Exam 1: Introduction to Accounting and Business

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received payment from a customer on account A)Increase assets, increase liabilities B)Increase liabilities, decrease stockholders' equity C)Increase assets, increase stockholders' equity D)No effect E)Decrease assets, decrease liabilities F)Decrease assets, decrease stockholders' equity

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Offers tax and legal liability advantages for owners A)Proprietorship B)Partnership C)Corporation D)Limited liability company (LLC)

Many countries outside the United States use financial accounting standards issued by the

Which of the following is not a business transaction?

Which of the following financial statements reports information as of a specific date?

Profit is the difference between

Selected transaction data of a business for September are summarized below. Determine the following amounts for September: (a) total revenue, (b) total expenses, (c) net income.

If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a

Determine the total liabilities at the end of the current year for Scott Industries.​

All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Borrowed money from a bank A)Increase assets, increase liabilities B)Increase liabilities, decrease stockholders' equity C)Increase assets, increase stockholders' equity D)No effect E)Decrease assets, decrease liabilities F)Decrease assets, decrease stockholders' equity

Which of the items below is not a business entity?

Match the following business types with each business listed below. Each may be used more than once. -A men's clothing store A)Service business B)Manufacturing business C)Retail business

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Two common areas of accounting that respectively provide information to internal and external users are

Cash dividends

Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies.

Financial reports are said to be verifiable when

Match the following business types with each business listed below. Each may be used more than once. -A tax preparation firm A)Service business B)Manufacturing business C)Retail business

Within the United States, the dominant body in the primary development of accounting principles is the