Question 1

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Accepted Answer

A) True 
 B)False

Question 2

Operating activities:

Accepted Answer

A) Are the means organizations use to pay for resources like land,buildings and equipment. 
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management. 
A) Are the means organizations use to pay for resources like land,buildings and equipment. 
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management.

Question 3

Accounting is an information and measurement system that identifies,records,and communicates an organization's business activities.

Accepted Answer

A) True 
 B)False

Question 4

Resources a company owns or controls that are expected to yield future benefits are:

Accepted Answer

A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Owner's Equity. 
E) Expenses. 
A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Owner's Equity. 
E) Expenses.

Question 5

Revenues are:

Accepted Answer

A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used. 
A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used.

Question 6

The accounting equation can be restated as: Assets − Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 7

Soo Lin,the sole stockholder,began an Internet Consulting practice and completed these transactions during April of the current year:
   Show the effects of the above transactions on the accounting equation of Soo Lin,Consultant.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N

Accepted Answer

The answer of Soo Lin,the sole stockholder,began an Internet Consulting...

Question 8

If assets are $99,000 and liabilities are $32,000,then equity equals:

Accepted Answer

A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000. 
A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000.

Question 9

________ are the increases in equity from a company's sales of products and services to customers.

Accepted Answer

The answer of ________ are the increases in equity from...

Question 10

Which of the following factors is not a component of the fraud triangle?

Accepted Answer

A) Opportunity 
B) Pressure 
C) Rationalization 
D) All of the above are components of the fraud triangle. 
A) Opportunity 
B) Pressure 
C) Rationalization 
D) All of the above are components of the fraud triangle.

Question 11

Determine the net income of a company for which the following information is available for the month of July.

Accepted Answer

A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000. 
A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000.

Question 12

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are classified as liabilities except:

Accepted Answer

A) Accounts Receivable. 
B) Notes Payable. 
C) Wages Payable. 
D) Accounts Payable. 
E) Taxes Payable. 
A) Accounts Receivable. 
B) Notes Payable. 
C) Wages Payable. 
D) Accounts Payable. 
E) Taxes Payable.

Question 14

Which of the following accounts is not included in the calculation of a company's ending retained earnings?

Accepted Answer

A) Revenues. 
B) Expenses. 
C) Dividends. 
D) Beginning Retained Earnings. 
E) Cash. 
A) Revenues. 
B) Expenses. 
C) Dividends. 
D) Beginning Retained Earnings. 
E) Cash.

Question 15

Data for Kennedy Realty are as follows:
   Dividends of $30,000 were paid during the year.There were no stockholder investments.Using the above data,prepare Kennedy Realty's Statement of Retained Earnings for the year ended December 31.

Accepted Answer

The answer of Data for Kennedy Realty are as follows:
...

Question 16

Financing activities provide the resources organizations use to pay for resources such as land,buildings,and equipment.

Accepted Answer

A) True 
 B)False

Question 17

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Accepted Answer

A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash. 
A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash.

Question 18

The time period 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 19

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Accepted Answer

The answer of Congress passed the ________ to help curb...

Question 20

Specific accounting principles are basic assumptions,concepts,and guidelines for preparing financial statements and arise out of long-used accounting practice.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Operating activities:

Accounting is an information and measurement system that identifies,records,and communicates an organization's business activities.

Resources a company owns or controls that are expected to yield future benefits are:

Revenues are:

The accounting equation can be restated as: Assets − Equity = Liabilities.

If assets are $99,000 and liabilities are $32,000,then equity equals:

________ are the increases in equity from a company's sales of products and services to customers.

Which of the following factors is not a component of the fraud triangle?

Determine the net income of a company for which the following information is available for the month of July.

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

All of the following are classified as liabilities except:

Which of the following accounts is not included in the calculation of a company's ending retained earnings?

Data for Kennedy Realty are as follows: Dividends of $30,000 were paid during the year.There were no stockholder investments.Using the above data,prepare Kennedy Realty's Statement of Retained Earnings for the year ended December 31.

Financing activities provide the resources organizations use to pay for resources such as land,buildings,and equipment.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

The time period assumption:

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Specific accounting principles are basic assumptions,concepts,and guidelines for preparing financial statements and arise out of long-used accounting practice.

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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