Question 1

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Accepted Answer

A) True 
 B)False

Question 2

Redfox Pest Control Service had revenues of $425,000 and expenses of $338,000 for the current year, ended June 30. At the beginning of the year, the common stock was $110,000 and the retained earnings was $70,000. During the year, shareholders purchased an additional $25,000 in stock. Dividends of $16,750 were paid. What is the balance of stockholders' equity at the end of the year?

Accepted Answer

A)  $292,000 
B)  $267,250 
C)  $205,250 
D)  $275,250 
A)  $292,000 
B)  $267,250 
C)  $205,250 
D)  $275,250

Question 3

(a) A vacant lot acquired for $83,000 cash is sold for $127,000 in cash. What is the effect of the sale on the
total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?
​
(b) Assume that the seller owes $52,000 on a loan for the land. After receiving the $127,000 cash in (a), the
seller pays the $52,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets,
(2) liabilities, and (3) stockholders' equity?

Accepted Answer

(a) (1) Total assets increased $44,000
(

Question 4

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Paid wages

Accepted Answer

A) Increase assets, increase liabilities 
B) Increase liabilities, decrease stockholders' equity 
C) Increase assets, increase stockholders' equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity 
A) Increase assets, increase liabilities 
B) Increase liabilities, decrease stockholders' equity 
C) Increase assets, increase stockholders' equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

Question 5

Using the following accounts and their amounts, prepare in good format an income statement for Bright Futures Company for the month ended August 31.
 $\begin{array}{lr}
\text { Tel ephone expense } & 1,150 \
\text { Cash } & 3,000 \
\text { Accounts payable } & 1,540 \
\text { Dividends } & 800 \
\text { Fees earned } & 15,700 \
\text { Rent expense } & 1,400 \
\text { Supplies } & 140 \
\text { Accounts receivable } & 1,500 \
\text { Computer equipment } & 17,600 \
\text { Common stock } & 10,000 \
\text { Retained earnings (August } 1) & 4,320 \
\text { Wages expense } & 4,800 \
\text { Utilities expense } & 750 \
\text { Office expense } & 420
\end{array}$ ?

Accepted Answer

\(\begin{array}{c}
\text {Bright Future

Question 6

Explain the meaning of:

Accepted Answer

(a) The measurement principle requires t

Question 7

Which of the following is not a certification for accountants?

Accepted Answer

A)  CIA 
B)  CMA 
C)  CISA 
D)  IRS 
A)  CIA 
B)  CMA 
C)  CISA 
D)  IRS

Question 8

The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.

Accepted Answer

A) True 
 B)False

Question 9

Reports only revenues and expenses

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Statement of stockholder's equity 
D) Statement of cash flows 
A) Income statement 
B) Balance sheet 
C) Statement of stockholder's equity 
D) Statement of cash flows

Question 10

Cash investments made by the owner in the business are reported on the statement of cash flows in the

Accepted Answer

A)  financing activities section 
B)  investing activities section 
C)  operating activities section 
D)  supplemental statement 
A)  financing activities section 
B)  investing activities section 
C)  operating activities section 
D)  supplemental statement

Question 11

The following data were taken from Miller Company's balance sheet:
​
Dec. 31, Year 2 Dec. 31, Year 1
Total liabilities $150,000 $105,000
Total stockholders' equity 75,000 60,000
​
(a) Compute the ratio of liabilities to stockholders' equity. Round your answer to one decimal place.
(b) Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

Accepted Answer

(a) 12/31/Year 2: $1

Question 12

A corporation is a business that is legally separate and distinct from its owners.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a business transaction?

Accepted Answer

A)  make a sales offer 
B)  sell goods for cash 
C)  receive cash for services to be rendered later 
D)  pay for supplies 
A)  make a sales offer 
B)  sell goods for cash 
C)  receive cash for services to be rendered later 
D)  pay for supplies

Question 14

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 15

Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.

Accepted Answer

A) True 
 B)False

Question 16

Name and describe the four primary financial statements for a corporation.

Accepted Answer

1. Income statement: A summary of the re

Question 17

How does the payment of rent for equipment affect the accounting equation?

Accepted Answer

A)  assets increase; assets decrease 
B)  assets decrease; stockholders' equity decreases 
C)  assets decrease; liabilities increase 
D)  assets increase; stockholders' equity increases 
A)  assets increase; assets decrease 
B)  assets decrease; stockholders' equity decreases 
C)  assets decrease; liabilities increase 
D)  assets increase; stockholders' equity increases

Question 18

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Purchased supplies on credit

Accepted Answer

A) Increase assets, increase liabilities 
B) Increase liabilities, decrease stockholders' equity 
C) Increase assets, increase stockholders' equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity 
A) Increase assets, increase liabilities 
B) Increase liabilities, decrease stockholders' equity 
C) Increase assets, increase stockholders' equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

Question 19

Match between columns
                        Premises:  Received cash for services provided
 Received utility bill to be paid next month
 Contribution of land by stockholder
 Paid part of an amount owed to a creditor
 Paid cash for the purchase of supplies
 Received payment from a customer on account
 Payment of dividends
 Provided a service to a customer on account
 Purchased supplies on credit
 Paid wages
 Payment for common stock by stockholder
 Borrowed money from a bank
 Purchased equipment for cash
 Received cash for providing services to customers
 Used up supplies that were already on hand

Accepted Answer

The Answer of Increase assets, increase liabilities and Increase liabilities, is...

Question 20

Managerial accountants would be responsible for providing information regarding

Accepted Answer

A)  tax reports to government agencies 
B)  profit reports to stockholders and management 
C)  expansion of a product line report to management 
D)  consumer reports to customers 
A)  tax reports to government agencies 
B)  profit reports to stockholders and management 
C)  expansion of a product line report to management 
D)  consumer reports to customers

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Paid wages

Explain the meaning of:

Which of the following is not a certification for accountants?

The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.

Reports only revenues and expenses

Cash investments made by the owner in the business are reported on the statement of cash flows in the

A corporation is a business that is legally separate and distinct from its owners.

Which of the following is not a business transaction?

All companies must use a calendar year as their fiscal year.

Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.

Name and describe the four primary financial statements for a corporation.

How does the payment of rent for equipment affect the accounting equation?

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Purchased supplies on credit

Managerial accountants would be responsible for providing information regarding

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 1: Accounting and Business

Any twelve-month accounting period adopted by a company is known as its fiscal year.

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Paid wages

Explain the meaning of:

Which of the following is not a certification for accountants?

The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.

Reports only revenues and expenses

Cash investments made by the owner in the business are reported on the statement of cash flows in the

A corporation is a business that is legally separate and distinct from its owners.

Which of the following is not a business transaction?

All companies must use a calendar year as their fiscal year.

Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.

Name and describe the four primary financial statements for a corporation.

How does the payment of rent for equipment affect the accounting equation?

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Purchased supplies on credit

Managerial accountants would be responsible for providing information regarding

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters