Question 1

A balance sheet is designed to show:

Accepted Answer

A) How much a business is worth. 
B) The profitability of the business during the current year. 
C) The assets,liabilities,and owners' equity of a business as of a particular date. 
D) The cost of replacing the assets and of paying off the liabilities at December 31. 
A) How much a business is worth. 
B) The profitability of the business during the current year. 
C) The assets,liabilities,and owners' equity of a business as of a particular date. 
D) The cost of replacing the assets and of paying off the liabilities at December 31.

Question 2

Total assets must always equal total liabilities plus total owners' equity.

Accepted Answer

A) True 
 B)False

Question 3

When a business borrows money from a bank,the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following liabilities would most likely be listed last on a statement of financial position?

Accepted Answer

A) Bonds payable,due in 20 years. 
B) Accounts payable. 
C) Note payable,due in 3 years. 
D) Income taxes payable. 
A) Bonds payable,due in 20 years. 
B) Accounts payable. 
C) Note payable,due in 3 years. 
D) Income taxes payable.

Question 5

If a company purchases equipment for $65,000 by issuing a note payable:

Accepted Answer

A) Total assets will increase by $65,000. 
B) Total assets will decrease by $65,000. 
C) Total assets will remain the same. 
D) The company's total owners' equity will decrease. 
A) Total assets will increase by $65,000. 
B) Total assets will decrease by $65,000. 
C) Total assets will remain the same. 
D) The company's total owners' equity will decrease.

Question 6

Effects of transactions on balance sheet items
Show the effect of each of the seven listed transactions on the balance sheet items of Distinctive Draperies.Indicate the new balances after the transaction of May 2 and each subsequent transaction.The effects of the May 1 transaction are already filled in to provide you with an example.

Accepted Answer

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Question 7

Effects of transactions on balance sheet items
Show the effect of each of the six listed transactions on the balance sheet items of Renaissance Investment Services,Inc.Indicate the new balances after the transaction of November 2 and each subsequent transaction.The effects of the November 1 transaction are already filled in to provide you with an example.

Accepted Answer

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Question 8

The owner of a sole proprietorship is personally liable for the debts of the business,whereas the stockholders of a corporation are not personally liable for the debts of the business.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the primary objective of an income statement?

Accepted Answer

A) Providing managers with detailed information about where the enterprise stands at a specific date. 
B) Providing users outside the business organization with information about the company's financial position and operating results. 
C) Reporting to the Internal Revenue Service the company's taxable income. 
D) Indicating to investors in a particular company the current market values of their investments. 
A) Providing managers with detailed information about where the enterprise stands at a specific date. 
B) Providing users outside the business organization with information about the company's financial position and operating results. 
C) Reporting to the Internal Revenue Service the company's taxable income. 
D) Indicating to investors in a particular company the current market values of their investments.

Question 10

Decreases in owners' equity are caused by:

Accepted Answer

A) Purchases of assets and payment of liabilities. 
B) Purchases of assets and incurrence of liabilities. 
C) Payment of liabilities and unprofitable operations. 
D) Distributions of assets to the owners and unprofitable operations. 
A) Purchases of assets and payment of liabilities. 
B) Purchases of assets and incurrence of liabilities. 
C) Payment of liabilities and unprofitable operations. 
D) Distributions of assets to the owners and unprofitable operations.

Question 11

If a company has a profit:

Accepted Answer

A) Assets will be equal to liabilities plus owners' equity. 
B) Assets will be less than liabilities plus owners' equity. 
C) Assets will be greater than liabilities plus owners' equity. 
D) Owners' equity will be greater than its assets. 
A) Assets will be equal to liabilities plus owners' equity. 
B) Assets will be less than liabilities plus owners' equity. 
C) Assets will be greater than liabilities plus owners' equity. 
D) Owners' equity will be greater than its assets.

Question 12

A statement of cash flows reports revenue and expense activities for a specific time period such as one month or one year.

Accepted Answer

A) True 
 B)False

Question 13

The change in owners' equity due to only revenue and expense transactions is explained by the:

Accepted Answer

A) Statement of cash flows. 
B) Statement of financial position. 
C) Income statement. 
D) Tax return. 
A) Statement of cash flows. 
B) Statement of financial position. 
C) Income statement. 
D) Tax return.

Question 14

Completion of balance sheet
Use the following information to complete the balance sheet of Adelphi Construction as of December 31,2014.
(1)The company was organized on January 1,2014 and has operated for the full year 2014.
(2)Earnings were $275,000 and dividends of $70,000 were paid to stockholders.
(3)Cash and accounts receivable together amount to one and one-half times as much as notes payable.

Accepted Answer

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Question 15

Financial statements
A set of financial statements includes three related accounting reports,or statements.In the space provided,list the names of three primary statements,and give a brief description of the accounting information contained in each.

Accepted Answer

* Balance sheet.A report showing at a sp

A balance sheet is designed to show:

Total assets must always equal total liabilities plus total owners' equity.

When a business borrows money from a bank,the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity.

Which of the following liabilities would most likely be listed last on a statement of financial position?

If a company purchases equipment for $65,000 by issuing a note payable:

The owner of a sole proprietorship is personally liable for the debts of the business,whereas the stockholders of a corporation are not personally liable for the debts of the business.

Which of the following is the primary objective of an income statement?

Decreases in owners' equity are caused by:

If a company has a profit:

A statement of cash flows reports revenue and expense activities for a specific time period such as one month or one year.

The change in owners' equity due to only revenue and expense transactions is explained by the:

Financial statements A set of financial statements includes three related accounting reports,or statements.In the space provided,list the names of three primary statements,and give a brief description of the accounting information contained in each.

Accounting: Information for Decision Making

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

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Exam 2: Basic Financial Statements

A balance sheet is designed to show:

Total assets must always equal total liabilities plus total owners' equity.

When a business borrows money from a bank,the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity.

Which of the following liabilities would most likely be listed last on a statement of financial position?

If a company purchases equipment for $65,000 by issuing a note payable:

The owner of a sole proprietorship is personally liable for the debts of the business,whereas the stockholders of a corporation are not personally liable for the debts of the business.

Which of the following is the primary objective of an income statement?

Decreases in owners' equity are caused by:

If a company has a profit:

A statement of cash flows reports revenue and expense activities for a specific time period such as one month or one year.

The change in owners' equity due to only revenue and expense transactions is explained by the:

Financial statements A set of financial statements includes three related accounting reports,or statements.In the space provided,list the names of three primary statements,and give a brief description of the accounting information contained in each.

Accounting: Information for Decision Making

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

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