Question 1

Social responsibility:

Accepted Answer

A)  Is a concern for the impact of one's actions on society as a whole. 
B)  Is a code that helps in dealing with confidential information. 
C)  Is required by the SEC. 
D)  Requires that all businesses conduct social audits. 
E)  Is mandated by the federal government. 
A)  Is a concern for the impact of one's actions on society as a whole. 
B)  Is a code that helps in dealing with confidential information. 
C)  Is required by the SEC. 
D)  Requires that all businesses conduct social audits. 
E)  Is mandated by the federal government.

Question 2

What is the opportunity component of the fraud triangle?

Accepted Answer

A)  A person thinks that there is a way to commit fraud without much chance of getting caught. 
B)  A person has a really good reason to commit fraud. 
C)  A person does not think of the fraudulent activity as bad. 
D)  A person persuades two or more other people to assist with the fraud. 
E)  A person is concerned about the impact of their actions on society. 
A)  A person thinks that there is a way to commit fraud without much chance of getting caught. 
B)  A person has a really good reason to commit fraud. 
C)  A person does not think of the fraudulent activity as bad. 
D)  A person persuades two or more other people to assist with the fraud. 
E)  A person is concerned about the impact of their actions on society.

Question 3

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 4

The statement of retained earnings:

Accepted Answer

A)  Reports how retained earnings changes at a point in time. 
B)  Reports how retained earnings 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 retained earnings changes at a point in time. 
B)  Reports how retained earnings 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 5

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

Accepted Answer

A)  Business entity assumption 
B)  Monetary unit assumption 
C)  Value assumption 
D)  Cost assumption 
E)  Time period assumption 
A)  Business entity assumption 
B)  Monetary unit assumption 
C)  Value assumption 
D)  Cost assumption 
E)  Time period assumption

Question 6

______________ is the area of accounting aimed at serving external users.

Accepted Answer

Financial

Question 7

An exchange of value between two entities is called:

Accepted Answer

A)  The accounting equation. 
B)  Recordkeeping or bookkeeping. 
C)  A business transaction. 
D)  An asset. 
E)  Net Income. 
A)  The accounting equation. 
B)  Recordkeeping or bookkeeping. 
C)  A business transaction. 
D)  An asset. 
E)  Net Income.

Question 8

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Accepted Answer

A)  +$10,000 accounts receivable, -$10,000 accounts payable. 
B)  +$10,000 accounts receivable, +$10,000 accounts payable. 
C)  +$10,000 accounts receivable, +$10,000 cash. 
D)  +$10,000 accounts receivable, +$10,000 consulting revenue. 
E)  +$10,000 accounts receivable, -$10,000 consulting revenue. 
A)  +$10,000 accounts receivable, -$10,000 accounts payable. 
B)  +$10,000 accounts receivable, +$10,000 accounts payable. 
C)  +$10,000 accounts receivable, +$10,000 cash. 
D)  +$10,000 accounts receivable, +$10,000 consulting revenue. 
E)  +$10,000 accounts receivable, -$10,000 consulting revenue.

Question 9

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Accepted Answer

A) True 
 B)False

Question 10

Congress passed the Sarbanes-Oxley Act to

Accepted Answer

A)  Provide jobs to U.S. accountants and limit the number of jobs sent outside the country. 
B)  Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts. 
C)  Help curb financial abuses at companies that issue their stock to the public. 
D)  Force auditors to attest to the absolute accuracy of the financial statements. 
E)  Require that all companies publicly disclose their internal control plans. 
A)  Provide jobs to U.S. accountants and limit the number of jobs sent outside the country. 
B)  Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts. 
C)  Help curb financial abuses at companies that issue their stock to the public. 
D)  Force auditors to attest to the absolute accuracy of the financial statements. 
E)  Require that all companies publicly disclose their internal control plans.

Question 11

Dividends are expenses of a business.

Accepted Answer

A) True 
 B)False

Question 12

The statement of cash flows reports information on:

Accepted Answer

A)  Revenue activities 
B)  Expense activities 
C)  Financing activities 
D)  Equity activities 
E)  Asset activities 
A)  Revenue activities 
B)  Expense activities 
C)  Financing activities 
D)  Equity activities 
E)  Asset activities

Question 13

Lorton's Web Services has assets of $265,000 and liabilities of $130,000. Calculate the amount of equity.

Accepted Answer

Equity = $

Question 14

From the information given, prepare a November 30 balance sheet.
On November 1 of the current year, Lois Bell began Lois Bell, Interior Design as a corporation with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) selected accounts and amounts:

Accepted Answer

The answer of From the information given, prepare a November...

Question 15

A net loss arises when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 16

Rent expense that is paid with cash appears on which of the following statements?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of retained earnings 
D)  Schedule of accounts receivable 
E)  Statement of cash received 
A)  Balance sheet 
B)  Income statement 
C)  Statement of retained earnings 
D)  Schedule of accounts receivable 
E)  Statement of cash received

Question 17

Compute return on assets given net income of $13,764, beginning assets of $120,000, and ending assets of $176,000.

Accepted Answer

A)  4.65% 
B)  7.82% 
C)  9.3% 
D)  11.47% 
E)  21.51% 
A)  4.65% 
B)  7.82% 
C)  9.3% 
D)  11.47% 
E)  21.51%

Question 18

The income statement reports all of the following except:

Accepted Answer

A)  Revenues earned by a business. 
B)  Expenses incurred by a business. 
C)  Assets owned by a business. 
D)  Net income or loss earned by a business. 
E)  The time period over which the earnings occurred. 
A)  Revenues earned by a business. 
B)  Expenses incurred by a business. 
C)  Assets owned by a business. 
D)  Net income or loss earned by a business. 
E)  The time period over which the earnings occurred.

Question 19

Ownership of a corporation is divided into units called shares or stock.

Accepted Answer

A) True 
 B)False

Social responsibility:

What is the opportunity component of the fraud triangle?

The income statement shows the financial position of a business on a specific date.

The statement of retained earnings:

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

______________ is the area of accounting aimed at serving external users.

An exchange of value between two entities is called:

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Congress passed the Sarbanes-Oxley Act to

Dividends are expenses of a business.

The statement of cash flows reports information on:

Lorton's Web Services has assets of $265,000 and liabilities of $130,000. Calculate the amount of equity.

A net loss arises when revenues exceed expenses.

Rent expense that is paid with cash appears on which of the following statements?

Compute return on assets given net income of $13,764, beginning assets of $120,000, and ending assets of $176,000.

The income statement reports all of the following except:

Ownership of a corporation is divided into units called shares or stock.

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

Social responsibility:

What is the opportunity component of the fraud triangle?

The income statement shows the financial position of a business on a specific date.

The statement of retained earnings:

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

______________ is the area of accounting aimed at serving external users.

An exchange of value between two entities is called:

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Congress passed the Sarbanes-Oxley Act to

Dividends are expenses of a business.

The statement of cash flows reports information on:

Lorton's Web Services has assets of $265,000 and liabilities of $130,000. Calculate the amount of equity.

A net loss arises when revenues exceed expenses.

Rent expense that is paid with cash appears on which of the following statements?

Compute return on assets given net income of $13,764, beginning assets of $120,000, and ending assets of $176,000.

The income statement reports all of the following except:

Ownership of a corporation is divided into units called shares or stock.

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