Question 1

If liabilities are $51,500 and assets are $173,425,then equity equals:

Accepted Answer

A) $224,925 
B) $51,500 
C) $173,425 
D) $121,925 
E) $103,000 
A) $224,925 
B) $51,500 
C) $173,425 
D) $121,925 
E) $103,000

Question 2

Data for Madison Realty are as follows:
   Madison Realty paid dividends of $30,000 during 2014.From the above data,prepare Madison Realty's statement of retained earnings for the year ended December 31,2014.

Accepted Answer

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Question 3

Generally accepted accounting Principles:

Accepted Answer

A) Focus on the review of a situation. 
B) Do not require financial statements. 
C) Never change. 
D) Intend to make information on the financial statements relevant,reliable,and comparable. 
E) Oversees Security and Exchange Commission. 
A) Focus on the review of a situation. 
B) Do not require financial statements. 
C) Never change. 
D) Intend to make information on the financial statements relevant,reliable,and comparable. 
E) Oversees Security and Exchange Commission.

Question 4

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Accepted Answer

A) Liabilities 
B) Equity 
C) Withdrawals 
D) Expenses 
E) Contributed capital 
A) Liabilities 
B) Equity 
C) Withdrawals 
D) Expenses 
E) Contributed capital

Question 5

Identify the two main groups involved in establishing generally accepted accounting principles in the United States.

Accepted Answer

The FASB is the private group

Question 6

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Accepted Answer

Assets = $

Question 7

Unlimited liability is an advantage of all sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 8

Beta Corporation purchased $100,000 worth of land by paying $10,000 cash and signing a $90,000 mortgage.Immediately prior to this transaction the corporation had assets,liabilities,and owners' equity in the amounts of $150,000,$30,000,and $120,000 respectively.What is the total amount of Beta Corporation's assets after this transaction has been recorded?

Accepted Answer

A) $240,000 
B) $250,000 
C) $160,000 
D) $40,000 
E) $260,000 
A) $240,000 
B) $250,000 
C) $160,000 
D) $40,000 
E) $260,000

Question 9

Assets are the resources owned or controlled by a business.

Accepted Answer

A) True 
 B)False

Question 10

A parcel of land is: offered for sale at $150,000,assessed for tax purposes at $95,000,recognized by its purchasers as being worth $140,000,and purchased for $137,000.The land should be recorded in the purchaser's books at:

Accepted Answer

A) $95,000 
B) $137,000 
C) $138,500 
D) $140,000 
E) $150,000 
A) $95,000 
B) $137,000 
C) $138,500 
D) $140,000 
E) $150,000

Question 11

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

Accepted Answer

A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position. 
A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position.

Question 12

An example of an investing activity is:

Accepted Answer

A) Paying wages of employees. 
B) Paying dividends. 
C) Purchasing land. 
D) Selling inventory. 
E) Contribution from owner. 
A) Paying wages of employees. 
B) Paying dividends. 
C) Purchasing land. 
D) Selling inventory. 
E) Contribution from owner.

Question 13

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period,equity in the business must have:

Accepted Answer

A) Increased $22,000 
B) Decreased $22,000 
C) Increased $89,000 
D) Decreased $156,000 
E) Increased $156,000 
A) Increased $22,000 
B) Decreased $22,000 
C) Increased $89,000 
D) Decreased $156,000 
E) Increased $156,000

Question 14

Accounting is a ______________________ that identifies,records,and communicates relevant,reliable,and comparable information about an organization's economic activities.

Accepted Answer

Information and meas

Question 15

Technological advancement

Accepted Answer

A) Has replaced accounting. 
B) Has not changed the work that accountants do. 
C) Has freed accounting professionals to concentrate more on the analysis and interpretation of information. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations. 
A) Has replaced accounting. 
B) Has not changed the work that accountants do. 
C) Has freed accounting professionals to concentrate more on the analysis and interpretation of information. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations.

Question 16

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare the income statement for 2014.

Accepted Answer

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Question 17

Expenses:

Accepted Answer

A) Increase retained earnings. 
B) Are increases in retained earnings from a company's earning activity. 
C) Are the costs of assets or services used to earn revenues. 
D) Occur when retained earnings exceed revenue. 
E) Are creditors' claims on assets. 
A) Increase retained earnings. 
B) Are increases in retained earnings from a company's earning activity. 
C) Are the costs of assets or services used to earn revenues. 
D) Occur when retained earnings exceed revenue. 
E) Are creditors' claims on assets.

Question 18

Risk is:

Accepted Answer

A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the expected return that will be earned from an investment. 
D) Unrelated to expected return. 
E) Derived from the idea of getting something back from an investment. 
A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the expected return that will be earned from an investment. 
D) Unrelated to expected return. 
E) Derived from the idea of getting something back from an investment.

Question 19

The records of Skymaster Airplane Rentals show the following information as of December 31,2014:
   Dividends of $52,000 were paid during 2014.
Using the above information,prepare an income statement for 2014.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 20

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

If liabilities are $51,500 and assets are $173,425,then equity equals:

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2014.From the above data,prepare Madison Realty's statement of retained earnings for the year ended December 31,2014.

Generally accepted accounting Principles:

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Identify the two main groups involved in establishing generally accepted accounting principles in the United States.

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Unlimited liability is an advantage of all sole proprietorships.

Assets are the resources owned or controlled by a business.

A parcel of land is: offered for sale at $150,000,assessed for tax purposes at $95,000,recognized by its purchasers as being worth $140,000,and purchased for $137,000.The land should be recorded in the purchaser's books at:

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

An example of an investing activity is:

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period,equity in the business must have:

Accounting is a ______________________ that identifies,records,and communicates relevant,reliable,and comparable information about an organization's economic activities.

Technological advancement

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare the income statement for 2014.

Expenses:

Risk is:

The records of Skymaster Airplane Rentals show the following information as of December 31,2014: Dividends of $52,000 were paid during 2014. Using the above information,prepare an income statement for 2014.

The accounting equation implies that: Assets + Liabilities = Equity.

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

If liabilities are $51,500 and assets are $173,425,then equity equals:

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2014.From the above data,prepare Madison Realty's statement of retained earnings for the year ended December 31,2014.

Generally accepted accounting Principles:

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Identify the two main groups involved in establishing generally accepted accounting principles in the United States.

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Unlimited liability is an advantage of all sole proprietorships.

Assets are the resources owned or controlled by a business.

A parcel of land is: offered for sale at $150,000,assessed for tax purposes at $95,000,recognized by its purchasers as being worth $140,000,and purchased for $137,000.The land should be recorded in the purchaser's books at:

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

An example of an investing activity is:

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period,equity in the business must have:

Accounting is a ______________________ that identifies,records,and communicates relevant,reliable,and comparable information about an organization's economic activities.

Technological advancement

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare the income statement for 2014.

Expenses:

Risk is:

The records of Skymaster Airplane Rentals show the following information as of December 31,2014: Dividends of $52,000 were paid during 2014. Using the above information,prepare an income statement for 2014.

The accounting equation implies that: Assets + Liabilities = Equity.

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