Question 1

Accounts payable appear on which of the following statements?

Accepted Answer

A) Balance sheet. 
B) Income statement. 
C) Statement of retained earnings. 
D) Statement of cash flows. 
E) Transaction statement. 
A) Balance sheet. 
B) Income statement. 
C) Statement of retained earnings. 
D) Statement of cash flows. 
E) Transaction statement.

Question 2

Operating activities:

Accepted Answer

A) Are the means organizations use to pay for resources like land,buildings and equipment. 
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management. 
A) Are the means organizations use to pay for resources like land,buildings and equipment. 
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management.

Question 3

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities.Which of the following transactions could have caused that effect?

Accepted Answer

A) Cash was received from providing services to a customer. 
B) Cash was received as a stockholder investment. 
C) Equipment was purchased on credit. 
D) Supplies were purchased for cash. 
E) Advertising expense for the month was paid in cash. 
A) Cash was received from providing services to a customer. 
B) Cash was received as a stockholder investment. 
C) Equipment was purchased on credit. 
D) Supplies were purchased for cash. 
E) Advertising expense for the month was paid in cash.

Question 4

Accounting is an information and measurement system that does all of the following except:

Accepted Answer

A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Helps people make better decisions. 
A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Helps people make better decisions.

Question 5

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 6

The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Accepted Answer

A) True 
 B)False

Question 7

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:

Accepted Answer

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

Question 8

Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000. 
A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000.

Question 9

Describe the three important guidelines for revenue recognition.

Accepted Answer

The three important guidelines for reven

Question 10

The Financial Accounting Standards Board (FASB)conceptual framework consists broadly of all of the following except:

Accepted Answer

A) Objectives 
B) Qualitative characteristics 
C) Uniformity 
D) Elements 
E) Recognition and measurement 
A) Objectives 
B) Qualitative characteristics 
C) Uniformity 
D) Elements 
E) Recognition and measurement

Question 11

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

Accepted Answer

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

Question 13

The description of the relation between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

Accepted Answer

A) Income statement equation. 
B) Accounting equation. 
C) Business equation. 
D) Return on equity ratio. 
E) Net income. 
A) Income statement equation. 
B) Accounting equation. 
C) Business equation. 
D) Return on equity ratio. 
E) Net income.

Question 14

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Accepted Answer

A) True 
 B)False

Question 15

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

Accepted Answer

A) True 
 B)False

Question 16

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000,expenses of $65,000,and dividends to stockholders of $9,000.There were no stockholder investments during the year.Calculate ending equity.

Accepted Answer

A) $88,000. 
B) $25,000. 
C) $97,000. 
D) $38,000. 
E) $47,000. 
A) $88,000. 
B) $25,000. 
C) $97,000. 
D) $38,000. 
E) $47,000.

Question 17

The materiality constraint:

Accepted Answer

A) Prescribes that accounting information is based on actual cost. 
B) Provides guidance on when a company must recognize revenue. 
C) Prescribes that only information that would influence the decisions of a reasonable person need be disclosed. 
D) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. 
A) Prescribes that accounting information is based on actual cost. 
B) Provides guidance on when a company must recognize revenue. 
C) Prescribes that only information that would influence the decisions of a reasonable person need be disclosed. 
D) Prescribes that a company record the expenses it incurred to generate the revenue reported. 
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Accounts payable appear on which of the following statements?

Operating activities:

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities.Which of the following transactions could have caused that effect?

Accounting is an information and measurement system that does all of the following except:

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:

Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Describe the three important guidelines for revenue recognition.

The Financial Accounting Standards Board (FASB)conceptual framework consists broadly of all of the following except:

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

The description of the relation between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000,expenses of $65,000,and dividends to stockholders of $9,000.There were no stockholder investments during the year.Calculate ending equity.

The materiality constraint:

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

Accounts payable appear on which of the following statements?

Operating activities:

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities.Which of the following transactions could have caused that effect?

Accounting is an information and measurement system that does all of the following except:

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts:

Alpha Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Describe the three important guidelines for revenue recognition.

The Financial Accounting Standards Board (FASB)conceptual framework consists broadly of all of the following except:

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

The accounting concept that requires every business to be accounted for separately from other business entities,including its owner or owners is known as the:

The description of the relation between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000,expenses of $65,000,and dividends to stockholders of $9,000.There were no stockholder investments during the year.Calculate ending equity.

The materiality constraint:

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