Question 1

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Accepted Answer

A) True 
 B)False

Question 2

Use the following information as of December 31 to determine equity. $$\begin{array} { l l } 
\text { Cash } & \$ 57,000 \
\text { Buildings } & 175,000 \
\text { Equipment } & 206,000 \
\text { Ijabilities } & 141,000
\end{array}$$

Accepted Answer

A) $141,000. 
B) $579,000. 
C) $297,000. 
D) $438,000. 
E) $57,000. 
A) $141,000. 
B) $579,000. 
C) $297,000. 
D) $438,000. 
E) $57,000.

Question 3

On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Accepted Answer

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

Question 4

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A) Wages expense. 
B) Land. 
C) Buildings. 
D) Furniture. 
E) Supplies. 
A) Wages expense. 
B) Land. 
C) Buildings. 
D) Furniture. 
E) Supplies.

Question 5

All of the following are classified as assets except:

Accepted Answer

A) Prepaid Insurance. 
B) Accounts Receivable. 
C) Supplies. 
D) Accounts Payable. 
E) Cash. 
A) Prepaid Insurance. 
B) Accounts Receivable. 
C) Supplies. 
D) Accounts Payable. 
E) Cash.

Question 6

Return on assets is also known as return on investment.

Accepted Answer

A) True 
 B)False

Question 7

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

Accepted Answer

A) Cash was received from providing services to a customer. 
B) A utility bill was received for the current month, to be paid in the following month. 
C) The company paid an amount due on credit. 
D) Equipment was purchased for cash. 
E) Advertising expense for the month was paid in cash. 
A) Cash was received from providing services to a customer. 
B) A utility bill was received for the current month, to be paid in the following month. 
C) The company paid an amount due on credit. 
D) Equipment was purchased for cash. 
E) Advertising expense for the month was paid in cash.

Question 8

The income statement reports all of the following except:

Accepted Answer

A) Net income or loss earned by a business. 
B) The time period over which the earnings occurred. 
C) Expenses incurred by a business. 
D) Revenues earned by a business. 
E) Assets owned by a business. 
A) Net income or loss earned by a business. 
B) The time period over which the earnings occurred. 
C) Expenses incurred by a business. 
D) Revenues earned by a business. 
E) Assets owned by a business.

Question 9

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

Accepted Answer

A) True 
 B)False

Question 10

The difference between a company's assets and its liabilities, or net assets is:

Accepted Answer

A) Expense. 
B) Net loss. 
C) Equity. 
D) Net income. 
E) Revenue. 
A) Expense. 
B) Net loss. 
C) Equity. 
D) Net income. 
E) Revenue.

Question 11

If assets are $99,000 and liabilities are $32,000, then equity equals:

Accepted Answer

A) $131,000. 
B) $32,000. 
C) $198,000. 
D) $67,000. 
E) $99,000. 
A) $131,000. 
B) $32,000. 
C) $198,000. 
D) $67,000. 
E) $99,000.

Question 12

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The four broad areas of accounting are f

Question 13

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A) Services revenue. 
B) Accounts receivable. 
C) Supplies. 
D) Cash. 
E) Land. 
A) Services revenue. 
B) Accounts receivable. 
C) Supplies. 
D) Cash. 
E) Land.

Question 14

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

Accepted Answer

A) True 
 B)False

Question 15

Match between columns
                        Premises: The part of accounting that involves recording transactions and events, either electronically or manually.
Accounting specialists that have met educational and experience requirements, passed an examination and exhibit ethical characteristics to achieve a professional certification.
An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities.
Beliefs that distinguish right from wrong, considered accepted standards of good and bad behavior.
The area of accounting that serves the decision-making needs of internal users.
The area of accounting aimed at serving external users by providing them with general-purpose financial statements.
Persons using accounting information who are directly involved in managing and operating the organization.
A model that asserts the factors that must exist for a person to commit fraud.
Persons using accounting information who are not directly involved in running the organization.

Accepted Answer

The Answer of Ethics and Internal users and Recordkeeping and is...

Question 16

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

Accepted Answer

A) Cash. 
B) Revenues. 
C) Expenses. 
D) Owner investments. 
E) Withdrawals. 
A) Cash. 
B) Revenues. 
C) Expenses. 
D) Owner investments. 
E) Withdrawals.

Question 18

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Accepted Answer

A) $12,100. 
B) $49,100. 
C) $30,900. 
D) $10,900. 
E) $32,100. 
A) $12,100. 
B) $49,100. 
C) $30,900. 
D) $10,900. 
E) $32,100.

Question 19

Accounts payable appear on which of the following statements?

Accepted Answer

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

Question 20

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

Accepted Answer

A) True 
 B)False

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Use the following information as of December 31 to determine equity. Cash \ 57,000 Buildings 175,000 Equipment 206,000 Ijabilities 141,000

Which of the following accounts is not included in the asset section of the balance sheet?

All of the following are classified as assets except:

Return on assets is also known as return on investment.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

The income statement reports all of the following except:

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

The difference between a company's assets and its liabilities, or net assets is:

If assets are $99,000 and liabilities are $32,000, then equity equals:

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Which of the following accounts is not included in the asset section of the balance sheet?

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Accounts payable appear on which of the following statements?

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

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

Exam 1: Accounting in Business

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Use the following information as of December 31 to determine equity. Cash \ 57,000 Buildings 175,000 Equipment 206,000 Ijabilities 141,000

Which of the following accounts is not included in the asset section of the balance sheet?

All of the following are classified as assets except:

Return on assets is also known as return on investment.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

The income statement reports all of the following except:

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

The difference between a company's assets and its liabilities, or net assets is:

If assets are $99,000 and liabilities are $32,000, then equity equals:

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Which of the following accounts is not included in the asset section of the balance sheet?

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Accounts payable appear on which of the following statements?

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

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