Question 1

Ethical behavior requires:

Accepted Answer

A)  That an auditor's pay not depend on the figures in the client's reports. 
B)  Auditors to invest in businesses they audit. 
C)  Analysts to report information favorable to their companies. 
D)  Managers to use accounting information to benefit themselves. 
E)  That an auditor provides a favorable opinion. 
A)  That an auditor's pay not depend on the figures in the client's reports. 
B)  Auditors to invest in businesses they audit. 
C)  Analysts to report information favorable to their companies. 
D)  Managers to use accounting information to benefit themselves. 
E)  That an auditor provides a favorable opinion.

Question 2

The records of Skymaster Airplane Rentals show the following information as of December 31, 2014:
   Dividends of $52,000 were paid during 2014.
Using the above information, prepare an income statement for 2014.

Accepted Answer

The answer of The records of Skymaster Airplane Rentals show...

Question 3

Halley Burton began Web Consulting as a corporation and completed these transactions during September of the current year:.
   Show the effects of the above transactions on the accounting equation of Web Consulting. 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 Halley Burton began Web Consulting as a...

Question 4

Identify and describe the four basic financial statements.

Accepted Answer

The four basic financial statements are

Question 5

The internal information users of a business include the managers of: research and development, distribution, and human resources.

Accepted Answer

A) True 
 B)False

Question 6

Viscount Company collected $42,000 cash on its accounts receivable. How does this transaction affect the company's accounting equation?

Accepted Answer

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

Question 7

Match between columns
                        Premises: Cash dividends paid
Costs and expenses
Revenues
Liabilities
Cash from investing activities
Total equity
Cash from operating activities
Assets

Accepted Answer

The Answer of Income statement and Statement of retained earnings is...

Question 8

The Financial Accounting Standards Board is a private group that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 9

Reebok had income of $150 million and average assets of $1,800 million. Its return on assets is:

Accepted Answer

A)  8.33% 
B)  83.3% 
C)  12.0% 
D)  120% 
E)  16.7% 
A)  8.33% 
B)  83.3% 
C)  12.0% 
D)  120% 
E)  16.7%

Question 10

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are creditors' claims on ass

Question 11

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 12

FastForward has the following beginning cash balance and cash transactions for the month of January. Using this information, prepare a statement of cash flows.

Accepted Answer

The answer of FastForward has the following beginning cash balance...

Question 13

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

Accepted Answer

The answer of ______________ users of accounting information are users...

Question 14

Operating activities include long-term borrowing and repaying cash from lenders and cash investments by owners or dividends to the owner.

Accepted Answer

A) True 
 B)False

Question 15

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 16

Quick Computer Service had net income for the year of $30,000. Its assets at the beginning of the year were $400,000. At the end of the year, assets were worth $450,000. Calculate its return on assets.

Accepted Answer

$30,000/[($400,000 +

Question 17

Revenue is properly recognized:

Accepted Answer

A)  When the customer's order is received. 
B)  Only if the transaction creates an account receivable. 
C)  At the end of the accounting period. 
D)  Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price. 
E)  When cash from a sale is received. 
A)  When the customer's order is received. 
B)  Only if the transaction creates an account receivable. 
C)  At the end of the accounting period. 
D)  Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price. 
E)  When cash from a sale is received.

Question 18

A company purchased $7,000 of supplies and testing equipment on credit. Enter the appropriate amounts for this transaction into the accounting equation format shown below:
 $$\begin{array} { | c | c | c | } 
\hline \text { Assets } = & \text { Liabilities } + & \text { Equity } \
\hline & & \
\hline
\end{array}$$

Accepted Answer

The answer of A company purchased $7,000 of supplies and...

Question 19

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

Accepted Answer

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

Question 20

The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.

Accepted Answer

A) True 
 B)False

Ethical behavior requires:

The records of Skymaster Airplane Rentals show the following information as of December 31, 2014: Dividends of $52,000 were paid during 2014. Using the above information, prepare an income statement for 2014.

Identify and describe the four basic financial statements.

The internal information users of a business include the managers of: research and development, distribution, and human resources.

Viscount Company collected $42,000 cash on its accounts receivable. How does this transaction affect the company's accounting equation?

The Financial Accounting Standards Board is a private group that sets both broad and specific accounting principles.

Reebok had income of $150 million and average assets of $1,800 million. Its return on assets is:

What distinguishes liabilities from equity?

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

FastForward has the following beginning cash balance and cash transactions for the month of January. Using this information, prepare a statement of cash flows.

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

Operating activities include long-term borrowing and repaying cash from lenders and cash investments by owners or dividends to the owner.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Quick Computer Service had net income for the year of $30,000. Its assets at the beginning of the year were $400,000. At the end of the year, assets were worth $450,000. Calculate its return on assets.

Revenue is properly recognized:

A company purchased $7,000 of supplies and testing equipment on credit. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.

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

Ethical behavior requires:

The records of Skymaster Airplane Rentals show the following information as of December 31, 2014: Dividends of $52,000 were paid during 2014. Using the above information, prepare an income statement for 2014.

Identify and describe the four basic financial statements.

The internal information users of a business include the managers of: research and development, distribution, and human resources.

Viscount Company collected $42,000 cash on its accounts receivable. How does this transaction affect the company's accounting equation?

The Financial Accounting Standards Board is a private group that sets both broad and specific accounting principles.

Reebok had income of $150 million and average assets of $1,800 million. Its return on assets is:

What distinguishes liabilities from equity?

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

FastForward has the following beginning cash balance and cash transactions for the month of January. Using this information, prepare a statement of cash flows.

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

Operating activities include long-term borrowing and repaying cash from lenders and cash investments by owners or dividends to the owner.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Quick Computer Service had net income for the year of $30,000. Its assets at the beginning of the year were $400,000. At the end of the year, assets were worth $450,000. Calculate its return on assets.

Revenue is properly recognized:

A company purchased $7,000 of supplies and testing equipment on credit. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):

The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.

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