Question 1

The ownership claim arising from the reinvestment of previous profits is called ________.

Accepted Answer

A) net assets 
B) stockholders' equity 
C) investment income 
D) retained earnings 
A) net assets 
B) stockholders' equity 
C) investment income 
D) retained earnings

Question 2

The matching convention attempts to match revenues and assets to a particular period.

Accepted Answer

A) True 
 B)False

Question 3

The Smuckers Company reports the following accounts and balances on December 31,2015.
   Required:
Prepare a balance sheet at December 31,2015.

Accepted Answer

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

Question 4

An example of an explicit transaction is ________.

Accepted Answer

A) recording depreciation expense 
B) paying cash for three months' rent in advance 
C) accruing wages expense at the end of the month 
D) accruing interest expense at the end of the year 
A) recording depreciation expense 
B) paying cash for three months' rent in advance 
C) accruing wages expense at the end of the month 
D) accruing interest expense at the end of the year

Question 5

Rent paid in advance would be considered to be a prepaid asset by the renter.

Accepted Answer

A) True 
 B)False

Question 6

Revenue and expense accounts are permanent stockholders' equity accounts.

Accepted Answer

A) True 
 B)False

Question 7

Cash collections of Accounts Receivable will increase ________ and decrease ________.

Accepted Answer

A) Accounts Receivable; Accounts Payable 
B) Accounts Payable; Accounts Receivable 
C) Cash; Accounts Payable 
D) Cash; Accounts Receivable 
A) Accounts Receivable; Accounts Payable 
B) Accounts Payable; Accounts Receivable 
C) Cash; Accounts Payable 
D) Cash; Accounts Receivable

Question 8

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

Accepted Answer

A) no effect 
B) liabilities will increase $400 
C) owners' equity will increase $400 
D) owners' equity will increase $1,000 
A) no effect 
B) liabilities will increase $400 
C) owners' equity will increase $400 
D) owners' equity will increase $1,000

Question 9

The adjusting entry for ________ increases expenses and decreases assets.

Accepted Answer

A) wages expense 
B) depreciation expense 
C) unearned revenue 
D) accruing interest expense 
A) wages expense 
B) depreciation expense 
C) unearned revenue 
D) accruing interest expense

Question 10

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Accepted Answer

A) conservatism 
B) relevance 
C) going concern 
D) materiality 
A) conservatism 
B) relevance 
C) going concern 
D) materiality

Question 11

Amounts due from customers are called accounts payable.

Accepted Answer

A) True 
 B)False

Question 12

XYZ Company reports the following information on December 31,2011:   What are total assets at December 31,2011?

Accepted Answer

A) $172,000 
B) $202,000 
C) $206,000 
D) $218,000 
A) $172,000 
B) $202,000 
C) $206,000 
D) $218,000

Question 13

Under accrual basis accounting,unexpired costs are considered to be ________.

Accepted Answer

A) expenses if cash has been paid 
B) expenses if cash has not been paid 
C) assets 
D) accrued liabilities 
A) expenses if cash has been paid 
B) expenses if cash has not been paid 
C) assets 
D) accrued liabilities

Question 14

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

Accepted Answer

A) increase expenses and decrease cash 
B) increase assets and increase expenses 
C) increase liabilities and increase expenses 
D) decrease liabilities and decrease cash 
A) increase expenses and decrease cash 
B) increase assets and increase expenses 
C) increase liabilities and increase expenses 
D) decrease liabilities and decrease cash

The ownership claim arising from the reinvestment of previous profits is called ________.

The matching convention attempts to match revenues and assets to a particular period.

The Smuckers Company reports the following accounts and balances on December 31,2015. Required: Prepare a balance sheet at December 31,2015.

An example of an explicit transaction is ________.

Rent paid in advance would be considered to be a prepaid asset by the renter.

Revenue and expense accounts are permanent stockholders' equity accounts.

Cash collections of Accounts Receivable will increase and decrease .

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

The adjusting entry for ________ increases expenses and decreases assets.

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Amounts due from customers are called accounts payable.

XYZ Company reports the following information on December 31,2011: What are total assets at December 31,2011?

Under accrual basis accounting,unexpired costs are considered to be ________.

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

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

The ownership claim arising from the reinvestment of previous profits is called ________.

The matching convention attempts to match revenues and assets to a particular period.

The Smuckers Company reports the following accounts and balances on December 31,2015. Required: Prepare a balance sheet at December 31,2015.

An example of an explicit transaction is ________.

Rent paid in advance would be considered to be a prepaid asset by the renter.

Revenue and expense accounts are permanent stockholders' equity accounts.

Cash collections of Accounts Receivable will increase ________ and decrease ________.

Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?

The adjusting entry for ________ increases expenses and decreases assets.

The ________ assumption implies that a company will continue to use existing resources and pay existing liabilities at maturity in an orderly manner.

Amounts due from customers are called accounts payable.

XYZ Company reports the following information on December 31,2011: What are total assets at December 31,2011?

Under accrual basis accounting,unexpired costs are considered to be ________.

VanHalen Company pays weekly wages every Friday.The current month ends on a Wednesday.The adjusting entry at the end of the month will ________.

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

Cash collections of Accounts Receivable will increase and decrease .