Question 1

Internal users include creditors, shareholders, internal auditors and managers.

Accepted Answer

A) True 
 B)False  False

Question 2

Internal operating functions include research and development, distribution, and human resources.

Accepted Answer

A) True 
 B)False  True

Question 3

The accounting principle that requires that transactions are to be expressed using units of money in the currency of the country in which the company primarily operates as the common denominator is the

Accepted Answer

A)  business entity principle 
B)  currency 
C)  going concern principle 
D)  historical cost principle 
E)  revenue recognition principle 
A)  business entity principle 
B)  currency 
C)  going concern principle 
D)  historical cost principle 
E)  revenue recognition principle B

Question 4

Internal controls are procedures set up to

Accepted Answer

A)  protect assets 
B)  ensure accounting reports are free from error, neutral and complete 
C)  promote efficiency 
D)  ensure company policies are followed 
E)  All of these 
A)  protect assets 
B)  ensure accounting reports are free from error, neutral and complete 
C)  promote efficiency 
D)  ensure company policies are followed 
E)  All of these

Question 5

A company that is currently in the process of liquidating is considered to be a going concern.

Accepted Answer

A) True 
 B)False

Question 6

A payment from a proprietorship or partnership to its owner or owners is called a(n)

Accepted Answer

A)  dividend 
B)  withdrawal 
C)  expense 
D)  equity 
E)  cheque 
A)  dividend 
B)  withdrawal 
C)  expense 
D)  equity 
E)  cheque

Question 7

Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 8

The primary objective of GAAP is to provide accounting information that is

Accepted Answer

A)  usefulness for decision making 
B)  free from bias 
C)  timeliness 
D)  comparability 
E)  neutral 
A)  usefulness for decision making 
B)  free from bias 
C)  timeliness 
D)  comparability 
E)  neutral

Question 9

The financial statement that describes where a company's cash came from and where it went during the period is the

Accepted Answer

A)  statement of financial position 
B)  statement of cash flows 
C)  balance sheet 
D)  income statement 
E)  statement of changes in equity 
A)  statement of financial position 
B)  statement of cash flows 
C)  balance sheet 
D)  income statement 
E)  statement of changes in equity

Question 10

Blu Disc paid its property owner $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

Question 11

Identify several opportunities in accounting and its related fields.

Accepted Answer

The traditional areas of accounting incl

Question 12

A sole proprietorship is a business owned by one or more persons.

Accepted Answer

A) True 
 B)False

Question 13

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 or the asset received, whichever is more clearly evident 
B)  the market value of the asset received in all cases 
C)  the cash outlay only, even if part of the consideration given was something other than cash 
D)  the best estimate of a certified internal auditor 
E)  current replacement cost 
A)  the cash equivalent value of what was given up or the asset received, whichever is more clearly evident 
B)  the market value of the asset received in all cases 
C)  the cash outlay only, even if part of the consideration given was something other than cash 
D)  the best estimate of a certified internal auditor 
E)  current replacement cost

Question 14

Blu Lightning Co. received $5,000 for a previously recorded account receivable from the Cheetah Co. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

Question 15

Revenues are

Accepted Answer

A)  profits 
B)  the amount a business earns after subtracting all expenses from sales 
C)  business events 
D)  net assets 
E)  the value of assets exchanged for goods or services provided to the customer 
A)  profits 
B)  the amount a business earns after subtracting all expenses from sales 
C)  business events 
D)  net assets 
E)  the value of assets exchanged for goods or services provided to the customer

Question 16

Identify three advantages to setting up a corporation as an owner's legal business structure.

Accepted Answer

Separate legal status means that the sha

Question 17

The Accounting Standards Board (AcSB), is the body that developed accounting standards for private enterprises (ASPE).

Accepted Answer

A) True 
 B)False

Question 18

Willie's Attic has the following account balances for the dates given   What is the amount of equity on September 1 and September 30?

Accepted Answer

A)  $86,000; $4,000 
B)  $86,000; $106,000 
C)  $74,000; $106,000 
D)  $74,000; $4,000 
E)  None of these answers is correct. 
A)  $86,000; $4,000 
B)  $86,000; $106,000 
C)  $74,000; $106,000 
D)  $74,000; $4,000 
E)  None of these answers is correct.

Question 19

On November 1, 2020, Jill Luckovich began Jill Luckovich Interior Design Co. with an initial investment of $6,725, and on November 30 her records showed the following (alphabetically arranged) account balances:
  
-From the information given in reference, prepare an income statement for November.

Accepted Answer

The answer of On November 1, 2020, Jill Luckovich began...

Question 20

A parcel of land is offered for sale at $135,000, is assessed for tax purposes at $60,000, is recognized by its purchasers as easily being worth $108,000, and is purchased for $106,000. At what amount should the land be recorded in the purchaser's books if the company employs the measurement method of historical cost?

Accepted Answer

$106,000. The historical cost

Internal users include creditors, shareholders, internal auditors and managers.

Internal operating functions include research and development, distribution, and human resources.

The accounting principle that requires that transactions are to be expressed using units of money in the currency of the country in which the company primarily operates as the common denominator is the

Internal controls are procedures set up to

A company that is currently in the process of liquidating is considered to be a going concern.

A payment from a proprietorship or partnership to its owner or owners is called a(n)

Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.

The primary objective of GAAP is to provide accounting information that is

The financial statement that describes where a company's cash came from and where it went during the period is the

Blu Disc paid its property owner $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Identify several opportunities in accounting and its related fields.

A sole proprietorship is a business owned by one or more persons.

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

Blu Lightning Co. received $5,000 for a previously recorded account receivable from the Cheetah Co. Enter the appropriate amounts into the accounting equation format.

Revenues are

Identify three advantages to setting up a corporation as an owner's legal business structure.

The Accounting Standards Board (AcSB), is the body that developed accounting standards for private enterprises (ASPE).

Willie's Attic has the following account balances for the dates given What is the amount of equity on September 1 and September 30?

On November 1, 2020, Jill Luckovich began Jill Luckovich Interior Design Co. with an initial investment of $6,725, and on November 30 her records showed the following (alphabetically arranged) account balances: -From the information given in reference, prepare an income statement for November.

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters

Exam 1: Accounting in Business

Internal users include creditors, shareholders, internal auditors and managers.

Internal operating functions include research and development, distribution, and human resources.

The accounting principle that requires that transactions are to be expressed using units of money in the currency of the country in which the company primarily operates as the common denominator is the

Internal controls are procedures set up to

A company that is currently in the process of liquidating is considered to be a going concern.

A payment from a proprietorship or partnership to its owner or owners is called a(n)

Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.

The primary objective of GAAP is to provide accounting information that is

The financial statement that describes where a company's cash came from and where it went during the period is the

Blu Disc paid its property owner $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Identify several opportunities in accounting and its related fields.

A sole proprietorship is a business owned by one or more persons.

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

Blu Lightning Co. received $5,000 for a previously recorded account receivable from the Cheetah Co. Enter the appropriate amounts into the accounting equation format.

Revenues are

Identify three advantages to setting up a corporation as an owner's legal business structure.

The Accounting Standards Board (AcSB), is the body that developed accounting standards for private enterprises (ASPE).

Willie's Attic has the following account balances for the dates given What is the amount of equity on September 1 and September 30?

On November 1, 2020, Jill Luckovich began Jill Luckovich Interior Design Co. with an initial investment of $6,725, and on November 30 her records showed the following (alphabetically arranged) account balances: -From the information given in reference, prepare an income statement for November.

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Property, Plant and Equipment Intangibles

Payroll Liabilities

Accounting Information Systems

Filters