Question 1

Jesse lists his building at current replacement value,rather than the price he paid for the building.What principle is Jesse violating?

Accepted Answer

A) Going concern 
B) Cost 
C) Reliability 
D) Business entity 
A) Going concern 
B) Cost 
C) Reliability 
D) Business entity

Question 2

A business with one owner is called a sole proprietorship and it must be a service business.

Accepted Answer

A) True 
 B)False

Question 3

Caesar's Coffee sells bagged coffee to grocery stores for resale-what type of business is this?

Accepted Answer

A) Service business 
B) Wholesale business 
C) Retail business 
D) None of the above 
A) Service business 
B) Wholesale business 
C) Retail business 
D) None of the above

Question 4

Cash accounting recognizes business transactions when cash is received or paid.

Accepted Answer

A) True 
 B)False

Question 5

A company has $74,000 in Assets and $23,000 in Liabilities.How much does the company have in Stockholders' Equity?

Accepted Answer

A) $23,000 
B) $51,000 
C) $97,000 
D) $74,000 
A) $23,000 
B) $51,000 
C) $97,000 
D) $74,000

Question 6

A Statement of Cash Flows is usually prepared:

Accepted Answer

A) first. 
B) second. 
C) third. 
D) last. 
A) first. 
B) second. 
C) third. 
D) last.

Question 7

When an owner combines their personal assets with the assets of their business,what concept or principle of accounting is being violated?

Accepted Answer

A) Going concern 
B) Objectivity 
C) Business entity 
D) Cost 
A) Going concern 
B) Objectivity 
C) Business entity 
D) Cost

Question 8

Accrual accounting recognizes business transactions when they occur.

Accepted Answer

A) True 
 B)False

Question 9

Most businesses use:

Accepted Answer

A) cash accounting. 
B) accrual accounting. 
C) cash and accrual accounting. 
D) profit accounting. 
A) cash accounting. 
B) accrual accounting. 
C) cash and accrual accounting. 
D) profit accounting.

Question 10

A company has $123,000 in Assets and $65,000 in Liabilities.How much does the company have in Stockholders' Equity?

Accepted Answer

A) $188,000 
B) $123,000 
C) $65,000 
D) $58,000 
A) $188,000 
B) $123,000 
C) $65,000 
D) $58,000

Question 11

Payables are categorized as:

Accepted Answer

A) Liabilities. 
B) Assets. 
C) Retained Earnings. 
D) Common Stock. 
A) Liabilities. 
B) Assets. 
C) Retained Earnings. 
D) Common Stock.

Question 12

Which of the following is NOT part of the accounting process as it relates to information?

Accepted Answer

A) Measuring 
B) Recognizing 
C) Understanding 
D) Reporting 
A) Measuring 
B) Recognizing 
C) Understanding 
D) Reporting

Question 13

Tumbler,Inc.purchased office supplies on account for $40,000.How would this transaction affect Tumbler's accounting equation?

Accepted Answer

A) Increase Assets and Stockholders' Equity by $40,000 
B) Increase Liabilities and Stockholders' Equity by $40,000 
C) Increase Assets by $40,000 and decrease Liabilities by $40,000 
D) Increase Assets by $40,000 and increase Liabilities by $40,000 
A) Increase Assets and Stockholders' Equity by $40,000 
B) Increase Liabilities and Stockholders' Equity by $40,000 
C) Increase Assets by $40,000 and decrease Liabilities by $40,000 
D) Increase Assets by $40,000 and increase Liabilities by $40,000

Question 14

Which of the following business forms is similar to a corporation in regard to owner liability?

Accepted Answer

A) All businesses are the same with regard to owner liability. 
B) Limited liability company 
C) Sole proprietorship 
D) Partnership 
A) All businesses are the same with regard to owner liability. 
B) Limited liability company 
C) Sole proprietorship 
D) Partnership

Question 15

Beginning Retained Earnings are $65,000;sales are $29,500;expenses are $33,000 and dividends paid are $3,500.How much is the net income or loss for the company?

Accepted Answer

A) $26,000 
B) ($3,500) 
C) ($7,000) 
D) $0 
A) $26,000 
B) ($3,500) 
C) ($7,000) 
D) $0

Question 16

Cash accounting recognizes business transactions when they occur.

Accepted Answer

A) True 
 B)False

Question 17

James opens his business by investing $12,000.How does this affect the accounting equation?

Accepted Answer

A) Increase in Assets;increase in Stockholders' Equity. 
B) Increase in Liabilities;increase in Stockholders' Equity. 
C) Decrease in Assets;increase in Stockholders' Equity. 
D) Increase in Assets;decrease in Stockholders' Equity. 
A) Increase in Assets;increase in Stockholders' Equity. 
B) Increase in Liabilities;increase in Stockholders' Equity. 
C) Decrease in Assets;increase in Stockholders' Equity. 
D) Increase in Assets;decrease in Stockholders' Equity.

Question 18

Financial statements are historical reports of what has taken place financially in a business.

Accepted Answer

A) True 
 B)False

Question 19

One of the newer forms of business is a:

Accepted Answer

A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) limited liability company. 
A) corporation. 
B) sole proprietorship. 
C) partnership. 
D) limited liability company.

Question 20

A net loss will:

Accepted Answer

A) decrease Retained Earnings. 
B) increase Retained Earnings. 
C) force the company into bankruptcy. 
D) force the company to pay dividends. 
A) decrease Retained Earnings. 
B) increase Retained Earnings. 
C) force the company into bankruptcy. 
D) force the company to pay dividends.

Jesse lists his building at current replacement value,rather than the price he paid for the building.What principle is Jesse violating?

A business with one owner is called a sole proprietorship and it must be a service business.

Caesar's Coffee sells bagged coffee to grocery stores for resale-what type of business is this?

Cash accounting recognizes business transactions when cash is received or paid.

A company has $74,000 in Assets and $23,000 in Liabilities.How much does the company have in Stockholders' Equity?

A Statement of Cash Flows is usually prepared:

When an owner combines their personal assets with the assets of their business,what concept or principle of accounting is being violated?

Accrual accounting recognizes business transactions when they occur.

Most businesses use:

A company has $123,000 in Assets and $65,000 in Liabilities.How much does the company have in Stockholders' Equity?

Payables are categorized as:

Which of the following is NOT part of the accounting process as it relates to information?

Tumbler,Inc.purchased office supplies on account for $40,000.How would this transaction affect Tumbler's accounting equation?

Which of the following business forms is similar to a corporation in regard to owner liability?

Beginning Retained Earnings are $65,000;sales are $29,500;expenses are $33,000 and dividends paid are $3,500.How much is the net income or loss for the company?

Cash accounting recognizes business transactions when they occur.

James opens his business by investing $12,000.How does this affect the accounting equation?

Financial statements are historical reports of what has taken place financially in a business.

One of the newer forms of business is a:

A net loss will:

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

Jesse lists his building at current replacement value,rather than the price he paid for the building.What principle is Jesse violating?

A business with one owner is called a sole proprietorship and it must be a service business.

Caesar's Coffee sells bagged coffee to grocery stores for resale-what type of business is this?

Cash accounting recognizes business transactions when cash is received or paid.

A company has $74,000 in Assets and $23,000 in Liabilities.How much does the company have in Stockholders' Equity?

A Statement of Cash Flows is usually prepared:

When an owner combines their personal assets with the assets of their business,what concept or principle of accounting is being violated?

Accrual accounting recognizes business transactions when they occur.

Most businesses use:

A company has $123,000 in Assets and $65,000 in Liabilities.How much does the company have in Stockholders' Equity?

Payables are categorized as:

Which of the following is NOT part of the accounting process as it relates to information?

Tumbler,Inc.purchased office supplies on account for $40,000.How would this transaction affect Tumbler's accounting equation?

Which of the following business forms is similar to a corporation in regard to owner liability?

Beginning Retained Earnings are $65,000;sales are $29,500;expenses are $33,000 and dividends paid are $3,500.How much is the net income or loss for the company?

Cash accounting recognizes business transactions when they occur.

James opens his business by investing $12,000.How does this affect the accounting equation?

Financial statements are historical reports of what has taken place financially in a business.

One of the newer forms of business is a:

A net loss will:

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