Question 1

Why are ethics crucial to accounting?

Accepted Answer

A)  Ethical behavior creates the most profit for the business. 
B)  Ethics are a tool which help the accountants balance the accounting equation. 
C)  For accounting information to be useful, it must be trusted and therefore the result of ethical decisions. 
D)  Ethics are important to consider when applying GAAP but do not apply to international accounting issues. 
E)  Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners' equity. 
A)  Ethical behavior creates the most profit for the business. 
B)  Ethics are a tool which help the accountants balance the accounting equation. 
C)  For accounting information to be useful, it must be trusted and therefore the result of ethical decisions. 
D)  Ethics are important to consider when applying GAAP but do not apply to international accounting issues. 
E)  Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners' equity.

Question 2

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 3

Assets are the resources owned or controlled by a business.

Accepted Answer

A) True 
 B)False

Question 4

Assets created by selling goods and services on credit are:

Accepted Answer

A)  Accounts payable 
B)  Accounts receivable 
C)  Liabilities 
D)  Expenses 
E)  Equity 
A)  Accounts payable 
B)  Accounts receivable 
C)  Liabilities 
D)  Expenses 
E)  Equity

Question 5

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Accepted Answer

A)  Revenue recognition principle 
B)  Going-concern principle 
C)  Objectivity principle 
D)  Business entity principle 
E)  Cost principle 
A)  Revenue recognition principle 
B)  Going-concern principle 
C)  Objectivity principle 
D)  Business entity principle 
E)  Cost principle

Question 6

A financial statement providing information that helps users understand a company's financial status and lists the types and amounts of assets, liabilities, and equity as of a specific date is called a(n):

Accepted Answer

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

Question 7

Beginning assets were $437,600, beginning liabilities were $262,560, common stock issued during the year totaled $45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities is $$350,000. What is the ending equity for the year?

Accepted Answer

A)  $700,160 
B)  $331,590 
C)  $134,250 
D)  $612,560 
E)  $175,040 
A)  $700,160 
B)  $331,590 
C)  $134,250 
D)  $612,560 
E)  $175,040

Question 8

A company had total equity of $89,000 on January 1, 2014. The following information is available for the year ended December 31, 2014: $\begin{array}{|l|r|}
\hline 2014 \text { revenues } & \$ 350,000 \
\hline 2014 \text { expenses } & 403,000 \
\hline \text { Liabilities, at December 31, 2014 } & 27,000 \
\hline
\end{array}$ What are the total assets of the company at December 31, 2014?

Accepted Answer

A)  $27,000 
B)  $36,000 
C)  $53,000 
D)  $63,000 
E)  $350,000 
A)  $27,000 
B)  $36,000 
C)  $53,000 
D)  $63,000 
E)  $350,000

Question 9

The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone's belief or opinion is the:

Accepted Answer

A)  Business entity principle 
B)  Monetary unit principle 
C)  Going-concern principle 
D)  Objectivity principle 
E)  Full disclosure principle 
A)  Business entity principle 
B)  Monetary unit principle 
C)  Going-concern principle 
D)  Objectivity principle 
E)  Full disclosure principle

Question 10

Data for Madison Realty are as follows:
   Madison Realty paid dividends of $30,000 during 2014. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2014.

Accepted Answer

The answer of Data for Madison Realty are as follows:
...

Question 11

Match between columns
                        Premises:  An insurance company receives insurance premiums for six future months’ worth of coverage.
 Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
 Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
 A building is for sale at $480,000. An appraisal is given for $450,000.
 To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.

Accepted Answer

The Answer of Revenue recognition principle and Cost principle and is...

Question 12

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 13

The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded. During September, the first month of operation, the following balance sheets were prepared:
         Required: Describe the nature of each of these five transactions for the month of September.
 $\begin{array} { | l | l | r|} 
\hline \text { sept. } & 1 &\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\
\hline & 5 \
\hline & 9 \
\hline & 11 \
\hline & 15 \
\hline
\end{array}$

Accepted Answer

The answer of The accountant of Magic Video Games prepared...

Question 14

Planning activities:

Accepted Answer

A)  Are the means organizations must use to pay for resources. 
B)  Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services. 
C)  Involve defining the ideas, goals, and actions of an organization. 
D)  Are the carrying out of an organization's plans. 
E)  Involve using resources to research, develop, purchase, produce, and market products and services. 
A)  Are the means organizations must use to pay for resources. 
B)  Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services. 
C)  Involve defining the ideas, goals, and actions of an organization. 
D)  Are the carrying out of an organization's plans. 
E)  Involve using resources to research, develop, purchase, produce, and market products and services.

Question 15

Expenses:

Accepted Answer

A)  Increase retained earnings. 
B)  Are increases in retained earnings from a company's earning activity. 
C)  Are the costs of assets or services used to earn revenues. 
D)  Occur when retained earnings exceed revenue. 
E)  Are creditors' claims on assets. 
A)  Increase retained earnings. 
B)  Are increases in retained earnings from a company's earning activity. 
C)  Are the costs of assets or services used to earn revenues. 
D)  Occur when retained earnings exceed revenue. 
E)  Are creditors' claims on assets.

Question 16

How do revenues and expenses affect net income?

Accepted Answer

Revenues are the increases in retained e

Question 17

The Maximum Experience Company acquired a building for $500,000. Maximum Experience had an appraisal done and found that the building was worth $575,000. The seller had paid $300,000 for the building six years ago. Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?

Accepted Answer

A)  Monetary unit principle 
B)  Going-concern principle 
C)  Cost principle 
D)  Business entity principle 
E)  Revenue recognition principle 
A)  Monetary unit principle 
B)  Going-concern principle 
C)  Cost principle 
D)  Business entity principle 
E)  Revenue recognition principle

Question 18

Match between columns
                        Premises:  Amount received from selling products and services.
 Those happenings that affect an entity's accounting equation and can be reliably measured.
 Area of accounting aimed at serving external users.
 Costs of assets or services used to earn revenues.
 The uncertainty about the expected return to be earned.
 Defining the idea, goals, and actions of an organization.
 A financial ratio useful in evaluating management, analyzing, and forecasting profits and planning activities.
 Area of accounting aimed at serving the decision-making needs of internal users.
 Creditors' claims on a company's assets.
 The excess of revenue over expenses.

Accepted Answer

The Answer of Risk and Managerial accounting and Return on is...

Question 19

Increases in retained earnings from a company's earnings activities are:

Accepted Answer

A)  Assets 
B)  Revenues 
C)  Liabilities 
D)  Stockholder's equity 
E)  Expenses 
A)  Assets 
B)  Revenues 
C)  Liabilities 
D)  Stockholder's equity 
E)  Expenses

Question 20

A ____________________ is a noncorporate business that is owned by only one person.

Accepted Answer

The answer of A ____________________ is a noncorporate business that...

Why are ethics crucial to accounting?

Identify the users and uses of accounting information.

Assets are the resources owned or controlled by a business.

Assets created by selling goods and services on credit are:

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

A financial statement providing information that helps users understand a company's financial status and lists the types and amounts of assets, liabilities, and equity as of a specific date is called a(n):

A company had total equity of $89,000 on January 1, 2014. The following information is available for the year ended December 31, 2014: 2014 revenues \ 350,000 2014 expenses 403,000 Liabilities, at December 31, 2014 27,000 What are the total assets of the company at December 31, 2014?

The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone's belief or opinion is the:

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2014. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2014.

What is the purpose of return on assets as an analytical tool?

Planning activities:

Expenses:

How do revenues and expenses affect net income?

Increases in retained earnings from a company's earnings activities are:

A ____________________ is a noncorporate business that is owned by only one person.

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

Why are ethics crucial to accounting?

Identify the users and uses of accounting information.

Assets are the resources owned or controlled by a business.

Assets created by selling goods and services on credit are:

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

A financial statement providing information that helps users understand a company's financial status and lists the types and amounts of assets, liabilities, and equity as of a specific date is called a(n):

A company had total equity of $89,000 on January 1, 2014. The following information is available for the year ended December 31, 2014: 2014 revenues \ 350,000 2014 expenses 403,000 Liabilities, at December 31, 2014 27,000 What are the total assets of the company at December 31, 2014?

The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone's belief or opinion is the:

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2014. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2014.

What is the purpose of return on assets as an analytical tool?

Planning activities:

Expenses:

How do revenues and expenses affect net income?

Increases in retained earnings from a company's earnings activities are:

A ____________________ is a noncorporate business that is owned by only one person.

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