Question 1

The purchase of equipment is an example of a financing activity.

Accepted Answer

A) True 
 B)False

Question 2

The day-by-day accumulation of interest is considered a transaction involving an exchange of value.

Accepted Answer

A) True 
 B)False

Question 3

An accounting measurement is concerned with all except which of the following?

Accepted Answer

A)  Money measure 
B)  Financial position 
C)  Separate entity 
D)  Business transaction 
A)  Money measure 
B)  Financial position 
C)  Separate entity 
D)  Business transaction

Question 4

The income statement is also known as the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following transactions involves an exchange of value?

Accepted Answer

A)  Accumulation of interest 
B)  Sale of services 
C)  Flood loss 
D)  Wear and tear on equipment 
A)  Accumulation of interest 
B)  Sale of services 
C)  Flood loss 
D)  Wear and tear on equipment

Question 6

A partnership is dissolved when any partner leaves the business or dies.

Accepted Answer

A) True 
 B)False

Question 7

Corporate governance is the oversight of a company's management performance and ethics by its board of directors.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the broad principles underlying the accountant's code of professional ethics?

Accepted Answer

A)  Objectivity 
B)  Integrity 
C)  Loyalty 
D)  Independence 
A)  Objectivity 
B)  Integrity 
C)  Loyalty 
D)  Independence

Question 9

Inventory is an example of a monetary asset.

Accepted Answer

A) True 
 B)False

Question 10

Upshaw Company had a balance of $260,000 in Sue Upshaw, Capital on December 31, 2009. During 2010, the company reported a net income of $112,000 after taxes, and the owner withdrew $16,000, while making no additional investments. Prepare the company's statement of owner's equity for the year ended December 31, 2010.

Accepted Answer

The answer of Upshaw Company had a balance of $260,000...

Question 11

Which of the following is legally a separate entity from its owner(s)?

Accepted Answer

A)  Sole proprietorship only 
B)  Sole proprietorship and partnership only 
C)  Corporation only 
D)  Partnership only 
A)  Sole proprietorship only 
B)  Sole proprietorship and partnership only 
C)  Corporation only 
D)  Partnership only

Question 12

Lin Wo Company had a balance of $360,000 in Li Wo, Capital on December 31, 2009. During 2010, the company reported a net income of $24,000, and the owner withdrew $18,000 during the year, while making no additional investments. Prepare the company's statement of owner's equity for the year ended December 31, 2010.

Accepted Answer

The answer of Lin Wo Company had a balance of...

Question 13

Creditors' equities is another term for liabilities.

Accepted Answer

A) True 
 B)False

Question 14

The statement of owner's equity discloses the owner's withdrawals made during the period.

Accepted Answer

A) True 
 B)False

Question 15

The obligation to provide services to another entity is a type of liability.

Accepted Answer

A) True 
 B)False

Question 16

Accounting ratios are useful as management performance measures.

Accepted Answer

A) True 
 B)False

Question 17

All of the following statements about corporations are true, except

Accepted Answer

A)  they are chartered by the state. 
B)  ownership is represented by shares of stock. 
C)  the sale of stock does not dissolve the business. 
D)  the stockholders have direct control of the business. 
A)  they are chartered by the state. 
B)  ownership is represented by shares of stock. 
C)  the sale of stock does not dissolve the business. 
D)  the stockholders have direct control of the business.

Question 18

Flores Realty Company had the following balance sheet accounts and balances: $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 6,000 & \text { Earl Flores, Capital } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equipment } & \$ 7,000 \
\text { Building } & 8,000 & \text { Land } & 7,000 \
\text { Cash } & 3,000 & & \
\end{array}$ If, $3,000 of Accounts Payable were paid in cash, what would be the balance of the Earl Flores, Capital account?

Accepted Answer

A)  $26,000 
B)  $21,000 
C)  $32,000 
D)  $34,000 
A)  $26,000 
B)  $21,000 
C)  $32,000 
D)  $34,000

Question 19

The heading for a balance sheet might include the line "As of December 31, 20xx."

Accepted Answer

A) True 
 B)False

Question 20

A major function of management is to provide the accountant with relevant and useful information.

Accepted Answer

A) True 
 B)False

Exam 1: Uses of Accounting Information and the Financial Statements

The purchase of equipment is an example of a financing activity.

The day-by-day accumulation of interest is considered a transaction involving an exchange of value.

An accounting measurement is concerned with all except which of the following?

The income statement is also known as the statement of financial position.

Which of the following transactions involves an exchange of value?

A partnership is dissolved when any partner leaves the business or dies.

Corporate governance is the oversight of a company's management performance and ethics by its board of directors.

Which of the following is not one of the broad principles underlying the accountant's code of professional ethics?

Inventory is an example of a monetary asset.

Which of the following is legally a separate entity from its owner(s)?

Creditors' equities is another term for liabilities.

The statement of owner's equity discloses the owner's withdrawals made during the period.

The obligation to provide services to another entity is a type of liability.

Accounting ratios are useful as management performance measures.

All of the following statements about corporations are true, except

The heading for a balance sheet might include the line "As of December 31, 20xx."

A major function of management is to provide the accountant with relevant and useful information.

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-Based Systems-Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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