Question 1

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.This is just one part of accounting.

Accepted Answer

A) True 
 B)False

Question 2

Identify the four basic forms of business organizations and their key attributes.

Accepted Answer

The four basic forms of business organiz

Question 3

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Question 4

Saddleback Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets,$30,000 increase; equity,$30,000 increase. 
B) Assets,$30,000 decrease; liabilities,$30,000 decrease. 
C) Assets,$30,000 decrease; liabilities,$30,000 increase. 
D) Liabilities,$30,000 decrease; equity,$30,000 increase. 
E) Assets,$30,000 decrease; equity $30,000 decrease. 
A) Assets,$30,000 increase; equity,$30,000 increase. 
B) Assets,$30,000 decrease; liabilities,$30,000 decrease. 
C) Assets,$30,000 decrease; liabilities,$30,000 increase. 
D) Liabilities,$30,000 decrease; equity,$30,000 increase. 
E) Assets,$30,000 decrease; equity $30,000 decrease.

Question 5

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

Accepted Answer

A) Time-period assumption. 
B) Business entity assumption. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Measurement (Cost)principle. 
A) Time-period assumption. 
B) Business entity assumption. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Measurement (Cost)principle.

Question 6

For each of the following transactions,identify the effects as reflected in the accounting equation.Use "+" to indicate an increase and "-" to indicate a decrease.Use "A","L",and "E" to indicate assets,liabilities,and equity,respectively.Part A has been completed as an example.

Accepted Answer

a.+A; +E
b.+A; +L
c.

Question 7

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation during the first month?

Accepted Answer

A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700. 
A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700.

Question 8

Stockholder investments increase equity via net income.

Accepted Answer

A) True 
 B)False

Question 9

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) Accounts receivable. 
B) Wages payable. 
C) Accounts payable. 
D) Notes payable. 
E) Taxes payable. 
A) Accounts receivable. 
B) Wages payable. 
C) Accounts payable. 
D) Notes payable. 
E) Taxes payable.

Question 11

Resources such as cash distributed to stockholders by the business are called ________.

Accepted Answer

The answer of Resources such as cash distributed to stockholders...

Question 12

There are three major types of business activities.________ activities are the means organizations use to pay for resources such as land,building,and equipment to carry out plans.

Accepted Answer

The answer of There are three major types of business...

Question 13

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

Accepted Answer

A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000 
A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000

Question 14

Identify and describe the two main groups involved in establishing generally accepted accounting principles.

Accepted Answer

The Financial Accounting Standards Board

Question 15

The accounts of Odie Company with the increases or decreases that occurred during the past year are as follows:
   Except for net income,an investment of $3,000 by stockholders,and a cash dividend of $11,000 to stockholders,no other items affected stockholders' equity.Using the balance sheet equation,compute net income for the past year.

Accepted Answer

$23,000
Assets = Liabilities + Stockhold

Question 16

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i

Question 17

You are reviewing the accounting records of Buddy's Foreign Automotive,owned by a single stockholder,Bruce Jones.You have uncovered the following situations.List the appropriate accounting principle related to each independent scenario and suggest a correct action for each.
1.In August,a check for $500 was written to Community Sports.This amount represents soccer camp for his daughter Cassie.
2.Bruce plans a Going Out of Business Sale for June,since he will be closing the business for a month-long vacation in July.He plans to reopen August 1 and will continue operating Buddy's Foreign Automotive indefinitely.
3.Buddy received a shipment of tools from Ontario,Canada.The invoice was stated in Canadian dollars.
4.Sandy Lane paid $1,500 for a major repair services.The amount was recorded as revenue.The parts for the repair must be ordered from overseas and the service won't be complete until the following month.

Accepted Answer

1.Business entity assumption.Buddy shoul

Question 18

Which of the following combinations results in a net loss reported on the income statement?

Accepted Answer

A) Total revenues of $80,000 and total expenses of $74,000. 
B) Total revenues of $70,000 and total expenses of $74,000. 
C) Total revenues of $60,000 and total expenses of $52,000. 
D) Total revenues of $20,000 and total expenses of $16,000. 
E) Total revenues of $40,000 and total expenses of $31,000. 
A) Total revenues of $80,000 and total expenses of $74,000. 
B) Total revenues of $70,000 and total expenses of $74,000. 
C) Total revenues of $60,000 and total expenses of $52,000. 
D) Total revenues of $20,000 and total expenses of $16,000. 
E) Total revenues of $40,000 and total expenses of $31,000.

Question 19

All of the following are external users of accounting information except:

Accepted Answer

A) customers. 
B) Internal Revenue Service. 
C) human resource managers. 
D) shareholders. 
E) lenders. 
A) customers. 
B) Internal Revenue Service. 
C) human resource managers. 
D) shareholders. 
E) lenders.

Question 20

As a general rule,revenues should not be recognized in the accounting records when earned,but rather when cash is received.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.This is just one part of accounting.

Identify the four basic forms of business organizations and their key attributes.

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Saddleback Company paid off $30,000 of its accounts payable in cash.What would be the effects of this transaction on the accounting equation?

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

For each of the following transactions,identify the effects as reflected in the accounting equation.Use "+" to indicate an increase and "-" to indicate a decrease.Use "A","L",and "E" to indicate assets,liabilities,and equity,respectively.Part A has been completed as an example.

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation during the first month?

Stockholder investments increase equity via net income.

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

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

Resources such as cash distributed to stockholders by the business are called ________.

There are three major types of business activities.________ activities are the means organizations use to pay for resources such as land,building,and equipment to carry out plans.

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

Identify and describe the two main groups involved in establishing generally accepted accounting principles.

Describe the three types of activities reported on the statement of cash flows.

Which of the following combinations results in a net loss reported on the income statement?

All of the following are external users of accounting information except:

As a general rule,revenues should not be recognized in the accounting records when earned,but rather when cash is received.

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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