Question 1

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

Accepted Answer

A) Business entity assumption 
B) Monetary unit assumption 
C) Value assumption 
D) Cost assumption 
E) Time period assumption 
A) Business entity assumption 
B) Monetary unit assumption 
C) Value assumption 
D) Cost assumption 
E) Time period assumption

Question 2

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 3

Planning refers to defining an organization's ideas,goals,and actions.

Accepted Answer

A) True 
 B)False

Question 4

A company paid its landlord $15,000 cash for this month's rent.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 5

The income statement is a financial statement that shows revenues earned and expenses incurred during a specified period of time.

Accepted Answer

A) True 
 B)False

Question 6

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare its balance sheet at December 31,2014.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 7

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 8

A company has assets of $500,000 and equity of $350,000.What is the amount of liabilities?

Accepted Answer

Liabilitie

Question 9

The financial statement that shows beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the:

Accepted Answer

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

Question 10

Identify and describe the four basic financial statements.

Accepted Answer

The four basic financial statements are

Question 11

Internal users of accounting information include lenders,shareholders,brokers,and managers.

Accepted Answer

A) True 
 B)False

Question 12

You are reviewing the accounting records of Cathy's Antiques,Inc.owned by Cathy Miller.You have uncovered the following situations.Compose a memo to Ms.Miller that cites the appropriate accounting principle and the suggested action for each separate situation.A.In August,a check for $500 was written to Wee Day Care Center.This amount represents child care for her son Brandon.
B.Cathy plans a Going Out of Business Sale for May,since she will be closing her business for a month-long vacation in June.She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely.
C.Cathy received a shipment of pine furniture from Quebec,Canada.The invoice was stated in Canadian dollars.
D.Joseph Clark paid $1,500 for a dining table.The amount was recorded as revenue.The table will be delivered to Mr.Clark in six weeks.

Accepted Answer

A.Business entity principle.Cathy Miller

Question 13

A limited partnership:

Accepted Answer

A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) Must only have two partners. 
A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) Must only have two partners.

Question 14

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 15

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000.Its assets at the end of the year total $246,000.Compute its return on assets.

Accepted Answer

A) 7.7% 
B) 8.5% 
C) 9.5% 
D) 11.8% 
E) 13.0% 
A) 7.7% 
B) 8.5% 
C) 9.5% 
D) 11.8% 
E) 13.0%

Question 16

Chao Xu starts a consulting business called Networkers.Xu invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock.How would Networkers record this transaction?

Accepted Answer

A) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue increases by $15,000. 
B) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue decreases by $15,000. 
C) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock decreases by $15,000. 
D) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock increases by $15,000. 
E) Cash increases by $10,000,Equipment decreases by $5,000,and Common Stock increases by $5,000. 
A) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue increases by $15,000. 
B) Cash increases by $10,000,Equipment increases by $5,000,and Consulting Revenue decreases by $15,000. 
C) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock decreases by $15,000. 
D) Cash increases by $10,000,Equipment increases by $5,000,and Common Stock increases by $15,000. 
E) Cash increases by $10,000,Equipment decreases by $5,000,and Common Stock increases by $5,000.

Question 17

Match between columns
                        Premises: Liabilities
Managerial accounting
Planning
Risk
Financial accounting
Expenses
Revenues
Events
Net income
Return on assets

Accepted Answer

The Answer of Costs of assets or services used to is...

Question 18

Photometer Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets,$30,000 increase; liabilities,no effect; equity,$30,000 increase. 
B) Assets,$30,000 decrease; liabilities,$30,000 decrease; equity,no effect. 
C) Assets,$30,000 decrease; liabilities,$30,000 increase; equity,no effect. 
D) Assets,no effect; liabilities,$30,000 decrease; equity,$30,000 increase. 
E) Assets,$30,000 decrease; liabilities,no effect; equity $30,000 decrease. 
A) Assets,$30,000 increase; liabilities,no effect; equity,$30,000 increase. 
B) Assets,$30,000 decrease; liabilities,$30,000 decrease; equity,no effect. 
C) Assets,$30,000 decrease; liabilities,$30,000 increase; equity,no effect. 
D) Assets,no effect; liabilities,$30,000 decrease; equity,$30,000 increase. 
E) Assets,$30,000 decrease; liabilities,no effect; equity $30,000 decrease.

Question 19

Creditors' claims on the assets of a company are called:

Accepted Answer

A) Net losses 
B) Expenses 
C) Revenues 
D) Equity 
E) Liabilities 
A) Net losses 
B) Expenses 
C) Revenues 
D) Equity 
E) Liabilities

Question 20

Annie's Attic has the following account balances for the dates given:
   Its net income for September 1 through September 30 was $20,000 and there were no investments by the owners or dividends paid.Determine the equity at both September 1 and September 30.

Accepted Answer

Beginning equity 9/1

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

Identify the users and uses of accounting information.

Planning refers to defining an organization's ideas,goals,and actions.

A company paid its landlord $15,000 cash for this month's rent.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

The income statement is a financial statement that shows revenues earned and expenses incurred during a specified period of time.

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare its balance sheet at December 31,2014.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

A company has assets of $500,000 and equity of $350,000.What is the amount of liabilities?

The financial statement that shows beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the:

Identify and describe the four basic financial statements.

Internal users of accounting information include lenders,shareholders,brokers,and managers.

A limited partnership:

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000.Its assets at the end of the year total $246,000.Compute its return on assets.

Chao Xu starts a consulting business called Networkers.Xu invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock.How would Networkers record this transaction?

Photometer Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

Creditors' claims on the assets of a company are called:

Annie's Attic has the following account balances for the dates given: Its net income for September 1 through September 30 was $20,000 and there were no investments by the owners or dividends paid.Determine the equity at both September 1 and September 30.

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

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

Identify the users and uses of accounting information.

Planning refers to defining an organization's ideas,goals,and actions.

A company paid its landlord $15,000 cash for this month's rent.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

The income statement is a financial statement that shows revenues earned and expenses incurred during a specified period of time.

Presented below is selected financial information for Stanley's Bike Shop.Using the appropriate information,prepare its balance sheet at December 31,2014.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

A company has assets of $500,000 and equity of $350,000.What is the amount of liabilities?

The financial statement that shows beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the:

Identify and describe the four basic financial statements.

Internal users of accounting information include lenders,shareholders,brokers,and managers.

A limited partnership:

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000.Its assets at the end of the year total $246,000.Compute its return on assets.

Chao Xu starts a consulting business called Networkers.Xu invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock.How would Networkers record this transaction?

Photometer Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

Creditors' claims on the assets of a company are called:

Annie's Attic has the following account balances for the dates given: Its net income for September 1 through September 30 was $20,000 and there were no investments by the owners or dividends paid.Determine the equity at both September 1 and September 30.

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