Question 1

Risk is:

Accepted Answer

A)  Net income divided by average total assets. 
B)  The reward for investment. 
C)  The uncertainty about the expected return that will be earned from an investment. 
D)  Unrelated to expected return. 
E)  Derived from the idea of getting something back from an investment. 
A)  Net income divided by average total assets. 
B)  The reward for investment. 
C)  The uncertainty about the expected return that will be earned from an investment. 
D)  Unrelated to expected return. 
E)  Derived from the idea of getting something back from an investment.

Question 2

A corporation purchased a $40,000 delivery truck by paying 4,000 cash and signing a $36,000 note payable. Immediately prior to this transaction the corporation had assets, liabilities, and owners' equity in the amounts of $75,000, $52,000, and $23,000 respectively. What is the total amount of the corporation's assets after this transaction has been recorded?

Accepted Answer

A)  $115,000 
B)  $111,000 
C)  $79,000 
D)  $71,000 
E)  $75,000 
A)  $115,000 
B)  $111,000 
C)  $79,000 
D)  $71,000 
E)  $75,000

Question 3

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 4

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

Accepted Answer

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

Question 5

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the:

Accepted Answer

A)  Accounting equation 
B)  Cost principle 
C)  Going-concern principle 
D)  Realization principle 
E)  Business entity principle 
A)  Accounting equation 
B)  Cost principle 
C)  Going-concern principle 
D)  Realization principle 
E)  Business entity principle

Question 6

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

Accepted Answer

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

Question 7

On May 1, Chuck Taylor formed FastForward, a shoe consulting business as a corporation. To start the business he invested $750,000 in cash. 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 On May 1, Chuck Taylor formed FastForward,...

Question 8

Net income:

Accepted Answer

A)  Occurs when revenues exceed expenses. 
B)  Is the same as revenue. 
C)  Equals resources owned or controlled by a company. 
D)  Occurs when expenses exceed assets. 
E)  Represents assets taken from a company for an owner's personal use. 
A)  Occurs when revenues exceed expenses. 
B)  Is the same as revenue. 
C)  Equals resources owned or controlled by a company. 
D)  Occurs when expenses exceed assets. 
E)  Represents assets taken from a company for an owner's personal use.

Question 9

Accounts payable appear on which of the following statements?

Accepted Answer

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

Question 10

The statement of cash flows reports on cash flows for:

Accepted Answer

A)  Operating activities 
B)  Revenue activities 
C)  Expense activities 
D)  Planning activities 
E)  Equity activities 
A)  Operating activities 
B)  Revenue activities 
C)  Expense activities 
D)  Planning activities 
E)  Equity activities

Question 11

Match between columns
                        Premises:  Monitor costs and ensure quality.
 Judge the soundness of a customer before making sales on credit.
 Measuring risk and return of loans.
 Assessing employment opportunities.
 Assessing the risk and return of acquiring shares.

Accepted Answer

The Answer of Production managers and Suppliers and Employees and is...

Question 12

A company spent $52,000 in cash for this period's advertising activities. 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 spent $52,000 in cash for...

Question 13

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000. Its assets at the end of the year total $246,000. Compute its return on assets.

Accepted Answer

A)  7.7% 
B)  8.5% 
C)  9.5% 
D)  11.8% 
E)  13.0% 
A)  7.7% 
B)  8.5% 
C)  9.5% 
D)  11.8% 
E)  13.0%

Question 14

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 was the beginning equity for the year?

Accepted Answer

A)  $700,160 
B)  $787,600 
C)  $187,600 
D)  $612,560 
E)  $175,040 
A)  $700,160 
B)  $787,600 
C)  $187,600 
D)  $612,560 
E)  $175,040

Question 15

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

The Answer of Events and Financial accounting and Expenses and is...

Question 17

The balance sheet shows whether or not the firm achieved its primary objective of earning a profit.

Accepted Answer

A) True 
 B)False

Question 18

Bookkeeping is the sole purpose of accounting.

Accepted Answer

A) True 
 B)False

Question 19

FastForward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 20

A company has liabilities of $475,000 and equity of $925,000. What is the amount of its assets?

Accepted Answer

Assets = $

Risk is:

Explain why ethics are an integral part of accounting.

Below is accounting information for Cascade Company for 2013, its first year of business 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 was total equity at year end?

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the:

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

On May 1, Chuck Taylor formed FastForward, a shoe consulting business as a corporation. To start the business he invested $750,000 in cash. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

Net income:

Accounts payable appear on which of the following statements?

The statement of cash flows reports on cash flows for:

A company spent $52,000 in cash for this period's advertising activities. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000. Its assets at the end of the year total $246,000. Compute its return on assets.

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

The balance sheet shows whether or not the firm achieved its primary objective of earning a profit.

Bookkeeping is the sole purpose of accounting.

FastForward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

A company has liabilities of $475,000 and equity of $925,000. What is the amount of its assets?

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

Risk is:

Explain why ethics are an integral part of accounting.

Below is accounting information for Cascade Company for 2013, its first year of business 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 was total equity at year end?

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given in exchange is the:

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

On May 1, Chuck Taylor formed FastForward, a shoe consulting business as a corporation. To start the business he invested $750,000 in cash. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

Net income:

Accounts payable appear on which of the following statements?

The statement of cash flows reports on cash flows for:

A company spent $52,000 in cash for this period's advertising activities. Enter the appropriate amounts for this transaction into the accounting equation format shown below: Assets = Liabilities + Equity

FastForward has net income of $18,955 and assets at the beginning of the year of $200,000. Its assets at the end of the year total $246,000. Compute its return on assets.

Reebok's net income of $119 million and average assets of $1,400 million results in a return on assets of 8.5%.

The balance sheet shows whether or not the firm achieved its primary objective of earning a profit.

Bookkeeping is the sole purpose of accounting.

FastForward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

A company has liabilities of $475,000 and equity of $925,000. What is the amount of its assets?

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