Question 1

Go Fresh delivery recorded their delivery van at its current replacement value,rather than the price paid for the van.What principle did they violate?

Accepted Answer

A) Cost 
B) Objectivity 
C) Reliability 
D) Going concern 
A) Cost 
B) Objectivity 
C) Reliability 
D) Going concern

Question 2

Accounting is important because the process "keeps score" of the financial aspects of a business.

Accepted Answer

A) True 
 B)False

Question 3

Which of the financial statements includes a listing of assets owned by the company?

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 4

Generally Accepted Accounting Principles (GAAP)are the rules and guidelines governing accounting.

Accepted Answer

A) True 
 B)False

Question 5

Crispy's is famous for their cupcakes.Crispy'sTotal Assets were $345,000,and Total Liabilities were $129,500.How much was Crispy's Stockholders' Equity?

Accepted Answer

A) $474,500 
B) $345,000 
C) $215,500 
D) Some other number 
A) $474,500 
B) $345,000 
C) $215,500 
D) Some other number

Question 6

The Statement of Cash Flows is used to report sources and uses of cash for a specific date.

Accepted Answer

A) True 
 B)False

Question 7

IFRS stands for:

Accepted Answer

A) Internal Financial Report Standards. 
B) International Financial Reports Study. 
C) Internal Financial Reports Study. 
D) International Financial Reporting Standards. 
A) Internal Financial Report Standards. 
B) International Financial Reports Study. 
C) Internal Financial Reports Study. 
D) International Financial Reporting Standards.

Question 8

A business purchases a computer for cash.What effect does this have on the accounting equation?

Accepted Answer

A) Stockholders' Equity and Assets go up. 
B) There is no change in Total Assets. 
C) Assets go up and Liabilities go down. 
D) Stockholders' Equity and Liabilities go up. 
A) Stockholders' Equity and Assets go up. 
B) There is no change in Total Assets. 
C) Assets go up and Liabilities go down. 
D) Stockholders' Equity and Liabilities go up.

Question 9

Net income or loss is originally shown on the:

Accepted Answer

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

Question 10

Alicia owns a sporting goods store.In her accounting records,she included her personal computer and all of her personal sporting gear.Alicia is violating what principle of accounting?

Accepted Answer

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

Question 11

A business pays off a note payable.What effect does this have on the accounting equation?

Accepted Answer

A) Assets go up,Liabilities go down,and Stockholders' Equity remains the same. 
B) Assets go down,Liabilities remain the same,and Stockholders' Equity goes up. 
C) Assets go down,Liabilities go down,and Stockholders' Equity remains the same. 
D) Assets go up,Liabilities remain the same,and Stockholders' Equity goes up. 
A) Assets go up,Liabilities go down,and Stockholders' Equity remains the same. 
B) Assets go down,Liabilities remain the same,and Stockholders' Equity goes up. 
C) Assets go down,Liabilities go down,and Stockholders' Equity remains the same. 
D) Assets go up,Liabilities remain the same,and Stockholders' Equity goes up.

Question 12

The main role of accounting is to compile reports to determine the profit made by a company over a period of time.

Accepted Answer

A) True 
 B)False

Question 13

Sylvia borrowed money for her business from a local bank.What accounts will be affected?

Accepted Answer

A) Cash and Accounts Payable 
B) Cash and Notes Payable 
C) Accounts Payable and Revenue 
D) Accounts Receivable and Revenue 
A) Cash and Accounts Payable 
B) Cash and Notes Payable 
C) Accounts Payable and Revenue 
D) Accounts Receivable and Revenue

Question 14

The only way for business to get money is to borrow it.

Accepted Answer

A) True 
 B)False

Question 15

Market value and historical cost (value)are the same concept.

Accepted Answer

A) True 
 B)False

Question 16

The fundamental accounting equation is Assets plus Liabilities equals Stockholders' Equity.

Accepted Answer

A) True 
 B)False

Question 17

What is an example of objective evidence?

Accepted Answer

A) Bank statements 
B) Cancelled checks 
C) Purchase receipts 
D) All of the above 
E) None of the above 
A) Bank statements 
B) Cancelled checks 
C) Purchase receipts 
D) All of the above 
E) None of the above

Question 18

In the expanded accounting equation,revenues minus expenses are part of:

Accepted Answer

A) Assets. 
B) Retained Earnings. 
C) Liabilities. 
D) Dividends. 
A) Assets. 
B) Retained Earnings. 
C) Liabilities. 
D) Dividends.

Question 19

Which of the following does NOT describe Stockholders' Equity?

Accepted Answer

A) Profits retained in the business 
B) Money lent to a business 
C) The owners' claim on the assets of a company 
D) Money invested in a business by its owners 
A) Profits retained in the business 
B) Money lent to a business 
C) The owners' claim on the assets of a company 
D) Money invested in a business by its owners

Question 20

The net income figure is needed to prepare:

Accepted Answer

A) a Balance Sheet. 
B) a Statement of Retained Earnings. 
C) a Statement of Liabilities. 
D) some other report. 
A) a Balance Sheet. 
B) a Statement of Retained Earnings. 
C) a Statement of Liabilities. 
D) some other report.

Go Fresh delivery recorded their delivery van at its current replacement value,rather than the price paid for the van.What principle did they violate?

Accounting is important because the process "keeps score" of the financial aspects of a business.

Which of the financial statements includes a listing of assets owned by the company?

Generally Accepted Accounting Principles (GAAP)are the rules and guidelines governing accounting.

Crispy's is famous for their cupcakes.Crispy'sTotal Assets were $345,000,and Total Liabilities were $129,500.How much was Crispy's Stockholders' Equity?

The Statement of Cash Flows is used to report sources and uses of cash for a specific date.

IFRS stands for:

A business purchases a computer for cash.What effect does this have on the accounting equation?

Net income or loss is originally shown on the:

Alicia owns a sporting goods store.In her accounting records,she included her personal computer and all of her personal sporting gear.Alicia is violating what principle of accounting?

A business pays off a note payable.What effect does this have on the accounting equation?

The main role of accounting is to compile reports to determine the profit made by a company over a period of time.

Sylvia borrowed money for her business from a local bank.What accounts will be affected?

The only way for business to get money is to borrow it.

Market value and historical cost (value)are the same concept.

The fundamental accounting equation is Assets plus Liabilities equals Stockholders' Equity.

What is an example of objective evidence?

In the expanded accounting equation,revenues minus expenses are part of:

Which of the following does NOT describe Stockholders' Equity?

The net income figure is needed to prepare:

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

Go Fresh delivery recorded their delivery van at its current replacement value,rather than the price paid for the van.What principle did they violate?

Accounting is important because the process "keeps score" of the financial aspects of a business.

Which of the financial statements includes a listing of assets owned by the company?

Generally Accepted Accounting Principles (GAAP)are the rules and guidelines governing accounting.

Crispy's is famous for their cupcakes.Crispy'sTotal Assets were $345,000,and Total Liabilities were $129,500.How much was Crispy's Stockholders' Equity?

The Statement of Cash Flows is used to report sources and uses of cash for a specific date.

IFRS stands for:

A business purchases a computer for cash.What effect does this have on the accounting equation?

Net income or loss is originally shown on the:

Alicia owns a sporting goods store.In her accounting records,she included her personal computer and all of her personal sporting gear.Alicia is violating what principle of accounting?

A business pays off a note payable.What effect does this have on the accounting equation?

The main role of accounting is to compile reports to determine the profit made by a company over a period of time.

Sylvia borrowed money for her business from a local bank.What accounts will be affected?

The only way for business to get money is to borrow it.

Market value and historical cost (value)are the same concept.

The fundamental accounting equation is Assets plus Liabilities equals Stockholders' Equity.

What is an example of objective evidence?

In the expanded accounting equation,revenues minus expenses are part of:

Which of the following does NOT describe Stockholders' Equity?

The net income figure is needed to prepare:

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