Question 1

Charlie's Chocolates' had stock issuances of $50,000 and dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Accepted Answer

A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000. 
A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000. D

Question 2

Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (or Dodd-Frank).Which of the following are two of the important provisions of Dodd-Frank?

Accepted Answer

A) Clawback and dividend mandate. 
B) Clawback and whistleblower. 
C) Whistleblower and dividend mandate. 
D) Dividend mandate and shareholder loss limitation. 
E) Whistleblower and shareholder loss limitation. 
A) Clawback and dividend mandate. 
B) Clawback and whistleblower. 
C) Whistleblower and dividend mandate. 
D) Dividend mandate and shareholder loss limitation. 
E) Whistleblower and shareholder loss limitation. B

Question 3

Management is not responsible for implementing internal controls and does not need to issue a report on internal controls.

Accepted Answer

A) True 
 B)False  False

Question 4

An income statement reports on investing and financing activities.

Accepted Answer

A) True 
 B)False

Question 5

A partnership must pay an additional business income tax.

Accepted Answer

A) True 
 B)False

Question 6

The assets of a company total $700,000; the liabilities,$200,000.What is the amount of equity?

Accepted Answer

A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of the stock issuances is known. 
A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of the stock issuances is known.

Question 7

An exchange of value between two entities that yields a change in the accounting equation is called:

Accepted Answer

A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income. 
A) The accounting equation. 
B) Recordkeeping or bookkeeping. 
C) An external transaction. 
D) An asset. 
E) Net Income.

Question 8

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of stockholders' equity as of May 31 of the current year?

Accepted Answer

A) $49,700. 
B) $13,050. 
C) $20,500. 
D) $31,100. 
E) $40,400. 
A) $49,700. 
B) $13,050. 
C) $20,500. 
D) $31,100. 
E) $40,400.

Question 9

The monetary unit assumption:

Accepted Answer

A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
B) Means that we can express transactions and events in monetary,or money,units. 
C) Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods. 
D) Means that a business is accounted for separately from other business entities,including its owner. 
E) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
B) Means that we can express transactions and events in monetary,or money,units. 
C) Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods. 
D) Means that a business is accounted for separately from other business entities,including its owner. 
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question 10

Match between columns
                        Premises: Assets.
Cash from investing activities.
Cash from financing activities.
Revenues.
Dividends
Cash from operating activities.
Liabilities.
Expenses.

Accepted Answer

The Answer of Income statement and Statement of cash flows is...

Question 11

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

There are three major types of business activities.________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

The answer of There are three major types of business...

Question 13

Explain the role of accounting in the information age.

Accepted Answer

Accounting is an information and measure

Question 14

Distributions of cash or other resources by a business to its stockholders:

Accepted Answer

A) Reduce assets and equity. 
B) Increase assets and equity. 
C) Reduce assets and equity (via net income). 
D) Reduce retained earnings. 
E) Reduce contributed capital. 
A) Reduce assets and equity. 
B) Increase assets and equity. 
C) Reduce assets and equity (via net income). 
D) Reduce retained earnings. 
E) Reduce contributed capital.

Question 15

Assets are the resources a company owns or controls that are expected to yield future benefits.

Accepted Answer

A) True 
 B)False

Question 16

The cost-benefit constraint says that information disclosed must have benefits to the user that are greater than the costs of providing it.

Accepted Answer

A) True 
 B)False

Question 17

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Accepted Answer

The answer of The ________ assumption assumes that a business...

Question 18

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 19

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 20

Zippy had cash inflows from operations of $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:

Accepted Answer

A) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decrease. 
A) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decrease.

Exam 1: Accounting in Business

Charlie's Chocolates' had stock issuances of $50,000 and dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (or Dodd-Frank).Which of the following are two of the important provisions of Dodd-Frank?

Management is not responsible for implementing internal controls and does not need to issue a report on internal controls.

An income statement reports on investing and financing activities.

A partnership must pay an additional business income tax.

The assets of a company total $700,000; the liabilities,$200,000.What is the amount of equity?

An exchange of value between two entities that yields a change in the accounting equation is called:

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of stockholders' equity as of May 31 of the current year?

The monetary unit assumption:

The balance sheet is based on the accounting equation.

There are three major types of business activities.________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Explain the role of accounting in the information age.

Distributions of cash or other resources by a business to its stockholders:

Assets are the resources a company owns or controls that are expected to yield future benefits.

The cost-benefit constraint says that information disclosed must have benefits to the user that are greater than the costs of providing it.

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:

Identify the users and uses of accounting information.

Zippy had cash inflows from operations of $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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