Question 1

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

Accepted Answer

The three types of activities reported i

Question 2

From the information given below,prepare a November income statement,a November statement of retained earnings,and a November 30 balance sheet.On November 1 of the current year,Victoria Garza,the sole stockholder,began Garza Décor with an initial investment of $50,000 cash in exchange for common stock.On November 30,her records showed the following items and amounts.
 $\begin{array}{|l|c|l|c|}
\hline \text { Accounts payable } & \$ 12,000 & \text { Office furnishings . } & \$ 40,000 \
\hline \text { Accounts receivable. } & 19,000 & \text { Rent expense } & 9,600 \
\hline \text { Cash. } & 21,200 & \text { Salaries expense } & 4,200 \
\hline \text { Dividends. } & 6,000 & \text { Telephone expense. } &250 \
\hline \text { Fees earned. } & 34,000 & \text { Common stock } & 50,000 \
\hline \text { Notes payable } & 4,250 \
\hline
\end{array}$

Accepted Answer

None

Question 3

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Assess whether a company has paid all required taxes and complied with securities rules.

Accepted Answer

A) Purchasing Managers 
B) Lenders 
C) Suppliers 
D) Regulators 
E) Shareholders 
A) Purchasing Managers 
B) Lenders 
C) Suppliers 
D) Regulators 
E) Shareholders

Question 4

Match the following terms with the appropriate definition.
-Monetary unit principle

Accepted Answer

A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured. 
A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.

Question 5

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

Accepted Answer

A)  1.8%. 
B)  35%. 
C)  17.5%. 
D)  5.7%. 
E)  3.5%. 
A)  1.8%. 
B)  35%. 
C)  17.5%. 
D)  5.7%. 
E)  3.5%.

Question 6

Which of the following accounts is not included in the calculation of a company's ending equity?

Accepted Answer

A)  Revenues. 
B)  Expenses. 
C)  Dividends. 
D)  Stockholder investments. 
E)  Cash. 
A)  Revenues. 
B)  Expenses. 
C)  Dividends. 
D)  Stockholder investments. 
E)  Cash.

Question 7

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Accepted Answer

A)  $365,000. 
B)  $239,000. 
C)  $189,000. 
D)  $315,000. 
E)  $277,000. 
A)  $365,000. 
B)  $239,000. 
C)  $189,000. 
D)  $315,000. 
E)  $277,000.

Question 8

Match the following terms with the appropriate definition.
-Income statement

Accepted Answer

A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured. 
A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.

Question 9

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Accepted Answer

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

Question 12

Identify and describe the four basic financial statements:

Accepted Answer

The four basic financial statements are

Question 13

All of the following regarding a Certified Public Accountant are true except:

Accepted Answer

A)  Must meet education and experience requirements. 
B)  Must pass an examination. 
C)  Must exhibit ethical character. 
D)  May also be a Certified Management Accountant. 
E)  Cannot hold any certificate other than a CPA. 
A)  Must meet education and experience requirements. 
B)  Must pass an examination. 
C)  Must exhibit ethical character. 
D)  May also be a Certified Management Accountant. 
E)  Cannot hold any certificate other than a CPA.

Question 14

Cornelia's Closet has the following account balances for the dates given:
 $$\begin{array} { l c c } 
& \text { October } 1 & \text { October 31 } \
 \text { Cash } & \$ 40,000 & 60,000 \
\text { Accounts Receivable } & 40,000 & 38,000 \
\text { Accounts payable } & 6,000 & ?
\end{array}$$ 
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Accepted Answer

October 1^st Equity = $

Question 15

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

Accepted Answer

The answer of ________ users of accounting information are not...

Question 16

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 17

The conceptual framework that the Financial Accounting Standards Board (FASB)and the International Accounting Standards Board (IASB)are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Accepted Answer

A)  Objectives 
B)  Qualitative characteristics 
C)  Uniformity 
D)  Elements 
E)  Recognition and measurement 
A)  Objectives 
B)  Qualitative characteristics 
C)  Uniformity 
D)  Elements 
E)  Recognition and measurement

Question 18

Match the following terms with the appropriate definition.
-Expenses

Accepted Answer

A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured. 
A) The principle that assumes transactions and events can be expressed in money units. 
B) The cost of assets or services used to earn revenue. 
C) The principle that requires a business to be accounted for separately from its owners. 
D) Describes a company's revenues and expenses along with the resulting net income or loss over a period of time. 
E) Creditor's claims on assets.
F)The relation between a company's assets, liabilities, and equity.
G)The principle that revenue is recorded when earned through providing goods or services.
H)A financial statement that lists cash inflows (receipts) and cash outflows (payments); the cash flows are arranged by operating, investing, and financing activities.
I)Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.

Question 19

A limited partnership:

Accepted Answer

A)  Includes a general partner with unlimited liability. 
B)  Is subject to double taxation. 
C)  Has owners called stockholders. 
D)  Is the same as a corporation. 
E)  May only have two partners. 
A)  Includes a general partner with unlimited liability. 
B)  Is subject to double taxation. 
C)  Has owners called stockholders. 
D)  Is the same as a corporation. 
E)  May only have two partners.

Question 20

Net income occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

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

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether a company has paid all required taxes and complied with securities rules.

Match the following terms with the appropriate definition. -Monetary unit principle

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

Which of the following accounts is not included in the calculation of a company's ending equity?

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Match the following terms with the appropriate definition. -Income statement

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

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

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Identify and describe the four basic financial statements:

All of the following regarding a Certified Public Accountant are true except:

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

What is the purpose of return on assets as an analytical tool?

The conceptual framework that the Financial Accounting Standards Board (FASB)and the International Accounting Standards Board (IASB)are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Match the following terms with the appropriate definition. -Expenses

A limited partnership:

Net income occurs when revenues exceed expenses.

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

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

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether a company has paid all required taxes and complied with securities rules.

Match the following terms with the appropriate definition. -Monetary unit principle

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

Which of the following accounts is not included in the calculation of a company's ending equity?

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Match the following terms with the appropriate definition. -Income statement

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

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

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Identify and describe the four basic financial statements:

All of the following regarding a Certified Public Accountant are true except:

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

What is the purpose of return on assets as an analytical tool?

The conceptual framework that the Financial Accounting Standards Board (FASB)and the International Accounting Standards Board (IASB)are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Match the following terms with the appropriate definition. -Expenses

A limited partnership:

Net income occurs when revenues exceed expenses.

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