Question 1

Revenues are:

Accepted Answer

A)  earned by selling goods or services to customers. 
B)  amounts that owners have contributed directly to the business. 
C)  cash payments that a business has made directly to its owners. 
D)  the amount of cash a company has left after it has paid its liabilities. 
A)  earned by selling goods or services to customers. 
B)  amounts that owners have contributed directly to the business. 
C)  cash payments that a business has made directly to its owners. 
D)  the amount of cash a company has left after it has paid its liabilities.

Question 2

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)

Question 3

Which of the following business organizations has only one owner?

Accepted Answer

A)  Corporation 
B)  Sole proprietorship 
C)  Public company 
D)  Partnership 
A)  Corporation 
B)  Sole proprietorship 
C)  Public company 
D)  Partnership

Question 4

The types of business activities measured by the statement of cash flows are:

Accepted Answer

A)  selling goods, selling services, and obtaining financing. 
B)  operating activities, investing activities, and financing activities. 
C)  hiring, producing, and advertising. 
D)  generating revenues, paying expenses, and paying dividends. 
A)  selling goods, selling services, and obtaining financing. 
B)  operating activities, investing activities, and financing activities. 
C)  hiring, producing, and advertising. 
D)  generating revenues, paying expenses, and paying dividends.

Question 5

Expenses appear on the:

Accepted Answer

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

Question 6

The payment of dividends is a financing activity on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 7

Generally accepted accounting principles (GAAP)were (are)established by:

Accepted Answer

A)  an Italian monk in 1494. 
B)  the U.S. Congress and the SEC. 
C)  the PCAOB. 
D)  the FASB on an ongoing basis. 
A)  an Italian monk in 1494. 
B)  the U.S. Congress and the SEC. 
C)  the PCAOB. 
D)  the FASB on an ongoing basis.

Question 8

A net loss for a period arises when:

Accepted Answer

A)  Assets are greater than liabilities. 
B)  Revenues are less than expenses. 
C)  Liabilities are greater than stockholder's equity. 
D)  Revenues are greater than expenses. 
A)  Assets are greater than liabilities. 
B)  Revenues are less than expenses. 
C)  Liabilities are greater than stockholder's equity. 
D)  Revenues are greater than expenses.

Question 9

With respect to the audience targeted for financial accounting reports,which of the parties below is not an external user?

Accepted Answer

A)  Customers of the company issuing the reports 
B)  Creditors of the company issuing the reports 
C)  Managers of the company issuing the reports 
D)  Stockholders of the company issuing the reports 
A)  Customers of the company issuing the reports 
B)  Creditors of the company issuing the reports 
C)  Managers of the company issuing the reports 
D)  Stockholders of the company issuing the reports

Question 10

Cash activity from the buying and selling of productive resources,such as land,buildings and equipment,are reported as cash flows from _________ activities on the statement of cash flows.

Accepted Answer

A)  investing 
B)  operating 
C)  financing 
D)  managing 
A)  investing 
B)  operating 
C)  financing 
D)  managing

Question 11

Borrowing from a bank is a(n):

Accepted Answer

A)  operating activity. 
B)  investing activity. 
C)  financing activity. 
D)  expense. 
A)  operating activity. 
B)  investing activity. 
C)  financing activity. 
D)  expense.

Question 12

At the end of last year,the company's assets totaled $860,000 and its liabilities totaled $740,000.During the current year,the company's total assets increased by $58,000 and its total liabilities increased by $24,000.At the end of the current year,stockholders' equity was:

Accepted Answer

A)  $154,000. 
B)  $120,000. 
C)  $34,000. 
D)  $178,000. 
A)  $154,000. 
B)  $120,000. 
C)  $34,000. 
D)  $178,000.

Question 13

Accounting systems:

Accepted Answer

A)  are summarized in publicly published reports. 
B)  analyze, record, summarize, and the activities affecting its financial condition and performance. 
C)  monitor business activities only in financial terms. 
D)  capture only the information that is needed by the owners of the company. 
A)  are summarized in publicly published reports. 
B)  analyze, record, summarize, and the activities affecting its financial condition and performance. 
C)  monitor business activities only in financial terms. 
D)  capture only the information that is needed by the owners of the company.

Question 14

The table shows financial data for Purrfect Pets,Inc.as of June 30,Year 3.
   
Required:
Prepare a balance sheet using these data.

Accepted Answer

The answer of The table shows financial data for Purrfect...

Question 15

A company started the year with the following: Assets $100,000; Liabilities $30,000; Common Stock $60,000; Retained Earnings $10,000.During the year, the company earned revenue of $5,000, all of which was received in cash, and incurred expenses of $3,000, all of which were unpaid as of the end of the year.In addition, the company paid dividends of $1,000 to owners.Assume no other activities occurred during the year.
-Use the information above to answer the following question.The amount of assets at the end of the year is

Accepted Answer

A)  $105,000. 
B)  108,000. 
C)  $104,000. 
D)  $107,000. 
A)  $105,000. 
B)  108,000. 
C)  $104,000. 
D)  $107,000.

Question 16

If National Inc.has Common Stock of $80,000,total assets of $170,000,and total liabilities of $70,000,its Retained Earnings equals:

Accepted Answer

A)  $20,000. 
B)  $90,000. 
C)  $100,000. 
D)  $110,000. 
A)  $20,000. 
B)  $90,000. 
C)  $100,000. 
D)  $110,000.

Question 17

In the U.S.,Generally Accepted Accounting Principles (GAAP)are established by the:

Accepted Answer

A)  International Accounting Standards Board (IAS
B) . 
B)  Public Company Accounting Oversight Board (PCAO
B) . 
C)  Financial Accounting Standards Board (FAS
B) . 
D)  American Institute of Certified Public Accountants (AICP
A) . 
A)  International Accounting Standards Board (IAS
B) . 
B)  Public Company Accounting Oversight Board (PCAO
B) . 
C)  Financial Accounting Standards Board (FAS
B) . 
D)  American Institute of Certified Public Accountants (AICP
A) .

Question 18

Public corporations are businesses:

Accepted Answer

A)  owned by two or more people, each of whom is personally liable for the debts of the business. 
B)  whose stock is bought and sold on a stock exchange. 
C)  whose stock is bought and sold privately. 
D)  where stock is not used as evidence of ownership. 
A)  owned by two or more people, each of whom is personally liable for the debts of the business. 
B)  whose stock is bought and sold on a stock exchange. 
C)  whose stock is bought and sold privately. 
D)  where stock is not used as evidence of ownership.

Question 19

When faced with an ethical dilemma,an accountant should:

Accepted Answer

A)  Identify who will be affected by the situation, identify and evaluate the alternative courses of action, and choose the alternative that is the most ethical. 
B)  report the matter to the SEC. 
C)  report the matter to the IRS. 
D)  resign. 
A)  Identify who will be affected by the situation, identify and evaluate the alternative courses of action, and choose the alternative that is the most ethical. 
B)  report the matter to the SEC. 
C)  report the matter to the IRS. 
D)  resign.

Question 20

Which of the following would appear in the cash flows from operating activities section of the statement of cash flows?

Accepted Answer

A)  Cash paid to suppliers and employees 
B)  Cash paid to purchase equipment 
C)  Cash paid on notes payable 
D)  Cash paid for dividends 
A)  Cash paid to suppliers and employees 
B)  Cash paid to purchase equipment 
C)  Cash paid on notes payable 
D)  Cash paid for dividends

Revenues are:

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

Which of the following business organizations has only one owner?

The types of business activities measured by the statement of cash flows are:

Expenses appear on the:

The payment of dividends is a financing activity on the statement of cash flows.

Generally accepted accounting principles (GAAP)were (are)established by:

A net loss for a period arises when:

With respect to the audience targeted for financial accounting reports,which of the parties below is not an external user?

Cash activity from the buying and selling of productive resources,such as land,buildings and equipment,are reported as cash flows from _________ activities on the statement of cash flows.

Borrowing from a bank is a(n):

At the end of last year,the company's assets totaled $860,000 and its liabilities totaled $740,000.During the current year,the company's total assets increased by $58,000 and its total liabilities increased by $24,000.At the end of the current year,stockholders' equity was:

Accounting systems:

The table shows financial data for Purrfect Pets,Inc.as of June 30,Year 3. Required: Prepare a balance sheet using these data.

If National Inc.has Common Stock of $80,000,total assets of $170,000,and total liabilities of $70,000,its Retained Earnings equals:

In the U.S.,Generally Accepted Accounting Principles (GAAP)are established by the:

Public corporations are businesses:

When faced with an ethical dilemma,an accountant should:

Which of the following would appear in the cash flows from operating activities section of the statement of cash flows?

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 1: Business Decisions and Financial Accounting

Revenues are:

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

Which of the following business organizations has only one owner?

The types of business activities measured by the statement of cash flows are:

Expenses appear on the:

The payment of dividends is a financing activity on the statement of cash flows.

Generally accepted accounting principles (GAAP)were (are)established by:

A net loss for a period arises when:

With respect to the audience targeted for financial accounting reports,which of the parties below is not an external user?

Cash activity from the buying and selling of productive resources,such as land,buildings and equipment,are reported as cash flows from _________ activities on the statement of cash flows.

Borrowing from a bank is a(n):

At the end of last year,the company's assets totaled $860,000 and its liabilities totaled $740,000.During the current year,the company's total assets increased by $58,000 and its total liabilities increased by $24,000.At the end of the current year,stockholders' equity was:

Accounting systems:

The table shows financial data for Purrfect Pets,Inc.as of June 30,Year 3. Required: Prepare a balance sheet using these data.

If National Inc.has Common Stock of $80,000,total assets of $170,000,and total liabilities of $70,000,its Retained Earnings equals:

In the U.S.,Generally Accepted Accounting Principles (GAAP)are established by the:

Public corporations are businesses:

When faced with an ethical dilemma,an accountant should:

Which of the following would appear in the cash flows from operating activities section of the statement of cash flows?

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters