Question 1

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 2

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

Accepted Answer

Beginning equity = $

Question 3

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 4

The rule that (1)requires revenue to be recognized at the time it is earned, (2)allows the inflow of assets associated with revenue to be in a form other than cash, and (3)measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:

Accepted Answer

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

Question 5

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Accepted Answer

A) True 
 B)False

Question 6

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

Accepted Answer

A) True 
 B)False

Question 7

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

What is the purpose of return on assets as an analytical tool?

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

The accounting equation implies that: Assets + Liabilities = Equity.

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

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

What is the purpose of return on assets as an analytical tool?

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

The accounting equation implies that: Assets + Liabilities = Equity.

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

Filters