Question 1

Revenues do not affect stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 2

Santa Ana Company has the following information available for the month of April:   The company uses the accrual basis of accounting.What is the net income for the month of April?

Accepted Answer

A) $21,000 
B) $22,000 
C) $24,000 
D) $27,000 
A) $21,000 
B) $22,000 
C) $24,000 
D) $27,000

Question 3

Upland Company purchases $4,000 of inventory,paying cash for 25% of the cost and putting the rest on open account.Upland Company should debit ________.

Accepted Answer

A) Cash for $1,000,debit Accounts Payable for $3,000 and credit Inventory for $4,000 
B) Cash for $1,000,debit Note Payable for $3,000 and credit Inventory for $4,000 
C) Inventory for $4,000,credit Cash for $1,000 and credit Note Payable for $3,000 
D) Inventory for $4,000,credit Cash for $1,000 and credit Accounts Payable for $3,000 
A) Cash for $1,000,debit Accounts Payable for $3,000 and credit Inventory for $4,000 
B) Cash for $1,000,debit Note Payable for $3,000 and credit Inventory for $4,000 
C) Inventory for $4,000,credit Cash for $1,000 and credit Note Payable for $3,000 
D) Inventory for $4,000,credit Cash for $1,000 and credit Accounts Payable for $3,000

Question 4

Economic resources that a company owns and expects to provide future benefits are called ________.

Accepted Answer

A) stockholders' equity 
B) assets 
C) liabilities 
D) retained earnings 
A) stockholders' equity 
B) assets 
C) liabilities 
D) retained earnings

Question 5

A sole proprietorship has ________ owner's equity account(s).A partnership with three partners has ________ owners' equity account(s).

Accepted Answer

A) one; one 
B) two; one 
C) one; three 
D) one; four 
A) one; one 
B) two; one 
C) one; three 
D) one; four

Question 6

Given below are the activities of the Tahoe Company:   Using the cash basis of accounting,the total revenues for Tahoe Company are ________.

Accepted Answer

A) $56,000 
B) $90,000 
C) $126,000 
D) $173,000 
A) $56,000 
B) $90,000 
C) $126,000 
D) $173,000

Question 7

The balance sheet is not linked to the income statement.

Accepted Answer

A) True 
 B)False

Question 8

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

Accepted Answer

A) net income and retained earnings 
B) retained earnings and paid-in capital 
C) net income and paid-in capital 
D) liabilities and retained earnings 
A) net income and retained earnings 
B) retained earnings and paid-in capital 
C) net income and paid-in capital 
D) liabilities and retained earnings

Question 9

The board of directors of Riverside Company declared a cash dividend.Two weeks later,the dividend was disbursed to stockholders.The dividend disbursement will ________.

Accepted Answer

A) decrease net income 
B) decrease stockholders' equity 
C) decrease liabilities 
D) increase stockholders' equity 
A) decrease net income 
B) decrease stockholders' equity 
C) decrease liabilities 
D) increase stockholders' equity

Question 10

To be recorded,revenue must be ________.

Accepted Answer

A) earned 
B) earned and collected 
C) earned and realized 
D) earned and realized or realizable 
A) earned 
B) earned and collected 
C) earned and realized 
D) earned and realized or realizable

Question 11

Mr.Bryan invested $50,000 cash in a new corporation.The new corporation will record this transaction with a debit to ________.

Accepted Answer

A) Retained Earnings and a credit to Cash 
B) Cash and a credit to Retained Earnings 
C) Paid-in Capital and a credit to Retained Earnings 
D) Cash and a credit to Paid-in Capital 
A) Retained Earnings and a credit to Cash 
B) Cash and a credit to Retained Earnings 
C) Paid-in Capital and a credit to Retained Earnings 
D) Cash and a credit to Paid-in Capital

Question 12

The ________ has ultimate responsibility for specifying Generally Accepted Accounting Principles for companies with publicly traded stock in the United States.

Accepted Answer

A) Financial Accounting Standards Board 
B) International Accounting Standards Board 
C) Securities and Exchange Commission 
D) European Union Accounting Federation 
A) Financial Accounting Standards Board 
B) International Accounting Standards Board 
C) Securities and Exchange Commission 
D) European Union Accounting Federation

Question 13

For a corporation,the excess of assets over liabilities are called ________.

Accepted Answer

A) retained earnings 
B) paid-in capital 
C) common stock 
D) stockholders' equity 
A) retained earnings 
B) paid-in capital 
C) common stock 
D) stockholders' equity

Question 14

When depreciating a fixed asset,the residual value is not considered.

Accepted Answer

A) True 
 B)False

Question 15

When cash dividends are declared,________ decreases.When cash dividends are paid,________ decreases.

Accepted Answer

A) retained earnings; net profit 
B) net profit; retained earnings 
C) cash; retained earnings 
D) retained earnings; cash 
A) retained earnings; net profit 
B) net profit; retained earnings 
C) cash; retained earnings 
D) retained earnings; cash

Question 16

Given below are the activities of the Tucson Company:   Using the accrual basis of accounting,the total revenues for Tucson Company are ________.

Accepted Answer

A) $46,000 
B) $90,000 
C) $126,000 
D) $173,000 
A) $46,000 
B) $90,000 
C) $126,000 
D) $173,000

Question 17

The link between the balance sheet and the income statement is the ________.

Accepted Answer

A) statement of cash flows 
B) schedule of cost of goods sold 
C) statement of changes in retained earnings 
D) schedule of outstanding accounts receivable 
A) statement of cash flows 
B) schedule of cost of goods sold 
C) statement of changes in retained earnings 
D) schedule of outstanding accounts receivable

Question 18

Cash dividends are a distribution of ________ to ________.

Accepted Answer

A) profits; creditors 
B) revenues; owners 
C) retained earnings; claimants 
D) cash; stockholders 
A) profits; creditors 
B) revenues; owners 
C) retained earnings; claimants 
D) cash; stockholders

Question 19

Accrue means to pay off a liability.

Accepted Answer

A) True 
 B)False

Question 20

The distinction between paid-in capital and retained earnings is not made for ________.

Accepted Answer

A) corporations 
B) corporations and partnerships 
C) corporations and sole proprietorships 
D) partnerships and sole proprietorships 
A) corporations 
B) corporations and partnerships 
C) corporations and sole proprietorships 
D) partnerships and sole proprietorships

Revenues do not affect stockholders' equity.

Santa Ana Company has the following information available for the month of April: The company uses the accrual basis of accounting.What is the net income for the month of April?

Upland Company purchases $4,000 of inventory,paying cash for 25% of the cost and putting the rest on open account.Upland Company should debit ________.

Economic resources that a company owns and expects to provide future benefits are called ________.

A sole proprietorship has owner's equity account(s).A partnership with three partners has owners' equity account(s).

Given below are the activities of the Tahoe Company: Using the cash basis of accounting,the total revenues for Tahoe Company are ________.

The balance sheet is not linked to the income statement.

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

The board of directors of Riverside Company declared a cash dividend.Two weeks later,the dividend was disbursed to stockholders.The dividend disbursement will ________.

To be recorded,revenue must be ________.

Mr.Bryan invested $50,000 cash in a new corporation.The new corporation will record this transaction with a debit to ________.

The ________ has ultimate responsibility for specifying Generally Accepted Accounting Principles for companies with publicly traded stock in the United States.

For a corporation,the excess of assets over liabilities are called ________.

When depreciating a fixed asset,the residual value is not considered.

When cash dividends are declared, decreases.When cash dividends are paid, decreases.

Given below are the activities of the Tucson Company: Using the accrual basis of accounting,the total revenues for Tucson Company are ________.

The link between the balance sheet and the income statement is the ________.

Cash dividends are a distribution of to .

Accrue means to pay off a liability.

The distinction between paid-in capital and retained earnings is not made for ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

Revenues do not affect stockholders' equity.

Santa Ana Company has the following information available for the month of April: The company uses the accrual basis of accounting.What is the net income for the month of April?

Upland Company purchases $4,000 of inventory,paying cash for 25% of the cost and putting the rest on open account.Upland Company should debit ________.

Economic resources that a company owns and expects to provide future benefits are called ________.

A sole proprietorship has ________ owner's equity account(s).A partnership with three partners has ________ owners' equity account(s).

Given below are the activities of the Tahoe Company: Using the cash basis of accounting,the total revenues for Tahoe Company are ________.

The balance sheet is not linked to the income statement.

The stockholders' equity section of a corporation's balance sheet can be divided into ________.

The board of directors of Riverside Company declared a cash dividend.Two weeks later,the dividend was disbursed to stockholders.The dividend disbursement will ________.

To be recorded,revenue must be ________.

Mr.Bryan invested $50,000 cash in a new corporation.The new corporation will record this transaction with a debit to ________.

The ________ has ultimate responsibility for specifying Generally Accepted Accounting Principles for companies with publicly traded stock in the United States.

For a corporation,the excess of assets over liabilities are called ________.

When depreciating a fixed asset,the residual value is not considered.

When cash dividends are declared,________ decreases.When cash dividends are paid,________ decreases.

Given below are the activities of the Tucson Company: Using the accrual basis of accounting,the total revenues for Tucson Company are ________.

The link between the balance sheet and the income statement is the ________.

Cash dividends are a distribution of ________ to ________.

Accrue means to pay off a liability.

The distinction between paid-in capital and retained earnings is not made for ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

A sole proprietorship has owner's equity account(s).A partnership with three partners has owners' equity account(s).

When cash dividends are declared, decreases.When cash dividends are paid, decreases.

Cash dividends are a distribution of to .