Question 1

When a product is sold,the cost of the product sold is often called:

Accepted Answer

A) cost of goods sold. 
B) selling cost. 
C) period cost. 
D) retained cost. 
A) cost of goods sold. 
B) selling cost. 
C) period cost. 
D) retained cost.

Question 2

A primary disadvantage of corporations is that the financial resources available to them are limited.

Accepted Answer

A) True 
 B)False

Question 3

During 2015,Trinder Corporation had an increase in total assets of $80,000 and an increase in total liabilities of $60,000.Assuming that capital stock increased by $8,000 and no dividends were paid,calculate Trinder's net income or net loss for 2015.

Accepted Answer

A) Net income of $12,000 
B) Net income of $72,000 
C) Net income of $28,000 
D) Net loss of $20,000 
A) Net income of $12,000 
B) Net income of $72,000 
C) Net income of $28,000 
D) Net loss of $20,000

Question 4

Which of the following is not an example of a capital market stakeholder?

Accepted Answer

A) Banks 
B) Owners 
C) Suppliers 
D) Stockholders 
A) Banks 
B) Owners 
C) Suppliers 
D) Stockholders

Question 5

All merchandising businesses are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 6

Motel 6,a company that helps customers find budget motels across the nation,is an example of a business using which of the following?

Accepted Answer

A) Low-cost emphasis 
B) Outreach emphasis 
C) Customer emphasis 
D) Premium-price emphasis 
A) Low-cost emphasis 
B) Outreach emphasis 
C) Customer emphasis 
D) Premium-price emphasis

Question 7

What is the primary objective of most businesses?

Accepted Answer

A) To maximize profits 
B) To pay dividends to stockholders 
C) To provide a benefit to society 
D) To manufacture a quality product 
A) To maximize profits 
B) To pay dividends to stockholders 
C) To provide a benefit to society 
D) To manufacture a quality product

Question 8

Cash collected from sales during the normal course of business would be an example of which type of business activity?

Accepted Answer

A) Operating 
B) Investing 
C) Financing 
D) None of these 
A) Operating 
B) Investing 
C) Financing 
D) None of these

Question 9

The debt created by a business when it makes a purchase on account is referred to as an:

Accepted Answer

A) account payable. 
B) account receivable. 
C) asset. 
D) expense payable. 
A) account payable. 
B) account receivable. 
C) asset. 
D) expense payable.

Question 10

A note payable requires payment of the amount borrowed plus:

Accepted Answer

A) interest. 
B) tax. 
C) overhead. 
D) dividend. 
A) interest. 
B) tax. 
C) overhead. 
D) dividend.

Question 11

Financing activities .

Accepted Answer

A) involve obtaining funds to operate a business 
B) involve obtaining assets such as buildings and equipment 
C) help to earn revenues and profits 
D) help to make wise investments in other companies 
A) involve obtaining funds to operate a business 
B) involve obtaining assets such as buildings and equipment 
C) help to earn revenues and profits 
D) help to make wise investments in other companies

Question 12

A low-cost emphasis strives to provide:

Accepted Answer

A) no-frills,standardized products and services. 
B) products and services that provide unique market needs. 
C) products and services that provide prestige and image for customers. 
D) products and services that compete on features other than price. 
A) no-frills,standardized products and services. 
B) products and services that provide unique market needs. 
C) products and services that provide prestige and image for customers. 
D) products and services that compete on features other than price.

Question 13

Which of the following is considered an asset until consumed?

Accepted Answer

A) Accounts payable 
B) Prepaid expense 
C) Accounts receivable 
D) Stockholders' equity 
A) Accounts payable 
B) Prepaid expense 
C) Accounts receivable 
D) Stockholders' equity

Question 14

Which of the following is true about the cost principle?

Accepted Answer

A) It limits the economic data recorded in an accounting system to data related to the activities of that company. 
B) It initially records assets in the accounting records at their purchase price. 
C) It assumes that a company will continue in business indefinitely. 
D) It reports the revenues earned by a company for a period with the expenses incurred in generating the revenues. 
A) It limits the economic data recorded in an accounting system to data related to the activities of that company. 
B) It initially records assets in the accounting records at their purchase price. 
C) It assumes that a company will continue in business indefinitely. 
D) It reports the revenues earned by a company for a period with the expenses incurred in generating the revenues.

Question 15

Which of the following types of business is popular for its ease and low cost of organizing?

Accepted Answer

A) Not-for-profit 
B) Corporation 
C) Partnership 
D) Proprietorship 
A) Not-for-profit 
B) Corporation 
C) Partnership 
D) Proprietorship

Question 16

Capital market stakeholders have an interest in the company because:

Accepted Answer

A) they provide incentives for the company to market their products. 
B) they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits. 
C) they help market their products to customers or find vendors to supply needed inputs. 
D) they provide major financing for the business. 
A) they provide incentives for the company to market their products. 
B) they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits. 
C) they help market their products to customers or find vendors to supply needed inputs. 
D) they provide major financing for the business.

Question 17

Due to various fraudulent business practices and accounting coverups in the early 2000s,Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:

Accepted Answer

A) Generally Accepted Accounting Practices for Public Accountants Board. 
B) Public Company Accounting Oversight Board. 
C) Congressional Accounting Oversight Board. 
D) Financial Accounting Standards Board. 
A) Generally Accepted Accounting Practices for Public Accountants Board. 
B) Public Company Accounting Oversight Board. 
C) Congressional Accounting Oversight Board. 
D) Financial Accounting Standards Board.

Question 18

Debts owed by a business are referred to as:

Accepted Answer

A) accounts receivable. 
B) equities. 
C) stockholders' equity. 
D) liabilities. 
A) accounts receivable. 
B) equities. 
C) stockholders' equity. 
D) liabilities.

Question 19

Which of the following is an appropriate representation of the accounting equation?

Accepted Answer

A) Assets + Liabilities = Stockholders' equity 
B) Assets = Liabilities + Stockholders' equity 
C) Assets = Liabilities 
D) Assets = Liabilities + Retained earnings 
A) Assets + Liabilities = Stockholders' equity 
B) Assets = Liabilities + Stockholders' equity 
C) Assets = Liabilities 
D) Assets = Liabilities + Retained earnings

Question 20

Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:

Accepted Answer

A) tax accounting. 
B) union contracts. 
C) managerial accounting. 
D) financial accounting. 
A) tax accounting. 
B) union contracts. 
C) managerial accounting. 
D) financial accounting.

When a product is sold,the cost of the product sold is often called:

A primary disadvantage of corporations is that the financial resources available to them are limited.

During 2015,Trinder Corporation had an increase in total assets of $80,000 and an increase in total liabilities of $60,000.Assuming that capital stock increased by $8,000 and no dividends were paid,calculate Trinder's net income or net loss for 2015.

Which of the following is not an example of a capital market stakeholder?

All merchandising businesses are organized as corporations.

Motel 6,a company that helps customers find budget motels across the nation,is an example of a business using which of the following?

What is the primary objective of most businesses?

Cash collected from sales during the normal course of business would be an example of which type of business activity?

The debt created by a business when it makes a purchase on account is referred to as an:

A note payable requires payment of the amount borrowed plus:

Financing activities .

A low-cost emphasis strives to provide:

Which of the following is considered an asset until consumed?

Which of the following is true about the cost principle?

Which of the following types of business is popular for its ease and low cost of organizing?

Capital market stakeholders have an interest in the company because:

Due to various fraudulent business practices and accounting coverups in the early 2000s,Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:

Debts owed by a business are referred to as:

Which of the following is an appropriate representation of the accounting equation?

Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:

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

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Exam 1: The Role of Accounting in Business

When a product is sold,the cost of the product sold is often called:

A primary disadvantage of corporations is that the financial resources available to them are limited.

During 2015,Trinder Corporation had an increase in total assets of $80,000 and an increase in total liabilities of $60,000.Assuming that capital stock increased by $8,000 and no dividends were paid,calculate Trinder's net income or net loss for 2015.

Which of the following is not an example of a capital market stakeholder?

All merchandising businesses are organized as corporations.

Motel 6,a company that helps customers find budget motels across the nation,is an example of a business using which of the following?

What is the primary objective of most businesses?

Cash collected from sales during the normal course of business would be an example of which type of business activity?

The debt created by a business when it makes a purchase on account is referred to as an:

A note payable requires payment of the amount borrowed plus:

Financing activities .

A low-cost emphasis strives to provide:

Which of the following is considered an asset until consumed?

Which of the following is true about the cost principle?

Which of the following types of business is popular for its ease and low cost of organizing?

Capital market stakeholders have an interest in the company because:

Due to various fraudulent business practices and accounting coverups in the early 2000s,Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:

Debts owed by a business are referred to as:

Which of the following is an appropriate representation of the accounting equation?

Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:

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