Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses.

Accepted Answer

A) True 
 B)False

Question 3

A sole proprietorship is a business owned by one or more persons

Accepted Answer

A) True 
 B)False

Question 4

Business transactions are exchanges of economic consideration between two parties

Accepted Answer

A) True 
 B)False

Question 5

Blu Disc paid its landlord $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

The answer of Blu Disc paid its landlord $3,000 in...

Question 6

Accounting is an information system that identifies, measures, records and 1)communicates relevant information that faithfully represents an organization's economic activities.

Accepted Answer

A) True 
 B)False

Question 7

How does the cost principle support ethical behaviour? 202)

Accepted Answer

The cost principle supports ethical beha

Question 8

Blu Lightning Co. performed testing services for the Cheetah Co. Blu LightningCo. billed Cheetah Co. $5,000. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

The answer of Blu Lightning Co. performed testing services for...

Question 9

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period, equity in the business must have:

Accepted Answer

A) Decreased $6,000. 
B) Increased $14,000. 
C) Decreased $14,000. 
D) Increased $4,000. 
E) Decreased $4,000. 
A) Decreased $6,000. 
B) Increased $14,000. 
C) Decreased $14,000. 
D) Increased $4,000. 
E) Decreased $4,000.

Question 10

The assets of a business total $20,000; the liabilities, $8,000. The claims of the owners are:

Accepted Answer

A) $28,000. 
B) $8,000. 
C) $12,000. 
D) $20,000. 
E) $0. 
A) $28,000. 
B) $8,000. 
C) $12,000. 
D) $20,000. 
E) $0.

Question 11

A business activity that does not involve an exchange of economic considerationbetween two parties is called a(n):

Accepted Answer

A) Business transaction. 
B) Business event. 
C) Account receivable. 
D) Equity transaction. 
E) Withdrawal. 
A) Business transaction. 
B) Business event. 
C) Account receivable. 
D) Equity transaction. 
E) Withdrawal.

Question 12

Equity is increased by owner investments, net income and withdrawals

Accepted Answer

A) True 
 B)False

Question 13

A business

Accepted Answer

A) Can only have one legal form of organization. 
B) Is one or more individuals selling products or services for profit. 
C) Can have adequate financial records without a formal accounting system. 
D) Is one or more individuals selling products or services for profit and has to issue shares before it opens. 
E) Has to issue shares before it opens. 
A) Can only have one legal form of organization. 
B) Is one or more individuals selling products or services for profit. 
C) Can have adequate financial records without a formal accounting system. 
D) Is one or more individuals selling products or services for profit and has to issue shares before it opens. 
E) Has to issue shares before it opens.

Question 14

If the liabilities of a business increased $58,000 during a period of time and equity in the business decreased $18,000 during the same period, would the assets of the business have increased or decreased? By what amount?

Accepted Answer

Assets wou

Question 15

Ethics and social responsibility are incidental to the primary functions of accounting

Accepted Answer

A) True 
 B)False

Question 16

Describe the three important guidelines for revenue recognition

Accepted Answer

The three important guidelines for reven

Question 17

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following business transactions would increase the equity of ABC Limited?

Accepted Answer

A) ABC received a $1,200 cash payment on account from a customer. 
B) ABC Limited's owner withdrew $900 cash to cover personal living expenses. 
C) ABC purchased a building for $100,000 on account. 
D) ABC purchased a new machine for $45,000 on account. 
E) ABC billed a customer $14,800 for consulting services provided during the month. 
A) ABC received a $1,200 cash payment on account from a customer. 
B) ABC Limited's owner withdrew $900 cash to cover personal living expenses. 
C) ABC purchased a building for $100,000 on account. 
D) ABC purchased a new machine for $45,000 on account. 
E) ABC billed a customer $14,800 for consulting services provided during the month.

Question 19

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

Accepted Answer

A) True 
 B)False

Question 20

The rule that (1)requires revenue to be recognized at the time it is earned, (2)allows the inflow of assets associated with revenue to be in a form other than cash, and (3)measures the amount of revenue as the cash plus the cash equivalent value of anynoncash assets received from customers in exchange for goods or services is called the:

Accepted Answer

A) Revenue recognition principle. 
B) Business entity principle. 
C) Cost principle. 
D) Going concern principle. 
E) Monetary unit principle. 
A) Revenue recognition principle. 
B) Business entity principle. 
C) Cost principle. 
D) Going concern principle. 
E) Monetary unit principle.

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

Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses.

A sole proprietorship is a business owned by one or more persons

Business transactions are exchanges of economic consideration between two parties

Blu Disc paid its landlord $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Accounting is an information system that identifies, measures, records and 1)communicates relevant information that faithfully represents an organization's economic activities.

How does the cost principle support ethical behaviour? 202)

Blu Lightning Co. performed testing services for the Cheetah Co. Blu LightningCo. billed Cheetah Co. $5,000. Enter the appropriate amounts into the accounting equation format.

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period, equity in the business must have:

The assets of a business total $20,000; the liabilities, $8,000. The claims of the owners are:

A business activity that does not involve an exchange of economic considerationbetween two parties is called a(n):

Equity is increased by owner investments, net income and withdrawals

A business

If the liabilities of a business increased $58,000 during a period of time and equity in the business decreased $18,000 during the same period, would the assets of the business have increased or decreased? By what amount?

Ethics and social responsibility are incidental to the primary functions of accounting

Describe the three important guidelines for revenue recognition

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Which of the following business transactions would increase the equity of ABC Limited?

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

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 balance sheet shows whether or not the firm achieved its primary objective ofearning a profit.

Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses.

A sole proprietorship is a business owned by one or more persons

Business transactions are exchanges of economic consideration between two parties

Blu Disc paid its landlord $3,000 in cash for three months' rent in advance. Enter the appropriate amounts into the accounting equation format.

Accounting is an information system that identifies, measures, records and 1)communicates relevant information that faithfully represents an organization's economic activities.

How does the cost principle support ethical behaviour? 202)

Blu Lightning Co. performed testing services for the Cheetah Co. Blu LightningCo. billed Cheetah Co. $5,000. Enter the appropriate amounts into the accounting equation format.

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period, equity in the business must have:

The assets of a business total $20,000; the liabilities, $8,000. The claims of the owners are:

A business activity that does not involve an exchange of economic considerationbetween two parties is called a(n):

Equity is increased by owner investments, net income and withdrawals

A business

If the liabilities of a business increased $58,000 during a period of time and equity in the business decreased $18,000 during the same period, would the assets of the business have increased or decreased? By what amount?

Ethics and social responsibility are incidental to the primary functions of accounting

Describe the three important guidelines for revenue recognition

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Which of the following business transactions would increase the equity of ABC Limited?

Items such as sales slips, invoices, cheques, purchase orders, and employee earnings records are also called source documents.

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