Question 1

Accounting information is considered to be relevant when it

Accepted Answer

A) Is capable of making a difference in a decision. 
B) Is understandable by reasonably informed users of accounting information. 
C) Can be depended on to represent the economic conditions and events that it is intended to represent. 
D) Is verifiable and neutral. 
E) Is free from bias. 
A) Is capable of making a difference in a decision. 
B) Is understandable by reasonably informed users of accounting information. 
C) Can be depended on to represent the economic conditions and events that it is intended to represent. 
D) Is verifiable and neutral. 
E) Is free from bias. A

Question 2

Professional accountants can be

Accepted Answer

A) Certified Management Accountants. 
B) Chartered Accountants. 
C) Certified General Accountants. 
D) Certified General Accountants or Chartered Accountants. 
E) Any of the above. 
A) Certified Management Accountants. 
B) Chartered Accountants. 
C) Certified General Accountants. 
D) Certified General Accountants or Chartered Accountants. 
E) Any of the above. E

Question 3

Budgeting is the process of developing formal plans for an organization's future activities.

Accepted Answer

A) True 
 B)False  True

Question 4

Identify several opportunities in accounting and its related fields

Accepted Answer

The traditional areas of accounting incl

Question 5

Although a proprietorship is not a separate legal entity, a partnership is

Accepted Answer

A) True 
 B)False

Question 6

As a rule, revenues should not be recognized in the accounting records until received in cash.

Accepted Answer

A) True 
 B)False

Question 7

Chuck Taylor withdrew $6,000 in cash for his personal use from his business. This amount should be included as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 8

The equity in a partnership belongs to one owner

Accepted Answer

A) True 
 B)False

Question 9

The primary qualitative characteristics of financial information are relevance and faithful representation.

Accepted Answer

A) True 
 B)False

Question 10

Ethical practices are not necessary to build trust and long-term relationships withcustomers.

Accepted Answer

A) True 
 B)False

Question 11

Social responsibility is concern for the impact of our actions on society as a whole

Accepted Answer

A) True 
 B)False

Question 12

Explain the difference between a business transaction and a business event

Accepted Answer

A business transaction is an exchange of

Question 13

An audit

Accepted Answer

A) Is only performed for companies with computerized accounting systems. 
B) Is required for every business. 
C) Is an independent review of an organization's accounting systems and records. 
D) Is performed to add credibility to the financial statements. 
E) Is an independent review of an organization's accounting systems and records and is performed to add credibility to the financial statements. 
A) Is only performed for companies with computerized accounting systems. 
B) Is required for every business. 
C) Is an independent review of an organization's accounting systems and records. 
D) Is performed to add credibility to the financial statements. 
E) Is an independent review of an organization's accounting systems and records and is performed to add credibility to the financial statements.

Question 14

Individuals and organizations who own the right to receive payments from a businessare called its debtors.

Accepted Answer

A) True 
 B)False

Question 15

Sheila's Attic has $650,000 in assets and equity of $250,000. What is the amount of its liabilities?

Accepted Answer

The answer of Sheila's Attic has $650,000 in assets and...

Question 16

Economic events that affect an entity's accounting equation, but that are not transactionsbetween the entity and outside parties are called:

Accepted Answer

A) Internal transactions. 
B) External transactions. 
C) Source documents. 
D) Liabilities. 
E) Prepaid expenses. 
A) Internal transactions. 
B) External transactions. 
C) Source documents. 
D) Liabilities. 
E) Prepaid expenses.

Question 17

An individual or organization that owes an amount to a business is known to the business as a:

Accepted Answer

A) Controller. 
B) Bookkeeper. 
C) Creditor. 
D) Shareholder. 
E) Debtor. 
A) Controller. 
B) Bookkeeper. 
C) Creditor. 
D) Shareholder. 
E) Debtor.

Question 18

The primary objective of accounting is to help people make better decisions

Accepted Answer

A) True 
 B)False

Question 19

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Accepted Answer

A) True 
 B)False

Question 20

Unlimited liability is an advantage for both a proprietorship and a partnership

Accepted Answer

A) True 
 B)False

Accounting information is considered to be relevant when it

Professional accountants can be

Budgeting is the process of developing formal plans for an organization's future activities.

Identify several opportunities in accounting and its related fields

Although a proprietorship is not a separate legal entity, a partnership is

As a rule, revenues should not be recognized in the accounting records until received in cash.

Chuck Taylor withdrew $6,000 in cash for his personal use from his business. This amount should be included as an expense on the income statement.

The equity in a partnership belongs to one owner

The primary qualitative characteristics of financial information are relevance and faithful representation.

Ethical practices are not necessary to build trust and long-term relationships withcustomers.

Social responsibility is concern for the impact of our actions on society as a whole

Explain the difference between a business transaction and a business event

An audit

Individuals and organizations who own the right to receive payments from a businessare called its debtors.

Sheila's Attic has $650,000 in assets and equity of $250,000. What is the amount of its liabilities?

Economic events that affect an entity's accounting equation, but that are not transactionsbetween the entity and outside parties are called:

An individual or organization that owes an amount to a business is known to the business as a:

The primary objective of accounting is to help people make better decisions

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Unlimited liability is an advantage for both a proprietorship and a partnership

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 1: Accounting in Business

Accounting information is considered to be relevant when it

Professional accountants can be

Budgeting is the process of developing formal plans for an organization's future activities.

Identify several opportunities in accounting and its related fields

Although a proprietorship is not a separate legal entity, a partnership is

As a rule, revenues should not be recognized in the accounting records until received in cash.

Chuck Taylor withdrew $6,000 in cash for his personal use from his business. This amount should be included as an expense on the income statement.

The equity in a partnership belongs to one owner

The primary qualitative characteristics of financial information are relevance and faithful representation.

Ethical practices are not necessary to build trust and long-term relationships withcustomers.

Social responsibility is concern for the impact of our actions on society as a whole

Explain the difference between a business transaction and a business event

An audit

Individuals and organizations who own the right to receive payments from a businessare called its debtors.

Sheila's Attic has $650,000 in assets and equity of $250,000. What is the amount of its liabilities?

Economic events that affect an entity's accounting equation, but that are not transactionsbetween the entity and outside parties are called:

An individual or organization that owes an amount to a business is known to the business as a:

The primary objective of accounting is to help people make better decisions

The balance sheet is also called the statement of financial position because it shows the financial position of the business on a particular date.

Unlimited liability is an advantage for both a proprietorship and a partnership

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters