Question 1

The principal financial statements of a proprietorship are the income statement, statement of owner's equity, and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

Accepted Answer

A)  Indefinitely 
B)  One year 
C)  Two years 
D)  There is no such prohibition. 
A)  Indefinitely 
B)  One year 
C)  Two years 
D)  There is no such prohibition.

Question 3

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Accepted Answer

A)  prior period statement 
B)  statement of owner's equity 
C)  income statement 
D)  balance sheet 
A)  prior period statement 
B)  statement of owner's equity 
C)  income statement 
D)  balance sheet

Question 4

Revenue is earned only when money is received.

Accepted Answer

A) True 
 B)False

Question 5

Proper ethical conduct implies that you only consider what's in your best interest.

Accepted Answer

A) True 
 B)False

Question 6

Krammer Company has liabilities equal to one fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?

Accepted Answer

Assets = Liabilities

Question 7

Which of the items below is not a business entity?

Accepted Answer

A)  entrepreneurship 
B)  proprietorship 
C)  partnership 
D)  corporation 
A)  entrepreneurship 
B)  proprietorship 
C)  partnership 
D)  corporation

Question 8

The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.

Accepted Answer

Total assets decrease $20,000 (Cash incr

Question 9

Managerial accountants would be responsible for providing the following information:

Accepted Answer

A)  Tax reports to government agencies. 
B)  Profit reports to owners and management. 
C)  Expansion of a product line report to management. 
D)  Consumer reports to customers. 
A)  Tax reports to government agencies. 
B)  Profit reports to owners and management. 
C)  Expansion of a product line report to management. 
D)  Consumer reports to customers.

Question 10

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?

Accepted Answer

Increase Assets (Sup

Question 11

Use the accounting equation to answer each of the independent questions below:
a. At the beginning of the year Norton Company assets were $75,000 and its owner's equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the owner's equity at the end of the year?
b. At the beginning of the year Turpin Industries had liabilities of $44,000 and owner's equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the owner's equity at the end of the year?

Accepted Answer

a. $75,000 - $38,000 = $37,000 beginning

Question 12

Which of the following is a manufacturing business?

Accepted Answer

A)  Amazon.com. 
B)  Wal-Mart. 
C)  Ford Motors. 
D)  Delta Airlines 
A)  Amazon.com. 
B)  Wal-Mart. 
C)  Ford Motors. 
D)  Delta Airlines

Question 13

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Accepted Answer

Accounting reports w

Question 14

Within the United States, the dominant body in the primary development of accounting principles is the

Accepted Answer

A)  American Institute of Certified Public Accountants (AICP
A)  
B)  American Accounting Association (AA
A)  
C)  Financial Accounting Standards Board (FAS
B)  
D)  Institute of Management Accountants (IM
A)  
A)  American Institute of Certified Public Accountants (AICP
A)  
B)  American Accounting Association (AA
A)  
C)  Financial Accounting Standards Board (FAS
B)  
D)  Institute of Management Accountants (IM
A)

Question 15

Net income and net profit do mean the same thing.

Accepted Answer

A) True 
 B)False

Question 16

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Liabilities are reported on the

Accepted Answer

A)  income statement 
B)  statement of owner's equity 
C)  statement of cash flows 
D)  balance sheet 
A)  income statement 
B)  statement of owner's equity 
C)  statement of cash flows 
D)  balance sheet

Question 18

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Accepted Answer

A) True 
 B)False

Question 19

Transactions affecting owner's equity include

Accepted Answer

A)  owner's investments and payment of liabilities 
B)  owner's investments and owner's withdrawals, revenues, and expenses 
C)  owner's investments, revenues, expenses, and collection of accounts receivable 
D)  owner's withdrawals, revenues, expenses, and purchase of supplies on account 
A)  owner's investments and payment of liabilities 
B)  owner's investments and owner's withdrawals, revenues, and expenses 
C)  owner's investments, revenues, expenses, and collection of accounts receivable 
D)  owner's withdrawals, revenues, expenses, and purchase of supplies on account

Question 20

The accounting equation may be expressed as

Accepted Answer

A)  Assets = Equities - Liabilities 
B)  Assets + Liabilities = Owner's Equity 
C)  Assets = Revenues less Liabilities 
D)  Assets - Liabilities = Owner's Equity 
A)  Assets = Equities - Liabilities 
B)  Assets + Liabilities = Owner's Equity 
C)  Assets = Revenues less Liabilities 
D)  Assets - Liabilities = Owner's Equity

The principal financial statements of a proprietorship are the income statement, statement of owner's equity, and the balance sheet.

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Revenue is earned only when money is received.

Proper ethical conduct implies that you only consider what's in your best interest.

Krammer Company has liabilities equal to one fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?

Which of the items below is not a business entity?

Managerial accountants would be responsible for providing the following information:

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?

Which of the following is a manufacturing business?

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Within the United States, the dominant body in the primary development of accounting principles is the

Net income and net profit do mean the same thing.

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Liabilities are reported on the

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Transactions affecting owner's equity include

The accounting equation may be expressed as

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Introduction to Accounting and Business

The principal financial statements of a proprietorship are the income statement, statement of owner's equity, and the balance sheet.

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Revenue is earned only when money is received.

Proper ethical conduct implies that you only consider what's in your best interest.

Krammer Company has liabilities equal to one fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?

Which of the items below is not a business entity?

Managerial accountants would be responsible for providing the following information:

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?

Which of the following is a manufacturing business?

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Within the United States, the dominant body in the primary development of accounting principles is the

Net income and net profit do mean the same thing.

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Liabilities are reported on the

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Transactions affecting owner's equity include

The accounting equation may be expressed as

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters