Question 1

The difference between a company's assets and its liabilities, or net assets is:

Accepted Answer

A)  Expense. 
B)  Net loss. 
C)  Equity. 
D)  Net income. 
E)  Revenue. 
A)  Expense. 
B)  Net loss. 
C)  Equity. 
D)  Net income. 
E)  Revenue.

Question 2

A common characteristic of ________ is their ability to yield expected future benefits to a business.

Accepted Answer

The answer of A common characteristic of ________ is their...

Question 3

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Accepted Answer

A)  Liabilities. 
B)  Withdrawals. 
C)  Equity. 
D)  Owner's Investment. 
E)  Expenses. 
A)  Liabilities. 
B)  Withdrawals. 
C)  Equity. 
D)  Owner's Investment. 
E)  Expenses.

Question 4

Match between columns
                        Premises:  Statement of cash flows
 Events
 Monetary unit principle
 Business entity principle
 Revenue recognition principle
 Accounting equation
 Income statement
 Expenses
 Liabilities

Accepted Answer

The Answer of The relation between a company's assets, liabilities, is...

Question 5

Regulators often have legal authority over certain activities of organizations.

Accepted Answer

A) True 
 B)False

Question 6

Operating activities:

Accepted Answer

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

Question 7

Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?

Accepted Answer

A)  Assets would increase $80,000 and equity would decrease $80,000. 
B)  Assets would decrease $80,000 and equity would increase $80,000. 
C)  Assets would decrease $80,000 and liabilities would decrease $80,000. 
D)  Liabilities would decrease $80,000 and equity would increase $80,000. 
E)  Assets would increase $80,000 and liabilities would increase $80,000. 
A)  Assets would increase $80,000 and equity would decrease $80,000. 
B)  Assets would decrease $80,000 and equity would increase $80,000. 
C)  Assets would decrease $80,000 and liabilities would decrease $80,000. 
D)  Liabilities would decrease $80,000 and equity would increase $80,000. 
E)  Assets would increase $80,000 and liabilities would increase $80,000.

Question 8

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

Accepted Answer

A)  Revenues. 
B)  Owner's Equity. 
C)  Assets. 
D)  Expenses. 
E)  Liabilities. 
A)  Revenues. 
B)  Owner's Equity. 
C)  Assets. 
D)  Expenses. 
E)  Liabilities.

Question 9

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Accepted Answer

The answer of The ________ describes a company's revenues and...

Question 10

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

Accepted Answer

A) True 
 B)False

Question 11

If the liabilities of a business increased $75,000 during a period of time and the owner's 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 $105,000. 
D)  Increased $45,000. 
E)  Increased $30,000. 
A)  Decreased $105,000. 
B)  Decreased $45,000. 
C)  Increased $105,000. 
D)  Increased $45,000. 
E)  Increased $30,000.

Question 12

Match between columns
                        Premises:  Assets.
 Withdrawals.
 Revenues.
 Cash from investing activities.
 Expenses.
 Liabilities.
 Cash from operating activities.
 Cash from financing activities.

Accepted Answer

The Answer of Income statement and Statement of owner's equity is...

Question 13

Creditors' claims on assets that reflect company obligations to provide assets, products, or services to others are called ________.

Accepted Answer

The answer of Creditors' claims on assets that reflect company...

Question 14

A limited partnership:

Accepted Answer

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

Question 15

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 16

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time, due to earnings activities.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Net Income:

Accepted Answer

A)  Decreases equity. 
B)  Represents owners' claims against assets. 
C)  Equals assets minus liabilities. 
D)  Is the excess of revenues over expenses. 
E)  Represents the amount of assets owners put into a business. 
A)  Decreases equity. 
B)  Represents owners' claims against assets. 
C)  Equals assets minus liabilities. 
D)  Is the excess of revenues over expenses. 
E)  Represents the amount of assets owners put into a business.

Question 19

The time period assumption:

Accepted Answer

A)  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. 
B)  Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
C)  Means that we can express transactions and events in monetary, or money, units. 
D)  Means that a business is accounted for separately from other business entities, including its owner. 
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported. 
A)  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. 
B)  Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
C)  Means that we can express transactions and events in monetary, or money, units. 
D)  Means that a business is accounted for separately from other business entities, including its owner. 
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question 20

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

The difference between a company's assets and its liabilities, or net assets is:

A common characteristic of ________ is their ability to yield expected future benefits to a business.

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Regulators often have legal authority over certain activities of organizations.

Operating activities:

Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?

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

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

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

Creditors' claims on assets that reflect company obligations to provide assets, products, or services to others are called ________.

A limited partnership:

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

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time, due to earnings activities.

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

Net Income:

The time period assumption:

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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