Question 1

Net income:

Accepted Answer

A) Occurs when revenues exceed expenses. 
B) Is the same as revenue. 
C) Equals resources owned or controlled by a company. 
D) Occurs when expenses exceed assets. 
E) Represents assets taken from a company for an owner's personal use.

Question 2

Claire Spa receives a check for $250 for services previously rendered on account.How would Claire Spa record this transaction?

Accepted Answer

A) Cash increases by $250 and Spa Services Revenue increases by $250. 
B) Accounts Receivable increases by $250 and Spa Services Revenue increases by $250. 
C) Cash increases by $250 and Spa Services Revenue decreases by $250. 
D) Cash increases by $250 and Accounts Receivable increases by $250. 
E) Cash increases by $250 and Accounts Receivable decreases by $250.

Question 3

Businesses can take all of the following forms except:

Accepted Answer

A) Sole proprietorship 
B) Common stock 
C) Partnership 
D) Corporation 
E) Limited liability corporation

Question 4

FastForward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:

Accepted Answer

A) $40,500 increase 
B) $40,500 decrease 
C) $134,500 decrease 
D) $134,000 increase 
E) $9,500 increase

Question 5

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What were the ending assets for the year?

Accepted Answer

A) $ 700,160 
B) $ 612,560 
C) $ 787,600 
D) $ 681,590 
E) $1,159,410

Question 6

Use the following information as of December 31 to determine equity.

Accepted Answer

A) $57,000 
B) $141,000 
C) $297,000 
D) $438,000 
E) $579,000

Question 7

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 8

Dividends are expenses of a business.

Accepted Answer

A) True 
 B)False

Question 9

If the liabilities of a business increased $75,000 during a period of time and the 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

Question 10

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity was $751,000,and ending assets were $963,000. What were the beginning liabilities for the year?

Accepted Answer

A) $738,000 
B) $998,000 
C) $131,000 
D) $203,000 
E) $475,000

Question 11

A company had total equity of $89,000 on January 1,2014.The following information is available for the year ended December 31,2014:  What are the total assets of the company at December 31,2014?

Accepted Answer

A) $27,000 
B) $36,000 
C) $53,000 
D) $63,000 
E) $350,000

Question 12

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease and by what amount?

Accepted Answer

The answer of If the liabilities of a company increased...

Question 13

Expenses decrease retained earnings and are the costs incurred to earn revenues.

Accepted Answer

A) True 
 B)False

Question 14

Match between columns
                        Premises: Suppliers
Shareholders
Employees
Lenders
Production managers

Accepted Answer

The Answer of Measuring risk and return of loans. and is...

Question 15

Select the appropriate financial statement(s) for each of the following accounts.

Accepted Answer

The answer of Select the appropriate financial statement(s) for each...

Question 16

Discuss the relationship of risk to return.

Accepted Answer

The answer of Discuss the relationship of risk to return....

Question 17

A company paid its employees $90,000 in cash for wages earned during the past two weeks.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

Accepted Answer

The answer of A company paid its employees $90,000 in...

Question 18

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

Accepted Answer

A) The cash equivalent value of what was given up. 
B) The current market value of the assets at the balance sheet date. 
C) The cash paid to acquire them,even if something other than cash was given in the exchange. 
D) The best estimate from a certified internal auditor. 
E) The objective value to external users.

Question 19

Identify and describe the three major activities of a business organization.

Accepted Answer

The answer of Identify and describe the three major activities...

Question 20

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the:

Accepted Answer

A) Accounting equation 
B) Cost principle 
C) Going-concern principle 
D) Realization principle 
E) Business entity principle

Exam 1: Introducing Financial Accounting

Net income:

Claire Spa receives a check for $250 for services previously rendered on account.How would Claire Spa record this transaction?

Businesses can take all of the following forms except:

FastForward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What were the ending assets for the year?

Use the following information as of December 31 to determine equity.

The balance sheet is based on the accounting equation.

Dividends are expenses of a business.

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

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity was $751,000,and ending assets were $963,000. What were the beginning liabilities for the year?

A company had total equity of $89,000 on January 1,2014.The following information is available for the year ended December 31,2014: What are the total assets of the company at December 31,2014?

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease and by what amount?

Expenses decrease retained earnings and are the costs incurred to earn revenues.

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

Select the appropriate financial statement(s) for each of the following accounts.

Discuss the relationship of risk to return.

A company paid its employees $90,000 in cash for wages earned during the past two weeks.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:

Identify and describe the three major activities of a business organization.

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the: