Question 1

Using Lox Stock & Bagel Company's financial statement above,determine the amount of the company's largest resource.

Accepted Answer

A) $11,910 
B) $39,910 
C) $18,000 
D) $25,000 
A) $11,910 
B) $39,910 
C) $18,000 
D) $25,000

Question 2

A financial statement that presents the changes in shareholder's equity for 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

Question 3

Indicate which form of organization is associated with each of the following by putting an "X" in the appropriate column.More than one form may apply to each.

Accepted Answer

The answer of Indicate which form of organization is associated...

Question 4

Generally Accepted Accounting Principles (GAAP)are the rules companies must follow when they prepare their income tax returns.

Accepted Answer

A) True 
 B)False

Question 5

Describe the format of the income statement.

Accepted Answer

The income statement is compos

Question 6

The purpose of the financial statements is to provide financial information needed by ________.

Accepted Answer

A) investor and creditors 
B) regulators 
C) vendors and customers 
D) all of these 
A) investor and creditors 
B) regulators 
C) vendors and customers 
D) all of these

Question 7

Use this financial statement to answer the following question(s):
 
-Refer to the financial statement above.This financial statement is a(n)________.

Accepted Answer

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

Question 8

Only Internal Revenue Service (IRS)agents may conduct audits of financial statements.

Accepted Answer

A) True 
 B)False

Question 9

The Public Company Accounting Oversight Board is required to oversee the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 10

A partnership agreement ________.

Accepted Answer

A) exempts partners from unlimited liability 
B) establishes the partnership as a separate legal entity 
C) details how much work partners will do and how they will split up the profits 
D) defines how many shares of stock the partnership may sell to investors 
A) exempts partners from unlimited liability 
B) establishes the partnership as a separate legal entity 
C) details how much work partners will do and how they will split up the profits 
D) defines how many shares of stock the partnership may sell to investors

Question 11

Dividends are a type of expense shown on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

Match each of the following with the appropriate definitions.

-A financial statement that presents assets,liabilities,and shareholders' equity.

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 13

A single-step income statement ________.

Accepted Answer

A) is the preferred method of reporting revenues,expenses,and cash because of the ease of preparation 
B) groups all revenues together and shows all expenses deducted from total revenue 
C) includes the subtotal Gross profit in the presentation 
D) is preferred by business owners because the information presented is timely,and thus useful 
A) is the preferred method of reporting revenues,expenses,and cash because of the ease of preparation 
B) groups all revenues together and shows all expenses deducted from total revenue 
C) includes the subtotal Gross profit in the presentation 
D) is preferred by business owners because the information presented is timely,and thus useful

Question 14

The law firm of Doolittle and Baroque 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 15

Which type of business organization finds it easiest to raise large amounts of capital?

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 16

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

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 17

It is Dives,Inc.'s first year of business.Dives' net income for its first year is $200,000.Dives declared and paid dividends of $50,000.The balance in retained earnings at the end of the first year equals:

Accepted Answer

A) $200,000. 
B) $50,000. 
C) $150,000. 
D) $250,000. 
A) $200,000. 
B) $50,000. 
C) $150,000. 
D) $250,000.

Question 18

Part A: Record the transactions below by filling in the amount and the account title from the list of accounts.Use "()" or "-" to show the amounts that are negative:
     Part B: Using the transactions from Part A,fill in the missing information on the following financial statements:       Part C: Using the transactions and financial statements from Parts A and B,answer the following questions:   Part D: Put an "X" in the column of the financial statement where the following information is found.There is only one best answer for each.IS stands for income statement,SE for statement of changes in shareholders' equity,SOCF for statement of cash flows,and BS for balance sheet.

Accepted Answer

Part A: @#IMG-DLM&_TB5475_00 P

Question 19

Mercy,Inc.purchased a truck for $50,000 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 20

Sara contributes $5,000 of her own money to start her business,Team Shirts,Inc.From Team Shirts' perspective,it ________.

Accepted Answer

A) gets cash and gives up stock 
B) gets stock and gives up cash 
C) gets ownership and gives up contributed capital 
D) is an operating activity 
A) gets cash and gives up stock 
B) gets stock and gives up cash 
C) gets ownership and gives up contributed capital 
D) is an operating activity

Using Lox Stock & Bagel Company's financial statement above,determine the amount of the company's largest resource.

A financial statement that presents the changes in shareholder's equity for an accounting period.

Indicate which form of organization is associated with each of the following by putting an "X" in the appropriate column.More than one form may apply to each.

Generally Accepted Accounting Principles (GAAP)are the rules companies must follow when they prepare their income tax returns.

Describe the format of the income statement.

The purpose of the financial statements is to provide financial information needed by ________.

Use this financial statement to answer the following question(s): -Refer to the financial statement above.This financial statement is a(n)________.

Only Internal Revenue Service (IRS)agents may conduct audits of financial statements.

The Public Company Accounting Oversight Board is required to oversee the Internal Revenue Service.

A partnership agreement ________.

Dividends are a type of expense shown on the balance sheet.

Match each of the following with the appropriate definitions. -A financial statement that presents assets,liabilities,and shareholders' equity.

A single-step income statement ________.

The law firm of Doolittle and Baroque is an example of a ________ firm.

Which type of business organization finds it easiest to raise large amounts of capital?

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

It is Dives,Inc.'s first year of business.Dives' net income for its first year is $200,000.Dives declared and paid dividends of $50,000.The balance in retained earnings at the end of the first year equals:

Mercy,Inc.purchased a truck for $50,000 cash.The effect of this transaction on the accounting equation is:

Sara contributes $5,000 of her own money to start her business,Team Shirts,Inc.From Team Shirts' perspective,it ________.

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

Using Lox Stock & Bagel Company's financial statement above,determine the amount of the company's largest resource.

A financial statement that presents the changes in shareholder's equity for an accounting period.

Indicate which form of organization is associated with each of the following by putting an "X" in the appropriate column.More than one form may apply to each.

Generally Accepted Accounting Principles (GAAP)are the rules companies must follow when they prepare their income tax returns.

Describe the format of the income statement.

The purpose of the financial statements is to provide financial information needed by ________.

Use this financial statement to answer the following question(s): -Refer to the financial statement above.This financial statement is a(n)________.

Only Internal Revenue Service (IRS)agents may conduct audits of financial statements.

The Public Company Accounting Oversight Board is required to oversee the Internal Revenue Service.

A partnership agreement ________.

Dividends are a type of expense shown on the balance sheet.

Match each of the following with the appropriate definitions. -A financial statement that presents assets,liabilities,and shareholders' equity.

A single-step income statement ________.

The law firm of Doolittle and Baroque is an example of a ________ firm.

Which type of business organization finds it easiest to raise large amounts of capital?

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

It is Dives,Inc.'s first year of business.Dives' net income for its first year is $200,000.Dives declared and paid dividends of $50,000.The balance in retained earnings at the end of the first year equals:

Mercy,Inc.purchased a truck for $50,000 cash.The effect of this transaction on the accounting equation is:

Sara contributes $5,000 of her own money to start her business,Team Shirts,Inc.From Team Shirts' perspective,it ________.

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