Question 1

The business entity 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 2

Use the following information as of December 31 to determine equity.

Accepted Answer

A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000. 
A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000.

Question 3

Objectivity means that financial information is supported by independent,unbiased evidence; it demands more than a person's opinion.

Accepted Answer

A) True 
 B)False

Question 4

Net income is sometimes called earnings or profit.

Accepted Answer

A) True 
 B)False

Question 5

The stockholders' claim on assets,also known as net assets,is called ________.

Accepted Answer

The answer of The stockholders' claim on assets,also known as...

Question 6

The primary objective of financial accounting is to:

Accepted Answer

A) Serve the decision-making needs of internal users. 
B) Provide accounting information that serves external users. 
C) Monitor consumer needs,tastes,and price concerns. 
D) Provide information on both the costs and benefits of looking after products and services. 
E) Know what,when,and how much product to produce. 
A) Serve the decision-making needs of internal users. 
B) Provide accounting information that serves external users. 
C) Monitor consumer needs,tastes,and price concerns. 
D) Provide information on both the costs and benefits of looking after products and services. 
E) Know what,when,and how much product to produce.

Question 7

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Accepted Answer

A) $365,000. 
B) $239,000. 
C) $189,000. 
D) $315,000. 
E) $277,000. 
A) $365,000. 
B) $239,000. 
C) $189,000. 
D) $315,000. 
E) $277,000.

Question 8

The accounting equation is ________.

Accepted Answer

Assets = L

Question 9

Match between columns
                        Premises: Assess whether an organization is likely to repay its loans with interest.
Judge the soundness of a customer before making sales on credit.
Assess whether a company has paid all required taxes and complied with securities rules.
Know what,when,and how much to purchase.
Decide whether to buy,hold,or sell a company's stock.

Accepted Answer

The Answer of Shareholders and Regulators and Suppliers and Purchasing is...

Question 10

A disadvantage of a sole proprietorship is the fact that the owner has ________.

Accepted Answer

The answer of A disadvantage of a sole proprietorship is...

Question 11

A company acquires equipment for $75,000 cash.This represents a(n):

Accepted Answer

A) Operating activity. 
B) Investing activity. 
C) Financing activity. 
D) Revenue activity. 
E) Expense activity. 
A) Operating activity. 
B) Investing activity. 
C) Financing activity. 
D) Revenue activity. 
E) Expense activity.

Question 12

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 13

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

Question 14

Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Accepted Answer

A) True 
 B)False

Question 15

The Financial Accounting Standards Board (FASB)is a group tasked with setting generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 16

All of the following are classified as assets except:

Accepted Answer

A) Accounts Payable. 
B) Accounts Receivable. 
C) Cash. 
D) Supplies. 
E) Prepaid Insurance. 
A) Accounts Payable. 
B) Accounts Receivable. 
C) Cash. 
D) Supplies. 
E) Prepaid Insurance.

Question 17

Outflows of cash and other resources to stockholders are:

Accepted Answer

A) Liabilities. 
B) Dividends. 
C) Expenses. 
D) Stock issuances. 
E) Revenues. 
A) Liabilities. 
B) Dividends. 
C) Expenses. 
D) Stock issuances. 
E) Revenues.

Question 18

A ________ is a business that is owned by only one person.

Accepted Answer

The answer of A ________ is a business that is...

Question 19

Describe the income statement and the relation between revenues,expenses,and net income or loss.

Accepted Answer

The income statement describes a company

Question 20

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Accepted Answer

A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position. 
A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position.

Exam 1: Accounting in Business

The business entity assumption:

Use the following information as of December 31 to determine equity.

Objectivity means that financial information is supported by independent,unbiased evidence; it demands more than a person's opinion.

Net income is sometimes called earnings or profit.

The stockholders' claim on assets,also known as net assets,is called ________.

The primary objective of financial accounting is to:

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

The accounting equation is ________.

A disadvantage of a sole proprietorship is the fact that the owner has ________.

A company acquires equipment for $75,000 cash.This represents a(n):

The income statement reports all of the following except:

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

Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

The Financial Accounting Standards Board (FASB)is a group tasked with setting generally accepted accounting principles (GAAP).

All of the following are classified as assets except:

Outflows of cash and other resources to stockholders are:

A ________ is a business that is owned by only one person.

Describe the income statement and the relation between revenues,expenses,and net income or loss.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

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

Filters