What is the value of the company's Assets?

Revenues, expenses and dividends are all a part of:

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Which would NOT be an example of a for-profit business?

Elle Wolfe is the owner of Sassycat Groomers, a pet grooming facility. She reports the business income on her personal tax return. What type and legal form of business would Sassycat be considered?

Financial information that is verifiable violates the principle of objectivity.

Which of the following financial statements illustrates the accounting equation?

A company has $129,000 in Assets and $65,000 in Liabilities. How much does the company have in Stockholders' Equity?

Accrual accounting recognizes business transactions when cash is received or paid.

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

Lowe's and Home Depot would be examples of corporate merchandising businesses.

Which of the following types of organization would primarily sell goods?

Crispy's is famous for their cupcakes. Crispy'sTotal Assets were $350,000 and Total Liabilities were $135,500. How much was Crispy's Stockholders' Equity?

Gwen owns an antique store. In her accounting records, she includes her car-which is solely used for personal purposes. Which principle is Gwen violating?

Select balance sheet data for Snow, Inc. is presented below: Snow paid $3,000 in dividends during this period. What is the net income for February?

The Statement of Retained Earnings is used to report:

According to the cost principle, if an appraised value is known - it should be used for recording purposes.

Business owners expect to be compensated for both time and risk.

When revenue exceeds cost, it is referred to as:

Which of the following does NOT describe Stockholders' Equity?

Which of the following is NOT an asset?

A company has $83,000 in Liabilities and $118,000 in Stockholders' Equity. What is the value of the company's Assets?

Revenues, expenses and dividends are all a part of:

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Which would NOT be an example of a for-profit business?

Elle Wolfe is the owner of Sassycat Groomers, a pet grooming facility. She reports the business income on her personal tax return. What type and legal form of business would Sassycat be considered?

Financial information that is verifiable violates the principle of objectivity.

Which of the following financial statements illustrates the accounting equation?

A company has $129,000 in Assets and $65,000 in Liabilities. How much does the company have in Stockholders' Equity?

Accrual accounting recognizes business transactions when cash is received or paid.

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