Question 1

What is meant by generally accepted accounting principles?

Accepted Answer

Generally accepted accounting principles (GAAP)are a set of guidelines that are based on a conceptual framework.They represent the various rules,practices,and other procedures used as a basis for accounting principles.GAAP was created in response to the need for some form of regulation over the preparation of financial statements.

Question 2

Leary Corporation's end-of-year balance sheet consisted of the following amounts:   What is Leary's retained earnings balance at the end of the current year?

Accepted Answer

A) $10,000 
B) $3,000 
C) $66,000 
D) $110,000 
A) $10,000 
B) $3,000 
C) $66,000 
D) $110,000 B

Question 3

The going concern assumption infers that a company will continue to operate indefinitely.

Accepted Answer

A) True 
 B)False  True

Question 4

How is the balance sheet linked to the other financial statements?

Accepted Answer

A) The amount of retained earnings reported on the balance sheet is equal to net income. 
B) Retained earnings is added to total assets and reported on the balance sheet. 
C) Net income increases retained earnings on the statement of retained earnings,which ultimately increases retained earnings on the balance sheet. 
D) There is no link between the balance sheet and other statements,as each contains different accounts and provides different information. 
A) The amount of retained earnings reported on the balance sheet is equal to net income. 
B) Retained earnings is added to total assets and reported on the balance sheet. 
C) Net income increases retained earnings on the statement of retained earnings,which ultimately increases retained earnings on the balance sheet. 
D) There is no link between the balance sheet and other statements,as each contains different accounts and provides different information.

Question 5

Canyon Corporation
The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014:
   Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Accepted Answer

The answer of Canyon Corporation
The accountant for the Canyon Corporation...

Question 6

Canyon Corporation
The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014:
   Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Accepted Answer

The answer of Canyon Corporation
The accountant for the Canyon Corporation...

Question 7

Presented below are selected data from the accounting records for Micco's Gift Store for 2014.

Accepted Answer

The answer of Presented below are selected data from the...

Question 8

Marcos Inc.had net income for 2014 of $40,000.It declared and paid a $3,500 cash dividend in 2014.If the company's retained earnings for the end of the year was $38,200,what was the company's retained earnings balance at the beginning of 2014?

Accepted Answer

A) $81,700 
B) $74,700 
C) $5,300 
D) $1,700 
A) $81,700 
B) $74,700 
C) $5,300 
D) $1,700

Question 9

A department store is an example of a wholesaler.

Accepted Answer

A) True 
 B)False

Question 10

All assets are tangible in nature.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A) Profits distributed to the creditors are called dividends. 
B) The balance sheet shows the assets,liabilities,and profits of a company. 
C) Dividends are an expense,and are reported on the income statement as a deduction from net income. 
D) The income statement reports the revenues and expenses of a company. 
A) Profits distributed to the creditors are called dividends. 
B) The balance sheet shows the assets,liabilities,and profits of a company. 
C) Dividends are an expense,and are reported on the income statement as a deduction from net income. 
D) The income statement reports the revenues and expenses of a company.

Question 12

Leary Corporation's end-of-year balance sheet consisted of the following amounts:   What amount should Leary report on its balance sheet for total assets?

Accepted Answer

A) $175,000 
B) $141,000 
C) $195,000 
D) $194,000 
A) $175,000 
B) $141,000 
C) $195,000 
D) $194,000

Question 13

Which concept is the reason the dollar is used in the preparation of financial statements?

Accepted Answer

A) Going concern 
B) Legal entity 
C) Monetary unit 
D) Time Period 
A) Going concern 
B) Legal entity 
C) Monetary unit 
D) Time Period

Question 14

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

Accepted Answer

A) A partner 
B) A stockholder 
C) An owner 
D) A creditor 
A) A partner 
B) A stockholder 
C) An owner 
D) A creditor

Question 15

An entity's assets come from three primary sources: creditors,investors,and profits retained in the business.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be internal users of accounting information?

Accepted Answer

A) Customers and vendors 
B) Employees and managers 
C) Government and banks 
D) Employees and customers 
A) Customers and vendors 
B) Employees and managers 
C) Government and banks 
D) Employees and customers

Question 17

The following information is provided by the Ferrara Corporation:   Calculate Ferrara Corporation's expenses.

Accepted Answer

A) $20,000 
B) $30,000 
C) $40,000 
D) Cannot tell from the information provided. 
A) $20,000 
B) $30,000 
C) $40,000 
D) Cannot tell from the information provided.

Question 18

Lewis Corporation reported the following information for the year ended December 31,2014:   What was the balance of Lewis' retained earnings at January 1,2014?

Accepted Answer

A) $21,000 
B) $29,000 
C) $31,000 
D) $35,000 
A) $21,000 
B) $29,000 
C) $31,000 
D) $35,000

Question 19

An auto repair company is an example of a manufacturer.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the correct date format for the financial statement heading?

Accepted Answer

A) Balance sheet for the year ended June 30,2014 
B) Income statement at December 31,2014 
C) Balance sheet at December 31,2014 
D) Statement of retained earnings at December 31,2014 
A) Balance sheet for the year ended June 30,2014 
B) Income statement at December 31,2014 
C) Balance sheet at December 31,2014 
D) Statement of retained earnings at December 31,2014

What is meant by generally accepted accounting principles?

Leary Corporation's end-of-year balance sheet consisted of the following amounts: What is Leary's retained earnings balance at the end of the current year?

The going concern assumption infers that a company will continue to operate indefinitely.

How is the balance sheet linked to the other financial statements?

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014: Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014: Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Presented below are selected data from the accounting records for Micco's Gift Store for 2014.

Marcos Inc.had net income for 2014 of $40,000.It declared and paid a $3,500 cash dividend in 2014.If the company's retained earnings for the end of the year was $38,200,what was the company's retained earnings balance at the beginning of 2014?

A department store is an example of a wholesaler.

All assets are tangible in nature.

Which of the following statements is true?

Leary Corporation's end-of-year balance sheet consisted of the following amounts: What amount should Leary report on its balance sheet for total assets?

Which concept is the reason the dollar is used in the preparation of financial statements?

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

An entity's assets come from three primary sources: creditors,investors,and profits retained in the business.

Which of the following would be internal users of accounting information?

The following information is provided by the Ferrara Corporation: Calculate Ferrara Corporation's expenses.

Lewis Corporation reported the following information for the year ended December 31,2014: What was the balance of Lewis' retained earnings at January 1,2014?

An auto repair company is an example of a manufacturer.

Which of the following is the correct date format for the financial statement heading?

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 1: Accounting As a Form of Communication

What is meant by generally accepted accounting principles?

Leary Corporation's end-of-year balance sheet consisted of the following amounts: What is Leary's retained earnings balance at the end of the current year?

The going concern assumption infers that a company will continue to operate indefinitely.

How is the balance sheet linked to the other financial statements?

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014: Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Canyon Corporation The accountant for the Canyon Corporation prepared the following list from the company's accounting records for the year ended December 31,2014: Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:

Presented below are selected data from the accounting records for Micco's Gift Store for 2014.

Marcos Inc.had net income for 2014 of $40,000.It declared and paid a $3,500 cash dividend in 2014.If the company's retained earnings for the end of the year was $38,200,what was the company's retained earnings balance at the beginning of 2014?

A department store is an example of a wholesaler.

All assets are tangible in nature.

Which of the following statements is true?

Leary Corporation's end-of-year balance sheet consisted of the following amounts: What amount should Leary report on its balance sheet for total assets?

Which concept is the reason the dollar is used in the preparation of financial statements?

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

An entity's assets come from three primary sources: creditors,investors,and profits retained in the business.

Which of the following would be internal users of accounting information?

The following information is provided by the Ferrara Corporation: Calculate Ferrara Corporation's expenses.

Lewis Corporation reported the following information for the year ended December 31,2014: What was the balance of Lewis' retained earnings at January 1,2014?

An auto repair company is an example of a manufacturer.

Which of the following is the correct date format for the financial statement heading?

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters