Question 1

The cost of borrowing money is called ________.

Accepted Answer

A) a financing activity 
B) principal 
C) interest 
D) an investing activity 
A) a financing activity 
B) principal 
C) interest 
D) an investing activity

Question 2

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

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 3

Sea the World Cruises has assets of $450,000 and shareholders' equity of $300,000.Calculate the amount of its liabilities.

Accepted Answer

$450,000 -

Question 4

Wok N Roll,Inc.shows $300,000 of assets and $60,000 of shareholders' equity on its balance sheet.Liabilities must equal ________.

Accepted Answer

A) $360,000 
B) $300,000 
C) $240,000 
D) $60,000 
A) $360,000 
B) $300,000 
C) $240,000 
D) $60,000

Question 5

Stock sold for the first time is called ________.

Accepted Answer

A) issued 
B) traded 
C) capital 
D) dividends 
A) issued 
B) traded 
C) capital 
D) dividends

Question 6

Profit is the difference between revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 7

The stock market is ________.

Accepted Answer

A) located in New York City 
B) the general term used to refer to all stock exchanges 
C) where the IRS is located 
D) where businesses become incorporated 
A) located in New York City 
B) the general term used to refer to all stock exchanges 
C) where the IRS is located 
D) where businesses become incorporated

Question 8

The statement of cash flows is divided into three sections: assets,liabilities,and shareholders' equity.

Accepted Answer

A) True 
 B)False

Question 9

Match between columns
                        Premises: Merry Maids
Bug-a-boo Pest Control
Huntington Bank
American Express
Toyota
Abercrombie & Fitch

Accepted Answer

The Answer of Manufacturing and Service and Merchandising and Financial is...

Question 10

Which of these businesses pays federal income taxes on its income?

Accepted Answer

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

Question 11

Team Shirts' Statement of Cash Flows for October showed the following:   Cash flows from financing activities were ________.

Accepted Answer

A) $5,000 
B) $(1,000) 
C) $4,000 
D) $6,000 
A) $5,000 
B) $(1,000) 
C) $4,000 
D) $6,000

Question 12

Review the following balance sheet and answer the following questions.
  1.Is this business a sole proprietorship,partnership,or corporation? How do you know?
2.Who has claims to the assets owned by the business and how much are they?
3.Assume that April is the first month of operations and no dividends were given to the owner.How much net income was earned during April?
4.Using this balance sheet,describe what Barry Rich did during the first month of running his business.

Accepted Answer

1.This is a corporation.Only corporation

Question 13

Analyze each of the following cash transactions and show the effect of each transaction on the accounting equation by writing the dollar amounts and account titles in the appropriate columns.If amount is negative put the amount in "()" or put a "-" in front of the amount.

Accepted Answer

The answer of Analyze each of the following cash transactions...

Question 14

Doug Depp is the manager at Chutes,Inc.that sells parachutes.Management's next year's bonus is based on the current year's net income.In an effort to increase his bonus,Doug decides to buy the pull-cord used in making the company's parachutes from a less reputable supplier.The supplier's prices are lower,but the pull-cords are less reliable in successfully opening the parachute.
a.Explain how net income will be higher if the cheaper pull-cord is used in the parachutes sold to Chutes,Inc.'s customers.
b.Discuss whether Doug is acting in the best interest of the company and its owners.
c.Discuss the ethical issue and what the consequences of Doug's actions may be.

Accepted Answer

a.Cost of goods sold will be less thus n

Question 15

Mercy,Inc.purchased equipment for $5,000 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 16

Assume 2011 is the company's first year of business.There were no dividends declared in 2011 and $100 of dividends declared in 2012.   Determine the missing amounts,1.Net income,2.Liabilities of $200,and 3.Retained earnings of $1,400,in the condensed income statement and balance sheet for the year ended December 31,2012.

Accepted Answer

A) 1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,400 
B) 1)Net income of $3,900; 2.Liabilities of $1,000; 3.Retained earnings of $1,300 
C) 1)Net income of $1,100; 2.Liabilities of $1,000; 3.Retained earnings of $1,200 
D) 1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,200 
A) 1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,400 
B) 1)Net income of $3,900; 2.Liabilities of $1,000; 3.Retained earnings of $1,300 
C) 1)Net income of $1,100; 2.Liabilities of $1,000; 3.Retained earnings of $1,200 
D) 1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,200

Question 17

A business in the form of a sole proprietorship ________.

Accepted Answer

A) is separate and distinct from its owner 
B) is a separate legal entity 
C) files its own tax return 
D) is a company with a single owner 
A) is separate and distinct from its owner 
B) is a separate legal entity 
C) files its own tax return 
D) is a company with a single owner

Question 18

A balance sheet ________.

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 19

Stackables,Inc.paid $2,000 cash for inventory.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

A financial statement that presents all the cash collected and all the cash disbursed during an accounting period.

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

The cost of borrowing money is called ________.

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

Sea the World Cruises has assets of $450,000 and shareholders' equity of $300,000.Calculate the amount of its liabilities.

Wok N Roll,Inc.shows $300,000 of assets and $60,000 of shareholders' equity on its balance sheet.Liabilities must equal ________.

Stock sold for the first time is called ________.

Profit is the difference between revenues and expenses.

The stock market is ________.

The statement of cash flows is divided into three sections: assets,liabilities,and shareholders' equity.

Which of these businesses pays federal income taxes on its income?

Team Shirts' Statement of Cash Flows for October showed the following: Cash flows from financing activities were ________.

Analyze each of the following cash transactions and show the effect of each transaction on the accounting equation by writing the dollar amounts and account titles in the appropriate columns.If amount is negative put the amount in "()" or put a "-" in front of the amount.

Mercy,Inc.purchased equipment for $5,000 cash.The effect of this transaction on the accounting equation is:

A business in the form of a sole proprietorship ________.

A balance sheet ________.

Stackables,Inc.paid $2,000 cash for inventory.The effect of this transaction on the accounting equation is:

A financial statement that presents all the cash collected and all the cash disbursed during an accounting period.

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

Exam 1: Business: Whats It All About

The cost of borrowing money is called ________.

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

Sea the World Cruises has assets of $450,000 and shareholders' equity of $300,000.Calculate the amount of its liabilities.

Wok N Roll,Inc.shows $300,000 of assets and $60,000 of shareholders' equity on its balance sheet.Liabilities must equal ________.

Stock sold for the first time is called ________.

Profit is the difference between revenues and expenses.

The stock market is ________.

The statement of cash flows is divided into three sections: assets,liabilities,and shareholders' equity.

Which of these businesses pays federal income taxes on its income?

Team Shirts' Statement of Cash Flows for October showed the following: Cash flows from financing activities were ________.

Analyze each of the following cash transactions and show the effect of each transaction on the accounting equation by writing the dollar amounts and account titles in the appropriate columns.If amount is negative put the amount in "()" or put a "-" in front of the amount.

Mercy,Inc.purchased equipment for $5,000 cash.The effect of this transaction on the accounting equation is:

A business in the form of a sole proprietorship ________.

A balance sheet ________.

Stackables,Inc.paid $2,000 cash for inventory.The effect of this transaction on the accounting equation is:

A financial statement that presents all the cash collected and all the cash disbursed during an accounting period.

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