Question 1

Net Income:

Accepted Answer

A) Decreases equity. 
B) Represents owners' claims against assets. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents the amount of assets owners put into a business. 
A) Decreases equity. 
B) Represents owners' claims against assets. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents the amount of assets owners put into a business.

Question 2

Identify and describe the four basic financial statements:

Accepted Answer

The four basic financial statements are

Question 3

Accounting is an information and measurement system that does all of the following except:

Accepted Answer

A) Records business activities. 
B) Helps people make better decisions. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Identifies business activities. 
A) Records business activities. 
B) Helps people make better decisions. 
C) Communicates business activities. 
D) Eliminates the need for interpreting financial data. 
E) Identifies business activities.

Question 4

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

Accepted Answer

A) None of the above. 
B) Assets would have decreased $19,000. 
C) Assets would have increased $55,000. 
D) Assets would have decreased $55,000. 
E) Assets would have increased $19,000. 
A) None of the above. 
B) Assets would have decreased $19,000. 
C) Assets would have increased $55,000. 
D) Assets would have decreased $55,000. 
E) Assets would have increased $19,000.

Question 5

A corporation is:

Accepted Answer

A) A business legally separate from its owners. 
B) The same as a limited liability partnership. 
C) Controlled by the FASB. 
D) Not subject to double taxation. 
E) Not responsible for its own acts and own debts. 
A) A business legally separate from its owners. 
B) The same as a limited liability partnership. 
C) Controlled by the FASB. 
D) Not subject to double taxation. 
E) Not responsible for its own acts and own debts.

Question 6

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Accepted Answer

A) Business entity assumption. 
B) Objectivity principle. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Measurement (Cost)principle. 
A) Business entity assumption. 
B) Objectivity principle. 
C) Going-concern assumption. 
D) Revenue recognition principle. 
E) Measurement (Cost)principle.

Question 7

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

Accepted Answer

A) 8.4%. 
B) 1.5%. 
C) 17.2%. 
D) 14.3%. 
E) 15.6%. 
A) 8.4%. 
B) 1.5%. 
C) 17.2%. 
D) 14.3%. 
E) 15.6%.

Question 8

Assets are the resources a company owns or controls that are expected to yield future benefits.

Accepted Answer

A) True 
 B)False

Question 9

Determine the net income of a company for which the following information is available for the month of September. $\begin{array}{lr}
\text { Service revenue } & \$ 300,000 \
\text { Rent expense } & 48,000 \
\text { Utilities expense } & 3,200 \
\text { Salaries expense } & 81,000
\end{array}$

Accepted Answer

A) $171,000. 
B) $252,000. 
C) $167,800. 
D) $263,800. 
E) $432,200. 
A) $171,000. 
B) $252,000. 
C) $167,800. 
D) $263,800. 
E) $432,200.

Question 10

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

Accepted Answer

A) Statement of owner's equity. 
B) Financial Status Statement. 
C) Balance sheet. 
D) Income statement. 
E) Statement of cash flows. 
A) Statement of owner's equity. 
B) Financial Status Statement. 
C) Balance sheet. 
D) Income statement. 
E) Statement of cash flows.

Question 11

Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Accepted Answer

A) True 
 B)False

Question 12

Assets created by selling goods and services on credit are:

Accepted Answer

A) Equity. 
B) Accounts payable. 
C) Expenses. 
D) Liabilities. 
E) Accounts receivable. 
A) Equity. 
B) Accounts payable. 
C) Expenses. 
D) Liabilities. 
E) Accounts receivable.

Question 13

Cash investments by owners are listed on which of the following statements?

Accepted Answer

A) Statement of owner's equity only. 
B) Statement of cash flows only. 
C) Balance sheet. 
D) Income statement. 
E) Statement of owner's equity and statement of cash flows. 
A) Statement of owner's equity only. 
B) Statement of cash flows only. 
C) Balance sheet. 
D) Income statement. 
E) Statement of owner's equity and statement of cash flows.

Question 14

Zapper has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:

Accepted Answer

A) $274,000. 
B) $208,000. 
C) $223,000. 
D) $268,000. 
E) $240,000. 
A) $274,000. 
B) $208,000. 
C) $223,000. 
D) $268,000. 
E) $240,000.

Question 15

Match between columns
                        Premises: Cash paid for utilities.
Cash received from owner contributions.
Cash received from a one-time sale of used office equipment.
Cash paid for a delivery van to be used in the business.
Cash paid for withdrawals by owners.
Cash received from customers.

Accepted Answer

The Answer of Operating activity and Investing activity and Financing is...

Question 16

A company acquires equipment for $75,000 cash. This represents a(n):

Accepted Answer

A) Financing activity. 
B) Revenue activity. 
C) Expense activity. 
D) Operating activity. 
E) Investing activity. 
A) Financing activity. 
B) Revenue activity. 
C) Expense activity. 
D) Operating activity. 
E) Investing activity.

Question 17

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Accepted Answer

A) Accounts payable increases $10,000. 
B) Revenue decreases $10,000 
C) Accounts payable decreases $10,000. 
D) Cash increases $10,000. 
E) Revenue increases $10,000. 
A) Accounts payable increases $10,000. 
B) Revenue decreases $10,000 
C) Accounts payable decreases $10,000. 
D) Cash increases $10,000. 
E) Revenue increases $10,000.

Question 18

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

Accepted Answer

A) True 
 B)False

Question 19

The four basic financial statements include the balance sheet, income statement, statement of owner's equity, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 20

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Accepted Answer

A) $49,000. 
B) $64,000. 
C) $19,000. 
D) $30,000. 
E) $83,000. 
A) $49,000. 
B) $64,000. 
C) $19,000. 
D) $30,000. 
E) $83,000.

Net Income:

Identify and describe the four basic financial statements:

Accounting is an information and measurement system that does all of the following except:

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

A corporation is:

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

Assets are the resources a company owns or controls that are expected to yield future benefits.

Determine the net income of a company for which the following information is available for the month of September. Service revenue \ 300,000 Rent expense 48,000 Utilities expense 3,200 Salaries expense 81,000

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Assets created by selling goods and services on credit are:

Cash investments by owners are listed on which of the following statements?

Zapper has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:

A company acquires equipment for $75,000 cash. This represents a(n):

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

The four basic financial statements include the balance sheet, income statement, statement of owner's equity, and statement of cash flows.

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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Exam 1: Accounting in Business

Net Income:

Identify and describe the four basic financial statements:

Accounting is an information and measurement system that does all of the following except:

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

A corporation is:

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

Assets are the resources a company owns or controls that are expected to yield future benefits.

Determine the net income of a company for which the following information is available for the month of September. Service revenue \ 300,000 Rent expense 48,000 Utilities expense 3,200 Salaries expense 81,000

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.

Assets created by selling goods and services on credit are:

Cash investments by owners are listed on which of the following statements?

Zapper has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:

A company acquires equipment for $75,000 cash. This represents a(n):

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Revenues are increases in equity (via net income)from a company's sales of products and services to customers.

The four basic financial statements include the balance sheet, income statement, statement of owner's equity, and statement of cash flows.

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

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