Question 1

GAAP is the acronym for generally accepted ________ principles.

Accepted Answer

A) auditing 
B) accounting 
C) averaging 
D) associated 
A) auditing 
B) accounting 
C) averaging 
D) associated B

Question 2

The Income Statement details how cash changed over an accounting period or cycle.

Accepted Answer

A) True 
 B)False  False

Question 3

The payment of cash dividends would have which of the following effects on the accounting equation?

Accepted Answer

A) Increase Liabilities 
B) Decrease Stockholders' Equity 
C) Increase Assets 
D) Increase Stockholders' Equity 
A) Increase Liabilities 
B) Decrease Stockholders' Equity 
C) Increase Assets 
D) Increase Stockholders' Equity B

Question 4

Dividends are part of:

Accepted Answer

A) sales. 
B) expenses. 
C) Retained Earnings. 
D) Assets. 
A) sales. 
B) expenses. 
C) Retained Earnings. 
D) Assets.

Question 5

Which type of organization is NOT considered a not-for-profit?

Accepted Answer

A) Charities 
B) Churches 
C) Chinese restaurant 
D) All of the above are not-for-profits. 
A) Charities 
B) Churches 
C) Chinese restaurant 
D) All of the above are not-for-profits.

Question 6

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500 and dividends paid are $2,800.How much is the net income or loss for the company?

Accepted Answer

A) $3,300 
B) $500 
C) $34,300 
D) ($3,300) 
A) $3,300 
B) $500 
C) $34,300 
D) ($3,300)

Question 7

A company purchases supplies for cash.What is the net result on the accounting equation?

Accepted Answer

A) Total Assets will go up and total Liabilities will go down. 
B) Total Assets will go up and Stockholders' Equity will go up. 
C) Total Assets will not change. 
D) Total Liabilities will go up. 
A) Total Assets will go up and total Liabilities will go down. 
B) Total Assets will go up and Stockholders' Equity will go up. 
C) Total Assets will not change. 
D) Total Liabilities will go up.

Question 8

Of the financial statements,which is dated as of a specific date?

Accepted Answer

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

Question 9

Business owners expect to be compensated for both time and risk.

Accepted Answer

A) True 
 B)False

Question 10

Owner'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 11

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500;and dividends paid are $2,800.How much is the amount in ending Retained Earnings?

Accepted Answer

A) $34,400 
B) $28,200 
C) $34,300 
D) $31,500 
A) $34,400 
B) $28,200 
C) $34,300 
D) $31,500

Question 12

The method of accounting that recognizes a transaction when cash is received or paid is:

Accepted Answer

A) financial accounting. 
B) cash accounting. 
C) cost accounting. 
D) accrual accounting. 
A) financial accounting. 
B) cash accounting. 
C) cost accounting. 
D) accrual accounting.

Question 13

Sasha owns a bakery.In her accounting records,she includes her car-which is solely used for personal purposes.Which principle is Sasha violating?

Accepted Answer

A) Personal property 
B) Cost 
C) Reliability 
D) Business entity 
A) Personal property 
B) Cost 
C) Reliability 
D) Business entity

Question 14

Paloma's Plumbing buys a new van for the business using cash.The accounts affected are:

Accepted Answer

A) Increase cash and increase Equipment. 
B) Decrease cash and increase Equipment. 
C) Increase Equipment and increase Stockholders' Equity. 
D) Decrease cash and decrease Stockholders' Equity. 
A) Increase cash and increase Equipment. 
B) Decrease cash and increase Equipment. 
C) Increase Equipment and increase Stockholders' Equity. 
D) Decrease cash and decrease Stockholders' Equity.

Question 15

J & J Metalworks buys a new machine for its shop on credit.The effect on the accounting equation is to:

Accepted Answer

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

Question 16

The value of an item does NOT depend on when it is expected to be received.

Accepted Answer

A) True 
 B)False

Question 17

Stockholders' Equity consists of Retained Earnings and Common Stock.

Accepted Answer

A) True 
 B)False

Question 18

Payables are classified as:

Accepted Answer

A) Stockholders' Equity. 
B) Retained Earnings. 
C) Liabilities. 
D) Assets. 
A) Stockholders' Equity. 
B) Retained Earnings. 
C) Liabilities. 
D) Assets.

Question 19

Law and accounting firms are service businesses.

Accepted Answer

A) True 
 B)False

Question 20

A transaction is a business event that does NOT have an impact on the finances of a company.

Accepted Answer

A) True 
 B)False

GAAP is the acronym for generally accepted ________ principles.

The Income Statement details how cash changed over an accounting period or cycle.

The payment of cash dividends would have which of the following effects on the accounting equation?

Dividends are part of:

Which type of organization is NOT considered a not-for-profit?

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500 and dividends paid are $2,800.How much is the net income or loss for the company?

A company purchases supplies for cash.What is the net result on the accounting equation?

Of the financial statements,which is dated as of a specific date?

Business owners expect to be compensated for both time and risk.

Owner's Equity represents:

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500;and dividends paid are $2,800.How much is the amount in ending Retained Earnings?

The method of accounting that recognizes a transaction when cash is received or paid is:

Sasha owns a bakery.In her accounting records,she includes her car-which is solely used for personal purposes.Which principle is Sasha violating?

Paloma's Plumbing buys a new van for the business using cash.The accounts affected are:

J & J Metalworks buys a new machine for its shop on credit.The effect on the accounting equation is to:

The value of an item does NOT depend on when it is expected to be received.

Stockholders' Equity consists of Retained Earnings and Common Stock.

Payables are classified as:

Law and accounting firms are service businesses.

A transaction is a business event that does NOT have an impact on the finances of a company.

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

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Exam 1: Business, Accounting, and You

GAAP is the acronym for generally accepted ________ principles.

The Income Statement details how cash changed over an accounting period or cycle.

The payment of cash dividends would have which of the following effects on the accounting equation?

Dividends are part of:

Which type of organization is NOT considered a not-for-profit?

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500 and dividends paid are $2,800.How much is the net income or loss for the company?

A company purchases supplies for cash.What is the net result on the accounting equation?

Of the financial statements,which is dated as of a specific date?

Business owners expect to be compensated for both time and risk.

Owner's Equity represents:

Beginning Retained Earnings are $31,000;sales are $46,800;expenses are $43,500;and dividends paid are $2,800.How much is the amount in ending Retained Earnings?

The method of accounting that recognizes a transaction when cash is received or paid is:

Sasha owns a bakery.In her accounting records,she includes her car-which is solely used for personal purposes.Which principle is Sasha violating?

Paloma's Plumbing buys a new van for the business using cash.The accounts affected are:

J & J Metalworks buys a new machine for its shop on credit.The effect on the accounting equation is to:

The value of an item does NOT depend on when it is expected to be received.

Stockholders' Equity consists of Retained Earnings and Common Stock.

Payables are classified as:

Law and accounting firms are service businesses.

A transaction is a business event that does NOT have an impact on the finances of a company.

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