Question 1

Blu Lightning Co. paid its employees $2,000 in cash for two weeks' wages. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

Question 2

The primary qualitative characteristics of financial information are relevance and faithful representation.

Accepted Answer

A) True 
 B)False

Question 3

A statement of financial position is another name for

Accepted Answer

A)  the income statement 
B)  the balance sheet 
C)  the statement of cash flows 
D)  the statement of changes in equity 
E)  the accounting equation 
A)  the income statement 
B)  the balance sheet 
C)  the statement of cash flows 
D)  the statement of changes in equity 
E)  the accounting equation

Question 4

The rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial affairs and activities of a business are

Accepted Answer

A)  both broad and specific principles 
B)  known as generally accepted accounting principles 
C)  abbreviated as GAAP 
D)  intended to make information in financial statements relevant and faithfully represented. 
E)  All of these 
A)  both broad and specific principles 
B)  known as generally accepted accounting principles 
C)  abbreviated as GAAP 
D)  intended to make information in financial statements relevant and faithfully represented. 
E)  All of these

Question 5

Caps Lock has liabilities of $100,000 and $150,000 in equity. What is the value of its assets?

Accepted Answer

The answer of Caps Lock has liabilities of $100,000 and...

Question 6

An individual or organization that owes an amount to a business is known to the business as a

Accepted Answer

A)  debtor 
B)  shareholder 
C)  controller 
D)  creditor 
E)  bookkeeper 
A)  debtor 
B)  shareholder 
C)  controller 
D)  creditor 
E)  bookkeeper

Question 7

Which of the following items does not appear on the balance sheet?

Accepted Answer

A)  Cash 
B)  Notes payable 
C)  Accounts receivable 
D)  Withdrawals 
E)  Accounts payable 
A)  Cash 
B)  Notes payable 
C)  Accounts receivable 
D)  Withdrawals 
E)  Accounts payable

Question 8

The currency principle means that transactions are expressed using units of money as the common denominator.

Accepted Answer

A) True 
 B)False

Question 9

Individuals and organizations who own the right to receive payments from a business are called its debtors.

Accepted Answer

A) True 
 B)False

Question 10

Chuck Taylor invested $8,000 in cash in FastForward. This amount would be reported in the statement of cash flows under financing.

Accepted Answer

A) True 
 B)False

Question 11

Dividends represent distributions of profits to the partners of a business.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  Going concern principle 
B)  Currency principle 
C)  Historical cost principle 
D)  Business entity principle 
E)  Revenue recognition principle 
A)  Going concern principle 
B)  Currency principle 
C)  Historical cost principle 
D)  Business entity principle 
E)  Revenue recognition principle

Question 13

A corporation is responsible for its actions and any debts incurred. It can enter into its own contracts, and it can buy, own, and sell property.

Accepted Answer

A) True 
 B)False

Question 14

At the end of its first year of operations, Lockerbie and Role Company has total assets of $3,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year's profit for Lockerbie and Role Company?

Accepted Answer

A)  $1,600,000 
B)  $1,800,000 
C)  $1,000,000 
D)  $3,000,000 
E)  $3,200,000 
A)  $1,600,000 
B)  $1,800,000 
C)  $1,000,000 
D)  $3,000,000 
E)  $3,200,000

Question 15

From the following information taken from the records of Peach Company at December 31 of this year, calculate equity.

Accepted Answer

A)  $1,500 
B)  $2,500 
C)  $7,500 
D)  $3,500 
E)  $6,000 
A)  $1,500 
B)  $2,500 
C)  $7,500 
D)  $3,500 
E)  $6,000

Question 16

A corporation

Accepted Answer

A)  is a legal entity separate and distinct from its owners 
B)  is regulated by Canada revenue agency 
C)  has shareholders who have unlimited liability for the acts of the corporation 
D)  can only have two owners 
E)  is not a legal entity 
A)  is a legal entity separate and distinct from its owners 
B)  is regulated by Canada revenue agency 
C)  has shareholders who have unlimited liability for the acts of the corporation 
D)  can only have two owners 
E)  is not a legal entity

Question 17

You are the accountant for Klemmer Corporation. At the company's year end, December 31, 2020, you discover there is an amount of $30,000 that has been earned by Klemmer but not yet billed to its customers by the year end. Laura Klemmer, the owner, tells you not to bill the customers as it is company policy not to bill customers until February 2020, well after the Christmas holidays. Klemmer has sales staff that are paid a bonus at year end on sales revenue billed.
-Are there any ethical issues involved in not billing the customers? Explain.

Accepted Answer

Financial information not presented on t

Question 18

Revenue is recognized in most businesses

Accepted Answer

A)  when the customer's order is received. 
B)  only if the transaction creates an account receivable 
C)  only if paid in cash 
D)  upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price 
E)  when cash from a sale is received 
A)  when the customer's order is received. 
B)  only if the transaction creates an account receivable 
C)  only if paid in cash 
D)  upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price 
E)  when cash from a sale is received

Question 19

Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?

Accepted Answer

A)  Balance sheet 
B)  Statement of changes in equity 
C)  Statement of cash flow 
D)  Income statement. 
E)  Statement of financial position 
A)  Balance sheet 
B)  Statement of changes in equity 
C)  Statement of cash flow 
D)  Income statement. 
E)  Statement of financial position

Question 20

In Canada, Chartered Professional Accountants of Canada is the national organization that has been established to train and monitor its highly qualified professionals.

Accepted Answer

A) True 
 B)False

Blu Lightning Co. paid its employees $2,000 in cash for two weeks' wages. Enter the appropriate amounts into the accounting equation format.

The primary qualitative characteristics of financial information are relevance and faithful representation.

A statement of financial position is another name for

The rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial affairs and activities of a business are

Caps Lock has liabilities of $100,000 and $150,000 in equity. What is the value of its assets?

An individual or organization that owes an amount to a business is known to the business as a

Which of the following items does not appear on the balance sheet?

The currency principle means that transactions are expressed using units of money as the common denominator.

Individuals and organizations who own the right to receive payments from a business are called its debtors.

Chuck Taylor invested $8,000 in cash in FastForward. This amount would be reported in the statement of cash flows under financing.

Dividends represent distributions of profits to the partners of a business.

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

A corporation is responsible for its actions and any debts incurred. It can enter into its own contracts, and it can buy, own, and sell property.

From the following information taken from the records of Peach Company at December 31 of this year, calculate equity.

A corporation

Revenue is recognized in most businesses

Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?

In Canada, Chartered Professional Accountants of Canada is the national organization that has been established to train and monitor its highly qualified professionals.

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

Blu Lightning Co. paid its employees $2,000 in cash for two weeks' wages. Enter the appropriate amounts into the accounting equation format.

The primary qualitative characteristics of financial information are relevance and faithful representation.

A statement of financial position is another name for

The rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial affairs and activities of a business are

Caps Lock has liabilities of $100,000 and $150,000 in equity. What is the value of its assets?

An individual or organization that owes an amount to a business is known to the business as a

Which of the following items does not appear on the balance sheet?

The currency principle means that transactions are expressed using units of money as the common denominator.

Individuals and organizations who own the right to receive payments from a business are called its debtors.

Chuck Taylor invested $8,000 in cash in FastForward. This amount would be reported in the statement of cash flows under financing.

Dividends represent distributions of profits to the partners of a business.

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

A corporation is responsible for its actions and any debts incurred. It can enter into its own contracts, and it can buy, own, and sell property.

From the following information taken from the records of Peach Company at December 31 of this year, calculate equity.

A corporation

Revenue is recognized in most businesses

Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?

In Canada, Chartered Professional Accountants of Canada is the national organization that has been established to train and monitor its highly qualified professionals.

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