Question 1

The basic type of stock issued to owners is called common stock.

Accepted Answer

A) True 
 B)False

Question 2

Use the following information to determine Total Stockholders' Equity: $$\begin{array} { l l } 
\text { \$ 50,000 } & \text { Tatal Ansetu } \
15,000 & \text { Total Liabilities } \
\text { x } & \text { Tatal Stachholders Ecruity } \
13,000 & \text { Total Retained Earrings }
\end{array}$$

Accepted Answer

A)  $52,000 
B)  $50,000 
C)  $35,000 
D)  $22,000 
A)  $52,000 
B)  $50,000 
C)  $35,000 
D)  $22,000

Question 3

Browning, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $30,000 during 2012. Which of the following statements is correct?

Accepted Answer

A)  Net income for 2012 totaled $29,000. 
B)  Net income for 2012 totaled $59,000. 
C)  Total retained earnings increased by $59,000 during 2012. 
D)  Total retained earnings decreased by $30,000 during 2012. 
A)  Net income for 2012 totaled $29,000. 
B)  Net income for 2012 totaled $59,000. 
C)  Total retained earnings increased by $59,000 during 2012. 
D)  Total retained earnings decreased by $30,000 during 2012.

Question 4

Cash collected from sales during the normal course of business would be an example of which type of business activity?

Accepted Answer

A)  Operating 
B)  Investing 
C)  Financing 
D)  None of these 
A)  Operating 
B)  Investing 
C)  Financing 
D)  None of these

Question 5

Costs incurred in operating a business are also known as:

Accepted Answer

A)  revenues. 
B)  expenses. 
C)  liabilities. 
D)  dividends. 
A)  revenues. 
B)  expenses. 
C)  liabilities. 
D)  dividends.

Question 6

A list of assets, liabilities, and owners' equity as of a specific date is a(n):

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  statement of cash flows. 
D)  retained earnings statement. 
A)  income statement. 
B)  balance sheet. 
C)  statement of cash flows. 
D)  retained earnings statement.

Question 7

Rights to payments from customers are:

Accepted Answer

A)  liabilities. 
B)  prepaid expenses. 
C)  accounts receivable. 
D)  accounts payable. 
A)  liabilities. 
B)  prepaid expenses. 
C)  accounts receivable. 
D)  accounts payable.

Question 8

If there was no beginning retained earnings, net income of $20,000, and ending retained earnings of $6,000, how much were dividends?

Accepted Answer

A)  $10,000 
B)  $4,000 
C)  $6,000 
D)  $14,000 
A)  $10,000 
B)  $4,000 
C)  $6,000 
D)  $14,000

Question 9

On May 31, 2012, Deana's Services Company had account balances as follows:
 $\begin{array}{ll}
\$ 9,900 & \text { Accountspayable } \
26,950 & \text { Accounts receivable } \
11,390 & \text { Cash } \
70,800 & \text { Fees earned } \
1,475 & \text { Insurance expense } \
74,400 & \text { Land } \
1,510 & \text { Miscellaneous expense } \
2,000 & \text { Prepaid insurance } \
8,000 & \text { Rent expense } \
35,300 & \text { Salary expense } \
15,100 & \text { Dividends } \
950 & \text { Supplies } \
825 & \text { Supplies expense } \
3,800 & \text { Utilities expense } \
81,000 & \text { Capital stock } \
20,000 & \text { Retained earrings(beginning balance on May 1, 2012) }
\end{array}$
 Present, in good form, (a) an income statement for May, (b) a statement of retained earnings for May, and (c) a balance sheet as of May 31.

Accepted Answer

None

Question 10

Which of the following businesses use a premium-price emphasis?

Accepted Answer

A)  Value City Furniture selling furniture at affordable prices 
B)  Tommy Hilfiger selling products that have a unique image 
C)  Wal-Mart reselling standardized products 
D)  Southwest Airlines providing standardized services 
A)  Value City Furniture selling furniture at affordable prices 
B)  Tommy Hilfiger selling products that have a unique image 
C)  Wal-Mart reselling standardized products 
D)  Southwest Airlines providing standardized services

Question 11

A corporation is a business that is legally separate and distinct from its owners.

Accepted Answer

A) True 
 B)False

Question 12

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

Accepted Answer

A)  financing activities section. 
B)  investing activities section. 
C)  operating activities section. 
D)  supplemental statement. 
A)  financing activities section. 
B)  investing activities section. 
C)  operating activities section. 
D)  supplemental statement.

Question 13

During 2012, Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Smith's net income or net loss for 2012.

Accepted Answer

A)  Net loss of $15,000 
B)  Net loss of $20,000 
C)  Net loss of $25,000 
D)  Net income of $15,000 
A)  Net loss of $15,000 
B)  Net loss of $20,000 
C)  Net loss of $25,000 
D)  Net income of $15,000

Question 14

________ is an example of internal stakeholders.

Accepted Answer

A)  Managers 
B)  Creditors 
C)  Stockholders 
D)  Suppliers 
A)  Managers 
B)  Creditors 
C)  Stockholders 
D)  Suppliers

Question 15

The "rules" of accounting are called:

Accepted Answer

A)  income tax regulations. 
B)  SEC regulations. 
C)  Internet rules. 
D)  Generally Accepted Accounting Principles. 
A)  income tax regulations. 
B)  SEC regulations. 
C)  Internet rules. 
D)  Generally Accepted Accounting Principles.

Question 16

The portion of a corporation's net income retained in the business is called:

Accepted Answer

A)  interest earnings. 
B)  dividends. 
C)  tax expense. 
D)  retained earnings. 
A)  interest earnings. 
B)  dividends. 
C)  tax expense. 
D)  retained earnings.

Question 17

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 an year, is called a(n):

Accepted Answer

A)  prior period statement. 
B)  statement of retained earnings. 
C)  income statement. 
D)  balance sheet. 
A)  prior period statement. 
B)  statement of retained earnings. 
C)  income statement. 
D)  balance sheet.

Question 18

Classify the following as an asset, liability, revenue, or expense.
 (1) Uneaned revenue
(2) Office equipment 
(3) Wages payable
(4) Salary expense 
(5) Dividends payable 
 (6) Art fees eamed.
 (7) Prepaid rent
 (8) Accountsreceivable
 (9) Income tax expense
 (10) Office supplies

Accepted Answer

None

Question 19

Recording revenue when a sale is made most directly relates to which concept?

Accepted Answer

A)  Going concern concept 
B)  Periodicity concept 
C)  Matching concept 
D)  Adequate disclosure concept 
A)  Going concern concept 
B)  Periodicity concept 
C)  Matching concept 
D)  Adequate disclosure concept

Question 20

The debt created by a business when it makes a purchase on account is referred to as an:

Accepted Answer

A)  account payable. 
B)  account receivable. 
C)  asset. 
D)  expense payable. 
A)  account payable. 
B)  account receivable. 
C)  asset. 
D)  expense payable.

The basic type of stock issued to owners is called common stock.

Use the following information to determine Total Stockholders' Equity: \ 50,000 Tatal Ansetu 15,000 Total Liabilities x Tatal Stachholders Ecruity 13,000 Total Retained Earrings

Browning, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $30,000 during 2012. Which of the following statements is correct?

Cash collected from sales during the normal course of business would be an example of which type of business activity?

Costs incurred in operating a business are also known as:

A list of assets, liabilities, and owners' equity as of a specific date is a(n):

Rights to payments from customers are:

If there was no beginning retained earnings, net income of $20,000, and ending retained earnings of $6,000, how much were dividends?

Which of the following businesses use a premium-price emphasis?

A corporation is a business that is legally separate and distinct from its owners.

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

During 2012, Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Smith's net income or net loss for 2012.

________ is an example of internal stakeholders.

The "rules" of accounting are called:

The portion of a corporation's net income retained in the business is called:

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 an year, is called a(n):

Classify the following as an asset, liability, revenue, or expense. (1) Uneaned revenue (2) Office equipment (3) Wages payable (4) Salary expense (5) Dividends payable (6) Art fees eamed. (7) Prepaid rent (8) Accountsreceivable (9) Income tax expense (10) Office supplies

Recording revenue when a sale is made most directly relates to which concept?

The debt created by a business when it makes a purchase on account is referred to as an:

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

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Exam 1: The Role of Accounting in Business

The basic type of stock issued to owners is called common stock.

Use the following information to determine Total Stockholders' Equity: \ 50,000 Tatal Ansetu 15,000 Total Liabilities x Tatal Stachholders Ecruity 13,000 Total Retained Earrings

Browning, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $30,000 during 2012. Which of the following statements is correct?

Cash collected from sales during the normal course of business would be an example of which type of business activity?

Costs incurred in operating a business are also known as:

A list of assets, liabilities, and owners' equity as of a specific date is a(n):

Rights to payments from customers are:

If there was no beginning retained earnings, net income of $20,000, and ending retained earnings of $6,000, how much were dividends?

Which of the following businesses use a premium-price emphasis?

A corporation is a business that is legally separate and distinct from its owners.

Cash investments made by the stockholders of the business are reported on the statement of cash flows in the:

During 2012, Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Smith's net income or net loss for 2012.

________ is an example of internal stakeholders.

The "rules" of accounting are called:

The portion of a corporation's net income retained in the business is called:

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 an year, is called a(n):

Classify the following as an asset, liability, revenue, or expense. (1) Uneaned revenue (2) Office equipment (3) Wages payable (4) Salary expense (5) Dividends payable (6) Art fees eamed. (7) Prepaid rent (8) Accountsreceivable (9) Income tax expense (10) Office supplies

Recording revenue when a sale is made most directly relates to which concept?

The debt created by a business when it makes a purchase on account is referred to as an:

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