Question 1

Toyota is an example of a ________ firm.

Accepted Answer

A) service 
B) merchandising 
C) manufacturing 
D) financial services 
A) service 
B) merchandising 
C) manufacturing 
D) financial services

Question 2

Describe who needs information about a business and why they may need it.

Accepted Answer

Users of financial information include m

Question 3

The statement of changes in shareholders' equity ________.

Accepted Answer

A) describes the financial situation of a company at a specific point in time 
B) is a summary of all of the revenues minus all of the expenses for an accounting period 
C) shows the changes that took place in the amount of shareholders' equity during a period 
D) is a list of all the cash collected and cash paid during a period 
A) describes the financial situation of a company at a specific point in time 
B) is a summary of all of the revenues minus all of the expenses for an accounting period 
C) shows the changes that took place in the amount of shareholders' equity during a period 
D) is a list of all the cash collected and cash paid during a period

Question 4

Use this financial statement to answer the following question(s):
 
-Refer to the financial statement above.The Common stock balance (B above)equals ________.

Accepted Answer

A) $10,000 
B) $ 7,000 
C) $13,000 
D) $ 3,000 
A) $10,000 
B) $ 7,000 
C) $13,000 
D) $ 3,000

Question 5

The Securities and Exchange Commission (SEC)requires all publicly-traded corporations to file their 10-K reports using XBRL (Extensible Business Reporting Language).

Accepted Answer

A) True 
 B)False

Question 6

Cash flows from financing activities include contributions from owners.

Accepted Answer

A) True 
 B)False

Question 7

A financial statement that presents revenues minus expenses to show either a profit or loss.

Accepted Answer

A) Statement of cash flows 
B) Balance sheet 
C) Income statement 
D) Statement of changes in shareholders' equity 
A) Statement of cash flows 
B) Balance sheet 
C) Income statement 
D) Statement of changes in shareholders' equity

Question 8

Net income flows from ________.

Accepted Answer

A) the income statement to the statement of changes in shareholders' equity 
B) the income statement to the balance sheet 
C) the balance sheet to the statement of cash flows 
D) the statement of cash flows to the income statement 
A) the income statement to the statement of changes in shareholders' equity 
B) the income statement to the balance sheet 
C) the balance sheet to the statement of cash flows 
D) the statement of cash flows to the income statement

Question 9

In which of the following are the owners' or owner's personal assets at risk if the business does not have enough money to pay its liabilities?

Accepted Answer

A) sole proprietorship 
B) partnership 
C) corporation 
D) Two of these are correct. 
A) sole proprietorship 
B) partnership 
C) corporation 
D) Two of these are correct.

Question 10

During the year,The Mane Event,Inc.had sales of $300,000 and had expenses of $240,000.The owners were paid $20,000 in dividends.Net income for the year equals ________.

Accepted Answer

A) $90,000 
B) $60,000 
C) $50,000 
D) $40,000 
A) $90,000 
B) $60,000 
C) $50,000 
D) $40,000

Question 11

Match each of the following accounts with the appropriate financial statement.
(Remember that certain accounts may be found on more than one statement.)
-Inventory

Accepted Answer

A) Balance sheet 
B) Income statement 
C) Statement of changes in shareholders' equity 
D) Statement of cash flows 
A) Balance sheet 
B) Income statement 
C) Statement of changes in shareholders' equity 
D) Statement of cash flows

Question 12

Match each of the following accounts with the appropriate financial statement.
(Remember that certain accounts may be found on more than one statement.)
-Advertising expense

Accepted Answer

A) Balance sheet 
B) Income statement 
C) Statement of changes in shareholders' equity 
D) Statement of cash flows 
A) Balance sheet 
B) Income statement 
C) Statement of changes in shareholders' equity 
D) Statement of cash flows

Question 13

For which organization is ownership represented by shares of stock?

Accepted Answer

A) sole proprietorship 
B) partnership 
C) corporation 
D) sole proprietorship and partnership 
A) sole proprietorship 
B) partnership 
C) corporation 
D) sole proprietorship and partnership

Question 14

Team Shirts,Inc.had the following balances on its balance sheet:   During 2012,Team Shirts issued $20,000 of new stock and paid $10,000 of dividends.The amount of net income for 2012 was ________.

Accepted Answer

A) $290,000 
B) $310,000 
C) $90,000 
D) $10,000 
A) $290,000 
B) $310,000 
C) $90,000 
D) $10,000

Question 15

Team Shirts,Inc.pays $600 for insurance.This transaction ________.

Accepted Answer

A) causes total assets to increase and total liabilities to increase 
B) causes total liabilities to increase and retained earnings to decrease 
C) is an investing activity 
D) is an operating activity 
A) causes total assets to increase and total liabilities to increase 
B) causes total liabilities to increase and retained earnings to decrease 
C) is an investing activity 
D) is an operating activity

Question 16

Team Shirts,Inc.repays a $2,000 loan.This transaction ________.

Accepted Answer

A) causes total assets to increase 
B) causes total liabilities to decrease 
C) is an investing activity 
D) causes total shareholders' equity to increase 
A) causes total assets to increase 
B) causes total liabilities to decrease 
C) is an investing activity 
D) causes total shareholders' equity to increase

Question 17

Adam Key started a lock service out of his house.It is profitable,but the latest statement of changes in shareholders' equity shows a decrease.Review the statement and advise Adam on what the business should do.

Accepted Answer

Adam is drawing more money out

Question 18

For each of the following transactions,determine whether there is an increase,decrease,or no change in net income.
a.Purchased inventory for $8,700.
b.Earned $15,000 in sales for the month.
c.The cost of inventory sold was $6,000.
d.Dividends paid to shareholders were $1,000.
e.Paid employees $1,300.

Accepted Answer

a.No change,b.Increa

Question 19

The Mane Event,Inc.began by selling $200,000 of common stock to its owners in exchange for cash.The effect of this transaction on the accounting equation is:

Accepted Answer

A) Total shareholders' equity   
B) Total shareholders' equity   
C) Total shareholders' equity   
D) Total shareholders' equity   
A) Total shareholders' equity   
B) Total shareholders' equity   
C) Total shareholders' equity   
D) Total shareholders' equity

Question 20

The governmental agency that monitors the stock market and the financial reporting of firms that trade in the market is the ________.

Accepted Answer

A) Financial Accounting Standards Board (FAS
B)  
B) Internal Revenue Service (IRS) 
C) Public Company Accounting Oversight Board (PCAO
B)  
D) Securities and Exchange Commission (SE
C)  
A) Financial Accounting Standards Board (FAS
B)  
B) Internal Revenue Service (IRS) 
C) Public Company Accounting Oversight Board (PCAO
B)  
D) Securities and Exchange Commission (SE
C)

Toyota is an example of a ________ firm.

Describe who needs information about a business and why they may need it.

The statement of changes in shareholders' equity ________.

Use this financial statement to answer the following question(s): -Refer to the financial statement above.The Common stock balance (B above)equals ________.

The Securities and Exchange Commission (SEC)requires all publicly-traded corporations to file their 10-K reports using XBRL (Extensible Business Reporting Language).

Cash flows from financing activities include contributions from owners.

A financial statement that presents revenues minus expenses to show either a profit or loss.

Net income flows from ________.

In which of the following are the owners' or owner's personal assets at risk if the business does not have enough money to pay its liabilities?

During the year,The Mane Event,Inc.had sales of $300,000 and had expenses of $240,000.The owners were paid $20,000 in dividends.Net income for the year equals ________.

Match each of the following accounts with the appropriate financial statement. (Remember that certain accounts may be found on more than one statement.) -Inventory

Match each of the following accounts with the appropriate financial statement. (Remember that certain accounts may be found on more than one statement.) -Advertising expense

For which organization is ownership represented by shares of stock?

Team Shirts,Inc.had the following balances on its balance sheet: During 2012,Team Shirts issued $20,000 of new stock and paid $10,000 of dividends.The amount of net income for 2012 was ________.

Team Shirts,Inc.pays $600 for insurance.This transaction ________.

Team Shirts,Inc.repays a $2,000 loan.This transaction ________.

Adam Key started a lock service out of his house.It is profitable,but the latest statement of changes in shareholders' equity shows a decrease.Review the statement and advise Adam on what the business should do.

The Mane Event,Inc.began by selling $200,000 of common stock to its owners in exchange for cash.The effect of this transaction on the accounting equation is:

The governmental agency that monitors the stock market and the financial reporting of firms that trade in the market is the ________.

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

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Exam 1: Business: Whats It All About

Toyota is an example of a ________ firm.

Describe who needs information about a business and why they may need it.

The statement of changes in shareholders' equity ________.

Use this financial statement to answer the following question(s): -Refer to the financial statement above.The Common stock balance (B above)equals ________.

The Securities and Exchange Commission (SEC)requires all publicly-traded corporations to file their 10-K reports using XBRL (Extensible Business Reporting Language).

Cash flows from financing activities include contributions from owners.

A financial statement that presents revenues minus expenses to show either a profit or loss.

Net income flows from ________.

In which of the following are the owners' or owner's personal assets at risk if the business does not have enough money to pay its liabilities?

During the year,The Mane Event,Inc.had sales of $300,000 and had expenses of $240,000.The owners were paid $20,000 in dividends.Net income for the year equals ________.

Match each of the following accounts with the appropriate financial statement. (Remember that certain accounts may be found on more than one statement.) -Inventory

Match each of the following accounts with the appropriate financial statement. (Remember that certain accounts may be found on more than one statement.) -Advertising expense

For which organization is ownership represented by shares of stock?

Team Shirts,Inc.had the following balances on its balance sheet: During 2012,Team Shirts issued $20,000 of new stock and paid $10,000 of dividends.The amount of net income for 2012 was ________.

Team Shirts,Inc.pays $600 for insurance.This transaction ________.

Team Shirts,Inc.repays a $2,000 loan.This transaction ________.

Adam Key started a lock service out of his house.It is profitable,but the latest statement of changes in shareholders' equity shows a decrease.Review the statement and advise Adam on what the business should do.

The Mane Event,Inc.began by selling $200,000 of common stock to its owners in exchange for cash.The effect of this transaction on the accounting equation is:

The governmental agency that monitors the stock market and the financial reporting of firms that trade in the market is the ________.

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters