Question 1

Planning is a part of each business activity (operating,investing,and financing),and gives each activity meaning and focus.

Accepted Answer

A) True 
 B)False

Question 2

Identify each of the following business activities 1 through 6 into the appropriate category a,b,and c.
a.Operating
b.Investing
c.Financing
____ 1.Paid utilities expenses.
____ 2.Dividends paid to stockholders.
____ 3.Purchase of land.
____ 4.Sale of used equipment.
____ 5.Borrowed money from a bank on a long-term note.
____ 6.Paid employee wages.
____ 7.Received investment from stockholders in exchange for common stock.
____ 8.Paid an amount due on a long-term bank loan.

Accepted Answer

1.A; 2.C;

Question 3

If assets are $365,000 and equity is $120,000,then liabilities are:

Accepted Answer

A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000. 
A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000.

Question 4

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

Accepted Answer

A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000. 
A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000.

Question 5

Match between columns
                        Premises: Statement of cash flows
Time period assumption
Generally accepted accounting principles
Statement of retained earnings
Securities and Exchange Commission
Balance sheet
Measurement (Cost)principle
Income statement
IASB
Full disclosure principle

Accepted Answer

The Answer of The governmental agency that has the legal is...

Question 6

Define risk and return and discuss the relation between them.

Accepted Answer

Net income is often related to return,wh

Question 7

Which of the following is not true regarding a Certified Public Accountant?

Accepted Answer

A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA. 
A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA.

Question 8

If equity is $300,000 and liabilities are $192,000,then assets equal:

Accepted Answer

A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000. 
A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000.

Question 9

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

Question 10

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

Accepted Answer

A) Going-concern assumption. 
B) Expense recognition (Matching)principle. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Consideration assumption. 
A) Going-concern assumption. 
B) Expense recognition (Matching)principle. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Consideration assumption.

Question 11

Ethics is defined as maximizing personal wealth,regardless the cost.

Accepted Answer

A) True 
 B)False

Question 12

A partnership:

Accepted Answer

A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders. 
A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders.

Question 13

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Accepted Answer

A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets,total liabilities,and total equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases. 
A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets,total liabilities,and total equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases.

Question 14

The following schedule reflects shows the first month's transactions of the Green Construction Company,owned by Jennifer Green,its sole stockholder:
   Provide descriptions for each transaction.

Accepted Answer

1.Investment of cash in business by stoc

Question 15

The assumption that requires that a business be accounted for separately from its owners is the ________ assumption.

Accepted Answer

The answer of The assumption that requires that a business...

Question 16

If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000,is offered for sale at $150,000,is assessed for tax purposes at $95,000,is considered by the purchaser as easily being worth $140,000,and is purchased for $137,000,the land should be recorded in the purchaser's books at:

Accepted Answer

A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000. 
A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000.

Question 17

The Superior Company acquired a building for $500,000.The building was appraised at a value of $575,000.The seller had paid $300,000 for the building 6 years ago.Which accounting principle would require Superior to record the building on its records at $500,000?

Accepted Answer

A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Revenue recognition principle. 
A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Revenue recognition principle.

Question 18

Match between columns
                        Premises: Events
Statement of cash flows
Accounting equation
Business entity principle
Revenue recognition principle
Liabilities
Income statement
Monetary unit principle
Expenses

Accepted Answer

The Answer of A financial statement that lists cash inflows is...

Question 19

On December 15 of the current year,Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year.Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Accepted Answer

A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Revenue recognition principle. 
A) Monetary unit assumption. 
B) Going-concern assumption. 
C) Measurement (Cost)principle. 
D) Business entity assumption. 
E) Revenue recognition principle.

Question 20

Net Income:

Accepted Answer

A) Decreases equity. 
B) Represents the amount of assets owners put into a business. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents owners' claims against assets. 
A) Decreases equity. 
B) Represents the amount of assets owners put into a business. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents owners' claims against assets.

Exam 1: Accounting in Business

Planning is a part of each business activity (operating,investing,and financing),and gives each activity meaning and focus.

If assets are $365,000 and equity is $120,000,then liabilities are:

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

Define risk and return and discuss the relation between them.

Which of the following is not true regarding a Certified Public Accountant?

If equity is $300,000 and liabilities are $192,000,then assets equal:

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

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

Ethics is defined as maximizing personal wealth,regardless the cost.

A partnership:

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

The following schedule reflects shows the first month's transactions of the Green Construction Company,owned by Jennifer Green,its sole stockholder: Provide descriptions for each transaction.

The assumption that requires that a business be accounted for separately from its owners is the ________ assumption.

The Superior Company acquired a building for $500,000.The building was appraised at a value of $575,000.The seller had paid $300,000 for the building 6 years ago.Which accounting principle would require Superior to record the building on its records at $500,000?

Net Income:

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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