Question 1

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

Accepted Answer

A) Buildings. 
B) Wages expense. 
C) Supplies. 
D) Land. 
E) Furniture 
A) Buildings. 
B) Wages expense. 
C) Supplies. 
D) Land. 
E) Furniture

Question 2

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Accepted Answer

A) True 
 B)False

Question 3

Use the following information for Meeker Corp to determine the amount of equity to report.

Accepted Answer

A) $390,000. 
B) $140,000. 
C) $20,000. 
D) $530,000. 
E) $270,000. 
A) $390,000. 
B) $140,000. 
C) $20,000. 
D) $530,000. 
E) $270,000.

Question 4

Charlie's Chocolates' stockholders made investments of $50,000 and received dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Accepted Answer

A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000. 
A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000.

Question 5

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The four broad areas of accounting are f

Question 6

Cage Company had income of $35 million and average invested assets of $200 million.Its return on assets (ROA)is:

Accepted Answer

A) 1.8%. 
B) 35%. 
C) 17.5%. 
D) 5.7%. 
E) 3.5%. 
A) 1.8%. 
B) 35%. 
C) 17.5%. 
D) 5.7%. 
E) 3.5%.

Question 7

The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

Accepted Answer

A) True 
 B)False

Question 8

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Accepted Answer

A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets,total liabilities,and total equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases. 
A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets,total liabilities,and total equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases.

Question 9

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of equity as of May 31 of the current year?

Accepted Answer

A) $49,700. 
B) $13,050. 
C) $20,500. 
D) $31,100. 
E) $40,400. 
A) $49,700. 
B) $13,050. 
C) $20,500. 
D) $31,100. 
E) $40,400.

Question 10

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

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 11

________ users of accounting information are not directly involved in running the organization.

Accepted Answer

The answer of ________ users of accounting information are not...

Question 12

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

Accepted Answer

A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000 
A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000

Question 13

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

Accepted Answer

A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000. 
A) $17,000. 
B) $29,000. 
C) $71,000. 
D) $88,000. 
E) $105,000.

Question 14

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 15

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.

Accepted Answer

A) True 
 B)False

Question 16

Planning is a part of each business activity (Operating,investing,and financing),and gives each activity meaning and focus.

Accepted Answer

A) True 
 B)False

Question 17

A ________ is a business that is owned by only one person.

Accepted Answer

The answer of A ________ is a business that is...

Question 18

Which of the following combinations results in a net loss reported on the income statement?

Accepted Answer

A) Total revenues of $80,000 and total expenses of $74,000. 
B) Total revenues of $70,000 and total expenses of $74,000. 
C) Total revenues of $60,000 and total expenses of $52,000. 
D) Total revenues of $20,000 and total expenses of $16,000. 
E) Total revenues of $40,000 and total expenses of $31,000. 
A) Total revenues of $80,000 and total expenses of $74,000. 
B) Total revenues of $70,000 and total expenses of $74,000. 
C) Total revenues of $60,000 and total expenses of $52,000. 
D) Total revenues of $20,000 and total expenses of $16,000. 
E) Total revenues of $40,000 and total expenses of $31,000.

Question 19

The statement of cash flows:

Accepted Answer

A) Reports how equity changes at a point in time. 
B) Reports how equity changes over a period of time. 
C) Reports on cash flows for operating,financing,and investing activities over a period of time. 
D) Reports on cash flows for operating,financing,and investing activities at a point in time. 
E) Reports on amounts for assets,liabilities,and equity at a point in time. 
A) Reports how equity changes at a point in time. 
B) Reports how equity changes over a period of time. 
C) Reports on cash flows for operating,financing,and investing activities over a period of time. 
D) Reports on cash flows for operating,financing,and investing activities at a point in time. 
E) Reports on amounts for assets,liabilities,and equity at a point in time.

Question 20

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

Accepted Answer

A) Assets increase $1,300 and liabilities decrease $1,300. 
B) One asset increases $1,300 and another asset decreases $1,300,causing no effect. 
C) Assets decrease $1,300 and equity decreases $1,300. 
D) Assets decrease $1,300 and equity increases $1,300. 
E) Assets increase $1,300 and liabilities increase $1,300. 
A) Assets increase $1,300 and liabilities decrease $1,300. 
B) One asset increases $1,300 and another asset decreases $1,300,causing no effect. 
C) Assets decrease $1,300 and equity decreases $1,300. 
D) Assets decrease $1,300 and equity increases $1,300. 
E) Assets increase $1,300 and liabilities increase $1,300.

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

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Use the following information for Meeker Corp to determine the amount of equity to report.

Charlie's Chocolates' stockholders made investments of $50,000 and received dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Cage Company had income of $35 million and average invested assets of $200 million.Its return on assets (ROA)is:

The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of equity as of May 31 of the current year?

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

________ users of accounting information are not directly involved in running the organization.

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.

Planning is a part of each business activity (Operating,investing,and financing),and gives each activity meaning and focus.

A ________ is a business that is owned by only one person.

Which of the following combinations results in a net loss reported on the income statement?

The statement of cash flows:

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

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

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

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Use the following information for Meeker Corp to determine the amount of equity to report.

Charlie's Chocolates' stockholders made investments of $50,000 and received dividends of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Cage Company had income of $35 million and average invested assets of $200 million.Its return on assets (ROA)is:

The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of equity as of May 31 of the current year?

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

________ users of accounting information are not directly involved in running the organization.

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Recordkeeping,or bookkeeping,is the recording of transactions and events,either manually or electronically.

Planning is a part of each business activity (Operating,investing,and financing),and gives each activity meaning and focus.

A ________ is a business that is owned by only one person.

Which of the following combinations results in a net loss reported on the income statement?

The statement of cash flows:

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

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