Question 1

Define accounting and its role in business.

Accepted Answer

Accounting provides information for managers that can be used in operations of a business. Accounting provides information to external stakeholders to use in assessing the economic performance and condition of the business.

Question 2

A partnership is owned by two or more individuals.

Accepted Answer

A) True 
 B)False  True

Question 3

Given the following list of accounts, calculate Total Assets: $\begin{array}{ll}
5,000 & \text { Accounts Receivable } \
20,000 & \text { Cqpital Stock } \
19,300 & \text { Cash } \
15,400 & \text { Equipment } \
44,400 & \text { Fees Earned } \
18,200 & \text { Miscellaneous Expense } \
4,150 & \text { Rent Expense } \
6,550 & \text { RetainedEarnings } \
13,900 & \text { Wages Expense }
\end{array}$

Accepted Answer

A)  $84,100 
B)  $59,700 
C)  $46,250 
D)  $39,700 
A)  $84,100 
B)  $59,700 
C)  $46,250 
D)  $39,700 D

Question 4

A primary disadvantage of corporations is that the financial resources available to them are limited.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true in regards to a limited liability company?

Accepted Answer

A)  It is organized as a corporation. 
B)  It can elect to be taxed as a partnership. 
C)  It provides tax and liability advantages to the owners. 
D)  All are correct. 
A)  It is organized as a corporation. 
B)  It can elect to be taxed as a partnership. 
C)  It provides tax and liability advantages to the owners. 
D)  All are correct.

Question 6

Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?

Accepted Answer

A)  Adequate disclosure concept 
B)  Going concern concept 
C)  Objectivity concept 
D)  Business entity concept 
A)  Adequate disclosure concept 
B)  Going concern concept 
C)  Objectivity concept 
D)  Business entity concept

Question 7

All merchandising businesses are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 8

Who has the first preference to assets in case a business fails?

Accepted Answer

A)  Stockholders 
B)  Long-term creditors 
C)  Customers 
D)  Employees 
A)  Stockholders 
B)  Long-term creditors 
C)  Customers 
D)  Employees

Question 9

Heedy Company had the following account balances in 2011 and 2012, respectively. Assuming dividends of $20,000 were paid in 2012, how much was net income? $\begin{array}{|l|l|l|}
\hline 2011 & 2012 & \
\hline \$ 40,000 & \$ 42,000 & \text { Capital Stock } \
\hline 210,000 & x & \text { Retained Earnings } \
\hline \$ 250,000 & \$ 314,000 & \text { Total Stockholders' 'Equity } \
\hline & & \
\hline
\end{array}$

Accepted Answer

A)  $62,000 
B)  $82,000 
C)  $272,000 
D)  $252,000 
A)  $62,000 
B)  $82,000 
C)  $272,000 
D)  $252,000

Question 10

How do businesses make money? What strategies can they use to gain a competitive advantage?

Accepted Answer

Businesses have the objective of making

Question 11

Governments have an interest in the economic performance of business because of:

Accepted Answer

A)  tax collections. 
B)  community involvement from the business. 
C)  business incentives. 
D)  all of these. 
A)  tax collections. 
B)  community involvement from the business. 
C)  business incentives. 
D)  all of these.

Question 12

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business.
 $\begin{array}{|l|l|}
\hline \text { Dilhrds } & \text { A. } \
\hline \text { Time Warner Cable } & \text { B. } \
\hline \text { Kohl's } & \text { C. } \
\hline \text { Ford Motor Co. } & \text { D. } \
\hline \text { Applebee's } & \text { E. } \
\hline \text { Sylvania } & \text { F. } \
\hline \text { Best Buy } & \text { G. } \
\hline \text { GAP } & \text { H. } \
\hline \text { H \&R Bbck } & \text { I. } \
\hline & \
\hline
\end{array}$

Accepted Answer

None

Question 13

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 14

The purchase of factory equipment would be an example of which type of business activity?

Accepted Answer

A)  Financing 
B)  Investing 
C)  Operating 
D)  All of these 
A)  Financing 
B)  Investing 
C)  Operating 
D)  All of these

Question 15

Manufacturing businesses change basic inputs into products that are sold to individual customers.

Accepted Answer

A) True 
 B)False

Question 16

When a product is sold, the cost of the product sold is often called:

Accepted Answer

A)  cost of goods sold. 
B)  selling cost. 
C)  period cost. 
D)  retained cost. 
A)  cost of goods sold. 
B)  selling cost. 
C)  period cost. 
D)  retained cost.

Question 17

Name the three different types of businesses that operate for profit and their respective characteristics.

Accepted Answer

(1)Manufacturing: The se businesses chan

Question 18

Which of the following types of business is popular for its ease and low cost of organizing?

Accepted Answer

A)  Not-for-profit 
B)  Corporation 
C)  Partnership 
D)  Proprietorship 
A)  Not-for-profit 
B)  Corporation 
C)  Partnership 
D)  Proprietorship

Question 19

Capital market stakeholders have an interest in the company because:

Accepted Answer

A)  they provide incentives for the company to market their products. 
B)  they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits. 
C)  they help market their products to customers or find vendors to supply needed inputs. 
D)  they provide major financing for the business. 
A)  they provide incentives for the company to market their products. 
B)  they are part of the Marketing Department that is responsible for promoting the products or services to increase the business profits. 
C)  they help market their products to customers or find vendors to supply needed inputs. 
D)  they provide major financing for the business.

Question 20

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a:

Accepted Answer

A)  proprietorship. 
B)  corporation. 
C)  partnership. 
D)  governmental unit. 
A)  proprietorship. 
B)  corporation. 
C)  partnership. 
D)  governmental unit.

Define accounting and its role in business.

A partnership is owned by two or more individuals.

Given the following list of accounts, calculate Total Assets: 5,000 Accounts Receivable 20,000 Cqpital Stock 19,300 Cash 15,400 Equipment 44,400 Fees Earned 18,200 Miscellaneous Expense 4,150 Rent Expense 6,550 RetainedEarnings 13,900 Wages Expense

A primary disadvantage of corporations is that the financial resources available to them are limited.

Which of the following is true in regards to a limited liability company?

Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?

All merchandising businesses are organized as corporations.

Who has the first preference to assets in case a business fails?

Heedy Company had the following account balances in 2011 and 2012, respectively. Assuming dividends of $20,000 were paid in 2012, how much was net income? 2011 2012 \ 40,000 \ 42,000 Capital Stock 210,000 x Retained Earnings \ 250,000 \ 314,000 Total Stockholders' 'Equity

How do businesses make money? What strategies can they use to gain a competitive advantage?

Governments have an interest in the economic performance of business because of:

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business. Dilhrds A. Time Warner Cable B. Kohl's C. Ford Motor Co. D. Applebee's E. Sylvania F. Best Buy G. GAP H. H \&R Bbck I.

Which of the following are business stakeholders?

The purchase of factory equipment would be an example of which type of business activity?

Manufacturing businesses change basic inputs into products that are sold to individual customers.

When a product is sold, the cost of the product sold is often called:

Name the three different types of businesses that operate for profit and their respective characteristics.

Which of the following types of business is popular for its ease and low cost of organizing?

Capital market stakeholders have an interest in the company because:

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a:

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

Exam 1: The Role of Accounting in Business

Define accounting and its role in business.

A partnership is owned by two or more individuals.

Given the following list of accounts, calculate Total Assets: 5,000 Accounts Receivable 20,000 Cqpital Stock 19,300 Cash 15,400 Equipment 44,400 Fees Earned 18,200 Miscellaneous Expense 4,150 Rent Expense 6,550 RetainedEarnings 13,900 Wages Expense

A primary disadvantage of corporations is that the financial resources available to them are limited.

Which of the following is true in regards to a limited liability company?

Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?

All merchandising businesses are organized as corporations.

Who has the first preference to assets in case a business fails?

Heedy Company had the following account balances in 2011 and 2012, respectively. Assuming dividends of $20,000 were paid in 2012, how much was net income? 2011 2012 \ 40,000 \ 42,000 Capital Stock 210,000 x Retained Earnings \ 250,000 \ 314,000 Total Stockholders' 'Equity

How do businesses make money? What strategies can they use to gain a competitive advantage?

Governments have an interest in the economic performance of business because of:

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business. Dilhrds A. Time Warner Cable B. Kohl's C. Ford Motor Co. D. Applebee's E. Sylvania F. Best Buy G. GAP H. H \&R Bbck I.

Which of the following are business stakeholders?

The purchase of factory equipment would be an example of which type of business activity?

Manufacturing businesses change basic inputs into products that are sold to individual customers.

When a product is sold, the cost of the product sold is often called:

Name the three different types of businesses that operate for profit and their respective characteristics.

Which of the following types of business is popular for its ease and low cost of organizing?

Capital market stakeholders have an interest in the company because:

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a:

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