Question 1

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Accepted Answer

A)  They are identical. 
B)  They are entirely different conceptual frameworks. 
C)  They are similar but not identical. 
D)  Neither has anything to do with accounting. 
E)  They both relate only to publicly traded companies. 
A)  They are identical. 
B)  They are entirely different conceptual frameworks. 
C)  They are similar but not identical. 
D)  Neither has anything to do with accounting. 
E)  They both relate only to publicly traded companies. C

Question 2

Explain the accounting equation and define its terms.

Accepted Answer

The accounting equation is stated as: Assets = Liabilities + Equity. Assets are resources owned or controlled by a business. Creditors' claims on assets are called liabilities. The owners' claim on assets is called equity. The accounting equation shows that the ownership of business assets can be shared between creditors and owners.

Question 3

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

Accepted Answer

A) True 
 B)False  True

Question 4

If beginning retained earnings was $184,300, net income for the period was $200,000 and ending retained earnings was $322,000, what was the total amount of dividend distributed for the period?

Accepted Answer

A)  $62,300 
B)  $306,300 
C)  $337,700 
D)  $706,300 
E)  $137,700 
A)  $62,300 
B)  $306,300 
C)  $337,700 
D)  $706,300 
E)  $137,700

Question 5

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is purchased for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Accepted Answer

$570,000. The cost principle r

Question 6

Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:

Accepted Answer

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

Question 7

Determine the net income of a company for which the following information is available: Employee salaries expense…………….. $180,000
Interest expense………………………… 10,000
Rent expense……………………………. 20,000
Consulting revenue…………………….. 400,000

Accepted Answer

A)  $190,000 
B)  $210,000 
C)  $230,000 
D)  $400,000 
E)  $610,000 
A)  $190,000 
B)  $210,000 
C)  $230,000 
D)  $400,000 
E)  $610,000

Question 8

A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000, and purchased for $137,000. The land should be recorded in the purchaser's books at:

Accepted Answer

A)  $95,000 
B)  $137,000 
C)  $138,500 
D)  $140,000 
E)  $150,000 
A)  $95,000 
B)  $137,000 
C)  $138,500 
D)  $140,000 
E)  $150,000

Question 9

The primary objective of financial 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 10

The three major activities of a business are operating, investing, and financing.

Accepted Answer

A) True 
 B)False

Question 11

Accounting is an information and measurement system that identifies, records, and communicates financial information to users.

Accepted Answer

A) True 
 B)False

Question 12

The primary objective of financial accounting is:

Accepted Answer

A)  To serve the decision-making needs of internal users. 
B)  To provide financial statements to help external users analyze and interpret an organization's activities. 
C)  To monitor and control company activities. 
D)  To provide information on both the costs and benefits of managing products and services. 
E)  To know what, when and how much to produce. 
A)  To serve the decision-making needs of internal users. 
B)  To provide financial statements to help external users analyze and interpret an organization's activities. 
C)  To monitor and control company activities. 
D)  To provide information on both the costs and benefits of managing products and services. 
E)  To know what, when and how much to produce.

Question 13

How does the going-concern principle affect the reported asset values of a business?

Accepted Answer

The going-concern principle means that f

Question 14

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 15

Ending liabilities are 67,000, beginning equity was $87,000, common stock issued during year totaled $31,000, expenses for the year were $22,000, dividends declared totaled $13,000, ending equity for the year is $181,000, and beginning assets for the year were $222,000. What are the ending assets for the year?

Accepted Answer

A)  $154,000 
B)  $134,000 
C)  $212,000 
D)  $248,000 
E)  $155,000 
A)  $154,000 
B)  $134,000 
C)  $212,000 
D)  $248,000 
E)  $155,000

Question 16

Match between columns
                        Premises: Borrowed money from a bank on a long-term note
Sale of used equipment
Paid utilities expenses
Paid employee wages
Dividends paid to stockholders
Purchase of land

Accepted Answer

The Answer of Financing and Operating and Investing is...

Question 17

Della's Donuts had cash inflows from operating activities of $27,000, cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.

Accepted Answer

$27,000 - $22,000 -

Question 18

The characteristics below apply to at least one of the forms of business organization.
a. Is a separate legal entity?
b. Is allowed to be owned by one person only?
c. Owner or owners are personally liable for debts of the business.
d. Is a taxable entity?
e. Is a business entity?
f. May have a contract specifying the division of profits among the owners?
g. Has an unlimited life.
Use the following format to indicate (with a yes or no) whether or not a characteristic applies to each type of business organization.
 $\begin{array}{|l|l|l|l|}
\hline & \text { Proprietorship } & \text { Partnership } & \text { Corporation } \
\hline \text { a } & & & \
\hline \text { b } & & & \
\hline \text { c } & & & \
\hline \text { d } & & & \
\hline \text { e } & & & \
\hline \text { f } & & & \
\hline \text { g } & & & \
\hline
\end{array}$

Accepted Answer

The answer of The characteristics below apply to at least...

Question 19

Identify and describe the three major activities of a business organization.

Accepted Answer

The three major activities of a business

Question 20

Match between columns
                        Premises:  Accounts Receivable
 Cash
 Fees Earned
 Notes Payable
 Common Stock
 Net Financing Cash Flow
 Rent Expense
 Supplies Expense

Accepted Answer

The Answer of Balance sheet and Statement of cash flows is...

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Explain the accounting equation and define its terms.

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

If beginning retained earnings was $184,300, net income for the period was $200,000 and ending retained earnings was $322,000, what was the total amount of dividend distributed for the period?

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is purchased for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:

Determine the net income of a company for which the following information is available: Employee salaries expense…………….. $180,000 Interest expense………………………… 10,000 Rent expense……………………………. 20,000 Consulting revenue…………………….. 400,000

A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000, and purchased for $137,000. The land should be recorded in the purchaser's books at:

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

The three major activities of a business are operating, investing, and financing.

Accounting is an information and measurement system that identifies, records, and communicates financial information to users.

The primary objective of financial accounting is:

How does the going-concern principle affect the reported asset values of a business?

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Della's Donuts had cash inflows from operating activities of $27,000, cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.

Identify and describe the three major activities of a business organization.

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 1: Introducing Financial Accounting

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Explain the accounting equation and define its terms.

Generally accepted accounting principles are the concepts and rules for preparing financial statements.

If beginning retained earnings was $184,300, net income for the period was $200,000 and ending retained earnings was $322,000, what was the total amount of dividend distributed for the period?

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is purchased for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Prepare a December 31 balance sheet in proper form for Surety Insurance from the following items and amounts:

A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000, and purchased for $137,000. The land should be recorded in the purchaser's books at:

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

The three major activities of a business are operating, investing, and financing.

Accounting is an information and measurement system that identifies, records, and communicates financial information to users.

The primary objective of financial accounting is:

How does the going-concern principle affect the reported asset values of a business?

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Della's Donuts had cash inflows from operating activities of $27,000, cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.

Identify and describe the three major activities of a business organization.

Accounting for Transactions

Preparing Financial Statements

Accounting for Merchandising Operations

Accounting for Inventories

Accounting for Cash and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Accounting for Equity

Accounting for Cash Flows

Interpreting Financial Statements

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters