Question 1

The business entity principle means that a business will continue operating for an indefinite period of time.

Accepted Answer

A) True 
 B)False  False

Question 2

Accounts payable appear on which of the following statements?

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

____________ are the increases in equity from a company's earnings activities.

Accepted Answer

The answer of ____________ are the increases in equity from...

Question 5

Match between columns
                        Premises: The uncertainty about the expected return to be earned.
The excess of revenue over expenses.
Defining the idea,goals,and actions of an organization.
Area of accounting aimed at serving external users.
A financial ratio useful in evaluating management,analyzing and forecasting profits,and planning activities.
Creditor's claims on a company's assets.
Area of accounting aimed at serving the decision making needs of internal users.
Costs of assets or services used to earn revenues.

Accepted Answer

The Answer of Return on assets and Managerial accounting and is...

Question 6

Data for Madison Realty are as follows:
   The owner,Mary Madison,withdrew a total of $30,000 for personal use during the year.Using the above data,prepare Madison Realty's Statement of Owner's Equity for the year ended December 31.

Accepted Answer

The answer of Data for Madison Realty are as follows:
...

Question 7

Return on assets is also known as return on investment.

Accepted Answer

A) True 
 B)False

Question 8

Owner's investments are increases in equity from a company's earnings activities.

Accepted Answer

A) True 
 B)False

Question 9

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 10

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Accepted Answer

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

Question 11

The private group that currently has the authority to establish generally accepted accounting principles in the United States is the:

Accepted Answer

A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) SEC. 
A) APB. 
B) FASB. 
C) AAA. 
D) AICPA. 
E) SEC.

Question 12

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

Accepted Answer

A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption. 
A) Going-concern assumption. 
B) Matching principle. 
C) Cost principle. 
D) Business entity assumption. 
E) Consideration assumption.

Question 13

The accounting equation is ______________________________.

Accepted Answer

Assets = L

Question 14

A partnership:

Accepted Answer

A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders. 
A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders.

Question 15

How does the going-concern principle affect reporting asset values of a business?

Accepted Answer

The going-concern principle means that f

Question 16

FastForward has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

Accepted Answer

The answer of FastForward has the following beginning cash balance...

Question 17

A net loss occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 18

If a company paid $38,000 of its accounts payable in cash,what was the effect on the assets,liabilities,and equity?

Accepted Answer

A) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. 
B) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. 
C) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. 
D) There would be no effect on the accounts because the accounts are affected by the same amount. 
E) None of these. 
A) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. 
B) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. 
C) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. 
D) There would be no effect on the accounts because the accounts are affected by the same amount. 
E) None of these.

Question 19

The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company:
   Provide descriptions for each transaction.

Accepted Answer

1.Investment of cash in business by owne

Question 20

Identify each of the following business activities 1 through 6 into the appropriate category a,b,and c.
a.Operating
b.Investing
c.Financing
____ 1.Paid utilities expenses.
____ 2.Withdrawal of funds by owners.
____ 3.Purchase of land.
____ 4.Sale of used equipment.
____ 5.Borrowed money from a bank on a long-term note.
____ 6.Paid employee wages.

Accepted Answer

1.A; 2.C;

Exam 1: Accounting in Business

The business entity principle means that a business will continue operating for an indefinite period of time.

Accounts payable appear on which of the following statements?

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

____________ are the increases in equity from a company's earnings activities.

Data for Madison Realty are as follows: The owner,Mary Madison,withdrew a total of $30,000 for personal use during the year.Using the above data,prepare Madison Realty's Statement of Owner's Equity for the year ended December 31.

Return on assets is also known as return on investment.

Owner's investments are increases in equity from a company's earnings activities.

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

The private group that currently has the authority to establish generally accepted accounting principles in the United States is the:

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

The accounting equation is ______________________________.

A partnership:

How does the going-concern principle affect reporting asset values of a business?

FastForward has the following beginning cash balance and cash transactions for the month of January.Using this information prepare a statement of cash flows.

A net loss occurs when revenues exceed expenses.

If a company paid $38,000 of its accounts payable in cash,what was the effect on the assets,liabilities,and equity?

The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company: Provide descriptions for each transaction.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, 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

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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