Question 1

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

Accepted Answer

A) True 
 B)False  False

Question 2

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Accepted Answer

A) Revenue recognition principle. 
B) Going-concern assumption. 
C) Objectivity principle. 
D) Business entity assumption. 
E) Measurement (Cost)principle. 
A) Revenue recognition principle. 
B) Going-concern assumption. 
C) Objectivity principle. 
D) Business entity assumption. 
E) Measurement (Cost)principle. A

Question 3

An income statement reports on investing and financing activities.

Accepted Answer

A) True 
 B)False  False

Question 4

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

Accepted Answer

A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of the choices are correct. 
A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of the choices are correct.

Question 5

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 6

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A) Cash. 
B) Accounts receivable. 
C) Supplies. 
D) Land. 
E) Services revenue. 
A) Cash. 
B) Accounts receivable. 
C) Supplies. 
D) Land. 
E) Services revenue.

Question 7

Assets created by selling goods and services on credit are:

Accepted Answer

A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity. 
A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity.

Question 8

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Accepted Answer

A) True 
 B)False

Question 9

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

Accepted Answer

A) True 
 B)False

Question 10

Determine the net income of a company for which the following information is available for the month of September.

Accepted Answer

A) $263,800. 
B) $432,200. 
C) $171,000. 
D) $167,800. 
E) $252,000. 
A) $263,800. 
B) $432,200. 
C) $171,000. 
D) $167,800. 
E) $252,000.

Question 11

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i

Question 12

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Accepted Answer

A) Accounting equation. 
B) Measurement (Cost)principle. 
C) Going-concern assumption. 
D) Realization principle. 
E) Business entity assumption. 
A) Accounting equation. 
B) Measurement (Cost)principle. 
C) Going-concern assumption. 
D) Realization principle. 
E) Business entity assumption.

Question 13

If assets are $99,000 and liabilities are $32,000,then equity equals:

Accepted Answer

A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000. 
A) $32,000. 
B) $67,000. 
C) $99,000. 
D) $131,000. 
E) $198,000.

Question 14

A company reported total equity of $145,000 at the beginning of the year.The company reported $210,000 in revenues and $165,000 in expenses for the year.There were no stockholder investments or dividends during the year.Liabilities at the end of the year totaled $92,000.What are the total assets of the company at the end of the year?

Accepted Answer

A) $45,000. 
B) $92,000. 
C) $98,000. 
D) $210,000. 
E) $282,000. 
A) $45,000. 
B) $92,000. 
C) $98,000. 
D) $210,000. 
E) $282,000.

Question 15

All of the following regarding a Certified Public Accountant are true except:

Accepted Answer

A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA. 
A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA.

Question 16

Increases in equity from a company's sales of products or services are:

Accepted Answer

A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Stockholders' Equity. 
E) Expenses. 
A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Stockholders' Equity. 
E) Expenses.

Question 17

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

Accepted Answer

A) True 
 B)False

Question 18

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments 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 19

The basic financial statements include all of the following except:

Accepted Answer

A) Balance Sheet. 
B) Income Statement. 
C) Statement of Retained Earnings. 
D) Statement of Cash Flows. 
E) Statement of Changes in Assets. 
A) Balance Sheet. 
B) Income Statement. 
C) Statement of Retained Earnings. 
D) Statement of Cash Flows. 
E) Statement of Changes in Assets.

Question 20

The going concern assumption:

Accepted Answer

A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
B) Means that we can express transactions and events in monetary,or money,units. 
C) Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods. 
D) Means that a business is accounted for separately from other business entities,including its owners. 
E) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
A) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
B) Means that we can express transactions and events in monetary,or money,units. 
C) Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods. 
D) Means that a business is accounted for separately from other business entities,including its owners. 
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

An income statement reports on investing and financing activities.

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

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

Which of the following accounts is not included in the asset section of the balance sheet?

Assets created by selling goods and services on credit are:

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

Determine the net income of a company for which the following information is available for the month of September.

Describe the three types of activities reported on the statement of cash flows.

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

If assets are $99,000 and liabilities are $32,000,then equity equals:

All of the following regarding a Certified Public Accountant are true except:

Increases in equity from a company's sales of products or services are:

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

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

The basic financial statements include all of the following except:

The going concern assumption:

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 1: Introducing Financial Statements

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

An income statement reports on investing and financing activities.

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

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

Which of the following accounts is not included in the asset section of the balance sheet?

Assets created by selling goods and services on credit are:

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

Determine the net income of a company for which the following information is available for the month of September.

Describe the three types of activities reported on the statement of cash flows.

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

If assets are $99,000 and liabilities are $32,000,then equity equals:

All of the following regarding a Certified Public Accountant are true except:

Increases in equity from a company's sales of products or services are:

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

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

The basic financial statements include all of the following except:

The going concern assumption:

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters