Question 1

Revenues are:

Accepted Answer

A) decreases in assets resulting from delivering goods or services to customers. 
B) increases in liabilities resulting from delivering goods or services to customers. 
C) increases in retained earnings resulting from delivering goods or services to customers. 
D) decreases in retained earnings resulting from delivering goods or services to customers. 
A) decreases in assets resulting from delivering goods or services to customers. 
B) increases in liabilities resulting from delivering goods or services to customers. 
C) increases in retained earnings resulting from delivering goods or services to customers. 
D) decreases in retained earnings resulting from delivering goods or services to customers.

Question 2

A disadvantage of general partnerships is:

Accepted Answer

A) double taxation of distributed profits. 
B) the partnership's assets are commingled with each partner's personal assets. 
C) only individuals can be partners. 
D) each partner may conduct business in the name of the entity and make agreements that legally bind all partners. 
A) double taxation of distributed profits. 
B) the partnership's assets are commingled with each partner's personal assets. 
C) only individuals can be partners. 
D) each partner may conduct business in the name of the entity and make agreements that legally bind all partners.

Question 3

The owners' equity of a business is equal to:

Accepted Answer

A) revenues minus expenses. 
B) assets minus liabilities. 
C) assets plus liabilities. 
D) paid-in capital plus assets. 
A) revenues minus expenses. 
B) assets minus liabilities. 
C) assets plus liabilities. 
D) paid-in capital plus assets.

Question 4

The net loss for a company is reported on the:

Accepted Answer

A) Statement of Cash Flows. 
B) Statement of Retained Earnings. 
C) Income Statement. 
D) all of the above. 
A) Statement of Cash Flows. 
B) Statement of Retained Earnings. 
C) Income Statement. 
D) all of the above.

Question 5

Which statement(s)reports the revenues,gains,expenses,and losses of an entity?

Accepted Answer

A) Balance Sheet 
B) Statement of Cash Flows and Income Statement 
C) Statement of Retained Earnings and Statement of Operations 
D) Income Statement 
A) Balance Sheet 
B) Statement of Cash Flows and Income Statement 
C) Statement of Retained Earnings and Statement of Operations 
D) Income Statement

Question 6

The ending balance of Cash and Cash Equivalents is reported on the:

Accepted Answer

A) Balance Sheet. 
B) Statement of Retained Earnings. 
C) Statement of Cash Flows. 
D) A and C. 
A) Balance Sheet. 
B) Statement of Retained Earnings. 
C) Statement of Cash Flows. 
D) A and C.

Question 7

The statement of retained earnings shows both the beginning and ending balances of retained earnings.

Accepted Answer

A) True 
 B)False

Question 8

The economic factor in decision making requires the decision maker to:

Accepted Answer

A) maximize the economic benefit to the decision maker. 
B) maximize the economic benefit to the corporation or nonprofit entity. 
C) maximize the corporation's profits. 
D) minimize the corporation's costs. 
A) maximize the economic benefit to the decision maker. 
B) maximize the economic benefit to the corporation or nonprofit entity. 
C) maximize the corporation's profits. 
D) minimize the corporation's costs.

Question 9

Michael Company reports Total Assets of $254,000,Common Stock of $50,000,and Retained Earnings of $94,000.What are total liabilities at the end of the first year?

Accepted Answer

A) $110,000 
B) $210,000 
C) $160,000 
D) $204,000 
A) $110,000 
B) $210,000 
C) $160,000 
D) $204,000

Question 10

A company reports the purchase of equipment for $1,000,000 in cash.On a statement of cash flows,this is a(n)example of:

Accepted Answer

A) cash outflow from financing activity. 
B) cash outflow from operating activity. 
C) cash outflow from investing activity. 
D) noncash activity. 
A) cash outflow from financing activity. 
B) cash outflow from operating activity. 
C) cash outflow from investing activity. 
D) noncash activity.

Question 11

Connar Company reports the following accounts and balances at year end:   What is the total amount of current assets at the end of the year?

Accepted Answer

A) $83,000 
B) $111,000 
C) $129,000 
D) $141,000 
A) $83,000 
B) $111,000 
C) $129,000 
D) $141,000

Question 12

On a statement of cash flows,cash receipts are reported as:

Accepted Answer

A) positive amounts. 
B) negative amounts. 
C) in parenthesis. 
D) operating activities only. 
A) positive amounts. 
B) negative amounts. 
C) in parenthesis. 
D) operating activities only.

Question 13

Which of the following statements is TRUE for a proprietorship?

Accepted Answer

A) Legally,a proprietorship is separate from the proprietor. 
B) For accounting purposes,a proprietorship is separate from the proprietor. 
C) The business records include the proprietor's personal finances. 
D) All statements are correct. 
A) Legally,a proprietorship is separate from the proprietor. 
B) For accounting purposes,a proprietorship is separate from the proprietor. 
C) The business records include the proprietor's personal finances. 
D) All statements are correct.

Question 14

Accounting is moving in the direction of reporting more and more assets and liabilities at their fair values.

Accepted Answer

A) True 
 B)False

Question 15

The ________ factor recognizes that while certain actions might be both economically profitable and legal,they still may not be right.

Accepted Answer

A) economic 
B) legal 
C) profitability 
D) ethical 
A) economic 
B) legal 
C) profitability 
D) ethical

Question 16

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that provide guidance to all of its members in the performance of their professional duties.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is TRUE for a limited liability partnership?

Accepted Answer

A) The partnership pays no federal income taxes. 
B) Only the limited partners pay federal income taxes on their shares of the partnership's profits. 
C) Only the general partner pays federal income taxes on his or her share of the partnership's profits. 
D) Only the members pay federal income taxes on their shares of the partnership's profits. 
A) The partnership pays no federal income taxes. 
B) Only the limited partners pay federal income taxes on their shares of the partnership's profits. 
C) Only the general partner pays federal income taxes on his or her share of the partnership's profits. 
D) Only the members pay federal income taxes on their shares of the partnership's profits.

Question 18

The calculation of ending retained earnings considers the beginning retained earnings,current period net income or net loss,and stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 19

Owners' equity is called stockholders' equity for a corporation.

Accepted Answer

A) True 
 B)False

Question 20

At the end of the current fiscal year,Smith Corporation had the following balances:
   The beginning balance of Retained Earnings was $15,000.
a.What is the ending balance of Retained Earnings? Support your answer with well labeled computations.
b.Prepare an accounting equation that shows assets,liabilities,and components of stockholders' equity.

Accepted Answer

a.Computation of the ending balance of R

Revenues are:

A disadvantage of general partnerships is:

The owners' equity of a business is equal to:

The net loss for a company is reported on the:

Which statement(s)reports the revenues,gains,expenses,and losses of an entity?

The ending balance of Cash and Cash Equivalents is reported on the:

The statement of retained earnings shows both the beginning and ending balances of retained earnings.

The economic factor in decision making requires the decision maker to:

Michael Company reports Total Assets of $254,000,Common Stock of $50,000,and Retained Earnings of $94,000.What are total liabilities at the end of the first year?

A company reports the purchase of equipment for $1,000,000 in cash.On a statement of cash flows,this is a(n)example of:

Connar Company reports the following accounts and balances at year end: What is the total amount of current assets at the end of the year?

On a statement of cash flows,cash receipts are reported as:

Which of the following statements is TRUE for a proprietorship?

Accounting is moving in the direction of reporting more and more assets and liabilities at their fair values.

The ________ factor recognizes that while certain actions might be both economically profitable and legal,they still may not be right.

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that provide guidance to all of its members in the performance of their professional duties.

Which of the following statements is TRUE for a limited liability partnership?

The calculation of ending retained earnings considers the beginning retained earnings,current period net income or net loss,and stockholders' equity.

Owners' equity is called stockholders' equity for a corporation.

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 1: The Financial Statements

Revenues are:

A disadvantage of general partnerships is:

The owners' equity of a business is equal to:

The net loss for a company is reported on the:

Which statement(s)reports the revenues,gains,expenses,and losses of an entity?

The ending balance of Cash and Cash Equivalents is reported on the:

The statement of retained earnings shows both the beginning and ending balances of retained earnings.

The economic factor in decision making requires the decision maker to:

Michael Company reports Total Assets of $254,000,Common Stock of $50,000,and Retained Earnings of $94,000.What are total liabilities at the end of the first year?

A company reports the purchase of equipment for $1,000,000 in cash.On a statement of cash flows,this is a(n)example of:

Connar Company reports the following accounts and balances at year end: What is the total amount of current assets at the end of the year?

On a statement of cash flows,cash receipts are reported as:

Which of the following statements is TRUE for a proprietorship?

Accounting is moving in the direction of reporting more and more assets and liabilities at their fair values.

The ________ factor recognizes that while certain actions might be both economically profitable and legal,they still may not be right.

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that provide guidance to all of its members in the performance of their professional duties.

Which of the following statements is TRUE for a limited liability partnership?

The calculation of ending retained earnings considers the beginning retained earnings,current period net income or net loss,and stockholders' equity.

Owners' equity is called stockholders' equity for a corporation.

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters