Question 1

FASB is made up of how many members?

Accepted Answer

A) 3 
B) 5 
C) 7 
D) 9 
A) 3 
B) 5 
C) 7 
D) 9

Question 2

By taking accounting classes,the student is learning the "language of business."

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is TRUE regarding revenue and profit?

Accepted Answer

A) The terms revenue and profit mean the same thing. 
B) Both revenue and profit are found on the Income Statement. 
C) Profit equals liabilities plus Stockholders' Equity. 
D) Revenue is found on the Balance Sheet and profit is found on the Income Statement. 
A) The terms revenue and profit mean the same thing. 
B) Both revenue and profit are found on the Income Statement. 
C) Profit equals liabilities plus Stockholders' Equity. 
D) Revenue is found on the Balance Sheet and profit is found on the Income Statement.

Question 4

Which of the following is considered an asset?

Accepted Answer

A) Accounts Payable 
B) Sales 
C) Accounts Receivable 
D) Common Stock 
A) Accounts Payable 
B) Sales 
C) Accounts Receivable 
D) Common Stock

Question 5

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Accepted Answer

A) True 
 B)False

Question 6

Renuud,Inc.provided $34,000 worth of services for cash.Which of the following best describes the effect on the expanded accounting equation?

Accepted Answer

A) Total Assets and total Liabilities will increase. 
B) Total Assets and total Revenue will increase. 
C) Total Liabilities will increase and total Revenue will decrease. 
D) Total Assets will decrease and total Liabilities will increase. 
A) Total Assets and total Liabilities will increase. 
B) Total Assets and total Revenue will increase. 
C) Total Liabilities will increase and total Revenue will decrease. 
D) Total Assets will decrease and total Liabilities will increase.

Question 7

Which of the following is a written promise to pay?

Accepted Answer

A) Account receivable 
B) Account payable 
C) Note payable 
D) Dividend payable 
A) Account receivable 
B) Account payable 
C) Note payable 
D) Dividend payable

Question 8

The first financial statement that is prepared is the:

Accepted Answer

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

Question 9

Which accounting concept or principle specifically states that we should record transactions that can be verified?

Accepted Answer

A) Going-concern concept 
B) Cost principle 
C) Reliability principle 
D) Business entity concept 
A) Going-concern concept 
B) Cost principle 
C) Reliability principle 
D) Business entity concept

Question 10

Wal-Mart and Target would be examples of corporate merchandising businesses.

Accepted Answer

A) True 
 B)False

Question 11

Assets are defined as:

Accepted Answer

A) earnings retained in the business. 
B) amounts owed to others. 
C) stockholders' claims to assets. 
D) economic resources of a company. 
A) earnings retained in the business. 
B) amounts owed to others. 
C) stockholders' claims to assets. 
D) economic resources of a company.

Question 12

A company has $63,000 in Assets and $14,000 of Stockholders' Equity.How much does the company have in Liabilities?

Accepted Answer

A) $14,000 
B) $49,000 
C) $77,000 
D) Cannot be determined from the given information 
A) $14,000 
B) $49,000 
C) $77,000 
D) Cannot be determined from the given information

Question 13

Net income is defined as:

Accepted Answer

A) revenue plus expenses. 
B) revenue less assets. 
C) expenses less revenue. 
D) revenue less expenses. 
A) revenue plus expenses. 
B) revenue less assets. 
C) expenses less revenue. 
D) revenue less expenses.

Question 14

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following do NOT pay taxes on the business income through their individual owners?

Accepted Answer

A) S-corporation 
B) Sole proprietorship 
C) Partnership 
D) Corporation 
A) S-corporation 
B) Sole proprietorship 
C) Partnership 
D) Corporation

Question 16

Businesses primarily exist to generate sales.

Accepted Answer

A) True 
 B)False

Question 17

Shareholders must pay income tax on the dividends they have received from a corporation.

Accepted Answer

A) True 
 B)False

Question 18

Assets consist of revenues,expenses,and dividends.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A) Ease of formation 
B) Limited liability of owner 
C) Ease of raising capital 
D) Unlimited life 
A) Ease of formation 
B) Limited liability of owner 
C) Ease of raising capital 
D) Unlimited life

Question 20

The Income Statement is used to report:

Accepted Answer

A) results of operations for a specific date. 
B) the financial position on a specific date. 
C) results of operations for a specific period. 
D) the financial position for a specific period. 
A) results of operations for a specific date. 
B) the financial position on a specific date. 
C) results of operations for a specific period. 
D) the financial position for a specific period.

FASB is made up of how many members?

By taking accounting classes,the student is learning the "language of business."

Which of the following is TRUE regarding revenue and profit?

Which of the following is considered an asset?

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Renuud,Inc.provided $34,000 worth of services for cash.Which of the following best describes the effect on the expanded accounting equation?

Which of the following is a written promise to pay?

The first financial statement that is prepared is the:

Which accounting concept or principle specifically states that we should record transactions that can be verified?

Wal-Mart and Target would be examples of corporate merchandising businesses.

Assets are defined as:

A company has $63,000 in Assets and $14,000 of Stockholders' Equity.How much does the company have in Liabilities?

Net income is defined as:

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Which of the following do NOT pay taxes on the business income through their individual owners?

Businesses primarily exist to generate sales.

Shareholders must pay income tax on the dividends they have received from a corporation.

Assets consist of revenues,expenses,and dividends.

Which of the following is an advantage of a sole proprietorship?

The Income Statement is used to report:

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

FASB is made up of how many members?

By taking accounting classes,the student is learning the "language of business."

Which of the following is TRUE regarding revenue and profit?

Which of the following is considered an asset?

Amounts owed to the business' owners as a result of an initial investment are called liabilities.

Renuud,Inc.provided $34,000 worth of services for cash.Which of the following best describes the effect on the expanded accounting equation?

Which of the following is a written promise to pay?

The first financial statement that is prepared is the:

Which accounting concept or principle specifically states that we should record transactions that can be verified?

Wal-Mart and Target would be examples of corporate merchandising businesses.

Assets are defined as:

A company has $63,000 in Assets and $14,000 of Stockholders' Equity.How much does the company have in Liabilities?

Net income is defined as:

The Statement of Cash Flows is used to report sources and uses of cash for a given period of time.

Which of the following do NOT pay taxes on the business income through their individual owners?

Businesses primarily exist to generate sales.

Shareholders must pay income tax on the dividends they have received from a corporation.

Assets consist of revenues,expenses,and dividends.

Which of the following is an advantage of a sole proprietorship?

The Income Statement is used to report:

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