Question 1

The debt created by a business when it makes a purchase on account is referred to as an

Accepted Answer

A) account payable. 
B) account receivable. 
C) asset. 
D) expense payable. 
A) account payable. 
B) account receivable. 
C) asset. 
D) expense payable.

Question 2

A summary of revenue and expenses for a specific period of time is a(n)

Accepted Answer

A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings statement. 
A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings statement.

Question 3

Which of the following are business stakeholders?

Accepted Answer

A) Stockholders 
B) Suppliers 
C) Customers 
D) All of these 
A) Stockholders 
B) Suppliers 
C) Customers 
D) All of these

Question 4

Browning,Inc.had revenues of $234,000,expenses of $175,000,and dividends of $30,000 during 2010.Which of the following statements is correct?

Accepted Answer

A) Net income for 2010 totaled $29,000. 
B) Net income for 2010 totaled $59,000. 
C) Total retained earnings increased by $59,000 during 2010. 
D) Total retained earnings decreased by $30,000 during 2010. 
A) Net income for 2010 totaled $29,000. 
B) Net income for 2010 totaled $59,000. 
C) Total retained earnings increased by $59,000 during 2010. 
D) Total retained earnings decreased by $30,000 during 2010.

Question 5

Creditors have preference to assets behind stockholders if a business fails.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A summary of changes in the earnings retained in the corporation for a specific period of time is a(n)

Accepted Answer

A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings statement. 
A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings statement.

Question 8

Merchandising businesses produce products rather than provide services to customers.

Accepted Answer

A) True 
 B)False

Question 9

Accounting is thought to be the "language of business" because business information is communicated to stakeholders.

Accepted Answer

A) True 
 B)False

Question 10

A business stakeholder has an interest in the economic performance of a business.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT an example of a capital market stakeholder?

Accepted Answer

A) Banks 
B) Owners 
C) Suppliers 
D) Stockholders 
A) Banks 
B) Owners 
C) Suppliers 
D) Stockholders

Question 12

Costs incurred in operating a business are also known as

Accepted Answer

A) revenues. 
B) expenses. 
C) liabilities. 
D) dividends. 
A) revenues. 
B) expenses. 
C) liabilities. 
D) dividends.

Question 13

Recording revenue when a sale is made most directly relates to which concept?

Accepted Answer

A) Going concern concept 
B) Periodicity concept 
C) Matching concept 
D) Adequate disclosure concept 
A) Going concern concept 
B) Periodicity concept 
C) Matching concept 
D) Adequate disclosure concept

Question 14

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Accepted Answer

A) True 
 B)False

Question 15

Which of the items below is NOT a business organization form?

Accepted Answer

A) Venture entrepreneurship 
B) Proprietorship 
C) Partnership 
D) Corporation 
A) Venture entrepreneurship 
B) Proprietorship 
C) Partnership 
D) Corporation

Question 16

The objective of most businesses is to maximize profits.

Accepted Answer

A) True 
 B)False

Question 17

Use the following information to determine Total Stockholders' Equity:

Accepted Answer

A) $52,000 
B) $50,000 
C) $35,000 
D) $22,000 
A) $52,000 
B) $50,000 
C) $35,000 
D) $22,000

Question 18

The portion of a corporation's net income retained in the business is called

Accepted Answer

A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings. 
A) income statement. 
B) balance sheet. 
C) statement of cash flows. 
D) retained earnings.

Question 19

__________ is the increase in assets from selling products and services.

Accepted Answer

A) Revenue 
B) Liabilities 
C) Products 
D) Stockholders' Equity 
A) Revenue 
B) Liabilities 
C) Products 
D) Stockholders' Equity

Question 20

Which of the following is an appropriate representation of the accounting equation?

Accepted Answer

A) Assets + liabilities = stockholders' equity 
B) Assets = liabilities + stockholders' equity 
C) Assets = liabilities 
D) Assets = liabilities + retained earnings 
A) Assets + liabilities = stockholders' equity 
B) Assets = liabilities + stockholders' equity 
C) Assets = liabilities 
D) Assets = liabilities + retained earnings

The debt created by a business when it makes a purchase on account is referred to as an

A summary of revenue and expenses for a specific period of time is a(n)

Which of the following are business stakeholders?

Browning,Inc.had revenues of $234,000,expenses of $175,000,and dividends of $30,000 during 2010.Which of the following statements is correct?

Creditors have preference to assets behind stockholders if a business fails.

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

A summary of changes in the earnings retained in the corporation for a specific period of time is a(n)

Merchandising businesses produce products rather than provide services to customers.

Accounting is thought to be the "language of business" because business information is communicated to stakeholders.

A business stakeholder has an interest in the economic performance of a business.

Which of the following is NOT an example of a capital market stakeholder?

Costs incurred in operating a business are also known as

Recording revenue when a sale is made most directly relates to which concept?

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Which of the items below is NOT a business organization form?

The objective of most businesses is to maximize profits.

Use the following information to determine Total Stockholders' Equity:

The portion of a corporation's net income retained in the business is called

__________ is the increase in assets from selling products and services.

Which of the following is an appropriate representation of the accounting equation?

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 1: The Role of Accounting in Business

The debt created by a business when it makes a purchase on account is referred to as an

A summary of revenue and expenses for a specific period of time is a(n)

Which of the following are business stakeholders?

Browning,Inc.had revenues of $234,000,expenses of $175,000,and dividends of $30,000 during 2010.Which of the following statements is correct?

Creditors have preference to assets behind stockholders if a business fails.

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

A summary of changes in the earnings retained in the corporation for a specific period of time is a(n)

Merchandising businesses produce products rather than provide services to customers.

Accounting is thought to be the "language of business" because business information is communicated to stakeholders.

A business stakeholder has an interest in the economic performance of a business.

Which of the following is NOT an example of a capital market stakeholder?

Costs incurred in operating a business are also known as

Recording revenue when a sale is made most directly relates to which concept?

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Which of the items below is NOT a business organization form?

The objective of most businesses is to maximize profits.

Use the following information to determine Total Stockholders' Equity:

The portion of a corporation's net income retained in the business is called

__________ is the increase in assets from selling products and services.

Which of the following is an appropriate representation of the accounting equation?

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters