Question 1

Prepare a statement of stockholders' equity for the current year ended March 31.

Accepted Answer

The answer of Prepare a statement of stockholders' equity for...

Question 2

Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting equation?

Accepted Answer

A) assets increase by $62,000; stockholders' equity increases by $62,000 
B) assets increase by $32,000; stockholders' equity increases by $32,000 
C) assets increase by $62,000; liabilities decrease by $30,000; stockholders' equity increases by $32,000 
D) assets increase by $30,000; no change in liabilities; stockholders' equity increases by $62,000 
A) assets increase by $62,000; stockholders' equity increases by $62,000 
B) assets increase by $32,000; stockholders' equity increases by $32,000 
C) assets increase by $62,000; liabilities decrease by $30,000; stockholders' equity increases by $32,000 
D) assets increase by $30,000; no change in liabilities; stockholders' equity increases by $62,000

Question 3

Which of the following is not a role of accounting in business?

Accepted Answer

A) to provide reports to users about the economic activities and conditions of a business 
B) to personally guarantee loans of the business 
C) to provide information to external users to determine the economic performance and condition of the business 
D) to assess the various informational needs of users and design its accounting system to meet those needs 
A) to provide reports to users about the economic activities and conditions of a business 
B) to personally guarantee loans of the business 
C) to provide information to external users to determine the economic performance and condition of the business 
D) to assess the various informational needs of users and design its accounting system to meet those needs

Question 4

The majority of businesses end their fiscal year on December 31.

Accepted Answer

A) True 
 B)False

Question 5

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Accepted Answer

A) True 
 B)False

Question 6

Relevant and faithful representation of accounting data is enhanced when financial reports are clear and concise. Such reports demonstrate

Accepted Answer

A) timeliness 
B) understandability 
C) comparability 
D) verifiability 
A) timeliness 
B) understandability 
C) comparability 
D) verifiability

Question 7

Indicate how the following transactions affect the accounting equation.​
(a) The purchase of supplies on account
(b) The purchase of supplies for cash
(c) Payment of cash dividends to stockholders
(d) Revenues received in cash
(e) Sale made on account

Accepted Answer

(a) Assets increase; liabilities increas

Question 8

Managerial accountants would be responsible for providing information regarding

Accepted Answer

A) tax reports to government agencies 
B) profit reports to stockholders and management 
C) expansion of a product line report to management 
D) consumer reports to customers 
A) tax reports to government agencies 
B) profit reports to stockholders and management 
C) expansion of a product line report to management 
D) consumer reports to customers

Question 9

All companies must use a calendar year as their fiscal year.

Accepted Answer

A) True 
 B)False

Question 10

Match each of the following characteristics with the financial statement it describes. Each financial statement may be used more than once.
-Reports only revenues and expenses
A)Income statement
B)Balance sheet
C)Statement of stockholder's equity
D)Statement of cash flows

Accepted Answer

The answer of Match each of the following characteristics with...

Question 11

From the following list of items taken from Lamar's accounting records, identify those that would appear on the income statement.(a)Rent expense
(b)Land
(c)Common stock
(d)Fees earned
(e)Dividends
(f)Wages expense
(g)Investment

Accepted Answer

The answer of From the following list of items taken...

Question 12

Ramirez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Accepted Answer

Increase liabilities

Question 13

Financial reports are used by

Accepted Answer

A) management 
B) creditors 
C) investors 
D) all are correct 
A) management 
B) creditors 
C) investors 
D) all are correct

Question 14

An example of an external user of accounting information is the federal government.

Accepted Answer

A) True 
 B)False

Question 15

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below.Cash receipts:
Cash received from customers
$57,360
Cash received from bank loan
15,000
Cash payments:
Cash paid for operating expenses
$12,120
Cash paid for equipment
18,070
Cash paid for party supplies
9,480
Dividends
12,000
The cash balance as of January 1
$15,580
Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.

Accepted Answer

The answer of A summary of cash flows for Evelyn's...

Question 16

The cost principle is the basis for entering the purchase price into the accounting records.

Accepted Answer

A) True 
 B)False

Question 17

Prepare a balance sheet for the current year ended March 31.

Accepted Answer

The answer of Prepare a balance sheet for the current...

Question 18

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Organized as a separate legal taxable entity
A)Proprietorship
B)Partnership
C)Corporation
D)Limited liability company (LLC)

Accepted Answer

The answer of Match the following characteristics with the form...

Question 19

Assets are

Accepted Answer

A) always lower than liabilities 
B) equal to liabilities less stockholders' equity 
C) the same as expenses because they are acquired with cash 
D) financed by the stockholders and/or creditors 
A) always lower than liabilities 
B) equal to liabilities less stockholders' equity 
C) the same as expenses because they are acquired with cash 
D) financed by the stockholders and/or creditors

Question 20

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

Accepted Answer

The answer of Match the following business types with each...

Exam 1: Introduction to Accounting and Business

Prepare a statement of stockholders' equity for the current year ended March 31.

Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting equation?

Which of the following is not a role of accounting in business?

The majority of businesses end their fiscal year on December 31.

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Relevant and faithful representation of accounting data is enhanced when financial reports are clear and concise. Such reports demonstrate

Indicate how the following transactions affect the accounting equation.​ (a) The purchase of supplies on account (b) The purchase of supplies for cash (c) Payment of cash dividends to stockholders (d) Revenues received in cash (e) Sale made on account

Managerial accountants would be responsible for providing information regarding

All companies must use a calendar year as their fiscal year.

Match each of the following characteristics with the financial statement it describes. Each financial statement may be used more than once. -Reports only revenues and expenses A)Income statement B)Balance sheet C)Statement of stockholder's equity D)Statement of cash flows

From the following list of items taken from Lamar's accounting records, identify those that would appear on the income statement.(a)Rent expense (b)Land (c)Common stock (d)Fees earned (e)Dividends (f)Wages expense (g)Investment

Ramirez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Financial reports are used by

An example of an external user of accounting information is the federal government.

The cost principle is the basis for entering the purchase price into the accounting records.

Prepare a balance sheet for the current year ended March 31.

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Organized as a separate legal taxable entity A)Proprietorship B)Partnership C)Corporation D)Limited liability company (LLC)

Assets are

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

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters

Indicate how the following transactions affect the accounting equation. (a) The purchase of supplies on account (b) The purchase of supplies for cash (c) Payment of cash dividends to stockholders (d) Revenues received in cash (e) Sale made on account