Question 1

An audit is an examination of a company's

Accepted Answer

A) financial statements. 
B) accounting systems. 
C) accounting controls. 
D) all of these. 
A) financial statements. 
B) accounting systems. 
C) accounting controls. 
D) all of these.

Question 2

One way of stating the accounting equation is: Assets - Liabilities = Owner's Equity.

Accepted Answer

A) True 
 B)False

Question 3

The authoritative body currently responsible for establishing accounting practice is the

Accepted Answer

A) Internal Revenue Service. 
B) Financial Accounting Standards Board. 
C) American Institute of Certified Public Accountants. 
D) Federal Reserve Board. 
A) Internal Revenue Service. 
B) Financial Accounting Standards Board. 
C) American Institute of Certified Public Accountants. 
D) Federal Reserve Board.

Question 4

The statement of cash flows would disclose the withdrawal of cash by the owner

Accepted Answer

A) in the financing activities section. 
B) in the investing activities section. 
C) in the operating activities section. 
D) nowhere on the statement. 
A) in the financing activities section. 
B) in the investing activities section. 
C) in the operating activities section. 
D) nowhere on the statement.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A corporation is an economic unit that is legally separate from its owners.

Accepted Answer

A) True 
 B)False

Question 7

Companies listed on the stock exchanges must file financial statements with the

Accepted Answer

A) Financial Accounting Standards Board. 
B) American Institute of Certified Public Accountants. 
C) Securities and Exchange Commission. 
D) Internal Revenue Service. 
A) Financial Accounting Standards Board. 
B) American Institute of Certified Public Accountants. 
C) Securities and Exchange Commission. 
D) Internal Revenue Service.

Question 8

Which of the following is an example of an operating activity?

Accepted Answer

A) Obtaining capital from owners 
B) Selling goods and services to customers 
C) Purchasing equipment 
D) Selling land 
A) Obtaining capital from owners 
B) Selling goods and services to customers 
C) Purchasing equipment 
D) Selling land

Question 9

An example of a monetary asset is

Accepted Answer

A) Accounts Receivable. 
B) Copyright. 
C) Retained Earnings. 
D) Land. 
A) Accounts Receivable. 
B) Copyright. 
C) Retained Earnings. 
D) Land.

Question 10

The evaluation and interpretation of financial statements and related performance measures is called technical analysis.

Accepted Answer

A) True 
 B)False

Question 11

Paying taxes to the government is an example of an operating activity.

Accepted Answer

A) True 
 B)False

Question 12

Most business enterprises in the United States are

Accepted Answer

A) government units. 
B) partnerships. 
C) sole proprietorships. 
D) corporations. 
A) government units. 
B) partnerships. 
C) sole proprietorships. 
D) corporations.

Question 13

The topic of foreign exchange rates relates most closely to the concept of

Accepted Answer

A) separate entity. 
B) money measure. 
C) nonexchange transactions. 
D) business transactions. 
A) separate entity. 
B) money measure. 
C) nonexchange transactions. 
D) business transactions.

Question 14

Financing a business means obtaining funds so the business can begin and continue operating.

Accepted Answer

A) True 
 B)False

Question 15

The expenses incurred by an accounting firm would appear on its balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

The liability of corporate stockholders is limited to their percentage share of ownership.

Accepted Answer

A) True 
 B)False

Question 17

The Public Company Accounting Oversight Board was created by the

Accepted Answer

A) Sarbanes-Oxley Act. 
B) GASB. 
C) IRS. 
D) IASB. 
A) Sarbanes-Oxley Act. 
B) GASB. 
C) IRS. 
D) IASB.

Question 18

Both public accountants and management accountants are required to adhere to a code of professional conduct.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Sinoyianis Realty Company had the following balance sheet accounts and balances:  
-What is the total of liabilities and owner's equity?

Accepted Answer

A) $26,000 
B) $32,000 
C) $36,000 
D) $52,000 
A) $26,000 
B) $32,000 
C) $36,000 
D) $52,000

Exam 1: Accounting Principles and the Financial Statements

An audit is an examination of a company's

One way of stating the accounting equation is: Assets - Liabilities = Owner's Equity.

The authoritative body currently responsible for establishing accounting practice is the

The statement of cash flows would disclose the withdrawal of cash by the owner

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

A corporation is an economic unit that is legally separate from its owners.

Companies listed on the stock exchanges must file financial statements with the

Which of the following is an example of an operating activity?

An example of a monetary asset is

The evaluation and interpretation of financial statements and related performance measures is called technical analysis.

Paying taxes to the government is an example of an operating activity.

Most business enterprises in the United States are

The topic of foreign exchange rates relates most closely to the concept of

Financing a business means obtaining funds so the business can begin and continue operating.

The expenses incurred by an accounting firm would appear on its balance sheet.

The liability of corporate stockholders is limited to their percentage share of ownership.

The Public Company Accounting Oversight Board was created by the

Both public accountants and management accountants are required to adhere to a code of professional conduct.

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

Sinoyianis Realty Company had the following balance sheet accounts and balances: -What is the total of liabilities and owner's equity?

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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