Below is accounting information for Cascade Company for 2013: $\begin{array}{|l|r|} \hline \text { Revenue } & \$ 416,000 \\ \hline \text { Cash } & \$ 120,000 \\ \hline \text { Common stock } & \$ 200,000 \\ \hline \text { Expenses } & \$ 300,000 \\ \hline \text { Equipment } & \$ 240,000 \\ \hline \text { Accounts receivable } & \$ 35,000 \\ \hline \text { Notes payable } & \$ 50,000 \\ \hline \text { Notes receivable } & \$ 62,000 \\ \hline \end{array}$ What were the total assets at year-end?

A) $320,000 B) $296,000 C) $316,000 D) $457,000 E) $116,000 A) $320,000 B) $296,000 C) $316,000 D) $457,000 E) $116,000

A) Assets minus liabilities. B) The excess of revenues over expenses. C) An asset. D) The same as revenue. E) The excess of expenses over retained earnings. A) Assets minus liabilities. B) The excess of revenues over expenses. C) An asset. D) The same as revenue. E) The excess of expenses over retained earnings.

Exam 1: Introducing Financial Accounting

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:

(Multiple Choice)

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Question 81

A company has assets of $500,000 and equity of $350,000. What is the amount of liabilities?

(Essay)

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Question 82

Internal users of accounting information always include:

(Multiple Choice)

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Question 83

For each of the following transactions, identify the effects on the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L" and "E" to indicate assets, liabilities, and equity, respectively. Part (a) has been completed as an example.

(Essay)

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Question 84

According to generally accepted accounting principles, a company's balance sheet should show the company's assets at:

(Multiple Choice)

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Question 85

Below is accounting information for Cascade Company for 2013: Revenue \ 416,000 Cash \ 120,000 Common stock \ 200,000 Expenses \ 300,000 Equipment \ 240,000 Accounts receivable \ 35,000 Notes payable \ 50,000 Notes receivable \ 62,000 What were the total assets at year-end?

(Multiple Choice)

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Question 86

Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

(True/False)

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Question 87

Match the following terms with the appropriate definition:

The acquisition and disposal of resources that an organization uses to acquire and sell products and services.

Accounting

An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Financing activities

Persons using accounting information who are directly involved in managing the organization.

Recordkeeping

Correct Answer:

Verified

The acquisition and disposal of resources that an organization uses to acquire and sell products and services.

An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Persons using accounting information who are directly involved in managing the organization.

The use of resources to research, develop, purchase, produce, distribute, and market products and services.

Concern for the impact of actions on society.

The idea that accounting information is based on actual cost.

Persons using accounting information who are not directly involved in the running of the organization.

The part of accounting that involves recording transactions and events, either electronically or manually.

Beliefs that distinguish right from wrong.

Source of the means organizations use to pay for resources such as land, buildings, and equipment to carry out plans.

(Matching)

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Question 88

If beginning retained earnings was $184,300, the company distributed $46,000 in dividends and ending retained earnings was $345,000, what was the net income for the period?

(Multiple Choice)

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Question 89

A company has twice as much owner's equity as it does liabilities. If total liabilities are $50,000, what amount of assets are owned by the company?

(Multiple Choice)

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Question 90

Which of the following accounting principles dictates when expenses are recognized?

(Multiple Choice)

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Question 91

Use the following information as of December 31 to determine equity. Accounts payable………………………… $ 800 Accounts receivable……………………. 700 Cash……………………………………… 2,300 Wages expense………………………… 9,000 Wages payable……………………… 1,200

(Multiple Choice)

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Question 92

According to the cost principle, it is preferable for managers to report the most current estimate of an asset's value.

(True/False)

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Question 93

Match the following definitions with the appropriate term:

An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Accounting

The use of resources to research, develop, purchase, produce, distribute, and market products and services.

Recordkeeping

The acquisition and disposal of resources that an organization uses to acquire and sell products and services.

External users

Correct Answer:

Verified

An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

The use of resources to research, develop, purchase, produce, distribute, and market products and services.

The acquisition and disposal of resources that an organization uses to acquire and sell products and services.

The idea that accounting information is based on actual cost.

Source of the means organizations use to pay for resources such as land, buildings, and equipment to carry out plans.

Persons using accounting information who are not directly involved in the running of the organization.

The part of accounting that involves recording transactions and events, either electronically or manually.

Beliefs that distinguish right from wrong.

Persons using accounting information who are directly involved in managing the organization.

Concern for the impact of actions on society.

(Matching)

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Question 94

The following information is available for Skate and Boards Rental Company. Using the above information prepare an income statement, statement of retained earnings and statement of cash flows for the Skate and Boards Rental for 2014. Also, prepare its balance sheet as of December 31, 2014. Assume that the 12/31/13 cash balance is $70,000.

(Essay)

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Question 95

Auditors are banned from direct investments with their clients.

(True/False)

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Question 96

The purchase of supplies must appear on the statement of cash flows as an investing activity because it involves the purchase of assets.

(True/False)

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Question 97

Net income is:

(Multiple Choice)

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Question 98

An example of an investing activity is:

(Multiple Choice)

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Question 99

The major activities of a business include:

(Multiple Choice)

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Question 100

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:

A company has assets of $500,000 and equity of $350,000. What is the amount of liabilities?

Internal users of accounting information always include:

For each of the following transactions, identify the effects on the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L" and "E" to indicate assets, liabilities, and equity, respectively. Part (a) has been completed as an example.

According to generally accepted accounting principles, a company's balance sheet should show the company's assets at:

Below is accounting information for Cascade Company for 2013: Revenue \ 416,000 Cash \ 120,000 Common stock \ 200,000 Expenses \ 300,000 Equipment \ 240,000 Accounts receivable \ 35,000 Notes payable \ 50,000 Notes receivable \ 62,000 What were the total assets at year-end?

Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

If beginning retained earnings was $184,300, the company distributed $46,000 in dividends and ending retained earnings was $345,000, what was the net income for the period?

A company has twice as much owner's equity as it does liabilities. If total liabilities are $50,000, what amount of assets are owned by the company?

Which of the following accounting principles dictates when expenses are recognized?

According to the cost principle, it is preferable for managers to report the most current estimate of an asset's value.

Auditors are banned from direct investments with their clients.

The purchase of supplies must appear on the statement of cash flows as an investing activity because it involves the purchase of assets.

Net income is:

An example of an investing activity is:

The major activities of a business include:

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

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