Question 1

Creditors claims on assets that reflect obligations to transfer assets are called ________.

Accepted Answer

The answer of Creditors claims on assets that reflect obligations...

Question 2

Every business transaction leaves the accounting equation in balance.

Accepted Answer

A) True 
 B)False

Question 3

As a general rule,revenues should not be recognized in the accounting records until it is received in cash.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

The assumption that requires that a business be accounted for separately from its owners is the __________________ assumption.

Accepted Answer

The answer of The assumption that requires that a business...

Question 6

________________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

The answer of ________________ activities involve the acquisition and disposal...

Question 7

Distributions of assets by a business to its owners are called:

Accepted Answer

A) Withdrawals. 
B) Expenses. 
C) Assets. 
D) Retained earnings. 
E) Net Income. 
A) Withdrawals. 
B) Expenses. 
C) Assets. 
D) Retained earnings. 
E) Net Income.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 10

_________ are beliefs that separate right from wrong.

Accepted Answer

The answer of _________ are beliefs that separate right from...

Question 11

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

Accepted Answer

A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Does not use technology to improve accuracy in reporting. 
E) Helps people make better decisions. 
A) Identifies business activities. 
B) Records business activities. 
C) Communicates business activities. 
D) Does not use technology to improve accuracy in reporting. 
E) Helps people make better decisions.

Question 12

Planning 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 13

Return on assets is useful to decision makers for evaluating management,analyzing and forecasting profits,and in planning activities.

Accepted Answer

A) True 
 B)False

Question 14

FastLane has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

Accepted Answer

A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%. 
A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%.

Question 15

The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded.During September,the first month of operation,the following balance sheets were prepared:
           Required:
 Describe the nature of each of these five transactions for the month of September.

Accepted Answer

The answer of The accountant of Magic Video Games prepared...

Question 16

Unlimited liability is an advantage of a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 17

From the information given below,prepare a November income statement,a November statement of owner's equity,and a November 30 balance sheet.On November 1 of the current year,Lois Bell began Lois Bell,Interior Design with an initial investment of $50,000 cash.On November 30,her records showed the following (alphabetically arranged)items and amounts.

Accepted Answer

The answer of From the information given below,prepare a November...

Question 18

Identify several opportunities in accounting and its related fields.

Accepted Answer

The traditional areas of accou

Question 19

External users of accounting information include all of the following except:

Accepted Answer

A) Shareholders. 
B) Customers. 
C) Purchasing managers. 
D) Government regulators. 
E) Creditors. 
A) Shareholders. 
B) Customers. 
C) Purchasing managers. 
D) Government regulators. 
E) Creditors.

Question 20

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ______________________________.

Accepted Answer

The answer of In accounting,the rule that requires that assets,services,and...

Exam 1: Accounting in Business

Creditors claims on assets that reflect obligations to transfer assets are called ________.

Every business transaction leaves the accounting equation in balance.

As a general rule,revenues should not be recognized in the accounting records until it is received in cash.

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

The assumption that requires that a business be accounted for separately from its owners is the __________________ assumption.

________________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Distributions of assets by a business to its owners are called:

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

The balance sheet is based on the accounting equation.

_________ are beliefs that separate right from wrong.

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

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

Return on assets is useful to decision makers for evaluating management,analyzing and forecasting profits,and in planning activities.

FastLane has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded.During September,the first month of operation,the following balance sheets were prepared: Required: Describe the nature of each of these five transactions for the month of September.

Unlimited liability is an advantage of a sole proprietorship.

Identify several opportunities in accounting and its related fields.

External users of accounting information include all of the following except:

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ______________________________.

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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