Question 1

Accounting information helps people make better decisions about the performance of a business.

Accepted Answer

A) True 
 B)False

Question 2

An obligation of a business that represents the claims of others against the assets of the business is called a(n)

Accepted Answer

A)  asset 
B)  expense 
C)  revenue 
D)  equity 
E)  liability 
A)  asset 
B)  expense 
C)  revenue 
D)  equity 
E)  liability

Question 3

The balance sheet equation is

Accepted Answer

A)  revenues minus expenses equals profit 
B)  debits equal credits 
C)  the bookkeeping phase of accounting 
D)  another name for the accounting equation 
E)  assets minus liabilities 
A)  revenues minus expenses equals profit 
B)  debits equal credits 
C)  the bookkeeping phase of accounting 
D)  another name for the accounting equation 
E)  assets minus liabilities

Question 4

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are

Accepted Answer

A)  total assets decrease, and equity increases 
B)  both total assets and total liabilities decrease 
C)  total assets, total liabilities, and equity are unchanged 
D)  both total assets and equity are unchanged 
E)  total assets increase and equity increases 
A)  total assets decrease, and equity increases 
B)  both total assets and total liabilities decrease 
C)  total assets, total liabilities, and equity are unchanged 
D)  both total assets and equity are unchanged 
E)  total assets increase and equity increases

Question 5

Financial statements are an organization's primary means of financial communication and are the end result of a process, or a cycle, which begins with a business transaction like a sale.

Accepted Answer

A) True 
 B)False

Question 6

Ethics and social responsibility are incidental to the primary functions of accounting.

Accepted Answer

A) True 
 B)False

Question 7

Financial information that is verifiable means that

Accepted Answer

A)  information is clear and concise 
B)  knowledgeable users agree that the financial information is faithfully represented 
C)  the information is useful to users with reasonable knowledge of accounting as well as business and economic activities 
D)  users are able to compare different companies, if all the companies use similar accounting practices 
E)  the financial statements have not been prepared according to GAAP 
A)  information is clear and concise 
B)  knowledgeable users agree that the financial information is faithfully represented 
C)  the information is useful to users with reasonable knowledge of accounting as well as business and economic activities 
D)  users are able to compare different companies, if all the companies use similar accounting practices 
E)  the financial statements have not been prepared according to GAAP

Question 8

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

Question 9

Source documents

Accepted Answer

A)  do not provide objective evidence about transaction 
B)  are a source of accounting information. 
C)  can only be in electronic form 
D)  are only used for audit purposes 
E)  are acceptable as a substitute for financial statements 
A)  do not provide objective evidence about transaction 
B)  are a source of accounting information. 
C)  can only be in electronic form 
D)  are only used for audit purposes 
E)  are acceptable as a substitute for financial statements

Question 10

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances:
  
-From the information given in reference, prepare the year-end balance sheet.

Accepted Answer

The answer of The records of Cohen's Toy Repair Co....

Question 11

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

Accepted Answer

Assets would decrease $2,000,

Question 12

The adoption of international accounting standards is an application of which of the following quality enhancing characteristics of financial information

Accepted Answer

A)  verifiability 
B)  understandability 
C)  timeliness 
D)  comparability 
E)  completeness 
A)  verifiability 
B)  understandability 
C)  timeliness 
D)  comparability 
E)  completeness

Question 13

Managerial accounting provides special-purpose reports customized to meet the information needs of internal users.

Accepted Answer

A) True 
 B)False

Question 14

International Accounting Standards have been created to improve comparability of accounting information across countries.

Accepted Answer

A) True 
 B)False

Question 15

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, the land should be recorded in the purchaser's books at

Accepted Answer

A)  $20,000 
B)  $34,000 
C)  $36,000 
D)  $45,000 
E)  $54,000 
A)  $20,000 
B)  $34,000 
C)  $36,000 
D)  $45,000 
E)  $54,000

Question 16

Career opportunities in accounting include

Accepted Answer

A)  budgeting 
B)  auditing 
C)  cost accounting 
D)  management consulting 
E)  All of these 
A)  budgeting 
B)  auditing 
C)  cost accounting 
D)  management consulting 
E)  All of these

Question 17

If financial information is relevant, this means that

Accepted Answer

A)  decision makers can depend on it 
B)  it can affect the types of decisions made by users 
C)  the information is prepared using the same accounting procedures from one accounting period to the next 
D)  users are able to compare different companies, if all the companies use similar accounting practices 
E)  the financial statements have not been prepared according to GAAP 
A)  decision makers can depend on it 
B)  it can affect the types of decisions made by users 
C)  the information is prepared using the same accounting procedures from one accounting period to the next 
D)  users are able to compare different companies, if all the companies use similar accounting practices 
E)  the financial statements have not been prepared according to GAAP

Question 18

The financing side of the accounting equation describes where the assets came from.

Accepted Answer

A) True 
 B)False

Question 19

External users include lenders such as banks, and other creditors such as suppliers and bondholders.

Accepted Answer

A) True 
 B)False

Question 20

Social responsibility

Accepted Answer

A)  is a code that helps accountants when dealing with confidential information 
B)  is a concern for the impact of our actions on society as a whole 
C)  allows Canada Revenue Agency to regulate businesses 
D)  requires that all businesses conduct social audits 
E)  requires analysts to report information favourable to their companies 
A)  is a code that helps accountants when dealing with confidential information 
B)  is a concern for the impact of our actions on society as a whole 
C)  allows Canada Revenue Agency to regulate businesses 
D)  requires that all businesses conduct social audits 
E)  requires analysts to report information favourable to their companies

Accounting information helps people make better decisions about the performance of a business.

An obligation of a business that represents the claims of others against the assets of the business is called a(n)

The balance sheet equation is

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are

Financial statements are an organization's primary means of financial communication and are the end result of a process, or a cycle, which begins with a business transaction like a sale.

Ethics and social responsibility are incidental to the primary functions of accounting.

Financial information that is verifiable means that

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

Source documents

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances: -From the information given in reference, prepare the year-end balance sheet.

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

The adoption of international accounting standards is an application of which of the following quality enhancing characteristics of financial information

Managerial accounting provides special-purpose reports customized to meet the information needs of internal users.

International Accounting Standards have been created to improve comparability of accounting information across countries.

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, the land should be recorded in the purchaser's books at

Career opportunities in accounting include

If financial information is relevant, this means that

The financing side of the accounting equation describes where the assets came from.

External users include lenders such as banks, and other creditors such as suppliers and bondholders.

Social responsibility

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

Accounting information helps people make better decisions about the performance of a business.

An obligation of a business that represents the claims of others against the assets of the business is called a(n)

The balance sheet equation is

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are

Financial statements are an organization's primary means of financial communication and are the end result of a process, or a cycle, which begins with a business transaction like a sale.

Ethics and social responsibility are incidental to the primary functions of accounting.

Financial information that is verifiable means that

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

Source documents

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances: -From the information given in reference, prepare the year-end balance sheet.

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

The adoption of international accounting standards is an application of which of the following quality enhancing characteristics of financial information

Managerial accounting provides special-purpose reports customized to meet the information needs of internal users.

International Accounting Standards have been created to improve comparability of accounting information across countries.

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, the land should be recorded in the purchaser's books at

Career opportunities in accounting include

If financial information is relevant, this means that

The financing side of the accounting equation describes where the assets came from.

External users include lenders such as banks, and other creditors such as suppliers and bondholders.

Social responsibility

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