Question 1

Internal operating activities include research and development, distribution, and human resources.

Accepted Answer

A) True 
 B)False

Question 2

Accounting is an ______________________ that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

Accepted Answer

Information and meas

Question 3

Cash investments by owners are listed on which of the following statements?

Accepted Answer

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

Question 4

______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services.

Accepted Answer

The answer of ______________ activities involve using resources to research,...

Question 5

Match the following definitions with the terms 1 through 9. Place the letter that identifies the best definition in the blank space next to the term.

Accepted Answer

The answer of Match the following definitions with the terms...

Question 6

A ____________________ is a business that is owned by only one person.

Accepted Answer

The answer of A ____________________ is a business that is...

Question 7

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

Accepted Answer

A) True 
 B)False

Question 8

A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

Accepted Answer

A)  $104,000. 
B)  $76,000. 
C)  $32,000. 
D)  $68,000. 
E)  $176,000. 
A)  $104,000. 
B)  $76,000. 
C)  $32,000. 
D)  $68,000. 
E)  $176,000.

Question 9

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i

Question 10

Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

Accepted Answer

A)  Total assets decrease and equity increases. 
B)  Both total assets and total liabilities decrease. 
C)  Total assets, total liabilities, and equity are unchanged. 
D)  Both total assets and equity are unchanged and liabilities increase. 
E)  Total assets increase and equity decreases. 
A)  Total assets decrease and equity increases. 
B)  Both total assets and total liabilities decrease. 
C)  Total assets, total liabilities, and equity are unchanged. 
D)  Both total assets and equity are unchanged and liabilities increase. 
E)  Total assets increase and equity decreases.

Question 11

The statement of changes in equity:

Accepted Answer

A)  Reports how equity changes at a point in time. 
B)  Reports how equity changes over a period of time. 
C)  Reports on cash flows for operating, financing, and investing activities over a period of time. 
D)  Reports on cash flows for operating, financing, and investing activities at a point in time. 
E)  Reports on amounts for assets, liabilities, and equity at a point in time. 
A)  Reports how equity changes at a point in time. 
B)  Reports how equity changes over a period of time. 
C)  Reports on cash flows for operating, financing, and investing activities over a period of time. 
D)  Reports on cash flows for operating, financing, and investing activities at a point in time. 
E)  Reports on amounts for assets, liabilities, and equity at a point in time.

Question 12

An example of an operating activity is:

Accepted Answer

A)  Paying wages. 
B)  Purchasing office equipment. 
C)  Borrowing money from a bank. 
D)  Selling shares. 
E)  Paying off a loan. 
A)  Paying wages. 
B)  Purchasing office equipment. 
C)  Borrowing money from a bank. 
D)  Selling shares. 
E)  Paying off a loan.

Question 13

________________________________ reports changes in the owner's claim on the business's assets over a period of time.

Accepted Answer

The statem

Question 14

The _______________ assumption requires that financial information is supported by independent, unbiased evidence.

Accepted Answer

The answer of The _______________ assumption requires that financial information...

Question 15

Another name for equity is:

Accepted Answer

A)  Net income. 
B)  Expenses. 
C)  Net assets. 
D)  Revenue. 
E)  Net loss. 
A)  Net income. 
B)  Expenses. 
C)  Net assets. 
D)  Revenue. 
E)  Net loss.

Question 16

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are creditors' claims on ass

Question 17

A company acquires equipment for $75,000 cash. This represents a(n)

Accepted Answer

A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Revenue activity. 
E)  Expense activity. 
A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Revenue activity. 
E)  Expense activity.

Question 18

An income statement reports on investing and financing activities.

Accepted Answer

A) True 
 B)False

Question 19

Ethical behavior requires:

Accepted Answer

A)  That auditors' pay not depend on the success of the client's business. 
B)  Auditors to invest in businesses they audit. 
C)  Analysts to report information favorable to their companies. 
D)  Managers to use accounting information to benefit themselves. 
E)  That auditors' pay depend on the success of the client's business. 
A)  That auditors' pay not depend on the success of the client's business. 
B)  Auditors to invest in businesses they audit. 
C)  Analysts to report information favorable to their companies. 
D)  Managers to use accounting information to benefit themselves. 
E)  That auditors' pay depend on the success of the client's business.

Question 20

In accounting, the rule that requires that assets, services, and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called _____________________________.

Accepted Answer

The answer of In accounting, the rule that requires that...

Exam 1: Accounting in Business

Internal operating activities include research and development, distribution, and human resources.

Accounting is an ______________________ that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

Cash investments by owners are listed on which of the following statements?

______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services.

Match the following definitions with the terms 1 through 9. Place the letter that identifies the best definition in the blank space next to the term.

A ____________________ is a business that is owned by only one person.

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

Describe the three types of activities reported on the statement of cash flows.

Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

The statement of changes in equity:

An example of an operating activity is:

________________________________ reports changes in the owner's claim on the business's assets over a period of time.

The _______________ assumption requires that financial information is supported by independent, unbiased evidence.

Another name for equity is:

What distinguishes liabilities from equity?

A company acquires equipment for $75,000 cash. This represents a(n)

An income statement reports on investing and financing activities.

Ethical behavior requires:

In accounting, the rule that requires that assets, services, and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called _____________________________.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

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