Question 1

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 2

Owner financing refers to resources contributed by creditors or lenders.

Accepted Answer

A) True 
 B)False

Question 3

A balance sheet covers activities over a period of time such as a month or year.

Accepted Answer

A) True 
 B)False

Question 4

Explain the role of accounting in the information age.

Accepted Answer

Accounting is an information and measure

Question 5

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

Accepted Answer

A) True 
 B)False

Question 6

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 time period. 
C) The types and amounts of assets,liabilities,and equity of a business as of a specific date. 
D) The inflows and outflows of cash during the period. 
E) The assets and liabilities of a company but not the stockholders' 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 time period. 
C) The types and amounts of assets,liabilities,and equity of a business as of a specific date. 
D) The inflows and outflows of cash during the period. 
E) The assets and liabilities of a company but not the stockholders' equity.

Question 7

Return on assets is often stated in ratio form as the amount of average total assets divided by income.

Accepted Answer

A) True 
 B)False

Question 8

If assets are $300,000 and liabilities are $192,000,then equity equals:

Accepted Answer

A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000. 
A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000.

Question 9

An example of an investing activity is:

Accepted Answer

A) Paying wages of employees. 
B) Dividends paid to stockholders. 
C) Purchase of land. 
D) Selling inventory. 
E) Investments by stockholders in exchange for common stock. 
A) Paying wages of employees. 
B) Dividends paid to stockholders. 
C) Purchase of land. 
D) Selling inventory. 
E) Investments by stockholders in exchange for common stock.

Question 10

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

Accepted Answer

The answer of ________ is an information and measurement system...

Question 11

Soo Lin began an Internet Consulting practice and completed these transactions during April of the current year:
   Show the effects of the above transactions on the accounting equation of Soo Lin,Consultant.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N

Accepted Answer

The answer of Soo Lin began an Internet Consulting practice...

Question 12

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Accepted Answer

The answer of The ________ describes a company's revenues and...

Question 13

The time period 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.

Question 14

The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it,need be disclosed.

Accepted Answer

A) True 
 B)False

Question 15

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

Accepted Answer

A) True 
 B)False

Question 16

The accountant of Action Adventure Games prepared a balance sheet after every 10 day period.The only resources invested by its sole stockholder were at the start of the company on June 1.During June,the first month of operation,the following balance sheets were prepared:
       Required: Describe the nature of each of the four transactions that took place between the balance sheet dates shown.Assume only one transaction affected each account.

Accepted Answer

The answer of The accountant of Action Adventure Games prepared...

Question 17

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

Accepted Answer

A) Accounts receivable. 
B) Wages payable. 
C) Accounts payable. 
D) Notes payable. 
E) Taxes payable. 
A) Accounts receivable. 
B) Wages payable. 
C) Accounts payable. 
D) Notes payable. 
E) Taxes payable.

Question 18

There are three major types of business activities.________activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

The answer of There are three major types of business...

Question 19

If assets are $365,000 and equity is $120,000,then liabilities are:

Accepted Answer

A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000. 
A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000.

Question 20

The independent group consisting of individuals from many countries and identifies preferred accounting practices for all countries is the:

Accepted Answer

A) AICPA. 
B) IASB. 
C) CAP. 
D) SEC. 
E) FASB. 
A) AICPA. 
B) IASB. 
C) CAP. 
D) SEC. 
E) FASB.

Explain why ethics are an integral part of accounting.

Owner financing refers to resources contributed by creditors or lenders.

A balance sheet covers activities over a period of time such as a month or year.

Explain the role of accounting in the information age.

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

A balance sheet lists:

Return on assets is often stated in ratio form as the amount of average total assets divided by income.

If assets are $300,000 and liabilities are $192,000,then equity equals:

An example of an investing activity is:

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

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

The time period assumption:

The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it,need be disclosed.

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

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

There are three major types of business activities.________activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

If assets are $365,000 and equity is $120,000,then liabilities are:

The independent group consisting of individuals from many countries and identifies preferred accounting practices for all countries is the:

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

Explain why ethics are an integral part of accounting.

Owner financing refers to resources contributed by creditors or lenders.

A balance sheet covers activities over a period of time such as a month or year.

Explain the role of accounting in the information age.

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

A balance sheet lists:

Return on assets is often stated in ratio form as the amount of average total assets divided by income.

If assets are $300,000 and liabilities are $192,000,then equity equals:

An example of an investing activity is:

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

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

The time period assumption:

The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it,need be disclosed.

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

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

There are three major types of business activities.________activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

If assets are $365,000 and equity is $120,000,then liabilities are:

The independent group consisting of individuals from many countries and identifies preferred accounting practices for all countries is the:

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