Question 1

General accounting principles stem from long-used accounting practices.

Accepted Answer

A) True 
 B)False

Question 2

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 3

If assets are $300,000 and liabilities are $192,000,then equity equals:

Accepted Answer

A)  $108,000. 
B)  $192,000. 
C)  $300,000. 
D)  $492,000. 
E)  $792,000. 
A)  $108,000. 
B)  $192,000. 
C)  $300,000. 
D)  $492,000. 
E)  $792,000.

Question 4

Match each of the following terms with the most appropriate definition.
-Evidence of inflows of resources such as cash and other assets from stockholders.

Accepted Answer

A) Assets 
B) Expenses 
C) Return on assets 
D) Accounting equation 
E) Risk
F)Common stock
G)Dividends
H)Liabilities 
A) Assets 
B) Expenses 
C) Return on assets 
D) Accounting equation 
E) Risk
F)Common stock
G)Dividends
H)Liabilities

Question 5

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A partnership:

Accepted Answer

A)  Is also called a sole proprietorship. 
B)  Has unlimited liability for its partners. 
C)  Has to have a written agreement in order to be legal. 
D)  Is a legal organization separate from its owners. 
E)  Has owners called shareholders. 
A)  Is also called a sole proprietorship. 
B)  Has unlimited liability for its partners. 
C)  Has to have a written agreement in order to be legal. 
D)  Is a legal organization separate from its owners. 
E)  Has owners called shareholders.

Question 8

Identifying the proper ethical path is usually easy.

Accepted Answer

A) True 
 B)False

Question 9

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

Accepted Answer

A) True 
 B)False

Question 10

There are three major types of business activities.________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

Accepted Answer

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

Question 11

A ________ is a business that is owned by only one person.

Accepted Answer

The answer of A ________ is a business that is...

Question 12

Which of the following purposes would financial statements serve for external users?

Accepted Answer

A)  To find information about projected costs and revenues of proposed products. 
B)  To assess employee performance and compensation. 
C)  To assist in monitoring consumer needs and price concerns. 
D)  To fulfill regulatory requirements for companies whose stock is sold to the public. 
E)  To determine purchasing needs. 
A)  To find information about projected costs and revenues of proposed products. 
B)  To assess employee performance and compensation. 
C)  To assist in monitoring consumer needs and price concerns. 
D)  To fulfill regulatory requirements for companies whose stock is sold to the public. 
E)  To determine purchasing needs.

Question 13

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

Accepted Answer

Financial

Question 14

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 15

Match the following terms with the appropriate definition.
-Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

Accepted Answer

A) Internal users 
B) Fraud triangle 
C) Managerial accounting 
D) Ethics 
E) External users
F)Certified Public Accountant (CP
A) 
G)Financial accounting
H)Accounting
I)Recordkeeping 
A) Internal users 
B) Fraud triangle 
C) Managerial accounting 
D) Ethics 
E) External users
F)Certified Public Accountant (CP
A) 
G)Financial accounting
H)Accounting
I)Recordkeeping

Question 16

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Accepted Answer

Measuremen

Question 17

The ________ assumption states that transactions and events are expressed in money units.

Accepted Answer

The answer of The ________ assumption states that transactions and...

Question 18

Accounts payable appear on which of the following statements?

Accepted Answer

A)  Balance sheet. 
B)  Income statement. 
C)  Statement of retained earnings. 
D)  Statement of cash flows. 
E)  Transaction statement. 
A)  Balance sheet. 
B)  Income statement. 
C)  Statement of retained earnings. 
D)  Statement of cash flows. 
E)  Transaction statement.

Question 19

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 20

If the liabilities of a business increased $75,000 during a period of time and the 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.

General accounting principles stem from long-used accounting practices.

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

If assets are $300,000 and liabilities are $192,000,then equity equals:

Match each of the following terms with the most appropriate definition. -Evidence of inflows of resources such as cash and other assets from stockholders.

Explain why ethics are an integral part of accounting.

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

A partnership:

Identifying the proper ethical path is usually easy.

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

There are three major types of business activities.________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

A ________ is a business that is owned by only one person.

Which of the following purposes would financial statements serve for external users?

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

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Match the following terms with the appropriate definition. -Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

The ________ assumption states that transactions and events are expressed in money units.

Accounts payable appear on which of the following statements?

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?

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

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters

Exam 1: Accounting in Business

General accounting principles stem from long-used accounting practices.

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

If assets are $300,000 and liabilities are $192,000,then equity equals:

Match each of the following terms with the most appropriate definition. -Evidence of inflows of resources such as cash and other assets from stockholders.

Explain why ethics are an integral part of accounting.

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

A partnership:

Identifying the proper ethical path is usually easy.

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

There are three major types of business activities.________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

A ________ is a business that is owned by only one person.

Which of the following purposes would financial statements serve for external users?

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

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Match the following terms with the appropriate definition. -Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

The ________ assumption states that transactions and events are expressed in money units.

Accounts payable appear on which of the following statements?

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?

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

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters