Question 1

Society is considered to be a stakeholder in a business.

Accepted Answer

A) True 
 B)False

Question 2

If a business is planning on growth, it will generally issue additional dividends to shareholders.

Accepted Answer

A) True 
 B)False

Question 3

The Income Statement is the first financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 4

IFRS stands for:

Accepted Answer

A) Internal Financial Report Standards. 
B) International Financial Reports Study. 
C) Internal Financial Reports Study. 
D) International Financial Reporting Standards. 
A) Internal Financial Report Standards. 
B) International Financial Reports Study. 
C) Internal Financial Reports Study. 
D) International Financial Reporting Standards.

Question 5

The ________ issues pronouncements that are guidelines for accounting practice.

Accepted Answer

A) GAAP 
B) SEC 
C) FASB 
D) IRS 
A) GAAP 
B) SEC 
C) FASB 
D) IRS

Question 6

Stockholder's Equity represents:

Accepted Answer

A) an initial investment of cash by the owners. 
B) a fair distribution of wealth in the firm. 
C) retention of profits by a firm. 
D) all of the above. 
E) A and C only. 
A) an initial investment of cash by the owners. 
B) a fair distribution of wealth in the firm. 
C) retention of profits by a firm. 
D) all of the above. 
E) A and C only.

Question 7

A company has $72,000 in Assets and $23,000 of Stockholders' Equity. How much does the company have in Liabilities?

Accepted Answer

A) $23,000 
B) $49,000 
C) $95,000 
D) Cannot be determined from the given information 
A) $23,000 
B) $49,000 
C) $95,000 
D) Cannot be determined from the given information

Question 8

Dental offices and law firms are service businesses.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a FALSE statement?

Accepted Answer

A) Revenues provide inward flows of assets. 
B) Revenue is categorized as an asset. 
C) Revenue is categorized as part of Retained Earnings. 
D) Revenues are generated from the sale of goods and services. 
A) Revenues provide inward flows of assets. 
B) Revenue is categorized as an asset. 
C) Revenue is categorized as part of Retained Earnings. 
D) Revenues are generated from the sale of goods and services.

Question 10

Lowe's would primarily be considered a:

Accepted Answer

A) manufacturing business. 
B) merchandising business. 
C) service business. 
D) not-for-profit business. 
A) manufacturing business. 
B) merchandising business. 
C) service business. 
D) not-for-profit business.

Question 11

Shareholders must pay income tax on the dividends they have received from a corporation.

Accepted Answer

A) True 
 B)False

Question 12

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Accepted Answer

A) True 
 B)False

Question 13

Net income or loss is originally shown on the:

Accepted Answer

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

Question 14

All of the following would be considered a stakeholder in a business except

Accepted Answer

A) Customers 
B) Lenders 
C) Competitors 
D) Society 
A) Customers 
B) Lenders 
C) Competitors 
D) Society

Question 15

Ronald opens his business by investing $12,000. How does this affect the accounting equation?

Accepted Answer

A) Increase in Assets; increase in Stockholders' Equity. 
B) Increase in Liabilities; increase in Stockholders' Equity. 
C) Decrease in Assets; increase in Stockholders' Equity. 
D) Increase in Assets; decrease in Stockholders' Equity. 
A) Increase in Assets; increase in Stockholders' Equity. 
B) Increase in Liabilities; increase in Stockholders' Equity. 
C) Decrease in Assets; increase in Stockholders' Equity. 
D) Increase in Assets; decrease in Stockholders' Equity.

Question 16

Juan invested $7,000 into his business. He would:

Accepted Answer

A) increase Cash and increase Stockholders' Equity. 
B) decrease Cash and increase Stockholders' Equity. 
C) increase Liabilities and increase Stockholders' Equity. 
D) increase Cash only. 
A) increase Cash and increase Stockholders' Equity. 
B) decrease Cash and increase Stockholders' Equity. 
C) increase Liabilities and increase Stockholders' Equity. 
D) increase Cash only.

Question 17

Amounts owed to a company by its customers are classified as:

Accepted Answer

A) payables. 
B) dividends. 
C) cash. 
D) receivables. 
A) payables. 
B) dividends. 
C) cash. 
D) receivables.

Question 18

Payment of expenses will decrease an asset and increase stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 19

Most businesses use:

Accepted Answer

A) cash accounting. 
B) accrual accounting. 
C) cash and accrual accounting. 
D) profit accounting. 
A) cash accounting. 
B) accrual accounting. 
C) cash and accrual accounting. 
D) profit accounting.

Society is considered to be a stakeholder in a business.

If a business is planning on growth, it will generally issue additional dividends to shareholders.

The Income Statement is the first financial statement prepared.

IFRS stands for:

The ________ issues pronouncements that are guidelines for accounting practice.

Stockholder's Equity represents:

A company has $72,000 in Assets and $23,000 of Stockholders' Equity. How much does the company have in Liabilities?

Dental offices and law firms are service businesses.

Which of the following is a FALSE statement?

Lowe's would primarily be considered a:

Shareholders must pay income tax on the dividends they have received from a corporation.

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Net income or loss is originally shown on the:

All of the following would be considered a stakeholder in a business except

Ronald opens his business by investing $12,000. How does this affect the accounting equation?

Juan invested $7,000 into his business. He would:

Amounts owed to a company by its customers are classified as:

Payment of expenses will decrease an asset and increase stockholders' equity.

Most businesses use:

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

Society is considered to be a stakeholder in a business.

If a business is planning on growth, it will generally issue additional dividends to shareholders.

The Income Statement is the first financial statement prepared.

IFRS stands for:

The ________ issues pronouncements that are guidelines for accounting practice.

Stockholder's Equity represents:

A company has $72,000 in Assets and $23,000 of Stockholders' Equity. How much does the company have in Liabilities?

Dental offices and law firms are service businesses.

Which of the following is a FALSE statement?

Lowe's would primarily be considered a:

Shareholders must pay income tax on the dividends they have received from a corporation.

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Net income or loss is originally shown on the:

All of the following would be considered a stakeholder in a business except

Ronald opens his business by investing $12,000. How does this affect the accounting equation?

Juan invested $7,000 into his business. He would:

Amounts owed to a company by its customers are classified as:

Payment of expenses will decrease an asset and increase stockholders' equity.

Most businesses use:

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