Question 1

The area of accounting aimed at serving the decision-making needs of internal users is

Accepted Answer

A) Internal control. 
B) Auditing. 
C) Managerial accounting. 
D) Financial accounting. 
E) Marketing. 
A) Internal control. 
B) Auditing. 
C) Managerial accounting. 
D) Financial accounting. 
E) Marketing.

Question 2

A balance sheet covers a period of time such as a month or year

Accepted Answer

A) True 
 B)False

Question 3

The primary objective of financial accounting is

Accepted Answer

A) To help organizations keep track of financing activities. 
B) To prepare budgets. 
C) To help an organization to keep track of its buying and selling of resources. 
D) To help an organization define its ideas, goals, and actions. 
E) To provide external reports to help users analyze an organization's activities. 
A) To help organizations keep track of financing activities. 
B) To prepare budgets. 
C) To help an organization to keep track of its buying and selling of resources. 
D) To help an organization define its ideas, goals, and actions. 
E) To provide external reports to help users analyze an organization's activities.

Question 4

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called:

Accepted Answer

A) An audit. 
B) The accounting equation. 
C) Bookkeeping. 
D) A business transaction. 
E) A gift. 
A) An audit. 
B) The accounting equation. 
C) Bookkeeping. 
D) A business transaction. 
E) A gift.

Question 5

Financial information that is verifiable means that

Accepted Answer

A) Information is clear and concise. 
B) The information is useful to users with reasonable knowledge of accounting as well as business and economic activities. 
C) Users are able to compare different companies, if all the companies use similar accounting practices. 
D) Knowledgeable users agree that the financial information is faithfully represented. 
E) The financial statements have not been prepared according to GAAP. 
A) Information is clear and concise. 
B) The information is useful to users with reasonable knowledge of accounting as well as business and economic activities. 
C) Users are able to compare different companies, if all the companies use similar accounting practices. 
D) Knowledgeable users agree that the financial information is faithfully represented. 
E) The financial statements have not been prepared according to GAAP.

Question 6

If assets are $175,000 and equity is $47,000, then liabilities equal

Accepted Answer

A) $175,000. 
B) $128,000. 
C) $47,000. 
D) $222,000. 
E) $204,000. 
A) $175,000. 
B) $128,000. 
C) $47,000. 
D) $222,000. 
E) $204,000.

Question 7

Caps Lock has liabilities of $150,000 and $100,000 in equity. What is the valueof its assets?

Accepted Answer

The answer of Caps Lock has liabilities of $150,000 and...

Question 8

The accounting equation is the link between a company's assets, liabilities and equity

Accepted Answer

A) True 
 B)False

Question 9

Career opportunities in accounting include

Accepted Answer

A) Auditing. 
B) Cost accounting. 
C) Management consulting. 
D) Budgeting. 
E) All of these answers are correct. 
A) Auditing. 
B) Cost accounting. 
C) Management consulting. 
D) Budgeting. 
E) All of these answers are correct.

Question 10

The accounting equation can be stated as

Accepted Answer

A) Assets = liabilities + equity. 
B) Equity = assets - liabilities. 
C) Liabilities = assets - equity. 
D) Assets = non-owner equity + equity. 
E) All of these answers are correct. 
A) Assets = liabilities + equity. 
B) Equity = assets - liabilities. 
C) Liabilities = assets - equity. 
D) Assets = non-owner equity + equity. 
E) All of these answers are correct.

Question 11

Net income appears on which of the following statement(s)?

Accepted Answer

A) Balance sheet. 
B) Statement of cash flows. 
C) Statement of changes in equity. 
D) Income statement. 
E) Both an income statement and statement of changes in equity. 
A) Balance sheet. 
B) Statement of cash flows. 
C) Statement of changes in equity. 
D) Income statement. 
E) Both an income statement and statement of changes in equity.

Question 12

Describe non-business organizations

Accepted Answer

Non-business organizations ope

Question 13

Assets created by selling products or services on credit are

Accepted Answer

A) Expenses. 
B) Accounts receivable. 
C) Accounts payable. 
D) Equity. 
E) Liabilities. 
A) Expenses. 
B) Accounts receivable. 
C) Accounts payable. 
D) Equity. 
E) Liabilities.

Question 14

The balance sheet equation is

Accepted Answer

A) Debits equal credits. 
B) Another name for the accounting equation. 
C) Assets minus liabilities. 
D) The bookkeeping phase of accounting. 
E) Revenues minus expenses equals net income. 
A) Debits equal credits. 
B) Another name for the accounting equation. 
C) Assets minus liabilities. 
D) The bookkeeping phase of accounting. 
E) Revenues minus expenses equals net income.

Question 15

Profit is another name for

Accepted Answer

A) A business transaction. 
B) Equity. 
C) Net income. 
D) Assets. 
E) The income statement. 
A) A business transaction. 
B) Equity. 
C) Net income. 
D) Assets. 
E) The income statement.

Question 16

The primary purpose of Generally Accepted Accounting Principles is to ensure the usefulness of financial information.

Accepted Answer

A) True 
 B)False

Question 17

A statement of profit and loss is another name for

Accepted Answer

A) The income statement. 
B) The accounting equation. 
C) The statement of cash flows. 
D) The statement of changes in equity. 
E) The balance sheet. 
A) The income statement. 
B) The accounting equation. 
C) The statement of cash flows. 
D) The statement of changes in equity. 
E) The balance sheet.

Question 18

What distinguishes liabilities from equity? 199)

Accepted Answer

Liabilities are the debts of an entity.

Question 19

Internal users include creditors, shareholders, internal auditors and managers

Accepted Answer

A) True 
 B)False

Question 20

A partnership

Accepted Answer

A) Is a legal organization separate from its owners. 
B) Is a non-business organization. 
C) Has unlimited liability. 
D) Has to have a written agreement in order to be legal. 
E) Is also called a sole proprietorship. 
A) Is a legal organization separate from its owners. 
B) Is a non-business organization. 
C) Has unlimited liability. 
D) Has to have a written agreement in order to be legal. 
E) Is also called a sole proprietorship.

The area of accounting aimed at serving the decision-making needs of internal users is

A balance sheet covers a period of time such as a month or year

The primary objective of financial accounting is

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called:

Financial information that is verifiable means that

If assets are $175,000 and equity is $47,000, then liabilities equal

Caps Lock has liabilities of $150,000 and $100,000 in equity. What is the valueof its assets?

The accounting equation is the link between a company's assets, liabilities and equity

Career opportunities in accounting include

The accounting equation can be stated as

Net income appears on which of the following statement(s)?

Describe non-business organizations

Assets created by selling products or services on credit are

The balance sheet equation is

Profit is another name for

The primary purpose of Generally Accepted Accounting Principles is to ensure the usefulness of financial information.

A statement of profit and loss is another name for

What distinguishes liabilities from equity? 199)

Internal users include creditors, shareholders, internal auditors and managers

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

The area of accounting aimed at serving the decision-making needs of internal users is

A balance sheet covers a period of time such as a month or year

The primary objective of financial accounting is

An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called:

Financial information that is verifiable means that

If assets are $175,000 and equity is $47,000, then liabilities equal

Caps Lock has liabilities of $150,000 and $100,000 in equity. What is the valueof its assets?

The accounting equation is the link between a company's assets, liabilities and equity

Career opportunities in accounting include

The accounting equation can be stated as

Net income appears on which of the following statement(s)?

Describe non-business organizations

Assets created by selling products or services on credit are

The balance sheet equation is

Profit is another name for

The primary purpose of Generally Accepted Accounting Principles is to ensure the usefulness of financial information.

A statement of profit and loss is another name for

What distinguishes liabilities from equity? 199)

Internal users include creditors, shareholders, internal auditors and managers

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