Question 1

Net income is:

Accepted Answer

A) Assets minus liabilities. 
B) The excess of revenues over expenses. 
C) An asset. 
D) The same as revenue. 
E) The excess of expenses over retained earnings. 
A) Assets minus liabilities. 
B) The excess of revenues over expenses. 
C) An asset. 
D) The same as revenue. 
E) The excess of expenses over retained earnings.

Question 2

A company purchased $7,000 of supplies and testing equipment on credit.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 3

FastForward reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets.By the end of the year,assets had increased to $300,000.Calculate the return on assets.

Accepted Answer

$17,500/[($200,000 +

Question 4

Acme Company had equity of $55,000 at the end of the current year.During the year the company had a $2,000 net loss and investments by owners in exchange for stock of $7,000.Compute equity as of the beginning of the year.

Accepted Answer

A) $5,000 
B) $46,000 
C) $50,000 
D) $52,000 
E) $64,000 
A) $5,000 
B) $46,000 
C) $50,000 
D) $52,000 
E) $64,000

Question 5

Which of the following elements are found on the balance sheet?

Accepted Answer

A) Service revenue 
B) Net income 
C) Operating activities 
D) Utilities expense 
E) Retained earnings 
A) Service revenue 
B) Net income 
C) Operating activities 
D) Utilities expense 
E) Retained earnings

Question 6

Determine the net income of a company for which the following information is available:

Accepted Answer

A) $190,000 
B) $210,000 
C) $230,000 
D) $400,000 
E) $610,000 
A) $190,000 
B) $210,000 
C) $230,000 
D) $400,000 
E) $610,000

Question 7

Our company has three times as many assets as it does liabilities.If total liabilities are $55,000,what is the amount of owners' equity?

Accepted Answer

A) $55,000 
B) $110,000 
C) $165,000 
D) $220,000 
E) Owners' equity cannot be determined from the given information. 
A) $55,000 
B) $110,000 
C) $165,000 
D) $220,000 
E) Owners' equity cannot be determined from the given information.

Question 8

Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

Accepted Answer

A) True 
 B)False

Question 9

How does the objectivity principle support ethical behavior?

Accepted Answer

The objectivity principle supports ethic

Question 10

A balance sheet lists:

Accepted Answer

A) The types and amounts of the revenues and expenses of a business. 
B) Only the information about what happened to retained earnings during a time period. 
C) The types and amounts of assets,liabilities and equity of a business as of a specific date. 
D) The cash inflows and outflows during the period. 
E) The assets and liabilities of a company,but not the equity. 
A) The types and amounts of the revenues and expenses of a business. 
B) Only the information about what happened to retained earnings during a time period. 
C) The types and amounts of assets,liabilities and equity of a business as of a specific date. 
D) The cash inflows and outflows during the period. 
E) The assets and liabilities of a company,but not the equity.

Question 11

Canine Grooming purchased $600 of equipment on credit for its grooming salon using a long-term note payable.How would Canine Grooming record this transaction?

Accepted Answer

A) Equipment increases by $600 and Accounts Payable increases by $600. 
B) Cash decreases by $600 and Equipment increases by $600. 
C) Cash decreases by $600 and Notes Payable decreases by $600. 
D) Equipment increases by $600 and Notes Payable increases by $600. 
E) Equipment increases by $600 and Notes Payable decreases by $600. 
A) Equipment increases by $600 and Accounts Payable increases by $600. 
B) Cash decreases by $600 and Equipment increases by $600. 
C) Cash decreases by $600 and Notes Payable decreases by $600. 
D) Equipment increases by $600 and Notes Payable increases by $600. 
E) Equipment increases by $600 and Notes Payable decreases by $600.

Question 12

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are creditors' claims on ass

Question 13

Retained earnings are increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 14

A balance sheet covers a period of time,such as a month or year.

Accepted Answer

A) True 
 B)False

Question 15

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Accepted Answer

$570,000.The cost principle re

Question 16

Compute return on assets given net income of $13,764,beginning assets of $120,000,and ending assets of $176,000.

Accepted Answer

A) 4.65% 
B) 7.82% 
C) 9.3% 
D) 11.47% 
E) 21.51% 
A) 4.65% 
B) 7.82% 
C) 9.3% 
D) 11.47% 
E) 21.51%

Question 17

A company acquires equipment for $75,000 cash.This represents a(n):

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Revenue activity 
E) Expense activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Revenue activity 
E) Expense activity

Question 18

A company performed testing services for a client.The client paid the company $3,000 in cash.Enter the appropriate amounts for this transaction into the company's accounting equation format shown below:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 19

Ethical behavior requires:

Accepted Answer

A) That an auditor's pay not depend on the figures in the client's reports. 
B) Auditors to invest in businesses they audit. 
C) Analysts to report information favorable to their companies. 
D) Managers to use accounting information to benefit themselves. 
E) That an auditor provides a favorable opinion. 
A) That an auditor's pay not depend on the figures in the client's reports. 
B) Auditors to invest in businesses they audit. 
C) Analysts to report information favorable to their companies. 
D) Managers to use accounting information to benefit themselves. 
E) That an auditor provides a favorable opinion.

Question 20

Ending liabilities were $67,000,beginning equity was $87,000,common stock issued during year totaled $31,000,expenses for the year were $22,000,dividends declared totaled $13,000,ending equity for the year was $181,000,and beginning assets for the year were $222,000. What are the ending assets for the year?

Accepted Answer

A) $154,000 
B) $134,000 
C) $212,000 
D) $248,000 
E) $155,000 
A) $154,000 
B) $134,000 
C) $212,000 
D) $248,000 
E) $155,000

Net income is:

A company purchased $7,000 of supplies and testing equipment on credit.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

FastForward reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets.By the end of the year,assets had increased to $300,000.Calculate the return on assets.

Acme Company had equity of $55,000 at the end of the current year.During the year the company had a $2,000 net loss and investments by owners in exchange for stock of $7,000.Compute equity as of the beginning of the year.

Which of the following elements are found on the balance sheet?

Determine the net income of a company for which the following information is available:

Our company has three times as many assets as it does liabilities.If total liabilities are $55,000,what is the amount of owners' equity?

Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

How does the objectivity principle support ethical behavior?

A balance sheet lists:

Canine Grooming purchased $600 of equipment on credit for its grooming salon using a long-term note payable.How would Canine Grooming record this transaction?

What distinguishes liabilities from equity?

Retained earnings are increased when cash is received from customers in payment of previously recorded accounts receivable.

A balance sheet covers a period of time,such as a month or year.

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Compute return on assets given net income of $13,764,beginning assets of $120,000,and ending assets of $176,000.

A company acquires equipment for $75,000 cash.This represents a(n):

A company performed testing services for a client.The client paid the company $3,000 in cash.Enter the appropriate amounts for this transaction into the company's accounting equation format shown below:

Ethical behavior requires:

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 1: Introducing Financial Accounting

Net income is:

A company purchased $7,000 of supplies and testing equipment on credit.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

FastForward reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets.By the end of the year,assets had increased to $300,000.Calculate the return on assets.

Acme Company had equity of $55,000 at the end of the current year.During the year the company had a $2,000 net loss and investments by owners in exchange for stock of $7,000.Compute equity as of the beginning of the year.

Which of the following elements are found on the balance sheet?

Determine the net income of a company for which the following information is available:

Our company has three times as many assets as it does liabilities.If total liabilities are $55,000,what is the amount of owners' equity?

Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

How does the objectivity principle support ethical behavior?

A balance sheet lists:

Canine Grooming purchased $600 of equipment on credit for its grooming salon using a long-term note payable.How would Canine Grooming record this transaction?

What distinguishes liabilities from equity?

Retained earnings are increased when cash is received from customers in payment of previously recorded accounts receivable.

A balance sheet covers a period of time,such as a month or year.

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Compute return on assets given net income of $13,764,beginning assets of $120,000,and ending assets of $176,000.

A company acquires equipment for $75,000 cash.This represents a(n):

A company performed testing services for a client.The client paid the company $3,000 in cash.Enter the appropriate amounts for this transaction into the company's accounting equation format shown below:

Ethical behavior requires:

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters