Question 1

Return on assets is:

Accepted Answer

A) Also called rate of return. 
B) Computed by dividing net income by average total assets. 
C) Computed by multiplying net income by average total assets. 
D) Used in helping evaluate expenses. 
E) Found on the balance sheet. 
A) Also called rate of return. 
B) Computed by dividing net income by average total assets. 
C) Computed by multiplying net income by average total assets. 
D) Used in helping evaluate expenses. 
E) Found on the balance sheet.

Question 2

Ownership of a corporation is divided into units called shares or stock.

Accepted Answer

A) True 
 B)False

Question 3

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

Accepted Answer

A) True 
 B)False

Question 4

If Madeira Company paid $42,000 of its accounts payable in cash,what would be the effect of this transaction on assets,liabilities,and equity?

Accepted Answer

Assets would decreas

Question 5

______________ users of accounting information are users that are not directly involved in running the organization.

Accepted Answer

The answer of ______________ users of accounting information are users...

Question 6

How does the going-concern principle affect the reported asset values of a business?

Accepted Answer

The going-concern principle means that f

Question 7

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity was $751,000,and ending assets were $963,000. What were the total dividends declared?

Accepted Answer

A) $75,000 
B) $998,000 
C) $131,000 
D) $203,000 
E) $308,000 
A) $75,000 
B) $998,000 
C) $131,000 
D) $203,000 
E) $308,000

Question 8

The International Accounting Standards Board (IASB):

Accepted Answer

A) Hopes to create harmony among accounting practices of different countries. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the public. 
C) Has the authority to impose its standards on companies 
D) Is the only source of U.S.generally accepted accounting principles (GAAP). 
E) Applies only to companies that are members of the European Union. 
A) Hopes to create harmony among accounting practices of different countries. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the public. 
C) Has the authority to impose its standards on companies 
D) Is the only source of U.S.generally accepted accounting principles (GAAP). 
E) Applies only to companies that are members of the European Union.

Question 9

Explain the accounting equation and define its terms.

Accepted Answer

The accounting equation is stated as: As

Question 10

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

Accepted Answer

A) True 
 B)False

Question 11

An asset is:

Accepted Answer

A) Only acquired with cash. 
B) Something the company owns. 
C) Only contributed by stockholders. 
D) A company's obligation to pay. 
E) Is also called contributed capital. 
A) Only acquired with cash. 
B) Something the company owns. 
C) Only contributed by stockholders. 
D) A company's obligation to pay. 
E) Is also called contributed capital.

Question 12

Eon Movers purchases supplies for $1,200 cash.How would Eon record this transaction?

Accepted Answer

A) Supplies increases by $1,200 and Accounts Payable increases by $1,200. 
B) Cash decreases by $1,200 and Accounts Payable increases by $1,200. 
C) Cash decreases by $1,200 and Supplies increases by $1,200. 
D) Cash decreases by $1,200 and Accounts Payable decreases by $1,200. 
E) Equipment increases by $1,200 and Cash decreases by $1,200. 
A) Supplies increases by $1,200 and Accounts Payable increases by $1,200. 
B) Cash decreases by $1,200 and Accounts Payable increases by $1,200. 
C) Cash decreases by $1,200 and Supplies increases by $1,200. 
D) Cash decreases by $1,200 and Accounts Payable decreases by $1,200. 
E) Equipment increases by $1,200 and Cash decreases by $1,200.

Question 13

On May 1,Chuck Taylor formed FastForward,a shoe consulting business as a corporation.To start the business he invested $750,000 in cash.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 14

The Securities and Exchange Commission (SEC) is an agency of the federal government that establishes reporting requirements for companies that issue stock to the public.

Accepted Answer

A) True 
 B)False

Question 15

Jack Dorsey,Evan Williams,and Biz Stone are the owners of the social communications network,Twitter.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle that supports your answer.

Accepted Answer

The personal assets of the owners are no

Question 16

Which of the following accounting principles dictates when expenses are recognized?

Accepted Answer

A) Revenue recognition principle 
B) Monetary unit principle 
C) Business entity principle 
D) Matching principle 
E) Full disclosure principle 
A) Revenue recognition principle 
B) Monetary unit principle 
C) Business entity principle 
D) Matching principle 
E) Full disclosure principle

Question 17

An example of a financing activity is:

Accepted Answer

A) Buying office supplies. 
B) Obtaining a long-term loan. 
C) Buying office equipment. 
D) Selling inventory. 
E) Buying land. 
A) Buying office supplies. 
B) Obtaining a long-term loan. 
C) Buying office equipment. 
D) Selling inventory. 
E) Buying land.

Question 18

Accounting is an information and measurement system that identifies,records,and communicates financial information to users.

Accepted Answer

A) True 
 B)False

Question 19

What is the balance sheet? What is its purpose?

Accepted Answer

The balance sheet is a listing of the ty

Question 20

Reebok had income of $150 million and average assets of $1,800 million.Its return on assets is:

Accepted Answer

A) 8.33% 
B) 83.3% 
C) 12.0% 
D) 120% 
E) 16.7% 
A) 8.33% 
B) 83.3% 
C) 12.0% 
D) 120% 
E) 16.7%

Return on assets is:

Ownership of a corporation is divided into units called shares or stock.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

If Madeira Company paid $42,000 of its accounts payable in cash,what would be the effect of this transaction on assets,liabilities,and equity?

______________ users of accounting information are users that are not directly involved in running the organization.

How does the going-concern principle affect the reported asset values of a business?

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity was $751,000,and ending assets were $963,000. What were the total dividends declared?

The International Accounting Standards Board (IASB):

Explain the accounting equation and define its terms.

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

An asset is:

Eon Movers purchases supplies for $1,200 cash.How would Eon record this transaction?

On May 1,Chuck Taylor formed FastForward,a shoe consulting business as a corporation.To start the business he invested $750,000 in cash.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

The Securities and Exchange Commission (SEC) is an agency of the federal government that establishes reporting requirements for companies that issue stock to the public.

Which of the following accounting principles dictates when expenses are recognized?

An example of a financing activity is:

Accounting is an information and measurement system that identifies,records,and communicates financial information to users.

What is the balance sheet? What is its purpose?

Reebok had income of $150 million and average assets of $1,800 million.Its return on assets is:

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

Return on assets is:

Ownership of a corporation is divided into units called shares or stock.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

If Madeira Company paid $42,000 of its accounts payable in cash,what would be the effect of this transaction on assets,liabilities,and equity?

______________ users of accounting information are users that are not directly involved in running the organization.

How does the going-concern principle affect the reported asset values of a business?

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity was $751,000,and ending assets were $963,000. What were the total dividends declared?

The International Accounting Standards Board (IASB):

Explain the accounting equation and define its terms.

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

An asset is:

Eon Movers purchases supplies for $1,200 cash.How would Eon record this transaction?

On May 1,Chuck Taylor formed FastForward,a shoe consulting business as a corporation.To start the business he invested $750,000 in cash.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

The Securities and Exchange Commission (SEC) is an agency of the federal government that establishes reporting requirements for companies that issue stock to the public.

Which of the following accounting principles dictates when expenses are recognized?

An example of a financing activity is:

Accounting is an information and measurement system that identifies,records,and communicates financial information to users.

What is the balance sheet? What is its purpose?

Reebok had income of $150 million and average assets of $1,800 million.Its return on assets is:

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