Question 1

Match between columns
                        Premises: Total Liabilities and Stockholders Equity
Net Income
Total Assets
Beginning Retained Earnings
Change in cash during the time period
Cost of Sales
Cash at year end
Cash provided and used by financing activities
Cash from operations
Dividends declared

Accepted Answer

The Answer of Statement of Cash Flows and Balance Sheet is...

Question 2

Limited liability is an attribute of which type of business entity?

Accepted Answer

A) partnership 
B) sole proprietorship 
C) service company 
D) corporation 
A) partnership 
B) sole proprietorship 
C) service company 
D) corporation D

Question 3

Which of the following statements about the use of accounting information by the marketing function is false?

Accepted Answer

A) People in the marketing function use accounting information to help figure selling prices. 
B) Accounting information would be needed to appraise different ways of getting the product to customers. 
C) Those in the marketing function do not use accounting information; they leave all of that to their accountants. 
D) Accounting information is needed for product-selection decisions. 
A) People in the marketing function use accounting information to help figure selling prices. 
B) Accounting information would be needed to appraise different ways of getting the product to customers. 
C) Those in the marketing function do not use accounting information; they leave all of that to their accountants. 
D) Accounting information is needed for product-selection decisions. C

Question 4

Which of the following is a characteristic of an S Corporation?

Accepted Answer

A) No taxation of income at the corporate level 
B) Responsibility of owners for the firm's debt 
C) Unlimited liability 
D) Mutual agency 
A) No taxation of income at the corporate level 
B) Responsibility of owners for the firm's debt 
C) Unlimited liability 
D) Mutual agency

Question 5

A system used to identify,analyze,measure,record,summarize,and communicate relevant economic information to interested parties is referred to as a(n):

Accepted Answer

A) business system 
B) management system 
C) human resources system 
D) accounting system 
A) business system 
B) management system 
C) human resources system 
D) accounting system

Question 6

Which of the following is an example of a liability?

Accepted Answer

A) An amount which must be paid to a business that sold you some supplies 
B) The obligation to transfer the net assets of the business to its owners 
C) Equipment purchased by the business on a long-term payment plan 
D) The amount contributed to the business by your partner 
A) An amount which must be paid to a business that sold you some supplies 
B) The obligation to transfer the net assets of the business to its owners 
C) Equipment purchased by the business on a long-term payment plan 
D) The amount contributed to the business by your partner

Question 7

Match between columns
                        Premises: Investment in Nike Common Stock
Inventory
Advertising Expense
Retained Earnings
Patent
Note Receivable from customer due in 5 years
Prepaid Rent
Accounts Receivable
Interest Payable
Note Payable due in 60 days
Equipment
Land
Cash
Accounts Payable
Note Payable (Due in 10 Years)

Accepted Answer

The Answer of Investments and Current Assets and Intangible Assets is...

Question 8

Which of the following best describes the type of business John Deere Inc is?

Accepted Answer

A) Manufacturing 
B) Manufacturing and Service 
C) Manufacturing and Merchandising 
D) Manufacturing,Service and Merchandising 
A) Manufacturing 
B) Manufacturing and Service 
C) Manufacturing and Merchandising 
D) Manufacturing,Service and Merchandising

Question 9

Which of the following is a characteristic of a limited-liability partnership (LLP)?

Accepted Answer

A) One partner cannot be held responsible for the inappropriate actions of another partner. 
B) Partners' personal liability is limited to the amount they have invested in the business. 
C) Each partner is liable for the actions of all other partners. 
D) As a separate legal entity,the partnership must pay taxes on income. 
A) One partner cannot be held responsible for the inappropriate actions of another partner. 
B) Partners' personal liability is limited to the amount they have invested in the business. 
C) Each partner is liable for the actions of all other partners. 
D) As a separate legal entity,the partnership must pay taxes on income.

Question 10

All of the following are basic functions of a business except:

Accepted Answer

A) marketing 
B) external auditing 
C) finance 
D) human resources 
A) marketing 
B) external auditing 
C) finance 
D) human resources

Question 11

Match between columns
                        Premises: The concept that requires that the success or failure of the business be determined at regular intervals.
A system in which income is measured as the difference between the revenues earned and the expenses incurred during the period, regardless of when cash is paid or received.
A legal concept says the money invested in a corporation is at risk but investors' personal possessions are not at risk if the business fails.
The concept that requires an accounting system to reflect only information about the economic events that pertain to a particular entity.
The concept that asserts money is the common measurement unit.
The concept that assumes that, absent any information to the contrary, the business entity will continue to into the foreseeable future.

Accepted Answer

The Answer of Monetary Unit Concept and Periodicity Concept and is...

Question 12

The current liquidity of a company is measured by which of the following?

Accepted Answer

A) Return on Sales Ratio 
B) Return on Assets Ratio 
C) Current Ratio 
D) Debt to Equity Ratio 
A) Return on Sales Ratio 
B) Return on Assets Ratio 
C) Current Ratio 
D) Debt to Equity Ratio

Question 13

Net income is found on which of the following two statements?

Accepted Answer

A) Balance Sheet and Income Statement 
B) Statement of Changes in Stockholders' Equity and Income Statement 
C) Statement of Changes in Stockholders' Equity and Balance Sheet 
D) Statement of Cash Flows and Balance Sheet 
A) Balance Sheet and Income Statement 
B) Statement of Changes in Stockholders' Equity and Income Statement 
C) Statement of Changes in Stockholders' Equity and Balance Sheet 
D) Statement of Cash Flows and Balance Sheet

Question 14

A dry cleaning business is an example of a:

Accepted Answer

A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) distributor firm 
A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) distributor firm

Question 15

Which of the following is has limited liability for all owners and is not subject to double taxation?

Accepted Answer

A) Corporation 
B) Sole Proprietorship 
C) Limited Liability Corporation 
D) Limited Partnership 
A) Corporation 
B) Sole Proprietorship 
C) Limited Liability Corporation 
D) Limited Partnership

Question 16

Describe what the results of each of the following ratio mean.
a.Current Ratio of 2
b.Debt to Equity Ratio of 3
c.Return on Sales of 10%

Accepted Answer

a.A current ratio of 2 means that the co

Question 17

Identify each of the following as an Asset,Liability,Owners' Equity,Revenue,or Expense of the Utica Delivery Company.
Cash
Fees earned from delivery
Building: Office and garage for delivery vehicles
Notes signed to raise cash to buy new delivery truck
Cost of advertising for the year
Cost of gas for the year
Delivery truck
Cost of repair to delivery truck
Cost of insurance on delivery truck
Value of cash and assets contributed by owners to start the business
Cost of salaries for delivery personnel
Cost of cleaning the uniforms of delivery personnel
Office Supplies

Accepted Answer

Assets:
Cash
Office Supplies
Building
De

Question 18

Which of the following led to the need for financial statements to report to owners of a business?

Accepted Answer

A) The abandonment of a barter economy 
B) The expansion of European businesses into Asia and Africa 
C) The absence of day-to-day involvement by owners 
D) The increased use by business owners of the cash basis of accounting 
A) The abandonment of a barter economy 
B) The expansion of European businesses into Asia and Africa 
C) The absence of day-to-day involvement by owners 
D) The increased use by business owners of the cash basis of accounting

Question 19

Compare and contrast the determination of income under the cash and accrual bases of accounting.

Accepted Answer

Under the cash basis of accounting,incom

Question 20

Which of the following business organizations has general partner(s)and limited partners that have limited liability?

Accepted Answer

A) Limited Liability Company 
B) Limited Partnership 
C) Limited Corporate Partnership 
D) S Corporation 
A) Limited Liability Company 
B) Limited Partnership 
C) Limited Corporate Partnership 
D) S Corporation

Limited liability is an attribute of which type of business entity?

Which of the following statements about the use of accounting information by the marketing function is false?

Which of the following is a characteristic of an S Corporation?

A system used to identify,analyze,measure,record,summarize,and communicate relevant economic information to interested parties is referred to as a(n):

Which of the following is an example of a liability?

Which of the following best describes the type of business John Deere Inc is?

Which of the following is a characteristic of a limited-liability partnership (LLP)?

All of the following are basic functions of a business except:

The current liquidity of a company is measured by which of the following?

Net income is found on which of the following two statements?

A dry cleaning business is an example of a:

Which of the following is has limited liability for all owners and is not subject to double taxation?

Describe what the results of each of the following ratio mean. a.Current Ratio of 2 b.Debt to Equity Ratio of 3 c.Return on Sales of 10%

Which of the following led to the need for financial statements to report to owners of a business?

Compare and contrast the determination of income under the cash and accrual bases of accounting.

Which of the following business organizations has general partner(s)and limited partners that have limited liability?

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 1: Accounting and Business

Limited liability is an attribute of which type of business entity?

Which of the following statements about the use of accounting information by the marketing function is false?

Which of the following is a characteristic of an S Corporation?

A system used to identify,analyze,measure,record,summarize,and communicate relevant economic information to interested parties is referred to as a(n):

Which of the following is an example of a liability?

Which of the following best describes the type of business John Deere Inc is?

Which of the following is a characteristic of a limited-liability partnership (LLP)?

All of the following are basic functions of a business except:

The current liquidity of a company is measured by which of the following?

Net income is found on which of the following two statements?

A dry cleaning business is an example of a:

Which of the following is has limited liability for all owners and is not subject to double taxation?

Describe what the results of each of the following ratio mean. a.Current Ratio of 2 b.Debt to Equity Ratio of 3 c.Return on Sales of 10%

Which of the following led to the need for financial statements to report to owners of a business?

Compare and contrast the determination of income under the cash and accrual bases of accounting.

Which of the following business organizations has general partner(s)and limited partners that have limited liability?

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters