Question 1

The following schedule reflects shows the first month's transactions of the Green Construction Company Inc. :  Provide descriptions for each transaction.

Accepted Answer

The answer of The following schedule reflects shows the first...

Question 2

Match between columns
                        Premises: Assess whether a company has paid all required taxes and complied with securities rules.
Decide whether to buy, hold, or sell a company's stock.
Know what, when, and how much to purchase.
Assess whether an organization is likely to repay its loans with interest.
Judge the soundness of a customer before making sales on credit.

Accepted Answer

The Answer of Shareholders and Regulators and Lenders and Purchasing is...

Question 3

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and Dividends by the company of $12,000. Calculate the ending equity.

Accepted Answer

A)  $(5,000). 
B)  $29,000. 
C)  $5,000. 
D)  $99,000. 
E)  $75,000.

Question 4

The International Accounting Standards Board (IASB):

Accepted Answer

A)  Hopes to create harmony among accounting practices of different countries to improve comparability. 
B)  Is the government group that establishes reporting requirements for companies that issue stock to the investing public. 
C)  Has the authority to impose its standards on companies around the world. 
D)  Is the only source of generally accepted accounting principles (GAAP). 
E)  Only applies to companies that are members of the European Union.

Question 5

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.

Question 6

Rent expense appears on which of the following statements?

Accepted Answer

A)  Balance sheet. 
B)  Income statement. 
C)  Statement of retained earnings. 
D)  Statement of periodic expenses. 
E)  Statement of cash flows only.

Question 7

According to the cost principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

Accepted Answer

A) True 
 B)False

Question 8

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Accepted Answer

A)  Increased $22,000. 
B)  Decreased $22,000. 
C)  Increased $89,000. 
D)  Decreased $156,000. 
E)  Increased $156,000.

Question 9

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The answer of Identify several opportunities in accounting and distinguish...

Question 10

_________ are beliefs that separate right from wrong and are considered accepted standards of good and bad behavior.

Accepted Answer

The answer of _________ are beliefs that separate right from...

Question 11

Match between columns
                        Premises: The uncertainty about the return to be earned.
Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.
Resources a company owns or controls that are expected to yield future benefit.
A financial ratio stated as income divided by assets invested.
Decreases in equity from costs of providing products or services to customers.
Resources such as cash that a stockholder puts into the company.
Creditor's claims on a company's assets.
Resources such as cash that a stockholder r receives from the company for personal use.

Accepted Answer

The Answer of Dividends and Expenses and Accounting equation and is...

Question 12

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 13

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

Accepted Answer

A)  Income statement equation. 
B)  Accounting equation. 
C)  Business equation. 
D)  Return on equity ratio. 
E)  Net income.

Question 14

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 15

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

Accepted Answer

A)  $223,000. 
B)  $240,000. 
C)  $268,000. 
D)  $274,000. 
E)  $208,000.

Question 16

The assumption that requires that a business be accounted for separately from its owners is the __________________ assumption.

Accepted Answer

The answer of The assumption that requires that a business...

Question 17

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

Accepted Answer

A) True 
 B)False

Question 18

A common characteristic of __________ is their ability to yield expected future benefits to a business.

Accepted Answer

The answer of A common characteristic of __________ is their...

Question 19

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 20

Ending retained earnings on the statement of retained earnings is calculated by adding stockholder investments and net losses and subtracting net income and dividends.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

The following schedule reflects shows the first month's transactions of the Green Construction Company Inc. : Provide descriptions for each transaction.

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and Dividends by the company of $12,000. Calculate the ending equity.

The International Accounting Standards Board (IASB) :

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?

Rent expense appears on which of the following statements?

According to the cost principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

_________ are beliefs that separate right from wrong and are considered accepted standards of good and bad behavior.

Match each of the following terms with the most appropriate definition.

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

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

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

The assumption that requires that a business be accounted for separately from its owners is the __________________ assumption.

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

A common characteristic of __________ is their ability to yield expected future benefits to a business.

The balance sheet is based on the accounting equation.

Ending retained earnings on the statement of retained earnings is calculated by adding stockholder investments and net losses and subtracting net income and dividends.