Question 1

Internal controls include procedures to protect assets and prevent fraud

Accepted Answer

A) True 
 B)False

Question 2

A characteristic of assets is their ability to provide current benefits to the business

Accepted Answer

A) True 
 B)False

Question 3

Why should assets be recorded at historical cost? 203)

Accepted Answer

The cost principle requires th

Question 4

What accounting principle has been violated by not billing customers for the   year ended December 31, 2016? Explain.

Accepted Answer

Revenue recognition principle

Question 5

Verifiability ensures that information is complete, neutral and free from error

Accepted Answer

A) True 
 B)False

Question 6

Expenses are costs incurred or the using up of assets from generating revenue

Accepted Answer

A) True 
 B)False

Question 7

The statement of cash flows measures the net effect of revenues and expenses for aspecified period.

Accepted Answer

A) True 
 B)False

Question 8

Are there any ethical issues involved in not billing the customers? Explain

Accepted Answer

Financial information not presented on t

Question 9

Although, in a sole proprietorship, owner investments are not recorded as revenue, any withdrawals are recorded as expenses.

Accepted Answer

A) True 
 B)False

Question 10

An individual or organization entitled to receive payments from a business is known tothe business as a:

Accepted Answer

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

Question 11

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

Accepted Answer

A) Current replacement cost. 
B) The cash equivalent value of what was given up or the asset received, whichever is more clearly evident. 
C) The market value of the asset received in all cases. 
D) The best estimate of a certified internal auditor. 
E) The cash outlay only, even if part of the consideration given was something other than cash. 
A) Current replacement cost. 
B) The cash equivalent value of what was given up or the asset received, whichever is more clearly evident. 
C) The market value of the asset received in all cases. 
D) The best estimate of a certified internal auditor. 
E) The cash outlay only, even if part of the consideration given was something other than cash.

Question 12

What account(s)is (are)affected by not recording the transaction? Identify the account(s)as an asset, liability, revenue or expense.

Accepted Answer

Accounts receivable

Question 13

Cash investments by owners are listed on which of the following statement(s)? 168)

Accepted Answer

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

Question 14

A partnership is a business owned by two or more people

Accepted Answer

A) True 
 B)False

Question 15

If equity is $30,000 and liabilities are $73,000, then assets equal

Accepted Answer

A) $103,000. 
B) $30,000. 
C) $60,000. 
D) $40,000. 
E) $73,000. 
A) $103,000. 
B) $30,000. 
C) $60,000. 
D) $40,000. 
E) $73,000.

Question 16

Career opportunities in accounting include auditing, forensic accounting, and taxplanning.

Accepted Answer

A) True 
 B)False

Question 17

Source documents

Accepted Answer

A) Are a source of accounting information. 
B) Do not provide objective evidence about transactions. 
C) Can only be in electronic form. 
D) Are acceptable as a substitute for financial statements. 
E) Are only used for audit purposes. 
A) Are a source of accounting information. 
B) Do not provide objective evidence about transactions. 
C) Can only be in electronic form. 
D) Are acceptable as a substitute for financial statements. 
E) Are only used for audit purposes.

Question 18

Which of the following accounting principles would require that all goods and servicespurchased be recorded at cost?

Accepted Answer

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

Question 19

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, theland should be recorded in the purchaser's books at:

Accepted Answer

A) $54,000. 
B) $20,000. 
C) $45,000. 
D) $34,000. 
E) $36,000. 
A) $54,000. 
B) $20,000. 
C) $45,000. 
D) $34,000. 
E) $36,000.

Question 20

Private accountants work for several employers

Accepted Answer

A) True 
 B)False

Internal controls include procedures to protect assets and prevent fraud

A characteristic of assets is their ability to provide current benefits to the business

Why should assets be recorded at historical cost? 203)

What accounting principle has been violated by not billing customers for the year ended December 31, 2016? Explain.

Verifiability ensures that information is complete, neutral and free from error

Expenses are costs incurred or the using up of assets from generating revenue

The statement of cash flows measures the net effect of revenues and expenses for aspecified period.

Are there any ethical issues involved in not billing the customers? Explain

Although, in a sole proprietorship, owner investments are not recorded as revenue, any withdrawals are recorded as expenses.

An individual or organization entitled to receive payments from a business is known tothe business as a:

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

What account(s)is (are)affected by not recording the transaction? Identify the account(s)as an asset, liability, revenue or expense.

Cash investments by owners are listed on which of the following statement(s)? 168)

A partnership is a business owned by two or more people

If equity is $30,000 and liabilities are $73,000, then assets equal

Career opportunities in accounting include auditing, forensic accounting, and taxplanning.

Source documents

Which of the following accounting principles would require that all goods and servicespurchased be recorded at cost?

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, theland should be recorded in the purchaser's books at:

Private accountants work for several employers

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

Internal controls include procedures to protect assets and prevent fraud

A characteristic of assets is their ability to provide current benefits to the business

Why should assets be recorded at historical cost? 203)

What accounting principle has been violated by not billing customers for the year ended December 31, 2016? Explain.

Verifiability ensures that information is complete, neutral and free from error

Expenses are costs incurred or the using up of assets from generating revenue

The statement of cash flows measures the net effect of revenues and expenses for aspecified period.

Are there any ethical issues involved in not billing the customers? Explain

Although, in a sole proprietorship, owner investments are not recorded as revenue, any withdrawals are recorded as expenses.

An individual or organization entitled to receive payments from a business is known tothe business as a:

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

What account(s)is (are)affected by not recording the transaction? Identify the account(s)as an asset, liability, revenue or expense.

Cash investments by owners are listed on which of the following statement(s)? 168)

A partnership is a business owned by two or more people

If equity is $30,000 and liabilities are $73,000, then assets equal

Career opportunities in accounting include auditing, forensic accounting, and taxplanning.

Source documents

Which of the following accounting principles would require that all goods and servicespurchased be recorded at cost?

If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, theland should be recorded in the purchaser's books at:

Private accountants work for several employers

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