Exam 1: Accounting in Business

A financial statement providing information that helps users understand a company's financial status,and which lists the types and amounts of assets,liabilities,and equity as of a specific date,is called a(n):

The expense recognition principle,also called the matching principle:

Another name for equity is:

When expenses exceed revenues,the result is called:

________ users of accounting information are not directly involved in running the organization.

The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities.Which of the following transactions could have caused that effect?

If a company receives $12,000 from a stockholder,the effect on the accounting equation would be:

The balance sheet shows a company's net income or loss over a period of time.

An example of a financing activity is:

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

Which of the following is not true regarding ethics:

What distinguishes liabilities from equity?

A net loss occurs when revenues exceed expenses.

Return on assets is useful in evaluating management,analyzing and forecasting profits,and planning activities.

Stock issuances are increases in equity from the sale of products or services.

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it,need be disclosed.

At the beginning of the year,a company had $120,000 worth of liabilities.During the year,assets increased by $160,000 and at year-end they equaled $360,000.Liabilities decreased $20,000 during the year.Calculate the beginning and ending values of equity.

Increases in equity from a company's sales of products or services are: