Question 1

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

Question 2

Match between columns
                        Premises:  Cash received from a one-time sale of used office equipment.
 Cash received from customers.
 Cash paid for utilities.
 Cash paid for dividends.
 Cash paid for a delivery van to be used in the business.
 Cash received from stockholders from issuance of stock.

Accepted Answer

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

Question 3

Another name for equity is:

Accepted Answer

A)  Net income 
B)  Expenses 
C)  Net assets 
D)  Revenue 
E)  Net loss 
A)  Net income 
B)  Expenses 
C)  Net assets 
D)  Revenue 
E)  Net loss

Question 4

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 are the ending assets for the year?

Accepted Answer

A)  $ 700,160 
B)  $ 612,560 
C)  $ 787,600 
D)  $ 681,590 
E)  $1,159,410 
A)  $ 700,160 
B)  $ 612,560 
C)  $ 787,600 
D)  $ 681,590 
E)  $1,159,410

Question 5

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Accepted Answer

A)  ABC Company, For the year ended 12/31/13, Balance Sheet 
B)  For the year ended 12/31/13, Balance Sheet, ABC Company 
C)  Balance Sheet, 12/31/13, ABC Company 
D)  12/31/13, ABC Company, Balance Sheet 
E)  ABC Company, Balance Sheet, 12/31/13 
A)  ABC Company, For the year ended 12/31/13, Balance Sheet 
B)  For the year ended 12/31/13, Balance Sheet, ABC Company 
C)  Balance Sheet, 12/31/13, ABC Company 
D)  12/31/13, ABC Company, Balance Sheet 
E)  ABC Company, Balance Sheet, 12/31/13

Question 6

A company paid its employees $90,000 in cash for wages earned during the past two weeks. 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 paid its employees $90,000 in...

Question 7

Return on assets is:

Accepted Answer

A)  Also called rate of return. 
B)  Computed by dividing net income by average total assets. 
C)  Computed by multiplying net income by average total assets. 
D)  Used in helping evaluate expenses. 
E)  Found on the balance sheet. 
A)  Also called rate of return. 
B)  Computed by dividing net income by average total assets. 
C)  Computed by multiplying net income by average total assets. 
D)  Used in helping evaluate expenses. 
E)  Found on the balance sheet.

Question 8

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

Accepted Answer

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

Question 9

Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare the income statement for 2014.

Accepted Answer

The answer of Presented below is selected financial information for...

Question 10

Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return to lowest expected return.

Accepted Answer

A)  Drilling exploration to discover oil, stock in a secure "blue chip" corporation, government bonds. 
B)  Stock in a secure "blue chip" corporation, government bonds, drilling exploration to discover oil. 
C)  Government bonds, drilling exploration to discover oil, stock in a secure "blue chip" corporation. 
D)  Drilling exploration to discover oil, government bonds, stock in a secure "blue chip" corporation. 
E)  Government bonds, stock in a secure "blue chip" corporation, drilling exploration to discover oil. 
A)  Drilling exploration to discover oil, stock in a secure "blue chip" corporation, government bonds. 
B)  Stock in a secure "blue chip" corporation, government bonds, drilling exploration to discover oil. 
C)  Government bonds, drilling exploration to discover oil, stock in a secure "blue chip" corporation. 
D)  Drilling exploration to discover oil, government bonds, stock in a secure "blue chip" corporation. 
E)  Government bonds, stock in a secure "blue chip" corporation, drilling exploration to discover oil.

Question 11

Risk is the amount of uncertainty about the return we expect to earn in the future.

Accepted Answer

A) True 
 B)False

Question 12

The distribution of assets to stockholders is called a(n):

Accepted Answer

A)  Liability 
B)  Dividend 
C)  Expense 
D)  Contribution 
E)  Investment 
A)  Liability 
B)  Dividend 
C)  Expense 
D)  Contribution 
E)  Investment

Question 13

A limited partnership:

Accepted Answer

A)  Includes a general partner with unlimited liability. 
B)  Is subject to double taxation. 
C)  Has owners called stockholders. 
D)  Is the same as a corporation. 
E)  Must only have two partners. 
A)  Includes a general partner with unlimited liability. 
B)  Is subject to double taxation. 
C)  Has owners called stockholders. 
D)  Is the same as a corporation. 
E)  Must only have two partners.

Question 14

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 a statement of retained earnings for 2014.

Accepted Answer

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

Question 15

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Accepted Answer

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

Question 16

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

Accepted Answer

A)  Revenue activity 
B)  Operating activity 
C)  Expense activity 
D)  Investing activity 
E)  Financing activity 
A)  Revenue activity 
B)  Operating activity 
C)  Expense activity 
D)  Investing activity 
E)  Financing activity

Question 17

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

Accepted Answer

Total asse

Question 18

The principle that (A) requires revenue to be recognized at the time it is earned, (B) allows the inflow of assets associated with revenue to be in a form other than cash, and (C) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the:

Accepted Answer

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

Question 19

A company paid its landlord $15,000 cash for this month's rent. 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 paid its landlord $15,000 cash...

Question 20

A corporation:

Accepted Answer

A)  Is a legal entity separate and distinct from its owners. 
B)  Must have many owners. 
C)  Has shareholders who have unlimited liability for the acts of the corporation. 
D)  Is the same as a limited liability partnership. 
E)  Does not have to pay taxes. 
A)  Is a legal entity separate and distinct from its owners. 
B)  Must have many owners. 
C)  Has shareholders who have unlimited liability for the acts of the corporation. 
D)  Is the same as a limited liability partnership. 
E)  Does not have to pay taxes.

The accounting equation implies that: Assets + Liabilities = Equity.

Another name for equity is:

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

A company paid its employees $90,000 in cash for wages earned during the past two weeks. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

Return on assets is:

Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare the income statement for 2014.

Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return to lowest expected return.

Risk is the amount of uncertainty about the return we expect to earn in the future.

The distribution of assets to stockholders is called a(n):

A limited partnership:

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 a statement of retained earnings for 2014.

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

A company paid its landlord $15,000 cash for this month's rent. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

A corporation:

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

The accounting equation implies that: Assets + Liabilities = Equity.

Another name for equity is:

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

A company paid its employees $90,000 in cash for wages earned during the past two weeks. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

Return on assets is:

Presented below is selected financial information for Stanley's Bike Shop. Using the appropriate information, prepare the income statement for 2014.

Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return to lowest expected return.

Risk is the amount of uncertainty about the return we expect to earn in the future.

The distribution of assets to stockholders is called a(n):

A limited partnership:

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 a statement of retained earnings for 2014.

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

A company paid its landlord $15,000 cash for this month's rent. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

A corporation:

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