Question 1

Which of the following accounts is not included in the calculation of net income?

Accepted Answer

A) Services revenue. 
B) Wages expense. 
C) Rent expense. 
D) Cash. 
E) Rent revenue. 
A) Services revenue. 
B) Wages expense. 
C) Rent expense. 
D) Cash. 
E) Rent revenue.

Question 2

A sole proprietorship is a business with multiple owners.

Accepted Answer

A) True 
 B)False

Question 3

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period,equity in the business must have:

Accepted Answer

A) Increased $22,000. 
B) Decreased $22,000. 
C) Increased $89,000. 
D) Decreased $156,000. 
E) Increased $156,000. 
A) Increased $22,000. 
B) Decreased $22,000. 
C) Increased $89,000. 
D) Decreased $156,000. 
E) Increased $156,000.

Question 4

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

Accepted Answer

A) $263,800. 
B) $432,200. 
C) $171,000. 
D) $167,800. 
E) $252,000. 
A) $263,800. 
B) $432,200. 
C) $171,000. 
D) $167,800. 
E) $252,000.

Question 5

A common characteristic of ________ is their ability to yield expected future benefits to a business.

Accepted Answer

The answer of A common characteristic of ________ is their...

Question 6

________ explains changes in the stockholders' claim on the business's assets from net income or loss and dividends over a period of time.

Accepted Answer

The statem

Question 7

Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000. 
A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000.

Question 8

Arrow's net income of $120 million and average total assets of $1,500 million results in a return on assets of 8%.

Accepted Answer

A) True 
 B)False

Question 9

A balance sheet covers activities over a period of time such as a month or year.

Accepted Answer

A) True 
 B)False

Question 10

The statement of cash flows identifies cash flows separated into operating,investing,and financing activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 11

Objectives,qualitative characteristics,elements,and recognition and measurement are components of the FASB conceptual framework.

Accepted Answer

A) True 
 B)False

Question 12

Risk is:

Accepted Answer

A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the return we will earn. 
D) Unrelated to return expected. 
E) Derived from the idea of getting something back from an investment. 
A) Net income divided by average total assets. 
B) The reward for investment. 
C) The uncertainty about the return we will earn. 
D) Unrelated to return expected. 
E) Derived from the idea of getting something back from an investment.

Question 13

________ is an information and measurement system that identifies,records and communicates relevant,reliable and comparable information about an organization's economic activities.

Accepted Answer

The answer of ________ is an information and measurement system...

Question 14

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Accepted Answer

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

Question 15

Owner financing refers to resources contributed by creditors or lenders.

Accepted Answer

A) True 
 B)False

Question 16

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The four broad areas of accounting are f

Question 17

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

Accepted Answer

A) True 
 B)False

Question 18

The going concern 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

Verity Siding Company,owned by S.Verity,its sole stockholder,began operations in May and completed the following transactions during that first month of operations.Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below.Do not determine new account balances after each transaction.Determine the final total for each account and verify that the equation is in balance.

Accepted Answer

The answer of Verity Siding Company,owned by S.Verity,its sole stockholder,began...

Question 20

Match between columns
                        Premises: Persons using accounting information who are directly involved in managing and operating the organization.
An information and measurement system that identifies,records and communicates relevant reliable and comparable information about an organization's business activities.
The part of accounting that involves recording transactions and events,either electronically or manually.
Persons using accounting information who are not directly involved in running the organization.
A model that asserts the factors that must exist for a person to commit fraud.
Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.
Accounting specialists that have met educational and experience requirements,passed an examination and exhibit ethical characteristics to achieve a professional certification.
The area of accounting aimed at serving external users by providing them with general-purpose financial statements.
The area of accounting that serves the decision-making needs of internal users.

Accepted Answer

The Answer of Certified Public Accountant (CPA) and Recordkeeping and is...

Exam 1: Accounting in Business

Which of the following accounts is not included in the calculation of net income?

A sole proprietorship is a business with multiple owners.

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period,equity in the business must have:

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

A common characteristic of ________ is their ability to yield expected future benefits to a business.

________ explains changes in the stockholders' claim on the business's assets from net income or loss and dividends over a period of time.

Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Arrow's net income of $120 million and average total assets of $1,500 million results in a return on assets of 8%.

A balance sheet covers activities over a period of time such as a month or year.

The statement of cash flows identifies cash flows separated into operating,investing,and financing activities over a period of time.

Objectives,qualitative characteristics,elements,and recognition and measurement are components of the FASB conceptual framework.

Risk is:

________ is an information and measurement system that identifies,records and communicates relevant,reliable and comparable information about an organization's economic activities.

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Owner financing refers to resources contributed by creditors or lenders.

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

The going concern assumption:

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