Question 1

Opportunities in accounting include auditing,consulting,market research,and tax planning.

Accepted Answer

A) True 
 B)False

Question 2

Prepare a April 30 balance sheet in proper form for Two Rivers Vending Service from the following alphabetical list of the accounts at April 30:

Accepted Answer

The answer of Prepare a April 30 balance sheet in...

Question 3

U.S.Government Treasury bonds provide low return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 4

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Accepted Answer

The answer of The ________ describes a company's revenues and...

Question 5

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period,the assets of the business must have:

Accepted Answer

A) Decreased $105,000. 
B) Decreased $45,000. 
C) Increased $30,000. 
D) Increased $45,000. 
E) Increased $105,000. 
A) Decreased $105,000. 
B) Decreased $45,000. 
C) Increased $30,000. 
D) Increased $45,000. 
E) Increased $105,000.

Question 6

The accounts of Mason Company at the end of the past year report the following amounts:
   If the beginning equity for the year was $173,000,calculate the ending equity for Mason Company.

Accepted Answer

$212,700
Beginning Equity + St

Question 7

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 8

Cornelia's Closet has the following assets and liabilities for the dates given:
   Also,its net income,for October 1 through October 31 was $20,000 and there were no stock issuances or dividends.Determine the equity at both October 1 and October 31.

Accepted Answer

October 1st Equity = $74,000; October 31

Question 9

The Securities and Exchange Commission (SEC)has given the task of setting GAAP to the:

Accepted Answer

A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) IASB. 
A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) IASB.

Question 10

Risk is the uncertainty about the return we will earn.

Accepted Answer

A) True 
 B)False

Question 11

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Accepted Answer

A) True 
 B)False

Question 12

Limited liability and indefinite business life are characteristics of a corporation.

Accepted Answer

A) True 
 B)False

Question 13

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

Accepted Answer

A) 8.4%. 
B) 17.2%. 
C) 14.3%. 
D) 15.6%. 
E) 1.5%. 
A) 8.4%. 
B) 17.2%. 
C) 14.3%. 
D) 15.6%. 
E) 1.5%.

Question 14

The statement of retained earnings:

Accepted Answer

A) Reports changes in equity due to stockholder investments. 
B) Reports changes in equity due to net income,net losses and dividends. 
C) Reports on cash flows for operating,financing,and investing activities over a period of time. 
D) Reports on cash flows for operating,financing,and investing activities at a point in time. 
E) Reports on amounts for assets,liabilities,and equity at a point in time. 
A) Reports changes in equity due to stockholder investments. 
B) Reports changes in equity due to net income,net losses and dividends. 
C) Reports on cash flows for operating,financing,and investing activities over a period of time. 
D) Reports on cash flows for operating,financing,and investing activities at a point in time. 
E) Reports on amounts for assets,liabilities,and equity at a point in time.

Question 15

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A) Buildings. 
B) Wages expense. 
C) Supplies. 
D) Land. 
E) Furniture. 
A) Buildings. 
B) Wages expense. 
C) Supplies. 
D) Land. 
E) Furniture.

Question 16

Generally,the lower the risk,the higher the return that can be expected.

Accepted Answer

A) True 
 B)False

Question 17

Return on assets is often stated in ratio form as the amount of average total assets divided by revenue.

Accepted Answer

A) True 
 B)False

Question 18

________ is net income divided by average total assets.

Accepted Answer

The answer of ________ is net income divided by average...

Question 19

________ are beliefs that separate right from wrong and are considered accepted standards of good and bad behavior.

Accepted Answer

The answer of ________ are beliefs that separate right from...

Question 20

The accountant of Action Adventure Games prepared a balance sheet after every 10-day period.The only resources invested by the stockholder were at the start of the company on June 1.During June,the first month of operation,the following balance sheets were prepared:

Required: Describe the nature of each of the four transactions that took place between the balance sheet dates shown.Assume only one transaction affected each account.

Accepted Answer

The answer of The accountant of Action Adventure Games prepared...

Exam 1: Accounting in Business

Opportunities in accounting include auditing,consulting,market research,and tax planning.

Prepare a April 30 balance sheet in proper form for Two Rivers Vending Service from the following alphabetical list of the accounts at April 30:

U.S.Government Treasury bonds provide low return and low risk to investors.

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period,the assets of the business must have:

The accounts of Mason Company at the end of the past year report the following amounts: If the beginning equity for the year was $173,000,calculate the ending equity for Mason Company.

The income statement shows the financial position of a business on a specific date.

Cornelia's Closet has the following assets and liabilities for the dates given: Also,its net income,for October 1 through October 31 was $20,000 and there were no stock issuances or dividends.Determine the equity at both October 1 and October 31.

The Securities and Exchange Commission (SEC)has given the task of setting GAAP to the:

Risk is the uncertainty about the return we will earn.

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Limited liability and indefinite business life are characteristics of a corporation.

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

The statement of retained earnings:

Which of the following accounts is not included in the asset section of the balance sheet?

Generally,the lower the risk,the higher the return that can be expected.

Return on assets is often stated in ratio form as the amount of average total assets divided by revenue.

________ is net income divided by average total assets.

________ are beliefs that separate right from wrong and are considered accepted standards of good and bad behavior.

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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