Question 1

The ownership claim arising from funds contributed by the owners of the business is called:

Accepted Answer

A)  retained earnings 
B)  liabilities 
C)  stockholders' equity 
D)  paid- in capital 
A)  retained earnings 
B)  liabilities 
C)  stockholders' equity 
D)  paid- in capital

Question 2

Distinctions between paid- in capital and retained earnings are rarely made for:

Accepted Answer

A)  sole proprietorship and corporations 
B)  corporations 
C)  partnerships and sole proprietorships 
D)  corporations and partnerships 
A)  sole proprietorship and corporations 
B)  corporations 
C)  partnerships and sole proprietorships 
D)  corporations and partnerships

Question 3

Each item in a financial statement is an account.

Accepted Answer

A) True 
 B)False

Question 4

Source documents are associated with:

Accepted Answer

A)  adjusting entries 
B)  explicit transactions 
C)  implicit transactions 
D)  All of these answers are correct. 
A)  adjusting entries 
B)  explicit transactions 
C)  implicit transactions 
D)  All of these answers are correct.

Question 5

Selecting the method of measurement that yields the gloomiest immediate results

Accepted Answer

Conservati

Question 6

Unexpired costs are considered to be:

Accepted Answer

A)  assets 
B)  expenses, whether or not cash has been paid 
C)  expenses, if cash has been paid 
D)  adjusted expenses 
A)  assets 
B)  expenses, whether or not cash has been paid 
C)  expenses, if cash has been paid 
D)  adjusted expenses

Question 7

A snapshot of the financial status of an organization at an instant of time

Accepted Answer

Balance sh

Question 8

A transaction is any event that affects the financial position of an organization and requires recording.

Accepted Answer

A) True 
 B)False

Question 9

Identify which one of the following statements is false.

Accepted Answer

A)  A transaction can increase the balance in two accounts. 
B)  A transaction must increase and decrease the same number of accounts. 
C)  A transaction can increase the balance in two accounts and decrease the balance in one account. 
D)  A transaction can increase the balance in one account and decrease the balance in another account. 
A)  A transaction can increase the balance in two accounts. 
B)  A transaction must increase and decrease the same number of accounts. 
C)  A transaction can increase the balance in two accounts and decrease the balance in one account. 
D)  A transaction can increase the balance in one account and decrease the balance in another account.

Question 10

Assets are normally bundles of future revenue.

Accepted Answer

A) True 
 B)False

Question 11

The excess of sales over the cost of the inventory that was sold

Accepted Answer

Gross prof

Question 12

The accrual basis recognizes the impact of transactions on the financial statements in the periods when revenues and expenses occur instead of when cash is received or disbursed.

Accepted Answer

A) True 
 B)False

Question 13

Unearned revenue decreases stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 14

Mr. Chamberlain invested $40,000 cash in a new corporation. The new corporation will record this transaction with a:

Accepted Answer

A)  debit to Paid- in Capital and a credit to Retained Earnings for $40,000 
B)  debit to Cash and a credit to Retained Income for $40,000 
C)  debit to Retained Earnings and a credit to Cash for $40,000 
D)  debit to Cash and a credit to Paid- in Capital for $40,000 
A)  debit to Paid- in Capital and a credit to Retained Earnings for $40,000 
B)  debit to Cash and a credit to Retained Income for $40,000 
C)  debit to Retained Earnings and a credit to Cash for $40,000 
D)  debit to Cash and a credit to Paid- in Capital for $40,000

Question 15

Retained earnings are a specific claim against particular assets.

Accepted Answer

A) True 
 B)False

Question 16

The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when:

Accepted Answer

A)  revenues are earned and expenses are incurred 
B)  cash is received or disbursed 
C)  the accounting equation is decreased 
D)  the transaction occurs 
A)  revenues are earned and expenses are incurred 
B)  cash is received or disbursed 
C)  the accounting equation is decreased 
D)  the transaction occurs

Question 17

Source documents give evidence of both explicit and implicit transactions.

Accepted Answer

A) True 
 B)False

Question 18

Dividends must be paid in cash.

Accepted Answer

A) True 
 B)False

Question 19

Amounts owed to creditors for purchases on open accounts

Accepted Answer

The answer of Amounts owed to creditors for purchases on...

Question 20

Transactions such as credit sales, credit purchases, cash received on account, and cash disbursed on account, that are supported by source documents

Accepted Answer

Explicit t

The ownership claim arising from funds contributed by the owners of the business is called:

Distinctions between paid- in capital and retained earnings are rarely made for:

Each item in a financial statement is an account.

Source documents are associated with:

Selecting the method of measurement that yields the gloomiest immediate results

Unexpired costs are considered to be:

A snapshot of the financial status of an organization at an instant of time

A transaction is any event that affects the financial position of an organization and requires recording.

Identify which one of the following statements is false.

Assets are normally bundles of future revenue.

The excess of sales over the cost of the inventory that was sold

The accrual basis recognizes the impact of transactions on the financial statements in the periods when revenues and expenses occur instead of when cash is received or disbursed.

Unearned revenue decreases stockholders' equity.

Mr. Chamberlain invested $40,000 cash in a new corporation. The new corporation will record this transaction with a:

Retained earnings are a specific claim against particular assets.

The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when:

Source documents give evidence of both explicit and implicit transactions.

Dividends must be paid in cash.

Amounts owed to creditors for purchases on open accounts

Transactions such as credit sales, credit purchases, cash received on account, and cash disbursed on account, that are supported by source documents

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters

Exam 15: Overhead Application: Variable and Absorbtion Costing

The ownership claim arising from funds contributed by the owners of the business is called:

Distinctions between paid- in capital and retained earnings are rarely made for:

Each item in a financial statement is an account.

Source documents are associated with:

Selecting the method of measurement that yields the gloomiest immediate results

Unexpired costs are considered to be:

A snapshot of the financial status of an organization at an instant of time

A transaction is any event that affects the financial position of an organization and requires recording.

Identify which one of the following statements is false.

Assets are normally bundles of future revenue.

The excess of sales over the cost of the inventory that was sold

The accrual basis recognizes the impact of transactions on the financial statements in the periods when revenues and expenses occur instead of when cash is received or disbursed.

Unearned revenue decreases stockholders' equity.

Mr. Chamberlain invested $40,000 cash in a new corporation. The new corporation will record this transaction with a:

Retained earnings are a specific claim against particular assets.

The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when:

Source documents give evidence of both explicit and implicit transactions.

Dividends must be paid in cash.

Amounts owed to creditors for purchases on open accounts

Transactions such as credit sales, credit purchases, cash received on account, and cash disbursed on account, that are supported by source documents

Managerial Accounting and the Business Organization

Introduction to Cost Behavior and Cost Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Filters