Question 1

Blu Lightning Co.paid its employees $2,000 in cash for two weeks' wages.Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

Question 2

Before purchasing a parcel of land,Ming's Boutique had the land appraised at $90,000.The management of Ming's Boutique purchased the land for $85,000.At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

Accepted Answer

$85,000.The cost principle req

Question 3

If the liabilities of a business increased $65,000 during a period of time and equity in the business decreased $21,000 during the same period,would the assets of the business have increased or decreased? By what amount?

Accepted Answer

Assets would have increased $4

Question 4

Ethical practices are not necessary to build trust and long-term relationships with customers.

Accepted Answer

A) True 
 B)False

Question 5

Cash investments by owners are listed on which of the following statement(s)?

Accepted Answer

A)  Balance sheet. 
B)  Income statement. 
C)  Statement of changes in equity. 
D)  Statement of cash flows. 
E)  Both a statement of changes in equity and statement of cash flows. 
A)  Balance sheet. 
B)  Income statement. 
C)  Statement of changes in equity. 
D)  Statement of cash flows. 
E)  Both a statement of changes in equity and statement of cash flows.

Question 6

Today,Cedar Park Company paid $600 of its accounts payable in cash.What is the effect on the accounting equation?

Accepted Answer

A)  Assets,$600 increase; liabilities,no effect; equity,$600 increase. 
B)  Assets,$600 decrease; liabilities,$600 decrease; equity,no effect. 
C)  Assets,$600 decrease; liabilities,$400 increase; equity,$200 decrease. 
D)  Assets,no effect; liabilities,$600 decrease; equity,$400 increase. 
E)  No effect. 
A)  Assets,$600 increase; liabilities,no effect; equity,$600 increase. 
B)  Assets,$600 decrease; liabilities,$600 decrease; equity,no effect. 
C)  Assets,$600 decrease; liabilities,$400 increase; equity,$200 decrease. 
D)  Assets,no effect; liabilities,$600 decrease; equity,$400 increase. 
E)  No effect.

Question 7

Blu Lightning Co.bought supplies and testing equipment for $3,000 on credit.Enter the appropriate amounts into the accounting equation format

Accepted Answer

Assets = Liabilities

Question 8

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

Accepted Answer

A)  The cash equivalent value of what was given up or the asset received,whichever is more clearly evident. 
B)  The market value of the asset received in all cases. 
C)  The cash outlay only,even if part of the consideration given was something other than cash. 
D)  The best estimate of a certified internal auditor. 
E)  Current replacement cost. 
A)  The cash equivalent value of what was given up or the asset received,whichever is more clearly evident. 
B)  The market value of the asset received in all cases. 
C)  The cash outlay only,even if part of the consideration given was something other than cash. 
D)  The best estimate of a certified internal auditor. 
E)  Current replacement cost.

Question 9

Why should assets be recorded at historical cost?

Accepted Answer

The cost principle requires th

Question 10

The accounting principle that requires that transactions are expressed using units of money as the common denominator is the:

Accepted Answer

A)  Business entity principle. 
B)  Monetary unit principle. 
C)  Going concern principle. 
D)  Cost principle. 
E)  Revenue recognition principle. 
A)  Business entity principle. 
B)  Monetary unit principle. 
C)  Going concern principle. 
D)  Cost principle. 
E)  Revenue recognition principle.

Question 11

Chuck Taylor invested $8,000 in cash in FastForward.This amount would be reported in the statement of cash flows under financing.

Accepted Answer

A) True 
 B)False

Question 12

Explain the difference between a business transaction and a business event.

Accepted Answer

A business transaction is an exchange of

Question 13

Unlimited liability is an advantage for both a proprietorship and a partnership.

Accepted Answer

A) True 
 B)False

Question 14

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are the debts of an entity.T

Question 15

Describe the three important guidelines for revenue recognition.

Accepted Answer

The three important guidelines for reven

Question 16

If assets are $144,000 and liabilities are $37,000,then equity equals:

Accepted Answer

A)  $37,000. 
B)  $74,000. 
C)  $107,000. 
D)  $144,000. 
E)  $181,000. 
A)  $37,000. 
B)  $74,000. 
C)  $107,000. 
D)  $144,000. 
E)  $181,000.

Question 17

A partnership is a business owned by two or more people.

Accepted Answer

A) True 
 B)False

Question 18

At the beginning of this year,Tong Company had $160,000 in liabilities.During this year,assets increased by $160,000 and at year-end they equaled $360,000.Liabilities decreased $20,000 during this year.Calculate the beginning and ending values of equity.

Accepted Answer

Beginning equity = $

Question 19

The purpose of an audit is to add credibility to the financial statements.

Accepted Answer

A) True 
 B)False

Question 20

Accounting is a(n)__________________ that identifies,measures,records,and communicates relevant information that faithfully represents an organization's economic activities.

Accepted Answer

The answer of Accounting is a(n)__________________ that identifies,measures,records,and communicates relevant...

Blu Lightning Co.paid its employees $2,000 in cash for two weeks' wages.Enter the appropriate amounts into the accounting equation format.

Before purchasing a parcel of land,Ming's Boutique had the land appraised at $90,000.The management of Ming's Boutique purchased the land for $85,000.At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

If the liabilities of a business increased $65,000 during a period of time and equity in the business decreased $21,000 during the same period,would the assets of the business have increased or decreased? By what amount?

Ethical practices are not necessary to build trust and long-term relationships with customers.

Cash investments by owners are listed on which of the following statement(s)?

Today,Cedar Park Company paid $600 of its accounts payable in cash.What is the effect on the accounting equation?

Blu Lightning Co.bought supplies and testing equipment for $3,000 on credit.Enter the appropriate amounts into the accounting equation format

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

Why should assets be recorded at historical cost?

The accounting principle that requires that transactions are expressed using units of money as the common denominator is the:

Chuck Taylor invested $8,000 in cash in FastForward.This amount would be reported in the statement of cash flows under financing.

Explain the difference between a business transaction and a business event.

Unlimited liability is an advantage for both a proprietorship and a partnership.

What distinguishes liabilities from equity?

Describe the three important guidelines for revenue recognition.

If assets are $144,000 and liabilities are $37,000,then equity equals:

A partnership is a business owned by two or more people.

At the beginning of this year,Tong Company had $160,000 in liabilities.During this year,assets increased by $160,000 and at year-end they equaled $360,000.Liabilities decreased $20,000 during this year.Calculate the beginning and ending values of equity.

The purpose of an audit is to add credibility to the financial statements.

Accounting is a(n)__________________ that identifies,measures,records,and communicates relevant information that faithfully represents an organization's economic activities.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 1: Accounting in Business

Blu Lightning Co.paid its employees $2,000 in cash for two weeks' wages.Enter the appropriate amounts into the accounting equation format.

Before purchasing a parcel of land,Ming's Boutique had the land appraised at $90,000.The management of Ming's Boutique purchased the land for $85,000.At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

If the liabilities of a business increased $65,000 during a period of time and equity in the business decreased $21,000 during the same period,would the assets of the business have increased or decreased? By what amount?

Ethical practices are not necessary to build trust and long-term relationships with customers.

Cash investments by owners are listed on which of the following statement(s)?

Today,Cedar Park Company paid $600 of its accounts payable in cash.What is the effect on the accounting equation?

Blu Lightning Co.bought supplies and testing equipment for $3,000 on credit.Enter the appropriate amounts into the accounting equation format

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

Why should assets be recorded at historical cost?

The accounting principle that requires that transactions are expressed using units of money as the common denominator is the:

Chuck Taylor invested $8,000 in cash in FastForward.This amount would be reported in the statement of cash flows under financing.

Explain the difference between a business transaction and a business event.

Unlimited liability is an advantage for both a proprietorship and a partnership.

What distinguishes liabilities from equity?

Describe the three important guidelines for revenue recognition.

If assets are $144,000 and liabilities are $37,000,then equity equals:

A partnership is a business owned by two or more people.

At the beginning of this year,Tong Company had $160,000 in liabilities.During this year,assets increased by $160,000 and at year-end they equaled $360,000.Liabilities decreased $20,000 during this year.Calculate the beginning and ending values of equity.

The purpose of an audit is to add credibility to the financial statements.

Accounting is a(n)__________________ that identifies,measures,records,and communicates relevant information that faithfully represents an organization's economic activities.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters