Question 1

When expenses exceed revenues,the resulting change in equity is:

Accepted Answer

A) Net assets. 
B) Negative equity. 
C) Net loss. 
D) Net income. 
E) A liability. 
A) Net assets. 
B) Negative equity. 
C) Net loss. 
D) Net income. 
E) A liability.

Question 2

A company borrows $125,000 from the Northern 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 3

______________ users of accounting information are not directly involved in running the organization.

Accepted Answer

The answer of ______________ users of accounting information are not...

Question 4

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Accepted Answer

A) $61,000 increase. 
B) $37,000 increase. 
C) $7,000 decrease. 
D) $7,000 increase. 
E) $34,000 decreasE.Net Increase/(Decrease)in Cash = Cash Flows from Operating Activities + Cash Flows from Investing Activities + Cash Flows from Financing Activities 
A) $61,000 increase. 
B) $37,000 increase. 
C) $7,000 decrease. 
D) $7,000 increase. 
E) $34,000 decreasE.Net Increase/(Decrease)in Cash = Cash Flows from Operating Activities + Cash Flows from Investing Activities + Cash Flows from Financing Activities

Question 5

Zippy had cash inflows from operations $60,500;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) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decreasE.Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing 
A) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decreasE.Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing

Question 6

The income statement reports all of the following except:

Accepted Answer

A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred. 
A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred.

Question 7

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 8

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 9

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Accepted Answer

A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash. 
A) Cash was received from providing services to a customer. 
B) The company paid an amount due on credit. 
C) Equipment was purchased for cash. 
D) A utility bill was received for the current month,to be paid in the following month. 
E) Advertising expense for the month was paid in cash.

Question 10

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Accepted Answer

A) True 
 B)False

Question 11

The difference between a company's assets and its liabilities,or net assets is:

Accepted Answer

A) Net income. 
B) Expense. 
C) Equity. 
D) Revenue. 
E) Net loss. 
A) Net income. 
B) Expense. 
C) Equity. 
D) Revenue. 
E) Net loss.

Question 12

The accountant of Action Adventure Games prepared a balance sheet after every 10 day period.The only resources invested by the owner were at the start of the company on June 1.During June,the first month of operation,the following balance sheets were prepared:       Required:
Describe the nature of each of the four transactions that took place between the balance sheet dates shown.Assume only one transaction affected each account.

Accepted Answer

The answer of The accountant of Action Adventure Games prepared...

Question 13

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

Accepted Answer

A) 1.8%. 
B) 35%. 
C) 17.5%. 
D) 5.7%. 
E) 3.5%. 
A) 1.8%. 
B) 35%. 
C) 17.5%. 
D) 5.7%. 
E) 3.5%.

When expenses exceed revenues,the resulting change in equity is:

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

______________ users of accounting information are not directly involved in running the organization.

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Zippy had cash inflows from operations $60,500;cash outflows from investing activities of $47,000;and cash inflows from financing of $25,000.The net change in cash was:

The income statement reports all of the following except:

The balance sheet is based on the accounting equation.

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

The difference between a company's assets and its liabilities,or net assets is:

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

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

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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Exam 1: Accounting in Business

When expenses exceed revenues,the resulting change in equity is:

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

______________ users of accounting information are not directly involved in running the organization.

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Zippy had cash inflows from operations $60,500;cash outflows from investing activities of $47,000;and cash inflows from financing of $25,000.The net change in cash was:

The income statement reports all of the following except:

The balance sheet is based on the accounting equation.

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

The difference between a company's assets and its liabilities,or net assets is:

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA)is:

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

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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