Question 1

The accounting concept which assumes that,absent any information to the contrary,the business will continue into the foreseeable future is the:

Accepted Answer

A) business entity concept 
B) future entity concept 
C) going concern concept 
D) periodicity concept 
A) business entity concept 
B) future entity concept 
C) going concern concept 
D) periodicity concept

Question 2

The We Build Anything Construction Company recently completed the construction of an office building that took 14 months to complete.Following the completion of this project the company began construction of a shopping center that took 15 months to complete.The company's financial statements were not prepared at the end of each of these projects but at the end of the fiscal year.This best describes an application of the:

Accepted Answer

A) business entity concept 
B) periodicity concept 
C) monetary unit concept 
D) going concern concept 
A) business entity concept 
B) periodicity concept 
C) monetary unit concept 
D) going concern concept

Question 3

A company which produces a product from raw materials is called 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 4

What is an accounting system? Why are accounting systems necessary to run businesses?

Accepted Answer

An accounting system is a system used to

Question 5

According to Concept Statement #2 accounting information should be:

Accepted Answer

A) Relevant and Reliable 
B) Responsible and Reconcilable 
C) Accurate and Meaningful 
D) Accurate and Timely 
A) Relevant and Reliable 
B) Responsible and Reconcilable 
C) Accurate and Meaningful 
D) Accurate and Timely

Question 6

All of the following are external stakeholders except:

Accepted Answer

A) employees 
B) suppliers 
C) customers 
D) creditors 
A) employees 
B) suppliers 
C) customers 
D) creditors

Question 7

Match between columns
                        Premises: A partnership in which the individual partners are liable only for their own actions and the actions of those individuals under their control.
A business owned by two or more individuals whose personal possessions are at risk if the business fails.
A situation in which the money invested in a corporation is at risk but investors'personal possessions are not at risk if the business fails.
A business entity owned by one person whose personal possessions are at risk if the business fails.
A business entity that is legally separate and distinct from its owners.
A situation whereby each partner has the power to act for all and legally obligate all partners.
The business entity eliminates the impact of unlimited liability for all the owners, does not limit the number of owners, and does not limit participation in the management of the firm.
A partnership composed of one or more general partners and one or more limited partners; only the general partners' personal possessions are at risk if the business should fail.
A small business corporation owned by no more that 75 individuals; is profits are taxed at the individual level rather than the corporate level.

Accepted Answer

The Answer of Limited Liability Partnership and Sole Proprietorship and is...

Question 8

The accounting concept requiring that the profits of a business be determined at regular intervals throughout the life of the business is the:

Accepted Answer

A) business entity concept 
B) going concern concept 
C) monetary unit concept 
D) periodicity concept 
A) business entity concept 
B) going concern concept 
C) monetary unit concept 
D) periodicity concept

Question 9

In Luca Pacioli's book "The Summa" the 15th century accounting system he describes uses all but one of the following books.

Accepted Answer

A) Memorandum 
B) Ledger 
C) Cash Book 
D) Journal 
A) Memorandum 
B) Ledger 
C) Cash Book 
D) Journal

Question 10

The cash held by a company at the end of the year is found on which of the following two statements?

Accepted Answer

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

Question 11

Every three months,Ashmont Antiques produces a report showing profits earned during the most recently ended quarter.This best describes an application of the:

Accepted Answer

A) business entity concept 
B) periodicity concept 
C) monetary unit concept 
D) going concern concept 
A) business entity concept 
B) periodicity concept 
C) monetary unit concept 
D) going concern concept

Question 12

The Debt to Equity Ratio is measure with which of the following?

Accepted Answer

A) Total Liabilities / Total Assets 
B) Long-term Liabilities / Total Stockholders' Equity 
C) Total Stockholders' Equity / Total Liabilities 
D) Total Liabilities / Total Stockholders' Equity 
A) Total Liabilities / Total Assets 
B) Long-term Liabilities / Total Stockholders' Equity 
C) Total Stockholders' Equity / Total Liabilities 
D) Total Liabilities / Total Stockholders' Equity

Question 13

Which of the following is NOT true about the relationship between the financial statements?

Accepted Answer

A) The net income of the firm is added to owners' equity 
B) The cash on the balance sheet is found on the cash flow statement 
C) The net income of the firm is reported on the Income Statement and the Statement of Changes in Shareholders' Equity 
D) The cash generated by operations on the Statement of Cash Flows is reported as an increase in Retained Earnings on the Statement of Changes in Shareholders' Equity 
A) The net income of the firm is added to owners' equity 
B) The cash on the balance sheet is found on the cash flow statement 
C) The net income of the firm is reported on the Income Statement and the Statement of Changes in Shareholders' Equity 
D) The cash generated by operations on the Statement of Cash Flows is reported as an increase in Retained Earnings on the Statement of Changes in Shareholders' Equity

Question 14

In its annual report the FCX Company reported the value of its ending inventory,rather than the number of units on hand.This best describes an application of the:

Accepted Answer

A) business entity concept 
B) going concern concept 
C) monetary unit concept 
D) periodicity concept 
A) business entity concept 
B) going concern concept 
C) monetary unit concept 
D) periodicity concept

Question 15

The accounting concept which asserts that money is the common measurement unit for economic activity is the:

Accepted Answer

A) business entity concept 
B) monetary unit concept 
C) going concern concept 
D) dollar-value concept 
A) business entity concept 
B) monetary unit concept 
C) going concern concept 
D) dollar-value concept

Question 16

Which of the following is not a liability from accounting purposes?

Accepted Answer

A) An amount which must be paid to a business that sold you some supplies 
B) You promise to increase wages in the coming year by $1 per hour. 
C) You borrow $100,000 to buy a new piece of equipment 
D) Your workers have worked all week and you will pay them next Wednesday. 
A) An amount which must be paid to a business that sold you some supplies 
B) You promise to increase wages in the coming year by $1 per hour. 
C) You borrow $100,000 to buy a new piece of equipment 
D) Your workers have worked all week and you will pay them next Wednesday.

Question 17

Which of the following is not an example of a task performed by someone in the finance function?

Accepted Answer

A) Select projects for the firm to invest in 
B) Decide between debt and equity financing of an acquisition 
C) Decide when to raise new capital 
D) Determine the percentage of defective products 
A) Select projects for the firm to invest in 
B) Decide between debt and equity financing of an acquisition 
C) Decide when to raise new capital 
D) Determine the percentage of defective products

Question 18

Limited liability means:

Accepted Answer

A) A company is only liable for an amount that is established by a pre-set limit. 
B) Creditors are limited to just the cash available in the company at the time of the loss. 
C) Creditors of a company can only claim the assets of the firm and not the assets of the owners of the firm. 
D) Creditors of a firm can claim all the assets of a company but only a limited amount of the owner's personal assets. 
A) A company is only liable for an amount that is established by a pre-set limit. 
B) Creditors are limited to just the cash available in the company at the time of the loss. 
C) Creditors of a company can only claim the assets of the firm and not the assets of the owners of the firm. 
D) Creditors of a firm can claim all the assets of a company but only a limited amount of the owner's personal assets.

Question 19

The primary objective of financial reporting is to

Accepted Answer

A) determine taxable income and income tax of a business. 
B) provide management with information needed to run the day-to-day operations of a business. 
C) keep businesses from going bankrupt. 
D) provide information useful for making economic decisions. 
A) determine taxable income and income tax of a business. 
B) provide management with information needed to run the day-to-day operations of a business. 
C) keep businesses from going bankrupt. 
D) provide information useful for making economic decisions.

Question 20

Which type of business is required to pay taxes on income earned?

Accepted Answer

A) sole proprietorship 
B) corporation 
C) partnership 
D) manufacturer 
A) sole proprietorship 
B) corporation 
C) partnership 
D) manufacturer

The accounting concept which assumes that,absent any information to the contrary,the business will continue into the foreseeable future is the:

A company which produces a product from raw materials is called a:

What is an accounting system? Why are accounting systems necessary to run businesses?

According to Concept Statement #2 accounting information should be:

All of the following are external stakeholders except:

The accounting concept requiring that the profits of a business be determined at regular intervals throughout the life of the business is the:

In Luca Pacioli's book "The Summa" the 15^th century accounting system he describes uses all but one of the following books.

The cash held by a company at the end of the year is found on which of the following two statements?

Every three months,Ashmont Antiques produces a report showing profits earned during the most recently ended quarter.This best describes an application of the:

The Debt to Equity Ratio is measure with which of the following?

Which of the following is NOT true about the relationship between the financial statements?

In its annual report the FCX Company reported the value of its ending inventory,rather than the number of units on hand.This best describes an application of the:

The accounting concept which asserts that money is the common measurement unit for economic activity is the:

Which of the following is not a liability from accounting purposes?

Which of the following is not an example of a task performed by someone in the finance function?

Limited liability means:

The primary objective of financial reporting is to

Which type of business is required to pay taxes on income earned?

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

The accounting concept which assumes that,absent any information to the contrary,the business will continue into the foreseeable future is the:

A company which produces a product from raw materials is called a:

What is an accounting system? Why are accounting systems necessary to run businesses?

According to Concept Statement #2 accounting information should be:

All of the following are external stakeholders except:

The accounting concept requiring that the profits of a business be determined at regular intervals throughout the life of the business is the:

In Luca Pacioli's book "The Summa" the 15th century accounting system he describes uses all but one of the following books.

The cash held by a company at the end of the year is found on which of the following two statements?

Every three months,Ashmont Antiques produces a report showing profits earned during the most recently ended quarter.This best describes an application of the:

The Debt to Equity Ratio is measure with which of the following?

Which of the following is NOT true about the relationship between the financial statements?

In its annual report the FCX Company reported the value of its ending inventory,rather than the number of units on hand.This best describes an application of the:

The accounting concept which asserts that money is the common measurement unit for economic activity is the:

Which of the following is not a liability from accounting purposes?

Which of the following is not an example of a task performed by someone in the finance function?

Limited liability means:

The primary objective of financial reporting is to

Which type of business is required to pay taxes on income earned?

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

In Luca Pacioli's book "The Summa" the 15^th century accounting system he describes uses all but one of the following books.