Question 1

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Accepted Answer

A) True 
 B)False

Question 2

Risk is the ________ about the return an investor expects to earn.

Accepted Answer

The answer of Risk is the ________ about the return...

Question 3

There are at least three types of partnerships that limit the partners' liability.They are 1)________,2)________,and 3)________.

Accepted Answer

answers c

Question 4

Which of the following combinations results does not result in the same amount of net income reported on the income statement?

Accepted Answer

A)  Total revenues of $80,000 and total expenses of $60,000. 
B)  Total revenues of $170,000 and total expenses of $150,000. 
C)  Total revenues of $60,000 and total expenses of $40,000. 
D)  Total revenues of $70,000 and total expenses of $60,000. 
E)  Total revenues of $40,000 and total expenses of $20,000. 
A)  Total revenues of $80,000 and total expenses of $60,000. 
B)  Total revenues of $170,000 and total expenses of $150,000. 
C)  Total revenues of $60,000 and total expenses of $40,000. 
D)  Total revenues of $70,000 and total expenses of $60,000. 
E)  Total revenues of $40,000 and total expenses of $20,000.

Question 5

Identify the risk and the return in each of the following examples.
a.Investing $500 in a certificate of deposit at 4.5% interest.
b.Placing a $100 bet on an NBA game.
c.Investing $10,000 in Microsoft stock.
d.Borrowing $20,000 in student loans.

Accepted Answer

a.The risk involved is that the investor

Question 6

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year,then the change in equity of the company during the year must have been:

Accepted Answer

A)  An increase of $80,000. 
B)  A decrease of $80,000. 
C)  An increase of $30,000. 
D)  A decrease of $30,000. 
E)  An increase of $25,000. 
A)  An increase of $80,000. 
B)  A decrease of $80,000. 
C)  An increase of $30,000. 
D)  A decrease of $30,000. 
E)  An increase of $25,000.

Question 7

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

Accepted Answer

A)  Going-concern assumption. 
B)  Business entity assumption. 
C)  Objectivity principle. 
D)  Measurement (Cost) Principle. 
E)  Monetary unit assumption. 
A)  Going-concern assumption. 
B)  Business entity assumption. 
C)  Objectivity principle. 
D)  Measurement (Cost) Principle. 
E)  Monetary unit assumption.

Question 8

Match the following terms with the appropriate definition.
-IASB

Accepted Answer

A) The governmental agency that has the legal authority to establish accounting rules. 
B) Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis. 
C) A report that describes a company's financial position at a point in time. 
D) A financial statement that reports the changes in equity over the reporting period; including increases from net income and decreases from dividends or net losses. 
E) The concepts and rules that govern financial accounting.
F)A report that identifies cash receipts and cash payments over a period of time.
G)A principle that requires the information in financial statements to be supported by independent unbiased evidence.
H)An independent group consisting of individuals from many countries that identify preferred accounting practices.
I)Presumes that the life of a company can be divided into periods for reporting purposes.
J)Prescribes that a company report the details behind financial statements that would impact user decisions. 
A) The governmental agency that has the legal authority to establish accounting rules. 
B) Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis. 
C) A report that describes a company's financial position at a point in time. 
D) A financial statement that reports the changes in equity over the reporting period; including increases from net income and decreases from dividends or net losses. 
E) The concepts and rules that govern financial accounting.
F)A report that identifies cash receipts and cash payments over a period of time.
G)A principle that requires the information in financial statements to be supported by independent unbiased evidence.
H)An independent group consisting of individuals from many countries that identify preferred accounting practices.
I)Presumes that the life of a company can be divided into periods for reporting purposes.
J)Prescribes that a company report the details behind financial statements that would impact user decisions.

Question 9

________ are the increases in equity from a company's sales of products and services to customers.

Accepted Answer

The answer of ________ are the increases in equity from...

Question 10

Every business transaction leaves the accounting equation in balance.

Accepted Answer

A) True 
 B)False

Question 11

The time period 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 owners. 
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 owners. 
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question 12

The revenue recognition principle:

Accepted Answer

A)  Prescribes that accounting information is based on actual cost. 
B)  Provides guidance on when a company must recognize revenue. 
C)  Prescribes that a company report the details behind financial statements that would impact users' decisions. 
D)  Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E)  Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
A)  Prescribes that accounting information is based on actual cost. 
B)  Provides guidance on when a company must recognize revenue. 
C)  Prescribes that a company report the details behind financial statements that would impact users' decisions. 
D)  Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E)  Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Question 13

The accounting equation is ________.

Accepted Answer

Assets = L

Question 14

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

Accepted Answer

A) True 
 B)False

Question 15

Soo Lin began an Internet Consulting practice and completed these transactions during April of the current year:
   
Show the effects of the above transactions on the accounting equation of Soo Lin,Consultant.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Date } & \text { Assets } & \text { Liabilities } & \text { Equity } \
\hline \text { Example: } & & & \
\hline \text { April 1 } & \text { I } & \text { N } & \text { I } \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline & & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | } 
\

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Match the following terms with the appropriate definition.
-The area of accounting that serves the decision-making needs of internal users.

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 18

The three major types of business activities are operating,financing,and investing.

Accepted Answer

A) True 
 B)False

Question 19

Operating activities:

Accepted Answer

A)  Are the means organizations use to pay for resources like land, buildings and equipment. 
B)  Involve using resources to research, develop, purchase, produce, distribute and market products and services. 
C)  Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D)  Are also called asset management. 
E)  Are also called strategic management. 
A)  Are the means organizations use to pay for resources like land, buildings and equipment. 
B)  Involve using resources to research, develop, purchase, produce, distribute and market products and services. 
C)  Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D)  Are also called asset management. 
E)  Are also called strategic management.

Question 20

An exchange of value between two entities that yields a change in the accounting equation is called:

Accepted Answer

A)  The accounting equation. 
B)  Recordkeeping or bookkeeping. 
C)  An external transaction. 
D)  An asset. 
E)  Net Income. 
A)  The accounting equation. 
B)  Recordkeeping or bookkeeping. 
C)  An external transaction. 
D)  An asset. 
E)  Net Income.

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Risk is the ________ about the return an investor expects to earn.

There are at least three types of partnerships that limit the partners' liability.They are 1),2),and 3).

Which of the following combinations results does not result in the same amount of net income reported on the income statement?

Identify the risk and the return in each of the following examples. a.Investing $500 in a certificate of deposit at 4.5% interest. b.Placing a $100 bet on an NBA game. c.Investing $10,000 in Microsoft stock. d.Borrowing $20,000 in student loans.

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year,then the change in equity of the company during the year must have been:

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

Match the following terms with the appropriate definition. -IASB

________ are the increases in equity from a company's sales of products and services to customers.

Every business transaction leaves the accounting equation in balance.

The time period assumption:

The revenue recognition principle:

The accounting equation is ________.

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

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

Match the following terms with the appropriate definition. -The area of accounting that serves the decision-making needs of internal users.

The three major types of business activities are operating,financing,and investing.

Operating activities:

An exchange of value between two entities that yields a change in the accounting equation is called:

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

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Risk is the ________ about the return an investor expects to earn.

There are at least three types of partnerships that limit the partners' liability.They are 1)________,2)________,and 3)________.

Which of the following combinations results does not result in the same amount of net income reported on the income statement?

Identify the risk and the return in each of the following examples. a.Investing $500 in a certificate of deposit at 4.5% interest. b.Placing a $100 bet on an NBA game. c.Investing $10,000 in Microsoft stock. d.Borrowing $20,000 in student loans.

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year,then the change in equity of the company during the year must have been:

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold,unless evidence shows that it will not continue,is the:

Match the following terms with the appropriate definition. -IASB

________ are the increases in equity from a company's sales of products and services to customers.

Every business transaction leaves the accounting equation in balance.

The time period assumption:

The revenue recognition principle:

The accounting equation is ________.

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

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

Match the following terms with the appropriate definition. -The area of accounting that serves the decision-making needs of internal users.

The three major types of business activities are operating,financing,and investing.

Operating activities:

An exchange of value between two entities that yields a change in the accounting equation is called:

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

There are at least three types of partnerships that limit the partners' liability.They are 1),2),and 3).