Question 1

Describe the three important guidelines for revenue recognition.

Accepted Answer

The three important guidelines for reven

Question 2

Net Income:

Accepted Answer

A)  Decreases equity. 
B)  Represents the amount of assets owners put into a business. 
C)  Equals assets minus liabilities. 
D)  Is the excess of revenues over expenses. 
E)  Represents owners' claims against assets. 
A)  Decreases equity. 
B)  Represents the amount of assets owners put into a business. 
C)  Equals assets minus liabilities. 
D)  Is the excess of revenues over expenses. 
E)  Represents owners' claims against assets.

Question 3

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Accepted Answer

The answer of Prepare a November 30 balance sheet in...

Question 4

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Accepted Answer

A) True 
 B)False

Question 5

U. S. Government Treasury bonds provide high return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 6

According to the cost principle, it is preferable for managers to report an estimate of an asset's value.

Accepted Answer

A) True 
 B)False

Question 7

There are at least three types of partnerships that limit the partners' liability. They are 1) _______________________, 2) __________________, and 3) ______________________.

Accepted Answer

Limited partnership,

Question 8

Strategic management is the process of determining the right mix of operating activities for the type of organization, its plans, and its markets.

Accepted Answer

A) True 
 B)False

Question 9

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

Accepted Answer

A)  Assets would have increased $55,000. 
B)  Assets would have decreased $55,000. 
C)  Assets would have increased $19,000. 
D)  Assets would have decreased $19,000. 
E)  None of these. 
A)  Assets would have increased $55,000. 
B)  Assets would have decreased $55,000. 
C)  Assets would have increased $19,000. 
D)  Assets would have decreased $19,000. 
E)  None of these.

Question 10

An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)

Accepted Answer

A) True 
 B)False

Question 11

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

Accepted Answer

A)  Decreased $105,000. 
B)  Decreased $45,000. 
C)  Increased $30,000. 
D)  Increased $45,000. 
E)  Increased $105,000. 
A)  Decreased $105,000. 
B)  Decreased $45,000. 
C)  Increased $30,000. 
D)  Increased $45,000. 
E)  Increased $105,000.

Question 12

Return on assets reflects the effectiveness of a company's ability to generate profit through productive use of its assets.

Accepted Answer

A) True 
 B)False

Question 13

Accounts payable appear on which of the following statements?

Accepted Answer

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

Question 14

Annie's Attic has the following account balances for the dates given:
Also, its net income, for September 1 through September 30 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both September 1 and September 30.

Accepted Answer

@#IMG-DLM& At September 1:
Assets = Liab

Question 15

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land account transaction amount to handle the sale of the land in the seller's books is:

Accepted Answer

A)  $85,000 increase. 
B)  $85,000 decrease. 
C)  $137,000 increase. 
D)  $137,000 decrease. 
E)  $140,000 decrease. 
A)  $85,000 increase. 
B)  $85,000 decrease. 
C)  $137,000 increase. 
D)  $137,000 decrease. 
E)  $140,000 decrease.

Question 16

Internal users include lenders, shareholders, brokers and managers.

Accepted Answer

A) True 
 B)False

Question 17

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

Accepted Answer

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

Question 18

The following is a list of selected users of accounting information. Match the appropriate user to the following information needs.

Accepted Answer

The answer of The following is a list of selected...

Question 19

A sole proprietorship is a business owned by one or more persons.

Accepted Answer

A) True 
 B)False

Question 20

Owner financing refers to resources contributed by creditors or lenders.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

Describe the three important guidelines for revenue recognition.

Net Income:

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

U. S. Government Treasury bonds provide high return and low risk to investors.

According to the cost principle, it is preferable for managers to report an estimate of an asset's value.

There are at least three types of partnerships that limit the partners' liability. They are 1) _______________________, 2) __________________, and 3) ______________________.

Strategic management is the process of determining the right mix of operating activities for the type of organization, its plans, and its markets.

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:

Return on assets reflects the effectiveness of a company's ability to generate profit through productive use of its assets.

Accounts payable appear on which of the following statements?

Annie's Attic has the following account balances for the dates given: Also, its net income, for September 1 through September 30 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both September 1 and September 30.

Internal users include lenders, shareholders, brokers and managers.

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

The following is a list of selected users of accounting information. Match the appropriate user to the following information needs.

A sole proprietorship is a business owned by one or more persons.

Owner financing refers to resources contributed by creditors or lenders.

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

Filters

There are at least three types of partnerships that limit the partners' liability. They are 1) _, 2) , and 3) __.