Question 1

Generally Accepted Accounting Principles in the United States are developed by the International Accounting Standards Committee.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is FALSE?

Accepted Answer

A) A transaction can increase the balance in one account and decrease the balance in another account. 
B) A transaction can increase the balance in two accounts. 
C) A transaction can increase the balance in two accounts and decrease the balance in one account. 
D) A transaction must increase and decrease the same number of accounts. 
A) A transaction can increase the balance in one account and decrease the balance in another account. 
B) A transaction can increase the balance in two accounts. 
C) A transaction can increase the balance in two accounts and decrease the balance in one account. 
D) A transaction must increase and decrease the same number of accounts.

Question 3

Unexpired costs are expenses.

Accepted Answer

A) True 
 B)False

Question 4

This transaction will decrease net income under the cash basis,but will not affect net income under the accrual basis.

Accepted Answer

A) purchase of inventory on account 
B) expiration of prepaid rent 
C) recording depreciation expense for the year 
D) payment of two months rent in advance 
A) purchase of inventory on account 
B) expiration of prepaid rent 
C) recording depreciation expense for the year 
D) payment of two months rent in advance

Question 5

Oakland Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $10,000.The annual depreciation expense is ________.

Accepted Answer

A) $0 
B) $10,000 
C) $18,000 
D) $20,000 
A) $0 
B) $10,000 
C) $18,000 
D) $20,000

Question 6

On May 1,San Diego Company paid $36,000 for rent.The rent covers the period May 1 through August 31.San Diego Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on July 1?

Accepted Answer

A) $0 
B) $9,000 
C) $18,000 
D) $27,000 
A) $0 
B) $9,000 
C) $18,000 
D) $27,000

Question 7

The cash basis of accounting does not match expenses with the revenues they help generate.

Accepted Answer

A) True 
 B)False

Question 8

Liabilities are economic resources.

Accepted Answer

A) True 
 B)False

Question 9

When a company records depreciation expense,stockholders' equity decreases.

Accepted Answer

A) True 
 B)False

Question 10

A multiple-step income statement includes a subtotal for gross profit.

Accepted Answer

A) True 
 B)False

Question 11

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

Accepted Answer

A) cash purchase of inventory 
B) payment of rent for current month 
C) the use of office supplies 
D) the expiration of prepaid insurance 
A) cash purchase of inventory 
B) payment of rent for current month 
C) the use of office supplies 
D) the expiration of prepaid insurance

Question 12

Williams Company reports the following accounts and balances at December 1,2015:
   The transactions for Williams Company for the month of December,2015 follow:
1.Collected $9,200 from credit customers.
2.Paid $8,000 of the amount owed on account.
3.Sold inventory at cost for $2,400 and received cash.
4.Borrowed $4,000 in short-term notes payable.
Required:
Prepare a balance sheet at December 31,2015 after considering the transactions above.Ignore depreciation expense and interest expense.

Accepted Answer

@#IMG-DLM& Assets: @#IMG-DLM&

Question 13

The acquisition of inventory on account will ________.

Accepted Answer

A) increase assets and decrease stockholders' equity 
B) decrease assets and decrease liabilities 
C) increase assets and increase liabilities 
D) increase assets and increase stockholders' equity 
A) increase assets and decrease stockholders' equity 
B) decrease assets and decrease liabilities 
C) increase assets and increase liabilities 
D) increase assets and increase stockholders' equity

Question 14

Dividends reduce stockholders' equity when declared.

Accepted Answer

A) True 
 B)False

Question 15

Financial statements for partnerships do not make distinctions between paid-in capital and retained earnings.

Accepted Answer

A) True 
 B)False

Question 16

Accounting information only helps assess past financial performance.

Accepted Answer

A) True 
 B)False

Question 17

The matching concept matches ________ and ________.

Accepted Answer

A) assets; liabilities 
B) assets; expenses 
C) revenues; expenses incurred to generate revenues 
D) net profit; expenses 
A) assets; liabilities 
B) assets; expenses 
C) revenues; expenses incurred to generate revenues 
D) net profit; expenses

Question 18

As unearned revenue is earned,stockholders' equity decreases.

Accepted Answer

A) True 
 B)False

Question 19

The acquisition of inventory for cash will ________.

Accepted Answer

A) increase liabilities and decrease stockholders' equity 
B) decrease assets and decrease liabilities 
C) increase assets and decrease liabilities 
D) have no effect on the amount of total assets 
A) increase liabilities and decrease stockholders' equity 
B) decrease assets and decrease liabilities 
C) increase assets and decrease liabilities 
D) have no effect on the amount of total assets

Question 20

The activity of Reno Company for the month of April is given below:   Using the cash basis of accounting,the total expenses for Reno Company for the month of April are ________.

Accepted Answer

A) $62,000 
B) $67,000 
C) $79,000 
D) $86,000 
A) $62,000 
B) $67,000 
C) $79,000 
D) $86,000

Generally Accepted Accounting Principles in the United States are developed by the International Accounting Standards Committee.

Which of the following statements is FALSE?

Unexpired costs are expenses.

This transaction will decrease net income under the cash basis,but will not affect net income under the accrual basis.

Oakland Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $10,000.The annual depreciation expense is ________.

On May 1,San Diego Company paid $36,000 for rent.The rent covers the period May 1 through August 31.San Diego Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on July 1?

The cash basis of accounting does not match expenses with the revenues they help generate.

Liabilities are economic resources.

When a company records depreciation expense,stockholders' equity decreases.

A multiple-step income statement includes a subtotal for gross profit.

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

The acquisition of inventory on account will ________.

Dividends reduce stockholders' equity when declared.

Financial statements for partnerships do not make distinctions between paid-in capital and retained earnings.

Accounting information only helps assess past financial performance.

The matching concept matches and .

As unearned revenue is earned,stockholders' equity decreases.

The acquisition of inventory for cash will ________.

The activity of Reno Company for the month of April is given below: Using the cash basis of accounting,the total expenses for Reno Company for the month of April are ________.

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

Generally Accepted Accounting Principles in the United States are developed by the International Accounting Standards Committee.

Which of the following statements is FALSE?

Unexpired costs are expenses.

This transaction will decrease net income under the cash basis,but will not affect net income under the accrual basis.

Oakland Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $10,000.The annual depreciation expense is ________.

On May 1,San Diego Company paid $36,000 for rent.The rent covers the period May 1 through August 31.San Diego Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on July 1?

The cash basis of accounting does not match expenses with the revenues they help generate.

Liabilities are economic resources.

When a company records depreciation expense,stockholders' equity decreases.

A multiple-step income statement includes a subtotal for gross profit.

This transaction will decrease income under both the accrual basis and the cash basis of accounting.

The acquisition of inventory on account will ________.

Dividends reduce stockholders' equity when declared.

Financial statements for partnerships do not make distinctions between paid-in capital and retained earnings.

Accounting information only helps assess past financial performance.

The matching concept matches ________ and ________.

As unearned revenue is earned,stockholders' equity decreases.

The acquisition of inventory for cash will ________.

The activity of Reno Company for the month of April is given below: Using the cash basis of accounting,the total expenses for Reno Company for the month of April are ________.

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

The matching concept matches and .