Question 1

Two major goals of business are to achieve profitability and to achieve liquidity.

Accepted Answer

A) True 
 B)False

Question 2

Use this information to answer the following question. Here is the balance sheet for Costello Container Company:
  If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and owner's equity would

Accepted Answer

A) decrease by $8,000. 
B) increase by $8,000. 
C) increase by $16,000. 
D) decrease by $16,000. 
A) decrease by $8,000. 
B) increase by $8,000. 
C) increase by $16,000. 
D) decrease by $16,000.

Question 3

Accounts Receivable is an asset that is considered nonmonetary in nature.

Accepted Answer

A) True 
 B)False

Question 4

A corporation is an economic unit that is legally separate from its owners.

Accepted Answer

A) True 
 B)False

Question 5

Net income is a measure of profitability.

Accepted Answer

A) True 
 B)False

Question 6

List five possible users of a set of financial statements and state what each would be interested in learning from its review.

Accepted Answer

Possible users and their reasons for int

Question 7

Which of the following is an example of a financing activity?

Accepted Answer

A) Paying taxes to the government 
B) Selling equipment 
C) Obtaining a bank loan 
D) Purchasing land 
A) Paying taxes to the government 
B) Selling equipment 
C) Obtaining a bank loan 
D) Purchasing land

Question 8

Garcia Company's owner's equity equals one-half of the company's total assets.The company's liabilities are $140,000.What is the amount of the company's owner's equity?

Accepted Answer

Assets = Liabilities + Equity

Question 9

The account 'Wages Payable' would appear on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

Financing a business means obtaining funds so the business can begin and continue operating.

Accepted Answer

A) True 
 B)False

Question 11

Following are the total assets and liabilities at the beginning and end of the year for Hagedorn Company:
   Determine the net income or loss for the year in each of the following situations:
a.The owner made no investments in the business and no withdrawals were made during the year.
b.The owner made an investment of $20,000 and withdrew $12,000 during the year.

Accepted Answer

a.[($108,000 - $40,000)- ($70,

Question 12

A company's ability to attract and hold investment capital ultimately depends on its

Accepted Answer

A) budgeting. 
B) planning. 
C) liquidity. 
D) profitability. 
A) budgeting. 
B) planning. 
C) liquidity. 
D) profitability.

Question 13

Corporations represent the largest number of businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 14

The balance sheet is also known as the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 15

The authoritative body currently responsible for establishing accounting practice is the

Accepted Answer

A) Internal Revenue Service. 
B) Financial Accounting Standards Board. 
C) American Institute of Certified Public Accountants. 
D) Federal Reserve Board. 
A) Internal Revenue Service. 
B) Financial Accounting Standards Board. 
C) American Institute of Certified Public Accountants. 
D) Federal Reserve Board.

Question 16

The purpose of an audit is to

Accepted Answer

A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP. 
A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP.

Question 17

Due care means carrying out one's professional responsibilities with competence and diligence.

Accepted Answer

A) True 
 B)False

Question 18

All of the following statements are true about the Sarbanes-Oxley Act except

Accepted Answer

A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession. 
A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession.

Question 19

All of the following items would appear on the balance sheet except

Accepted Answer

A) withdrawals. 
B) the owner's capital account. 
C) Accounts Receivable. 
D) Patents. 
A) withdrawals. 
B) the owner's capital account. 
C) Accounts Receivable. 
D) Patents.

Question 20

The purchase of land with cash would be disclosed on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Two major goals of business are to achieve profitability and to achieve liquidity.

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and owner's equity would

Accounts Receivable is an asset that is considered nonmonetary in nature.

A corporation is an economic unit that is legally separate from its owners.

Net income is a measure of profitability.

List five possible users of a set of financial statements and state what each would be interested in learning from its review.

Which of the following is an example of a financing activity?

Garcia Company's owner's equity equals one-half of the company's total assets.The company's liabilities are $140,000.What is the amount of the company's owner's equity?

The account 'Wages Payable' would appear on the income statement.

Financing a business means obtaining funds so the business can begin and continue operating.

A company's ability to attract and hold investment capital ultimately depends on its

Corporations represent the largest number of businesses in the United States.

The balance sheet is also known as the statement of financial position.

The authoritative body currently responsible for establishing accounting practice is the

The purpose of an audit is to

Due care means carrying out one's professional responsibilities with competence and diligence.

All of the following statements are true about the Sarbanes-Oxley Act except

All of the following items would appear on the balance sheet except

The purchase of land with cash would be disclosed on the statement of cash flows.

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

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Exam 1: Accounting Principles and the Financial Statements

Two major goals of business are to achieve profitability and to achieve liquidity.

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and owner's equity would

Accounts Receivable is an asset that is considered nonmonetary in nature.

A corporation is an economic unit that is legally separate from its owners.

Net income is a measure of profitability.

List five possible users of a set of financial statements and state what each would be interested in learning from its review.

Which of the following is an example of a financing activity?

Garcia Company's owner's equity equals one-half of the company's total assets.The company's liabilities are $140,000.What is the amount of the company's owner's equity?

The account 'Wages Payable' would appear on the income statement.

Financing a business means obtaining funds so the business can begin and continue operating.

A company's ability to attract and hold investment capital ultimately depends on its

Corporations represent the largest number of businesses in the United States.

The balance sheet is also known as the statement of financial position.

The authoritative body currently responsible for establishing accounting practice is the

The purpose of an audit is to

Due care means carrying out one's professional responsibilities with competence and diligence.

All of the following statements are true about the Sarbanes-Oxley Act except

All of the following items would appear on the balance sheet except

The purchase of land with cash would be disclosed on the statement of cash flows.

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters