Question 1

Return on assets reflects a company's ability to generate profit through productive use of its assets.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

Accepted Answer

A) Assets increase $4,500 and liabilities decrease $4,500. 
B) Equity decreases $4,500 and liabilities increase $4,500. 
C) Liabilities decrease $4,500 and assets increase $4,500. 
D) Assets increase $4,500 and liabilities increase $4,500. 
E) Equity increases $4,500 and liabilities decrease $4,500. 
A) Assets increase $4,500 and liabilities decrease $4,500. 
B) Equity decreases $4,500 and liabilities increase $4,500. 
C) Liabilities decrease $4,500 and assets increase $4,500. 
D) Assets increase $4,500 and liabilities increase $4,500. 
E) Equity increases $4,500 and liabilities decrease $4,500.

Question 4

Stockholder investments are increases in equity from a company's earnings activities.

Accepted Answer

A) True 
 B)False

Question 5

Regulators have legal authority over certain activities of organizations.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A stockholder's investment increases equity via net income.

Accepted Answer

A) True 
 B)False

Question 8

Equity increases as a result of stockholder investments and business revenues.

Accepted Answer

A) True 
 B)False

Question 9

Financing activities provide the means organizations use to pay for resources such as land,buildings,and equipment.

Accepted Answer

A) True 
 B)False

Question 10

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Accepted Answer

The answer of The ________ assumption assumes that a business...

Question 11

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n):

Accepted Answer

A) Revenue activity. 
B) Operating activity. 
C) Expense activity. 
D) Investing activity. 
E) Financing activity. 
A) Revenue activity. 
B) Operating activity. 
C) Expense activity. 
D) Investing activity. 
E) Financing activity.

Question 12

All of the following are classified as assets except:

Accepted Answer

A) Accounts Receivable. 
B) Supplies. 
C) Equipment. 
D) Accounts Payable. 
E) Land. 
A) Accounts Receivable. 
B) Supplies. 
C) Equipment. 
D) Accounts Payable. 
E) Land.

Question 13

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 14

Financial accounting serves external users by providing them with general-purpose financial statements.

Accepted Answer

A) True 
 B)False

Question 15

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 16

Which of the following purposes would financial statements serve for external users?

Accepted Answer

A) To find information about projected costs and revenues of proposed products. 
B) To assess employee performance and compensation. 
C) To assist in monitoring consumer needs and price concerns. 
D) To fulfill regulatory requirements for companies whose stock is sold to the public. 
E) To determine purchasing needs. 
A) To find information about projected costs and revenues of proposed products. 
B) To assess employee performance and compensation. 
C) To assist in monitoring consumer needs and price concerns. 
D) To fulfill regulatory requirements for companies whose stock is sold to the public. 
E) To determine purchasing needs.

Question 17

Equity decreases as a result of revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 18

Risk is the ________ about the return an investor expects to earn.

Accepted Answer

The answer of Risk is the ________ about the return...

Question 19

In the partnership form of business,the owners are called stockholders.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following accounts is not included in the calculation of net income?

Accepted Answer

A) Services revenue. 
B) Wages expense. 
C) Rent expense. 
D) Cash. 
E) Rent revenue. 
A) Services revenue. 
B) Wages expense. 
C) Rent expense. 
D) Cash. 
E) Rent revenue.

Return on assets reflects a company's ability to generate profit through productive use of its assets.

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

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

Stockholder investments are increases in equity from a company's earnings activities.

Regulators have legal authority over certain activities of organizations.

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

A stockholder's investment increases equity via net income.

Equity increases as a result of stockholder investments and business revenues.

Financing activities provide the means organizations use to pay for resources such as land,buildings,and equipment.

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n):

All of the following are classified as assets except:

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Financial accounting serves external users by providing them with general-purpose financial statements.

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Which of the following purposes would financial statements serve for external users?

Equity decreases as a result of revenues and expenses.

Risk is the ________ about the return an investor expects to earn.

In the partnership form of business,the owners are called stockholders.

Which of the following accounts is not included in the calculation of net income?

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

Return on assets reflects a company's ability to generate profit through productive use of its assets.

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

If a company purchases equipment costing $4,500 on credit,the effect on the accounting equation would be:

Stockholder investments are increases in equity from a company's earnings activities.

Regulators have legal authority over certain activities of organizations.

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

A stockholder's investment increases equity via net income.

Equity increases as a result of stockholder investments and business revenues.

Financing activities provide the means organizations use to pay for resources such as land,buildings,and equipment.

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n):

All of the following are classified as assets except:

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Financial accounting serves external users by providing them with general-purpose financial statements.

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:

Which of the following purposes would financial statements serve for external users?

Equity decreases as a result of revenues and expenses.

Risk is the ________ about the return an investor expects to earn.

In the partnership form of business,the owners are called stockholders.

Which of the following accounts is not included in the calculation of net income?

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