Question 1

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 2

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

Accepted Answer

A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%. 
A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%.

Question 3

The Sarbanes-Oxley Act (SOX)requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Generally the lower the risk,the higher the return that can be expected.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

The three common forms of business ownership include sole proprietorship,partnership,and non-profit.

Accepted Answer

A) True 
 B)False

Question 8

If a company paid $38,000 of its accounts payable in cash,what was the effect on the accounting equation?

Accepted Answer

A) Assets would decrease $38,000,liabilities would decrease $38,000,and equity would decrease $38,000. 
B) Assets would decrease $38,000,liabilities would decrease $38,000,and equity would increase $38,000. 
C) Assets would decrease $38,000 and liabilities would decrease $38,000. 
D) There would be no effect on the accounts because the accounts are affected by the same amount. 
E) Assets would increase $38,000 and liabilities would decrease $38,000. 
A) Assets would decrease $38,000,liabilities would decrease $38,000,and equity would decrease $38,000. 
B) Assets would decrease $38,000,liabilities would decrease $38,000,and equity would increase $38,000. 
C) Assets would decrease $38,000 and liabilities would decrease $38,000. 
D) There would be no effect on the accounts because the accounts are affected by the same amount. 
E) Assets would increase $38,000 and liabilities would decrease $38,000.

Question 9

If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000,is offered for sale at $150,000,is assessed for tax purposes at $95,000,is recognized by the purchaser as easily being worth $140,000,and is purchased for $137,000,the land should be recorded in the purchaser's books at:

Accepted Answer

A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000. 
A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000.

Question 10

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Accepted Answer

A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Neither assets,total liabilities,nor equity are changed. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases. 
A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Neither assets,total liabilities,nor equity are changed. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases.

Question 11

Jet Styling has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

Accepted Answer

The answer of Jet Styling has the following beginning cash...

Question 12

An example of an operating activity is:

Accepted Answer

A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan. 
A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan.

Question 13

Revenues are increases in equity from a company's sales of products and services to customers.

Accepted Answer

A) True 
 B)False

Question 14

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 15

Congress passed the ______________________ to help curb financial abuses at companies that issue their stock to the public.

Accepted Answer

The answer of Congress passed the ______________________ to help curb...

Question 16

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 17

The owner's claim on assets,also known as net assets,is called __________________.

Accepted Answer

The answer of The owner's claim on assets,also known as...

Question 18

The International Accounting Standards Board (IASB)is the government group that establishes reporting requirements for companies that issue stock to the public.

Accepted Answer

A) True 
 B)False

Question 19

Internal users include lenders,shareholders,brokers and managers.

Accepted Answer

A) True 
 B)False

Question 20

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

Accepted Answer

A) 8.4% 
B) 17.2% 
C) 14.3% 
D) 15.6% 
E) 1.5% 
A) 8.4% 
B) 17.2% 
C) 14.3% 
D) 15.6% 
E) 1.5%

Exam 1: Accounting in Business

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

The Sarbanes-Oxley Act (SOX)requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

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

Generally the lower the risk,the higher the return that can be expected.

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

The three common forms of business ownership include sole proprietorship,partnership,and non-profit.

If a company paid $38,000 of its accounts payable in cash,what was the effect on the accounting equation?

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Jet Styling has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

An example of an operating activity is:

Revenues are increases in equity from a company's sales of products and services to customers.

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

Congress passed the ______________________ to help curb financial abuses at companies that issue their stock to the public.

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

The owner's claim on assets,also known as net assets,is called __________________.

The International Accounting Standards Board (IASB)is the government group that establishes reporting requirements for companies that issue stock to the public.

Internal users include lenders,shareholders,brokers and managers.

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

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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