Question 1

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriateamounts into the accounting equation format.

Accepted Answer

The answer of Blu Lightning Co. spent $6,000 in cash...

Question 2

The accounting equation can be restated as assets - equity = liabilities

Accepted Answer

A) True 
 B)False

Question 3

Salaries paid with cash appear on which of the following statement(s)?

Accepted Answer

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

Question 4

Businesses can take the following form(s)

Accepted Answer

A) Sole proprietorship. 
B) Partnership. 
C) Sole proprietorship and partnership. 
D) Not-for-profit. 
E) All of these answers are correct. 
A) Sole proprietorship. 
B) Partnership. 
C) Sole proprietorship and partnership. 
D) Not-for-profit. 
E) All of these answers are correct.

Question 5

The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidenceshows that it will not continue, is the:

Accepted Answer

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

Question 6

The natural business year for businesses is always the same as the calendar year

Accepted Answer

A) True 
 B)False

Question 7

A corporation

Accepted Answer

A) Is regulated by Canada Revenue Agency. 
B) Has shareholders who have unlimited liability for the acts of the corporation. 
C) Can only have two owners. 
D) Is not a legal entity. 
E) Is a legal entity separate and distinct from its owners. 
A) Is regulated by Canada Revenue Agency. 
B) Has shareholders who have unlimited liability for the acts of the corporation. 
C) Can only have two owners. 
D) Is not a legal entity. 
E) Is a legal entity separate and distinct from its owners.

Question 8

The financial statement that describes where a company's cash came from and where itwent during the period is the:

Accepted Answer

A) Statement of cash flows. 
B) Statement of changes in equity. 
C) Income statement. 
D) Statement of financial position. 
E) Balance sheet. 
A) Statement of cash flows. 
B) Statement of changes in equity. 
C) Income statement. 
D) Statement of financial position. 
E) Balance sheet.

Question 9

Describe the purpose and importance of accounting

Accepted Answer

Accounting is an information system. It

Question 10

Accounting information is only relevant for people in business

Accepted Answer

A) True 
 B)False

Question 11

If assets are $144,000 and liabilities are $37,000, then equity equals

Accepted Answer

A) $107,000. 
B) $37,000. 
C) $74,000. 
D) $144,000. 
E) $181,000. 
A) $107,000. 
B) $37,000. 
C) $74,000. 
D) $144,000. 
E) $181,000.

Question 12

Dividends represent distributions of profits to the partners of a business

Accepted Answer

A) True 
 B)False

Question 13

Limited liability is a key consideration as to why corporations can raise resources fromshareholders.

Accepted Answer

A) True 
 B)False

Question 14

The financing side of the accounting equation describes where the assets came from

Accepted Answer

A) True 
 B)False

Question 15

Liabilities are defined as "the residual interest in the assets of an entity that remainsafter deducting its equity".

Accepted Answer

A) True 
 B)False

Question 16

Willie's Attic has the following account balances for the dates given:   What would equity be on September 1 and September 30?

Accepted Answer

A) $74,000; $4,000. 
B) $86,000; $106,000. 
C) $74,000; $106,000. 
D) $86,000; $4,000. 
E) None of these answers is correct. 
A) $74,000; $4,000. 
B) $86,000; $106,000. 
C) $74,000; $106,000. 
D) $86,000; $4,000. 
E) None of these answers is correct.

Question 17

The underlying concepts that make up acceptable accounting practices are referred to asgenerally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 18

The organization established to try to achieve global agreement on the use of a common set of accounting principles is called:

Accepted Answer

A) Abbreviated as IFRS. 
B) International Accounting Standards Board. 
C) Accounting Standards Board. 
D) Generally accepted accounting principles. 
E) All of these answers are correct. 
A) Abbreviated as IFRS. 
B) International Accounting Standards Board. 
C) Accounting Standards Board. 
D) Generally accepted accounting principles. 
E) All of these answers are correct.

Question 19

On May 1, Fiona Nash formed a computer consulting business. In order to startthe business she invested $20,000 in equipment. Enter the appropriate amounts into the accounting equation format.

Accepted Answer

The answer of On May 1, Fiona Nash formed a...

Question 20

The balance sheet can be used in order to assess the creditworthiness of potential customers.

Accepted Answer

A) True 
 B)False

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriateamounts into the accounting equation format.

The accounting equation can be restated as assets - equity = liabilities

Salaries paid with cash appear on which of the following statement(s)?

Businesses can take the following form(s)

The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidenceshows that it will not continue, is the:

The natural business year for businesses is always the same as the calendar year

A corporation

The financial statement that describes where a company's cash came from and where itwent during the period is the:

Describe the purpose and importance of accounting

Accounting information is only relevant for people in business

If assets are $144,000 and liabilities are $37,000, then equity equals

Dividends represent distributions of profits to the partners of a business

Limited liability is a key consideration as to why corporations can raise resources fromshareholders.

The financing side of the accounting equation describes where the assets came from

Liabilities are defined as "the residual interest in the assets of an entity that remainsafter deducting its equity".

Willie's Attic has the following account balances for the dates given: What would equity be on September 1 and September 30?

The underlying concepts that make up acceptable accounting practices are referred to asgenerally accepted accounting principles (GAAP).

The organization established to try to achieve global agreement on the use of a common set of accounting principles is called:

On May 1, Fiona Nash formed a computer consulting business. In order to startthe business she invested $20,000 in equipment. Enter the appropriate amounts into the accounting equation format.

The balance sheet can be used in order to assess the creditworthiness of potential customers.

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

Blu Lightning Co. spent $6,000 in cash for a computer. Enter the appropriateamounts into the accounting equation format.

The accounting equation can be restated as assets - equity = liabilities

Salaries paid with cash appear on which of the following statement(s)?

Businesses can take the following form(s)

The accounting principle that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidenceshows that it will not continue, is the:

The natural business year for businesses is always the same as the calendar year

A corporation

The financial statement that describes where a company's cash came from and where itwent during the period is the:

Describe the purpose and importance of accounting

Accounting information is only relevant for people in business

If assets are $144,000 and liabilities are $37,000, then equity equals

Dividends represent distributions of profits to the partners of a business

Limited liability is a key consideration as to why corporations can raise resources fromshareholders.

The financing side of the accounting equation describes where the assets came from

Liabilities are defined as "the residual interest in the assets of an entity that remainsafter deducting its equity".

Willie's Attic has the following account balances for the dates given: What would equity be on September 1 and September 30?

The underlying concepts that make up acceptable accounting practices are referred to asgenerally accepted accounting principles (GAAP).

The organization established to try to achieve global agreement on the use of a common set of accounting principles is called:

On May 1, Fiona Nash formed a computer consulting business. In order to startthe business she invested $20,000 in equipment. Enter the appropriate amounts into the accounting equation format.

The balance sheet can be used in order to assess the creditworthiness of potential customers.

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