Question 1

Identify and describe the three types of business activities.

Accepted Answer

The three types of business activities a

Question 2

Retained earnings and cash on the balance sheet will always be equal.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Mia Hero started her own catering business called Hero's Catering.Analyze each of the following transactions for the first month of business.Prepare the balance sheet at March 31.
a.Mia contributed $10,000 of her own money to start Mia's catering.
b.The business borrowed another $5,000 from the local bank.
c.The business rented a kitchen for $1,500 for the month.
d.The business spent $1,200 on food,spices and other supplies used during the month.
e.The business hired Betty Foit as an assistant chef and paid her $500 for the month.
f.The business earned $7,000 in revenues during the month.

Accepted Answer

The answer of Mia Hero started her own catering business...

Question 5

Businesses receive contributed capital when customers pay for goods or services.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements reports the line item Gross profit?

Accepted Answer

A) the single-step income statement 
B) the multistep income statement 
C) the single-step balance sheet 
D) the multistep balance sheet 
A) the single-step income statement 
B) the multistep income statement 
C) the single-step balance sheet 
D) the multistep balance sheet

Question 7

Seminole Company had a net cash inflow of $80,000 from operating activities.It spent $40,000 on investing activities.Seminole received $50,000 in cash from issuing stock.Given no other cash activity,calculate the net increase or decrease in cash.

Accepted Answer

$80,000 -

Question 8

Up Against the Wall,Inc.,has liabilities of $350,000 and $300,000 worth of shareholders' equity.Calculate the value of its assets.

Accepted Answer

$350,000 +

Question 9

Mia Hero started her own catering business called Hero's Catering.Analyze each of the following transactions for the first month of business.Prepare the statement of cash flows for the month of March.

Accepted Answer

The answer of Mia Hero started her own catering business...

Question 10

Shelby's Music reported net income of $35,000 for the year.During the year,it received $125,000 in revenues.Calculate the amount of expenses for the year.

Accepted Answer

$125,000 -

Question 11

A service company ________.

Accepted Answer

A) is a wholesale business 
B) manufactures goods 
C) is a retail business 
D) None of these are correct. 
A) is a wholesale business 
B) manufactures goods 
C) is a retail business 
D) None of these are correct.

Question 12

Mia Hero,Inc.had a retained earnings balance of $7,000 on December 31,2011.For the year 2012,sales revenues are $15,000 and expenses are $13,000.If no dividend is declared or paid in 2012,retained earnings at December 31,2012 equals ________.

Accepted Answer

A) $9,000 
B) $10,000 
C) $35,000 
D) some other amount 
A) $9,000 
B) $10,000 
C) $35,000 
D) some other amount

Question 13

The main purpose of a not-for-profit business is to add value to a product or service in order to make a profit.

Accepted Answer

A) True 
 B)False

Question 14

Which financial statement shows 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 15

Classify the following accounts according to the appropriate balance sheet category.
a.Assets
b.Liabilities
c.Shareholders' equity
_____ 1.Common stock
_____ 2.Retained earnings
_____ 3.Notes payable
_____ 4.Cash
_____ 5.Inventory
_____ 6.Land

Accepted Answer

The answer of Classify the following accounts according to the...

Question 16

How many of a company's four financial statements report information about the company over a specific period of time?

Accepted Answer

A) one 
B) two 
C) three 
D) four 
A) one 
B) two 
C) three 
D) four

Question 17

Poe,Inc.made $7,000 of cash sales to customers.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 18

Squid Roe,Inc.paid $1,000 cash for janitorial services.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 19

For the month of June,Team Shirts,Inc.,received $6,000 in contributed capital,$3,000 in sales revenue,paid $2,000 in expenses,and $500 in dividends.Its net income was ________.

Accepted Answer

A) $9,000 
B) $7,000 
C) $1,000 
D) $500 
A) $9,000 
B) $7,000 
C) $1,000 
D) $500

Question 20

Match between columns
                        Premises: An independent examination of a company's financial statements and the accounting system that produced the statements.
The governmental agency responsible for tax collection.
People and firms who lend money.
Professional accountant, licensed by states to perform audits.
Standardized, interactive format used for filing reports with the SEC.
A group of professional business people, accountants, and scholars who have the responsibility of setting current accounting standards internationally.
A group of professional business people, accountants, and scholars who have the responsibility of setting current accounting standards in the U.S.

Accepted Answer

The Answer of Internal Revenue Service (IRS) and FASB and is...

Identify and describe the three types of business activities.

Retained earnings and cash on the balance sheet will always be equal.

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

Businesses receive contributed capital when customers pay for goods or services.

Which of the following statements reports the line item Gross profit?

Seminole Company had a net cash inflow of $80,000 from operating activities.It spent $40,000 on investing activities.Seminole received $50,000 in cash from issuing stock.Given no other cash activity,calculate the net increase or decrease in cash.

Up Against the Wall,Inc.,has liabilities of $350,000 and $300,000 worth of shareholders' equity.Calculate the value of its assets.

Mia Hero started her own catering business called Hero's Catering.Analyze each of the following transactions for the first month of business.Prepare the statement of cash flows for the month of March.

Shelby's Music reported net income of $35,000 for the year.During the year,it received $125,000 in revenues.Calculate the amount of expenses for the year.

A service company ________.

Mia Hero,Inc.had a retained earnings balance of $7,000 on December 31,2011.For the year 2012,sales revenues are $15,000 and expenses are $13,000.If no dividend is declared or paid in 2012,retained earnings at December 31,2012 equals ________.

The main purpose of a not-for-profit business is to add value to a product or service in order to make a profit.

Which financial statement shows Inventory?

Classify the following accounts according to the appropriate balance sheet category. a.Assets b.Liabilities c.Shareholders' equity ___ 1.Common stock _ 2.Retained earnings _ 3.Notes payable _ 4.Cash _ 5.Inventory ___ 6.Land

How many of a company's four financial statements report information about the company over a specific period of time?

Poe,Inc.made $7,000 of cash sales to customers.The effect of this transaction on the accounting equation is:

Squid Roe,Inc.paid $1,000 cash for janitorial services.The effect of this transaction on the accounting equation is:

For the month of June,Team Shirts,Inc.,received $6,000 in contributed capital,$3,000 in sales revenue,paid $2,000 in expenses,and $500 in dividends.Its net income was ________.

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

Identify and describe the three types of business activities.

Retained earnings and cash on the balance sheet will always be equal.

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

Businesses receive contributed capital when customers pay for goods or services.

Which of the following statements reports the line item Gross profit?

Seminole Company had a net cash inflow of $80,000 from operating activities.It spent $40,000 on investing activities.Seminole received $50,000 in cash from issuing stock.Given no other cash activity,calculate the net increase or decrease in cash.

Up Against the Wall,Inc.,has liabilities of $350,000 and $300,000 worth of shareholders' equity.Calculate the value of its assets.

Mia Hero started her own catering business called Hero's Catering.Analyze each of the following transactions for the first month of business.Prepare the statement of cash flows for the month of March.

Shelby's Music reported net income of $35,000 for the year.During the year,it received $125,000 in revenues.Calculate the amount of expenses for the year.

A service company ________.

Mia Hero,Inc.had a retained earnings balance of $7,000 on December 31,2011.For the year 2012,sales revenues are $15,000 and expenses are $13,000.If no dividend is declared or paid in 2012,retained earnings at December 31,2012 equals ________.

The main purpose of a not-for-profit business is to add value to a product or service in order to make a profit.

Which financial statement shows Inventory?

Classify the following accounts according to the appropriate balance sheet category. a.Assets b.Liabilities c.Shareholders' equity _____ 1.Common stock _____ 2.Retained earnings _____ 3.Notes payable _____ 4.Cash _____ 5.Inventory _____ 6.Land

How many of a company's four financial statements report information about the company over a specific period of time?

Poe,Inc.made $7,000 of cash sales to customers.The effect of this transaction on the accounting equation is:

Squid Roe,Inc.paid $1,000 cash for janitorial services.The effect of this transaction on the accounting equation is:

For the month of June,Team Shirts,Inc.,received $6,000 in contributed capital,$3,000 in sales revenue,paid $2,000 in expenses,and $500 in dividends.Its net income was ________.

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

Classify the following accounts according to the appropriate balance sheet category. a.Assets b.Liabilities c.Shareholders' equity ___ 1.Common stock _ 2.Retained earnings _ 3.Notes payable _ 4.Cash _ 5.Inventory ___ 6.Land