Question 1

The difference between asset increases and asset decreases from operating a business is called income or earnings.

Accepted Answer

A) True 
 B)False

Question 2

An asset use transaction

Accepted Answer

A)  increases one asset and decreases another. 
B)  decreases an asset and decreases a liability or equity. 
C)  increases an asset and decreases a liability or equity. 
D)  increases an asset and increases a liability or equity. 
A)  increases one asset and decreases another. 
B)  decreases an asset and decreases a liability or equity. 
C)  increases an asset and decreases a liability or equity. 
D)  increases an asset and increases a liability or equity.

Question 3

Liabilities are shown on the

Accepted Answer

A)  income statement. 
B)  statement of changes in stockholders' equity. 
C)  statement of cash flows. 
D)  balance sheet. 
A)  income statement. 
B)  statement of changes in stockholders' equity. 
C)  statement of cash flows. 
D)  balance sheet.

Question 4

An asset source transaction

Accepted Answer

A)  increases one asset and decreases another. 
B)  increases an asset and increases a liability or equity. 
C)  increases an asset and decreases a liability or equity. 
D)  decreases an asset and increases a liability. 
A)  increases one asset and decreases another. 
B)  increases an asset and increases a liability or equity. 
C)  increases an asset and decreases a liability or equity. 
D)  decreases an asset and increases a liability.

Question 5

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Accepted Answer

A)  $45,000 cash outflow from financing activities. 
B)  $45,000 cash inflow from financing activities. 
C)  $45,000 cash outflow from investing activities. 
D)  $45,000 cash outflow from operating activities. 
A)  $45,000 cash outflow from financing activities. 
B)  $45,000 cash inflow from financing activities. 
C)  $45,000 cash outflow from investing activities. 
D)  $45,000 cash outflow from operating activities.

Question 6

Which of the following is NOT an asset use transaction?

Accepted Answer

A)  paying cash dividends 
B)  paying cash to purchase land 
C)  paying off the principal on a loan 
D)  paying salaries to employees 
A)  paying cash dividends 
B)  paying cash to purchase land 
C)  paying off the principal on a loan 
D)  paying salaries to employees

Question 7

Hale Company issued a note payable to purchase a truck.

Accepted Answer

(I)(I)(N)(

Question 8

Gomez Corporation paid its monthly utility bill of $850.

Accepted Answer

(D)(N)(D)(

Question 9

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 10

The accounting equation may be written,

Accepted Answer

A)  Revenues - Expenses = Net Income 
B)  Assets = Liabilities 
C)  Liabilities = Equity 
D)  Assets = Claims 
A)  Revenues - Expenses = Net Income 
B)  Assets = Liabilities 
C)  Liabilities = Equity 
D)  Assets = Claims

Question 11

Who are the stakeholders for a business?

Accepted Answer

The parties that are intereste

Question 12

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 13

The broad categories of information reported on a business's financial statements are referred to as

Accepted Answer

A)  accounts. 
B)  elements of the financial statements. 
C)  components. 
D)  assets. 
A)  accounts. 
B)  elements of the financial statements. 
C)  components. 
D)  assets.

Question 14

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

Accepted Answer

Statement

Question 15

An asset exchange transaction does not affect the total amount of assets of an entity.

Accepted Answer

A) True 
 B)False

Question 16

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

Accepted Answer

GAAP stands for Generally Acce

Question 17

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

Accepted Answer

A) True 
 B)False

Question 18

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Accepted Answer

Operating activities

Question 19

The MBR Company began operations on January 1,2012,and on that date,$15,000 of common stock was issued for cash.In addition,MBR borrowed $10,000 from the bank.The company provided services to its customers during 2012 and received $18,000 cash.During the year,it paid $20,000 cash for land,$5,000 for salaries,and $3,000 for cash dividends to the owners.
Required:
a)Draw an accounting equation and record the effects of each transaction under the appropriate heading.(Use specific accounting titles below the major headlines)
b)Prepare an income statement and a balance sheet for the 2012 accounting period.

Accepted Answer

The answer of The MBR Company began operations on January...

Question 20

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Accepted Answer

A) True 
 B)False

The difference between asset increases and asset decreases from operating a business is called income or earnings.

An asset use transaction

Liabilities are shown on the

An asset source transaction

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Which of the following is NOT an asset use transaction?

Hale Company issued a note payable to purchase a truck.

Gomez Corporation paid its monthly utility bill of $850.

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

The accounting equation may be written,

Who are the stakeholders for a business?

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

The broad categories of information reported on a business's financial statements are referred to as

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

An asset exchange transaction does not affect the total amount of assets of an entity.

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Internal Controls,accounting for Cash,and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, partnerships, and Corporations

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Exam 1: An Introduction to Accounting

The difference between asset increases and asset decreases from operating a business is called income or earnings.

An asset use transaction

Liabilities are shown on the

An asset source transaction

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Which of the following is NOT an asset use transaction?

Hale Company issued a note payable to purchase a truck.

Gomez Corporation paid its monthly utility bill of $850.

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

The accounting equation may be written,

Who are the stakeholders for a business?

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

The broad categories of information reported on a business's financial statements are referred to as

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

An asset exchange transaction does not affect the total amount of assets of an entity.

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Understanding the Accounting Cycle

Accounting for Merchandising Businesses

Internal Controls,accounting for Cash,and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, partnerships, and Corporations

Filters