Question 1

Costs incurred or the using up of assets as a result of the main operations of a business are called

Accepted Answer

A)  liabilities 
B)  equity 
C)  revenues 
D)  expenses 
E)  net losses 
A)  liabilities 
B)  equity 
C)  revenues 
D)  expenses 
E)  net losses

Question 2

Describe the main user groups, their members, and their uses of accounting information.

Accepted Answer

There are two types of users of accounti

Question 3

Before purchasing a parcel of land, Ming's Boutique had the land appraised at $90,000. The management of Ming's Boutique purchased the land for $85,000. At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

Accepted Answer

$85,000. The Historical cost p

Question 4

Private accountants work for several employers.

Accepted Answer

A) True 
 B)False

Question 5

An owner's cash investment in a business creates an asset (cash), a liability (note payable), and equity (owner investments).

Accepted Answer

A) True 
 B)False

Question 6

The equity in a partnership belongs to one owner.

Accepted Answer

A) True 
 B)False

Question 7

Describe source documents and their purpose.

Accepted Answer

Source documents are the business papers

Question 8

Sheila's Attic has $660,000 in assets and equity of $250,000. What is the amount of its liabilities?

Accepted Answer

The answer of Sheila's Attic has $660,000 in assets and...

Question 9

Recordkeeping" is another term for "accounting".

Accepted Answer

A) True 
 B)False

Question 10

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

Accepted Answer

A)  Assets, $5,000 increase, equity, $5,000 increase. 
B)  Assets, $5,000 increase, equity, $5,000 decrease. 
C)  Liabilities, $5,000 increase, equity, $5,000 decrease. 
D)  Assets, $5,000 decrease, equity, $5,000 decrease. 
E)  Assets, no effect; liabilities, no effect 
A)  Assets, $5,000 increase, equity, $5,000 increase. 
B)  Assets, $5,000 increase, equity, $5,000 decrease. 
C)  Liabilities, $5,000 increase, equity, $5,000 decrease. 
D)  Assets, $5,000 decrease, equity, $5,000 decrease. 
E)  Assets, no effect; liabilities, no effect

Question 11

A characteristic of liabilities is their capacity to reduce future assets.

Accepted Answer

A) True 
 B)False

Question 12

The question of when revenue should be recognized on the income statement (according to GAAP) is answered by the

Accepted Answer

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

Question 13

If assets are $175,000 and equity is $47,000, then liabilities equal

Accepted Answer

A)  $47,000 
B)  $128,000 
C)  $175,000 
D)  $204,000 
E)  $222,000 
A)  $47,000 
B)  $128,000 
C)  $175,000 
D)  $204,000 
E)  $222,000

Question 14

You are reviewing the accounting records of April's Attic, owned by April Lapierre. You have uncovered the following situations. Compose a memo to Ms. Lapierre. Cite the appropriate accounting principle and suggest an action for each separate item.

Accepted Answer

The answer of You are reviewing the accounting records of...

Question 15

The first section of the income statement reports cash from operating activities.

Accepted Answer

A) True 
 B)False

Question 16

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

Accepted Answer

A) True 
 B)False

Question 17

Transactions that impact only assets do not require the accounting equation to stay in balance.

Accepted Answer

A) True 
 B)False

Question 18

A balance sheet lists

Accepted Answer

A)  the types and amounts of the revenues and expenses of a business 
B)  only the information about what happened to equity during a specific time period 
C)  the types and amounts of assets, liabilities, and equity of a business at a specific date 
D)  the inflows and outflows of cash during a specific time period 
E)  the assets and liabilities of a business but not the equity 
A)  the types and amounts of the revenues and expenses of a business 
B)  only the information about what happened to equity during a specific time period 
C)  the types and amounts of assets, liabilities, and equity of a business at a specific date 
D)  the inflows and outflows of cash during a specific time period 
E)  the assets and liabilities of a business but not the equity

Question 19

Properties or economic resources owned by a business, also described as probable future economic benefits, are called

Accepted Answer

A)  assets 
B)  revenues 
C)  liabilities 
D)  equity 
E)  expenses 
A)  assets 
B)  revenues 
C)  liabilities 
D)  equity 
E)  expenses

Question 20

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

Accepted Answer

A) True 
 B)False

Costs incurred or the using up of assets as a result of the main operations of a business are called

Describe the main user groups, their members, and their uses of accounting information.

Before purchasing a parcel of land, Ming's Boutique had the land appraised at $90,000. The management of Ming's Boutique purchased the land for $85,000. At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

Private accountants work for several employers.

An owner's cash investment in a business creates an asset (cash), a liability (note payable), and equity (owner investments).

The equity in a partnership belongs to one owner.

Describe source documents and their purpose.

Sheila's Attic has $660,000 in assets and equity of $250,000. What is the amount of its liabilities?

Recordkeeping" is another term for "accounting".

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

A characteristic of liabilities is their capacity to reduce future assets.

The question of when revenue should be recognized on the income statement (according to GAAP) is answered by the

If assets are $175,000 and equity is $47,000, then liabilities equal

You are reviewing the accounting records of April's Attic, owned by April Lapierre. You have uncovered the following situations. Compose a memo to Ms. Lapierre. Cite the appropriate accounting principle and suggest an action for each separate item.

The first section of the income statement reports cash from operating activities.

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

Transactions that impact only assets do not require the accounting equation to stay in balance.

A balance sheet lists

Properties or economic resources owned by a business, also described as probable future economic benefits, are called

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

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

Costs incurred or the using up of assets as a result of the main operations of a business are called

Describe the main user groups, their members, and their uses of accounting information.

Before purchasing a parcel of land, Ming's Boutique had the land appraised at $90,000. The management of Ming's Boutique purchased the land for $85,000. At what amount should the land be recorded on Ming's Boutique's books? What accounting principle supports your answer?

Private accountants work for several employers.

An owner's cash investment in a business creates an asset (cash), a liability (note payable), and equity (owner investments).

The equity in a partnership belongs to one owner.

Describe source documents and their purpose.

Sheila's Attic has $660,000 in assets and equity of $250,000. What is the amount of its liabilities?

Recordkeeping" is another term for "accounting".

Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?

A characteristic of liabilities is their capacity to reduce future assets.

The question of when revenue should be recognized on the income statement (according to GAAP) is answered by the

If assets are $175,000 and equity is $47,000, then liabilities equal

You are reviewing the accounting records of April's Attic, owned by April Lapierre. You have uncovered the following situations. Compose a memo to Ms. Lapierre. Cite the appropriate accounting principle and suggest an action for each separate item.

The first section of the income statement reports cash from operating activities.

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

Transactions that impact only assets do not require the accounting equation to stay in balance.

A balance sheet lists

Properties or economic resources owned by a business, also described as probable future economic benefits, are called

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

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