Question 1

The Securities and Exchange Commission regulates the sale and subsequent trading of stocks of all U.S. corporations.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following indicates the dating of the specified financial statement?

Accepted Answer

The answer of Which of the following indicates the dating...

Question 3

Each owner of the Swift Bakery pays taxes on her/her share of the firm's net income and may be held personally liable for the firm's debts. The Swift Family Bakery is a

Accepted Answer

A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  LLC 
E)  either a or b. 
A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  LLC 
E)  either a or b.

Question 4

An internal user of accounting information is

Accepted Answer

A)  one of the company's investors. 
B)  a stock market analyst who is selling the company's securities. 
C)  the Internal Revenue Service agent auditing the company's tax return. 
D)  the company's purchasing agent. 
E)  both a and d. 
A)  one of the company's investors. 
B)  a stock market analyst who is selling the company's securities. 
C)  the Internal Revenue Service agent auditing the company's tax return. 
D)  the company's purchasing agent. 
E)  both a and d.

Question 5

The principal objective of an external audit is to determine if the financial statements show correct information about the issuer.

Accepted Answer

A) True 
 B)False

Question 6

Through its extensive oversight, the Securities and Exchange Commission prohibits the sale of highly speculative securities in the U.S.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about corporations is true?

Accepted Answer

A)  Individual owners of a corporation are called directors. 
B)  A corporation may have any number of owners, as long as that number is consistent with the laws of the state of incorporation. 
C)  A corporation has few of the same rights and duties as an individual. 
D)  In the event of a lawsuit, an individual owner of a corporation may be held liable for more than his or her current investment. 
E)  One owner of a corporation could be forced to pay all the corporation's debts if the other owners were unable to pay their "fair" share. 
A)  Individual owners of a corporation are called directors. 
B)  A corporation may have any number of owners, as long as that number is consistent with the laws of the state of incorporation. 
C)  A corporation has few of the same rights and duties as an individual. 
D)  In the event of a lawsuit, an individual owner of a corporation may be held liable for more than his or her current investment. 
E)  One owner of a corporation could be forced to pay all the corporation's debts if the other owners were unable to pay their "fair" share.

Question 8

An external user of accounting information is

Accepted Answer

A)  the loan officer at the company's bank. 
B)  an internal auditor of the company. 
C)  a manager at one of the company's branch locations. 
D)  a company's payroll manager. 
E)  both a and c. 
A)  the loan officer at the company's bank. 
B)  an internal auditor of the company. 
C)  a manager at one of the company's branch locations. 
D)  a company's payroll manager. 
E)  both a and c.

Question 9

Gadsden Lawn Service began operations on January 1, 2010, when Doug Gadsden contributed $100,000 of cash and equipment. During the year, the company earned $200,000 of revenue, incurred $120,000 of expenses, and paid $10,000 of dividends. Total owner's equity at December 31, 2010 is

Accepted Answer

A)  $ 0. 
B)  $100,000. 
C)  $170,000. 
D)  $180,000. 
E)  $190,000. 
A)  $ 0. 
B)  $100,000. 
C)  $170,000. 
D)  $180,000. 
E)  $190,000.

Question 10

The most important professional service provided by large public accounting firms is

Accepted Answer

A)  auditing organizational financial statements. 
B)  preparation of organizational financial statements. 
C)  developing tax regulations for business enterprises. 
D)  projecting future prices of an organization's stock. 
E)  all of the above. 
A)  auditing organizational financial statements. 
B)  preparation of organizational financial statements. 
C)  developing tax regulations for business enterprises. 
D)  projecting future prices of an organization's stock. 
E)  all of the above.

Question 11

In a corporation, stockholders have limited liability with respect to the debts of the corporation.

Accepted Answer

A) True 
 B)False

Question 12

Limited liability means that owners are limited in their responsibility for organizational debts to their

Accepted Answer

A)  personal assets. 
B)  personal net worth. 
C)  current organizational investment. 
D)  original organizational investment minus the income taxes paid on the dividends they have received. 
E)  current organizational investment plus the dividends they have received from the organization. 
A)  personal assets. 
B)  personal net worth. 
C)  current organizational investment. 
D)  original organizational investment minus the income taxes paid on the dividends they have received. 
E)  current organizational investment plus the dividends they have received from the organization.

Question 13

Accounting provides quantitative information about economic entities that is intended to be useful in making economic decisions.

Accepted Answer

A) True 
 B)False

The Securities and Exchange Commission regulates the sale and subsequent trading of stocks of all U.S. corporations.

Which of the following indicates the dating of the specified financial statement?

Each owner of the Swift Bakery pays taxes on her/her share of the firm's net income and may be held personally liable for the firm's debts. The Swift Family Bakery is a

An internal user of accounting information is

The principal objective of an external audit is to determine if the financial statements show correct information about the issuer.

Through its extensive oversight, the Securities and Exchange Commission prohibits the sale of highly speculative securities in the U.S.

Which of the following statements about corporations is true?

An external user of accounting information is

Gadsden Lawn Service began operations on January 1, 2010, when Doug Gadsden contributed $100,000 of cash and equipment. During the year, the company earned $200,000 of revenue, incurred $120,000 of expenses, and paid $10,000 of dividends. Total owner's equity at December 31, 2010 is

The most important professional service provided by large public accounting firms is

In a corporation, stockholders have limited liability with respect to the debts of the corporation.

Limited liability means that owners are limited in their responsibility for organizational debts to their

Accounting provides quantitative information about economic entities that is intended to be useful in making economic decisions.

Concepts and Elements Underlying Accounting

The Mechanics of Double-Entry Bookkeeping

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

Activity-Based Management and Performance Measurementreward

Filters

Exam 1: An Introduction to the Role of Accounting in the Business World

The Securities and Exchange Commission regulates the sale and subsequent trading of stocks of all U.S. corporations.

Which of the following indicates the dating of the specified financial statement?

Each owner of the Swift Bakery pays taxes on her/her share of the firm's net income and may be held personally liable for the firm's debts. The Swift Family Bakery is a

An internal user of accounting information is

The principal objective of an external audit is to determine if the financial statements show correct information about the issuer.

Through its extensive oversight, the Securities and Exchange Commission prohibits the sale of highly speculative securities in the U.S.

Which of the following statements about corporations is true?

An external user of accounting information is

Gadsden Lawn Service began operations on January 1, 2010, when Doug Gadsden contributed $100,000 of cash and equipment. During the year, the company earned $200,000 of revenue, incurred $120,000 of expenses, and paid $10,000 of dividends. Total owner's equity at December 31, 2010 is

The most important professional service provided by large public accounting firms is

In a corporation, stockholders have limited liability with respect to the debts of the corporation.

Limited liability means that owners are limited in their responsibility for organizational debts to their

Accounting provides quantitative information about economic entities that is intended to be useful in making economic decisions.

Concepts and Elements Underlying Accounting

The Mechanics of Double-Entry Bookkeeping

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

Activity-Based Management and Performance Measurementreward

Filters