Question 1

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

Accepted Answer

A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption. 
A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption.

Question 2

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Accepted Answer

A) Objectivity principle. 
B) Monetary unit assumption. 
C) Business entity assumption. 
D) Going-concern assumption. 
E) Revenue recognition principle. 
A) Objectivity principle. 
B) Monetary unit assumption. 
C) Business entity assumption. 
D) Going-concern assumption. 
E) Revenue recognition principle.

Question 3

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 4

Owner withdrawals are expenses.

Accepted Answer

A) True 
 B)False

Question 5

Planning involves defining an organization's ideas,goals,and actions.

Accepted Answer

A) True 
 B)False

Question 6

_________ 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 7

The primary objective of financial accounting is to:

Accepted Answer

A) Serve the decision-making needs of internal users. 
B) Provide accounting information that serves external users. 
C) Monitor and control company activities. 
D) Provide information on both the costs and benefits of looking after products and services. 
E) Know what,when,and how much product to produce. 
A) Serve the decision-making needs of internal users. 
B) Provide accounting information that serves external users. 
C) Monitor and control company activities. 
D) Provide information on both the costs and benefits of looking after products and services. 
E) Know what,when,and how much product to produce.

Question 8

There are at least three types of partnerships that limit the partners' liability.They are 1)_____________________,2)___________________,and 3)______________________.
answers can appear in any order

Accepted Answer

limited partnership,

Question 9

The accounting equation can be restated as: Assets - Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 10

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation when the first rent payment is collected?

Accepted Answer

A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700. 
A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700.

Question 11

Cash investments by owners are listed on which of the following statements?

Accepted Answer

A) Balance sheet. 
B) Income statement. 
C) Statement of owner's equity only. 
D) Statement of cash flows only. 
E) Statement of owner's equity and statement of cash flows. 
A) Balance sheet. 
B) Income statement. 
C) Statement of owner's equity only. 
D) Statement of cash flows only. 
E) Statement of owner's equity and statement of cash flows.

Question 12

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

Question 13

The characteristics below apply to at least one of the forms of business organization.
a.Is a separate legal entity.
b.Is allowed to be owned by one person only.
c.Owner or owners are personally liable for debts of the business.
d.Is a separately taxable entity.
e.Is a business entity.
f.May have a contract specifying the division of profits among the owners.
g.Has an unlimited life
Use the following format to indicate (with a "yes" or "no")whether or not a characteristic applies to each type of business organization.

Accepted Answer

The answer of The characteristics below apply to at least...

Question 14

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

A) True 
 B)False

Question 15

Regulators often have legal authority over certain activities of organizations.

Accepted Answer

A) True 
 B)False

Question 16

Revenues are:

Accepted Answer

A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used. 
A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used.

Question 17

All of the following are true regarding ethics except:

Accepted Answer

A) Ethics are beliefs that separate right from wrong. 
B) Ethics rules are often set for CPAs. 
C) Ethics do not affect the operations or outcome of a company. 
D) Are critical in accounting. 
E) Ethics can be difficult to apply. 
A) Ethics are beliefs that separate right from wrong. 
B) Ethics rules are often set for CPAs. 
C) Ethics do not affect the operations or outcome of a company. 
D) Are critical in accounting. 
E) Ethics can be difficult to apply.

Question 18

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

Accepted Answer

A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption. 
A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption.

Question 19

Return on assets is useful to decision makers for evaluating management,analyzing and forecasting profits,and in planning activities.

Accepted Answer

A) True 
 B)False

Question 20

Determine the net income of a company for which the following information is available for the month of July.

Accepted Answer

A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000. 
A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000.

Exam 1: Accounting in Business

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

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:

Owner withdrawals are expenses.

Planning involves defining an organization's ideas,goals,and actions.

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

The primary objective of financial accounting is to:

There are at least three types of partnerships that limit the partners' liability.They are 1)_____________________,2)___________________,and 3)______________________. answers can appear in any order

The accounting equation can be restated as: Assets - Equity = Liabilities.

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation when the first rent payment is collected?

Cash investments by owners are listed on which of the following statements?

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

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Regulators often have legal authority over certain activities of organizations.

Revenues are:

All of the following are true regarding ethics except:

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

Return on assets is useful to decision makers for evaluating management,analyzing and forecasting profits,and in planning activities.

Determine the net income of a company for which the following information is available for the month of July.

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

Filters

There are at least three types of partnerships that limit the partners' liability.They are 1)___________,2)_,and 3)______________. answers can appear in any order