Question 1

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 2

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 were beginning liabilities for the year?

Accepted Answer

A) $154,000 
B) $155,000 
C) $212,000 
D) $248,000 
E) $135,000 
A) $154,000 
B) $155,000 
C) $212,000 
D) $248,000 
E) $135,000

Question 3

Recording the items on the financial statements in dollars is done because of the:

Accepted Answer

A) Objectivity principle 
B) Monetary unit principle 
C) Revenue recognition principle 
D) Going-concern principle 
E) Cost principle 
A) Objectivity principle 
B) Monetary unit principle 
C) Revenue recognition principle 
D) Going-concern principle 
E) Cost principle

Question 4

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

Accepted Answer

A) Supplies increases by $800 and Accounts Payable increases by $800. 
B) Cash decreases by $800 and Accounts Payable increases by $800. 
C) Cash decreases by $800 and Supplies increases by $800. 
D) Cash decreases by $800 and Accounts Payable decreases by $800. 
E) Equipment increases by $800 and Accounts Payable increases by $800. 
A) Supplies increases by $800 and Accounts Payable increases by $800. 
B) Cash decreases by $800 and Accounts Payable increases by $800. 
C) Cash decreases by $800 and Supplies increases by $800. 
D) Cash decreases by $800 and Accounts Payable decreases by $800. 
E) Equipment increases by $800 and Accounts Payable increases by $800.

Question 5

The three major activities of a business are operating,investing,and financing.

Accepted Answer

A) True 
 B)False

Question 6

What is the opportunity component of the fraud triangle?

Accepted Answer

A) A person thinks that there is a way to commit fraud without much chance of getting caught. 
B) A person has a really good reason to commit fraud. 
C) A person does not think of the fraudulent activity as bad. 
D) A person persuades two or more other people to assist with the fraud. 
E) A person is concerned about the impact of their actions on society. 
A) A person thinks that there is a way to commit fraud without much chance of getting caught. 
B) A person has a really good reason to commit fraud. 
C) A person does not think of the fraudulent activity as bad. 
D) A person persuades two or more other people to assist with the fraud. 
E) A person is concerned about the impact of their actions on society.

Question 7

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Accepted Answer

A) Revenue recognition principle 
B) Going-concern principle 
C) Objectivity principle 
D) Business entity principle 
E) Cost principle 
A) Revenue recognition principle 
B) Going-concern principle 
C) Objectivity principle 
D) Business entity principle 
E) Cost principle

Question 8

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Accepted Answer

$27,000 - $22,000 -

Question 9

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Accepted Answer

A) +$10,000 accounts receivable,-$10,000 accounts payable. 
B) +$10,000 accounts receivable,+$10,000 accounts payable. 
C) +$10,000 accounts receivable,+$10,000 cash. 
D) +$10,000 accounts receivable,+$10,000 consulting revenue. 
E) +$10,000 accounts receivable,-$10,000 consulting revenue. 
A) +$10,000 accounts receivable,-$10,000 accounts payable. 
B) +$10,000 accounts receivable,+$10,000 accounts payable. 
C) +$10,000 accounts receivable,+$10,000 cash. 
D) +$10,000 accounts receivable,+$10,000 consulting revenue. 
E) +$10,000 accounts receivable,-$10,000 consulting revenue.

Question 10

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 11

The income statement reports all of the following except:

Accepted Answer

A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred. 
A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred.

Question 12

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

Accepted Answer

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Question 13

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 14

From the information given,prepare a November 30 balance sheet.
On November 1 of the current year,Lois Bell began Lois Bell,Interior Design as a corporation with an initial investment of $50,000 cash.On November 30 her records showed the following (alphabetically arranged) selected accounts and amounts:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 15

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Accepted Answer

A) Business entity principle 
B) Monetary unit principle 
C) Going-concern principle 
D) Objectivity principle 
E) Full disclosure principle 
A) Business entity principle 
B) Monetary unit principle 
C) Going-concern principle 
D) Objectivity principle 
E) Full disclosure principle

Question 16

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Accepted Answer

A) Monetary unit assumption 
B) Going-concern assumption 
C) Cost assumption 
D) Business entity assumption 
E) Full disclosure assumption 
A) Monetary unit assumption 
B) Going-concern assumption 
C) Cost assumption 
D) Business entity assumption 
E) Full disclosure assumption

Question 17

Explain the role of accounting in the information age.

Accepted Answer

Accounting is an information and measure

Question 18

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Accepted Answer

A) ABC Company,For the year ended 12/31/13,Balance Sheet 
B) For the year ended 12/31/13,Balance Sheet,ABC Company 
C) Balance Sheet,12/31/13,ABC Company 
D) 12/31/13,ABC Company,Balance Sheet 
E) ABC Company,Balance Sheet,12/31/13 
A) ABC Company,For the year ended 12/31/13,Balance Sheet 
B) For the year ended 12/31/13,Balance Sheet,ABC Company 
C) Balance Sheet,12/31/13,ABC Company 
D) 12/31/13,ABC Company,Balance Sheet 
E) ABC Company,Balance Sheet,12/31/13

Question 19

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Accepted Answer

A) $700,160 
B) $331,590 
C) $134,250 
D) $612,560 
E) $175,040 
A) $700,160 
B) $331,590 
C) $134,250 
D) $612,560 
E) $175,040

Question 20

Congress passed the Sarbanes-Oxley Act to

Accepted Answer

A) Provide jobs to U.S.accountants and limit the number of jobs sent outside the country. 
B) Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports,although at this time the penalties are token amounts. 
C) Help curb financial abuses at companies that issue their stock to the public. 
D) Force auditors to attest to the absolute accuracy of the financial statements. 
E) Require that all companies publicly disclose their internal control plans. 
A) Provide jobs to U.S.accountants and limit the number of jobs sent outside the country. 
B) Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports,although at this time the penalties are token amounts. 
C) Help curb financial abuses at companies that issue their stock to the public. 
D) Force auditors to attest to the absolute accuracy of the financial statements. 
E) Require that all companies publicly disclose their internal control plans.

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Recording the items on the financial statements in dollars is done because of the:

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

The three major activities of a business are operating,investing,and financing.

What is the opportunity component of the fraud triangle?

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

The income statement reports all of the following except:

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

The income statement shows the financial position of a business on a specific date.

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Explain the role of accounting in the information age.

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Congress passed the Sarbanes-Oxley Act to

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

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Recording the items on the financial statements in dollars is done because of the:

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

The three major activities of a business are operating,investing,and financing.

What is the opportunity component of the fraud triangle?

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

The income statement reports all of the following except:

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

The income statement shows the financial position of a business on a specific date.

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Explain the role of accounting in the information age.

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Congress passed the Sarbanes-Oxley Act to

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