Question 1

Revenue is properly recognized:

Accepted Answer

A) When the customer's order is received. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price. 
E) When cash from a sale is received. 
A) When the customer's order is received. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price. 
E) When cash from a sale is received.

Question 2

The area of accounting aimed at serving the decision-making needs of internal users is:

Accepted Answer

A) Financial accounting 
B) Managerial accounting 
C) External auditing 
D) SEC reporting 
E) Governmental accounting 
A) Financial accounting 
B) Managerial accounting 
C) External auditing 
D) SEC reporting 
E) Governmental accounting

Question 3

Accounting is one way important financial information about businesses is reported to decision makers.

Accepted Answer

A) True 
 B)False

Question 4

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

Accepted Answer

A) Cash increases by $10,000 and Cleaning Revenue increases by $10,000. 
B) Cash decreases by $10,000 and Cleaning Revenue increases by $10,000. 
C) Cash increases by $10,000 and Common Stock increases by $10,000. 
D) Cash increases by $10,000 and Common Stock decreases by $10,000. 
E) Cash decreases by $10,000 and Cleaning Expense increases by $10,000. 
A) Cash increases by $10,000 and Cleaning Revenue increases by $10,000. 
B) Cash decreases by $10,000 and Cleaning Revenue increases by $10,000. 
C) Cash increases by $10,000 and Common Stock increases by $10,000. 
D) Cash increases by $10,000 and Common Stock decreases by $10,000. 
E) Cash decreases by $10,000 and Cleaning Expense increases by $10,000.

Question 5

The following schedule reflects the first month's transactions of the Blue Real Estate Company:
   Provide descriptions for each transaction.

Accepted Answer

a.Investment of cash in business by owne

Question 6

Maslow's Consulting Inc.had retained earnings of $172,500 at December 31,2013.Net income for 2014 amounted to $56,400.Dividends during 2014 were $48,000.Prepare the statement of retained earnings for 2014.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 7

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true?

Accepted Answer

A) Assets and revenues are the same thing. 
B) If employees have not yet been paid for their work,the company has wages payable. 
C) Retained earnings equal cash that the company has earned and kept 
D) Revenue is another term for profit. 
E) Revenue minus expense equals retained earnings. 
A) Assets and revenues are the same thing. 
B) If employees have not yet been paid for their work,the company has wages payable. 
C) Retained earnings equal cash that the company has earned and kept 
D) Revenue is another term for profit. 
E) Revenue minus expense equals retained earnings.

Question 9

Lorton's Web Services has assets of $265,000 and liabilities of $130,000.Calculate the amount of equity.

Accepted Answer

Equity = $

Question 10

Teasdale Printing Services purchases printing equipment on credit for $8,000.How would Teasdale record this transaction?

Accepted Answer

A) Cash decreases by $8,000 and Printing Equipment increases by $8,000. 
B) Cash decreases by $8,000 and Accounts Payable increases by $8,000. 
C) Cash decreases by $8,000 and Accounts Payable decreases by $8,000. 
D) Printing Equipment increases by $8,000 and Accounts Payable increases by $8,000. 
E) Accounts Receivable increases by $8,000 and Accounts Payable increases by $8,000. 
A) Cash decreases by $8,000 and Printing Equipment increases by $8,000. 
B) Cash decreases by $8,000 and Accounts Payable increases by $8,000. 
C) Cash decreases by $8,000 and Accounts Payable decreases by $8,000. 
D) Printing Equipment increases by $8,000 and Accounts Payable increases by $8,000. 
E) Accounts Receivable increases by $8,000 and Accounts Payable increases by $8,000.

Question 11

Internal users of accounting information always include:

Accepted Answer

A) Shareholders 
B) Managers 
C) Lenders 
D) Suppliers 
E) Customers 
A) Shareholders 
B) Managers 
C) Lenders 
D) Suppliers 
E) Customers

Question 12

At the beginning of the year,a company had $120,000 worth of liabilities.During the year,assets increased by $160,000,and at year-end they equaled $360,000.Liabilities decreased $20,000 during the year.Calculate the beginning and ending values of equity.

Accepted Answer

Beginning equity = $

Question 13

Refinishers Inc.receives cash of $2,000 from services performed during its first week of business.How would Refinishers record this transaction?

Accepted Answer

A) Cash increases by $2,000 and Refinishing Revenue increases by $2,000. 
B) Cash decreases by $2,000 and Refinishing Revenue decreases by $2,000. 
C) Cash increases by $2,000 and Common Stock increases by $2,000. 
D) Cash decreases by $2,000 and Accounts Receivable decreases by $2,000. 
E) Cash increases by $2,000 and Accounts Receivable decreases by $2,000. 
A) Cash increases by $2,000 and Refinishing Revenue increases by $2,000. 
B) Cash decreases by $2,000 and Refinishing Revenue decreases by $2,000. 
C) Cash increases by $2,000 and Common Stock increases by $2,000. 
D) Cash decreases by $2,000 and Accounts Receivable decreases by $2,000. 
E) Cash increases by $2,000 and Accounts Receivable decreases by $2,000.

Question 14

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 15

Identifying business activities requires selecting transactions and events relevant to an organization.Which of the following events would be recorded in the accounting records of Acme Car Wash?

Accepted Answer

A) Acme washes 500 cars. 
B) J.B.Smith,a customer,buys lunch at the restaurant next door to Acme while waiting for her car to be washed. 
C) Clean Company,a supplier,sells 50 pounds of soap to ABC Company. 
D) Sudsey Company,a supplier,goes out of business. 
E) Acme hires Andrea as a receptionist. 
A) Acme washes 500 cars. 
B) J.B.Smith,a customer,buys lunch at the restaurant next door to Acme while waiting for her car to be washed. 
C) Clean Company,a supplier,sells 50 pounds of soap to ABC Company. 
D) Sudsey Company,a supplier,goes out of business. 
E) Acme hires Andrea as a receptionist.

Question 16

Legion Design Studio provided $5,000 of design services on account.How would Legion Claire Spa record this transaction?

Accepted Answer

A) Accounts Receivable increases by $5,000 and Design Services Revenue increases by $5,000. 
B) Cash increases by $5,000 and Design Services Revenue increases by $5,000. 
C) Cash increases by $5,000 and Accounts Receivable decreases by $5,000. 
D) Accounts Receivable increases by $5,000 and Design Services Revenue decreases by $5,000 
E) Cash decreases by $5,000 and Accounts Receivable increases by $5,000. 
A) Accounts Receivable increases by $5,000 and Design Services Revenue increases by $5,000. 
B) Cash increases by $5,000 and Design Services Revenue increases by $5,000. 
C) Cash increases by $5,000 and Accounts Receivable decreases by $5,000. 
D) Accounts Receivable increases by $5,000 and Design Services Revenue decreases by $5,000 
E) Cash decreases by $5,000 and Accounts Receivable increases by $5,000.

Question 17

The statement of cash flows reports information on:

Accepted Answer

A) Revenue activities 
B) Expense activities 
C) Financing activities 
D) Equity activities 
E) Asset activities 
A) Revenue activities 
B) Expense activities 
C) Financing activities 
D) Equity activities 
E) Asset activities

Question 18

Halley Burton began Web Consulting as a corporation and completed these transactions during September of the current year:.
   Show the effects of the above transactions on the accounting equation of Web Consulting.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 19

The difference between a company's assets and its liabilities is:

Accepted Answer

A) Net income 
B) Expense 
C) Equity 
D) Revenue 
E) Net loss 
A) Net income 
B) Expense 
C) Equity 
D) Revenue 
E) Net loss

Question 20

Resources owned or controlled by a company that are expected to yield benefits are:

Accepted Answer

A) Assets 
B) Revenues 
C) Liabilities 
D) Stockholder's equity 
E) Expenses 
A) Assets 
B) Revenues 
C) Liabilities 
D) Stockholder's equity 
E) Expenses

Revenue is properly recognized:

The area of accounting aimed at serving the decision-making needs of internal users is:

Accounting is one way important financial information about businesses is reported to decision makers.

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

The following schedule reflects the first month's transactions of the Blue Real Estate Company: Provide descriptions for each transaction.

Maslow's Consulting Inc.had retained earnings of $172,500 at December 31,2013.Net income for 2014 amounted to $56,400.Dividends during 2014 were $48,000.Prepare the statement of retained earnings for 2014.

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

Which of the following statements is true?

Lorton's Web Services has assets of $265,000 and liabilities of $130,000.Calculate the amount of equity.

Teasdale Printing Services purchases printing equipment on credit for $8,000.How would Teasdale record this transaction?

Internal users of accounting information always include:

At the beginning of the year,a company had $120,000 worth of liabilities.During the year,assets increased by $160,000,and at year-end they equaled $360,000.Liabilities decreased $20,000 during the year.Calculate the beginning and ending values of equity.

Refinishers Inc.receives cash of $2,000 from services performed during its first week of business.How would Refinishers record this transaction?

What is the purpose of return on assets as an analytical tool?

Identifying business activities requires selecting transactions and events relevant to an organization.Which of the following events would be recorded in the accounting records of Acme Car Wash?

Legion Design Studio provided $5,000 of design services on account.How would Legion Claire Spa record this transaction?

The statement of cash flows reports information on:

The difference between a company's assets and its liabilities is:

Resources owned or controlled by a company that are expected to yield benefits are:

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

Revenue is properly recognized:

The area of accounting aimed at serving the decision-making needs of internal users is:

Accounting is one way important financial information about businesses is reported to decision makers.

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

The following schedule reflects the first month's transactions of the Blue Real Estate Company: Provide descriptions for each transaction.

Maslow's Consulting Inc.had retained earnings of $172,500 at December 31,2013.Net income for 2014 amounted to $56,400.Dividends during 2014 were $48,000.Prepare the statement of retained earnings for 2014.

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

Which of the following statements is true?

Lorton's Web Services has assets of $265,000 and liabilities of $130,000.Calculate the amount of equity.

Teasdale Printing Services purchases printing equipment on credit for $8,000.How would Teasdale record this transaction?

Internal users of accounting information always include:

At the beginning of the year,a company had $120,000 worth of liabilities.During the year,assets increased by $160,000,and at year-end they equaled $360,000.Liabilities decreased $20,000 during the year.Calculate the beginning and ending values of equity.

Refinishers Inc.receives cash of $2,000 from services performed during its first week of business.How would Refinishers record this transaction?

What is the purpose of return on assets as an analytical tool?

Identifying business activities requires selecting transactions and events relevant to an organization.Which of the following events would be recorded in the accounting records of Acme Car Wash?

Legion Design Studio provided $5,000 of design services on account.How would Legion Claire Spa record this transaction?

The statement of cash flows reports information on:

The difference between a company's assets and its liabilities is:

Resources owned or controlled by a company that are expected to yield benefits are:

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