Question 1

A limited partnership:

Accepted Answer

A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) May only have two partners. 
A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) May only have two partners.

Question 2

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i

Question 3

Liabilities are the owner's claim on assets.

Accepted Answer

A) True 
 B)False

Question 4

On June 30 of the current year,the assets and liabilities of Phoenix,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of owner's equity as of June 30 of the current year?

Accepted Answer

A) $8,300 
B) $13,050 
C) $20,500 
D) $31,100 
E) $40,400 
A) $8,300 
B) $13,050 
C) $20,500 
D) $31,100 
E) $40,400

Question 5

If assets are $99,000 and liabilities are $32,000,then equity equals:

Accepted Answer

A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000. 
A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000.

Question 6

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 7

U.S.Government Treasury bonds provide high return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises: Revenue recognition principle
Monetary unit principle
Statement of owner's equity
Accounting equation
Liabilities
Business entity principle
Expenses
Business transaction
Statement of cash flows

Accepted Answer

The Answer of The principle that assumes transactions and events is...

Question 9

An exchange of value between two entities is called:

Accepted Answer

A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income. 
A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income.

Question 10

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Accepted Answer

A) True 
 B)False

Question 11

The accounts of Garfield Company with the increases or decreases that occurred during the past year are as follows:
Account Increase Decrease
Cash $25,000
Accounts receivable $(5,000)
Accounts payable (11,000)
Notes payable 16,000
Except for net income,an investment of $3,000 by the owner,and a withdrawal of $11,000 by the owner,no other items affected the owner's capital account.Using the balance sheet equation,compute net income for the past year.

Accepted Answer

Assets = Liabilities + Owner's Equity

Question 12

Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 13

The group that attempts to create more harmony among the accounting practices of different countries is the:

Accepted Answer

A) AICPA. 
B) IASB. 
C) CAP. 
D) SEC. 
E) FASB. 
A) AICPA. 
B) IASB. 
C) CAP. 
D) SEC. 
E) FASB.

Question 14

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease?
 By what amount?

Accepted Answer

Assets = Liabilitie

Question 15

For each of the following transactions,identify the effects as reflected in the accounting equation.Use "+" to indicate an increase and "-" to indicate a decrease.Use "A","L",and "E" to indicate assets,liabilities,and equity,respectively.Part A has been completed as an example.

Accepted Answer

a.+A +E
b.+A +L
c.+A

Question 16

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

Accepted Answer

A) Going-concern assumption. 
B) Business entity assumption. 
C) Objectivity principle. 
D) Cost Principle. 
E) Monetary unit assumption. 
A) Going-concern assumption. 
B) Business entity assumption. 
C) Objectivity principle. 
D) Cost Principle. 
E) Monetary unit assumption.

Question 17

________________________________ reports changes in the owner's claim on the business's assets over a period of time.

Accepted Answer

The statem

Question 18

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

Accepted Answer

A) True 
 B)False

Question 19

The records of Skymaster Airplane Rentals show the following information as of December 31.Skymaster withdrew $52,000 during the year for personal expenses.Prepare a December income statement,a December statement of owner's equity,and a December 30 balance sheet.

Accepted Answer

Information and meas

Question 20

The basic financial statements include all of the following except:

Accepted Answer

A) Balance Sheet. 
B) Income Statement. 
C) Statement of Owner's Equity. 
D) Statement of Cash Flows. 
E) Trial Balance. 
A) Balance Sheet. 
B) Income Statement. 
C) Statement of Owner's Equity. 
D) Statement of Cash Flows. 
E) Trial Balance.

Exam 1: Accounting in Business

A limited partnership:

Describe the three types of activities reported on the statement of cash flows.

Liabilities are the owner's claim on assets.

On June 30 of the current year,the assets and liabilities of Phoenix,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of owner's equity as of June 30 of the current year?

If assets are $99,000 and liabilities are $32,000,then equity equals:

The income statement shows the financial position of a business on a specific date.

U.S.Government Treasury bonds provide high return and low risk to investors.

An exchange of value between two entities is called:

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

The group that attempts to create more harmony among the accounting practices of different countries is the:

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease? By what amount?

For each of the following transactions,identify the effects as reflected in the accounting equation.Use "+" to indicate an increase and "-" to indicate a decrease.Use "A","L",and "E" to indicate assets,liabilities,and equity,respectively.Part A has been completed as an example.

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

________________________________ reports changes in the owner's claim on the business's assets over a period of time.

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

The records of Skymaster Airplane Rentals show the following information as of December 31.Skymaster withdrew $52,000 during the year for personal expenses.Prepare a December income statement,a December statement of owner's equity,and a December 30 balance sheet.

The basic financial statements include all of the following except:

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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