Question 1

A partnership is owned by two or more individuals.

Accepted Answer

A) True 
 B)False

Question 2

If there was no beginning retained earnings,net income of $30,300,and ending retained earnings of $8,000,how much were dividends?

Accepted Answer

A) $38,300 
B) $22,300 
C) $6,000 
D) $8,000 
A) $38,300 
B) $22,300 
C) $6,000 
D) $8,000

Question 3

Classify the following as an asset,liability,revenue,or expense.
(1)	Unearned revenue
(2)	Office equipment
(3)	Wages payable
(4)	Salary expense
(5)	Dividends payable
(6)	Art fees earned
(7)	Prepaid rent
(8)	Accounts receivable
(9)	Income tax expense
(10)	Office supplies

Accepted Answer

(1)Liability
 (2)Asset
 (3)Lia

Question 4

The portion of a corporation's net income retained in the business is called:

Accepted Answer

A) interest earnings. 
B) dividends. 
C) tax expense. 
D) retained earnings. 
A) interest earnings. 
B) dividends. 
C) tax expense. 
D) retained earnings.

Question 5

Which of the following would not be an example of a merchandising business?

Accepted Answer

A) The Walt Disney Company 
B) JCPenney 
C) Amazon.com 
D) Wal-Mart 
A) The Walt Disney Company 
B) JCPenney 
C) Amazon.com 
D) Wal-Mart

Question 6

Given the following list of accounts,calculate Total Assets:

Accepted Answer

A) $52,100 
B) $55,300 
C) $54,600 
D) $40,050 
A) $52,100 
B) $55,300 
C) $54,600 
D) $40,050

Question 7

A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing agreement.

Accepted Answer

A) True 
 B)False

Question 8

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 9

The return on assets is calculated by .

Accepted Answer

A) dividing interest expense by average total asset and average current assets 
B) dividing net income before taxes and interest expense by average total asset 
C) dividing average total asset and interest expense by net income taxes 
D) dividing net income before taxes and interest expense by average current assets 
A) dividing interest expense by average total asset and average current assets 
B) dividing net income before taxes and interest expense by average total asset 
C) dividing average total asset and interest expense by net income taxes 
D) dividing net income before taxes and interest expense by average current assets

Question 10

Which of the following is the correct order for preparing financial statements?

Accepted Answer

A) Income statement,Statement of cash flows,Retained earnings statement,Balance sheet 
B) Retained earnings statement,Income statement,Statement of cash flows,Balance sheet 
C) Statement of cash flows,Retained earnings statement,Balance sheet,Income statement 
D) Income statement,Retained earnings statement,Balance sheet,Statement of cash flows 
A) Income statement,Statement of cash flows,Retained earnings statement,Balance sheet 
B) Retained earnings statement,Income statement,Statement of cash flows,Balance sheet 
C) Statement of cash flows,Retained earnings statement,Balance sheet,Income statement 
D) Income statement,Retained earnings statement,Balance sheet,Statement of cash flows

Question 11

Which of the following is an intangible asset?

Accepted Answer

A) Patent 
B) Cash 
C) Land 
D) Equipment 
A) Patent 
B) Cash 
C) Land 
D) Equipment

Question 12

A business stakeholder has an interest in the economic performance of a business.

Accepted Answer

A) True 
 B)False

Question 13

Governments have an interest in the economic performance of business because of:

Accepted Answer

A) tax collections. 
B) community involvement from the business. 
C) business incentives. 
D) all of these. 
A) tax collections. 
B) community involvement from the business. 
C) business incentives. 
D) all of these.

Question 14

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

Accepted Answer

A) financing activities section. 
B) investing activities section. 
C) operating activities section. 
D) supplemental statement. 
A) financing activities section. 
B) investing activities section. 
C) operating activities section. 
D) supplemental statement.

Question 15

Assets are acquired through investing activities when resources are purchased.

Accepted Answer

A) True 
 B)False

Question 16

Under a ,a business designs products that possess unique attributes or characteristics for which customers are willing to pay more.

Accepted Answer

A) premium-price emphasis 
B) outreach emphasis 
C) low-cost emphasis 
D) customer emphasis 
A) premium-price emphasis 
B) outreach emphasis 
C) low-cost emphasis 
D) customer emphasis

Question 17

Name and describe the three forms of businesses and their advantages and disadvantages (if any).

Accepted Answer

(1)Proprietorship: owned by one individu

Question 18

Fill in the missing amounts of the following balance sheet:

Accepted Answer

a.$4,500 b

Question 19

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Accepted Answer

A) True 
 B)False

Question 20

Review Coke­Cola's financial statements and answer the following questions:
(1)	What is Coke’s percent of current assets to total assets on its December 31, 2008 balance sheet?
(2)	What is Coke’s percentage of current liabilities to total stockholders’ equity on its December 31, 2008 balance sheet?
(3)	What is the percentage increase in cash and cash equivalents from 2007 to 2008?
(4)	What percentage did total assets decrease from 2007 to 2008?

Accepted Answer

(1)12,176/40,519 = 30.05% 
(2)

A partnership is owned by two or more individuals.

If there was no beginning retained earnings,net income of $30,300,and ending retained earnings of $8,000,how much were dividends?

Classify the following as an asset,liability,revenue,or expense. (1) Unearned revenue (2) Office equipment (3) Wages payable (4) Salary expense (5) Dividends payable (6) Art fees earned (7) Prepaid rent (8) Accounts receivable (9) Income tax expense (10) Office supplies

The portion of a corporation's net income retained in the business is called:

Which of the following would not be an example of a merchandising business?

Given the following list of accounts,calculate Total Assets:

A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing agreement.

The balance sheet represents the accounting equation.

The return on assets is calculated by .

Which of the following is the correct order for preparing financial statements?

Which of the following is an intangible asset?

A business stakeholder has an interest in the economic performance of a business.

Governments have an interest in the economic performance of business because of:

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

Assets are acquired through investing activities when resources are purchased.

Under a ,a business designs products that possess unique attributes or characteristics for which customers are willing to pay more.

Name and describe the three forms of businesses and their advantages and disadvantages (if any).

Fill in the missing amounts of the following balance sheet:

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 1: The Role of Accounting in Business

A partnership is owned by two or more individuals.

If there was no beginning retained earnings,net income of $30,300,and ending retained earnings of $8,000,how much were dividends?

Classify the following as an asset,liability,revenue,or expense. (1) Unearned revenue (2) Office equipment (3) Wages payable (4) Salary expense (5) Dividends payable (6) Art fees earned (7) Prepaid rent (8) Accounts receivable (9) Income tax expense (10) Office supplies

The portion of a corporation's net income retained in the business is called:

Which of the following would not be an example of a merchandising business?

Given the following list of accounts,calculate Total Assets:

A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing agreement.

The balance sheet represents the accounting equation.

The return on assets is calculated by .

Which of the following is the correct order for preparing financial statements?

Which of the following is an intangible asset?

A business stakeholder has an interest in the economic performance of a business.

Governments have an interest in the economic performance of business because of:

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

Assets are acquired through investing activities when resources are purchased.

Under a ,a business designs products that possess unique attributes or characteristics for which customers are willing to pay more.

Name and describe the three forms of businesses and their advantages and disadvantages (if any).

Fill in the missing amounts of the following balance sheet:

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters