Question 1

Owners' equity consists of two accounts,Amy Jones,Capital,and Mindy Lenz,Capital.This indicates the entity is a:

Accepted Answer

A) proprietorship. 
B) corporation. 
C) not-for-profit. 
D) partnership. 
A) proprietorship. 
B) corporation. 
C) not-for-profit. 
D) partnership.

Question 2

Which of the following have unlimited liability for a company's debts?

Accepted Answer

A) owners of a corporation 
B) members of a limited liability company 
C) limited partners in a limited liability partnership 
D) general partner in a limited liability partnership 
A) owners of a corporation 
B) members of a limited liability company 
C) limited partners in a limited liability partnership 
D) general partner in a limited liability partnership

Question 3

Complicating factors for a global business include:

Accepted Answer

A) what is legal in one country may not be legal in another country. 
B) what is ethical in one country may not be ethical in another country. 
C) a foreign government threatening to take over the company's plant. 
D) all of the above. 
A) what is legal in one country may not be legal in another country. 
B) what is ethical in one country may not be ethical in another country. 
C) a foreign government threatening to take over the company's plant. 
D) all of the above.

Question 4

The balance sheet includes the:

Accepted Answer

A) amount of net income or net loss. 
B) beginning balance in retained earnings. 
C) ending balance in retained earnings. 
D) amount of cash dividends paid to stockholders. 
A) amount of net income or net loss. 
B) beginning balance in retained earnings. 
C) ending balance in retained earnings. 
D) amount of cash dividends paid to stockholders.

Question 5

The conceptual foundation of accounting does NOT include:

Accepted Answer

A) accounting objectives. 
B) fundamental qualitative characteristics. 
C) enhancing qualitative characteristics. 
D) decision making. 
A) accounting objectives. 
B) fundamental qualitative characteristics. 
C) enhancing qualitative characteristics. 
D) decision making.

Question 6

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

Accepted Answer

A) All partners have limited liability for the debts of the partnership. 
B) All partners have limited liability for the acts of the other partners. 
C) The general partner has unlimited liability for the debts of the partnership. 
D) The limited partners have unlimited liability for the debts of the partnership. 
A) All partners have limited liability for the debts of the partnership. 
B) All partners have limited liability for the acts of the other partners. 
C) The general partner has unlimited liability for the debts of the partnership. 
D) The limited partners have unlimited liability for the debts of the partnership.

Question 7

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that can only be applied to CPAs.

Accepted Answer

A) True 
 B)False

Question 8

The accounting assumption that states that the business,rather than its owners,is the reporting unit is the:

Accepted Answer

A) entity assumption. 
B) going concern assumption. 
C) stable-monetary-unit assumption. 
D) historical cost assumption. 
A) entity assumption. 
B) going concern assumption. 
C) stable-monetary-unit assumption. 
D) historical cost assumption.

Question 9

Which is the CORRECT order for items to appear on the income statement?

Accepted Answer

A) revenues,operating expenses,net income 
B) cost of goods sold,revenues,net income 
C) revenues,net income,operating expenses 
D) interest expense,revenues,income from operations 
A) revenues,operating expenses,net income 
B) cost of goods sold,revenues,net income 
C) revenues,net income,operating expenses 
D) interest expense,revenues,income from operations

Question 10

The International Accounting Standards Board is responsible for establishing:

Accepted Answer

A) the code of professional conduct for accountants. 
B) an international Securities and Exchange Commission. 
C) U.S.Generally Accepted Accounting Principles. 
D) International Financial Reporting Standards. 
A) the code of professional conduct for accountants. 
B) an international Securities and Exchange Commission. 
C) U.S.Generally Accepted Accounting Principles. 
D) International Financial Reporting Standards.

Question 11

The Clarke Company had beginning retained earnings of $20,000 and net income of $5,000.Clarke declared and paid dividends of $1,000.Therefore,the ending retained earnings is $25,000.

Accepted Answer

A) True 
 B)False

Question 12

The two types of accounting are:

Accepted Answer

A) profit and nonprofit. 
B) financial and managerial. 
C) internal and external. 
D) bookkeeping and decision-oriented. 
A) profit and nonprofit. 
B) financial and managerial. 
C) internal and external. 
D) bookkeeping and decision-oriented.

Question 13

Historical cost:

Accepted Answer

A) is used in the U.S.to value all business assets. 
B) is equal to the amount of cash paid minus the dollar value of all noncash considerations also given in the exchange. 
C) is a verifiable measure that is relatively free from bias. 
D) is the amount that the business could sell an asset for. 
A) is used in the U.S.to value all business assets. 
B) is equal to the amount of cash paid minus the dollar value of all noncash considerations also given in the exchange. 
C) is a verifiable measure that is relatively free from bias. 
D) is the amount that the business could sell an asset for.

Question 14

Stockholders' equity is the stockholders' interest in the assets of the corporation.

Accepted Answer

A) True 
 B)False

Question 15

Which statement is FALSE?

Accepted Answer

A) International Financial Reporting Standards are used by most countries around the world. 
B) U.S.Generally Accepted Accounting Principles are used by many countries around the world. 
C) The most commonly used accounting practices are essentially the same under both U.S.Generally Accepted Accounting Principles and International Financial Reporting Standards. 
D) For many years,U.S.Generally Accepted Accounting Principles were considered to be the strongest single set of accounting standards in the world. 
A) International Financial Reporting Standards are used by most countries around the world. 
B) U.S.Generally Accepted Accounting Principles are used by many countries around the world. 
C) The most commonly used accounting practices are essentially the same under both U.S.Generally Accepted Accounting Principles and International Financial Reporting Standards. 
D) For many years,U.S.Generally Accepted Accounting Principles were considered to be the strongest single set of accounting standards in the world.

Question 16

An example of an operating expense is:

Accepted Answer

A) cost of products sold. 
B) sales returns. 
C) sales commissions paid to employees. 
D) interest expense. 
A) cost of products sold. 
B) sales returns. 
C) sales commissions paid to employees. 
D) interest expense.

Question 17

The word "payable" always signifies a liability.

Accepted Answer

A) True 
 B)False

Question 18

The fundamental qualitative characteristics of accounting information are relevance and reliability.

Accepted Answer

A) True 
 B)False

Question 19

Accounting can be defined as:

Accepted Answer

Accounting is the information

Question 20

The ending balance of cash and cash equivalents is found on the Statement of Cash Flows and the:

Accepted Answer

A) Statement of Retained Earnings. 
B) Balance Sheet. 
C) Income Statement. 
D) Statement of Stockholders' Equity. 
A) Statement of Retained Earnings. 
B) Balance Sheet. 
C) Income Statement. 
D) Statement of Stockholders' Equity.

Owners' equity consists of two accounts,Amy Jones,Capital,and Mindy Lenz,Capital.This indicates the entity is a:

Which of the following have unlimited liability for a company's debts?

Complicating factors for a global business include:

The balance sheet includes the:

The conceptual foundation of accounting does NOT include:

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

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that can only be applied to CPAs.

The accounting assumption that states that the business,rather than its owners,is the reporting unit is the:

Which is the CORRECT order for items to appear on the income statement?

The International Accounting Standards Board is responsible for establishing:

The Clarke Company had beginning retained earnings of $20,000 and net income of $5,000.Clarke declared and paid dividends of $1,000.Therefore,the ending retained earnings is $25,000.

The two types of accounting are:

Historical cost:

Stockholders' equity is the stockholders' interest in the assets of the corporation.

Which statement is FALSE?

An example of an operating expense is:

The word "payable" always signifies a liability.

The fundamental qualitative characteristics of accounting information are relevance and reliability.

Accounting can be defined as:

The ending balance of cash and cash equivalents is found on the Statement of Cash Flows and the:

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

Owners' equity consists of two accounts,Amy Jones,Capital,and Mindy Lenz,Capital.This indicates the entity is a:

Which of the following have unlimited liability for a company's debts?

Complicating factors for a global business include:

The balance sheet includes the:

The conceptual foundation of accounting does NOT include:

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

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that can only be applied to CPAs.

The accounting assumption that states that the business,rather than its owners,is the reporting unit is the:

Which is the CORRECT order for items to appear on the income statement?

The International Accounting Standards Board is responsible for establishing:

The Clarke Company had beginning retained earnings of $20,000 and net income of $5,000.Clarke declared and paid dividends of $1,000.Therefore,the ending retained earnings is $25,000.

The two types of accounting are:

Historical cost:

Stockholders' equity is the stockholders' interest in the assets of the corporation.

Which statement is FALSE?

An example of an operating expense is:

The word "payable" always signifies a liability.

The fundamental qualitative characteristics of accounting information are relevance and reliability.

Accounting can be defined as:

The ending balance of cash and cash equivalents is found on the Statement of Cash Flows and the:

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