Question 1

If assets are $365,000 and equity is $120,000,then liabilities are:

Accepted Answer

A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000. 
A) $120,000. 
B) $245,000. 
C) $365,000. 
D) $485,000. 
E) $610,000.

Question 2

Viscount Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Accepted Answer

A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets, total liabilities, and equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases. 
A) Total assets decrease and equity increases. 
B) Both total assets and total liabilities decrease. 
C) Total assets, total liabilities, and equity are unchanged. 
D) Both total assets and equity are unchanged and liabilities increase. 
E) Total assets increase and equity decreases.

Question 3

Della's Donuts owner made investments of $50,000 and withdrawals of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Accepted Answer

A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000. 
A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000.

Question 4

The assets of a company total $700,000; the liabilities,$200,000.What are the claims of the owners?

Accepted Answer

A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of this owners' investment is known. 
A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of this owners' investment is known.

Question 5

Strategic management is the process of determining the right mix of operating activities for the type of organization,its plans,and its markets.

Accepted Answer

A) True 
 B)False

Question 6

Return on assets reflects the effectiveness of a company's ability to generate profit through productive use of its assets.

Accepted Answer

A) True 
 B)False

Question 7

Match between columns
                        Premises: Assessing the risk and return of acquiring shares.
Monitor costs and ensure quality.
Judge the soundness of a customer before making sales on credit.
Measuring risk and return of loans.
Assessing employment opportunities.

Accepted Answer

The Answer of Employees and Production Managers and Shareholders and is...

Question 8

Match between columns
                        Premises: Assets
Cost principle
Objectivity principle
Going-concern principle
Revenues
Net assets
Owner withdrawal
Statement of owner's equity.

Accepted Answer

The Answer of Resources owned or controlled by a company is...

Question 9

Explain the accounting equation and define its terms.

Accepted Answer

The accounting equation is stated as: As

Question 10

An example of an operating activity is:

Accepted Answer

A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan. 
A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan.

Question 11

The ______________ assumption assumes business will continue operating indefinitely instead of being closed or sold.

Accepted Answer

The answer of The ______________ assumption assumes business will continue...

Question 12

Which of the following accounting principles would require that all goods and services purchased be recorded at cost?

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

Internal operating activities include research and development,distribution,and human resources.

Accepted Answer

A) True 
 B)False

Question 14

What is the balance sheet?
 What is its purpose?

Accepted Answer

The balance sheet is a listing of the ty

Question 15

There are at least three types of partnerships that limit the partners' liability.They are 1)_____________________,2)___________________,and 3)______________________.

Accepted Answer

answers c

Question 16

A partnership is a business owned by two or more people.

Accepted Answer

A) True 
 B)False

Question 17

Bookkeeping is the recording of transactions and events and is only part of accounting.

Accepted Answer

A) True 
 B)False

Question 18

Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 19

Social responsibility:

Accepted Answer

A) Is a concern for the impact of our actions on society. 
B) Is a code that helps in dealing with confidential information. 
C) Is required by the SEC. 
D) Requires that all businesses conduct social audits. 
E) Is limited to large companies. 
A) Is a concern for the impact of our actions on society. 
B) Is a code that helps in dealing with confidential information. 
C) Is required by the SEC. 
D) Requires that all businesses conduct social audits. 
E) Is limited to large companies.

Question 20

Quick Computer Service had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

Accepted Answer

A) 7.1% 
B) 7.5% 
C) 6.7% 
D) 20.0% 
E) 18.8% 
A) 7.1% 
B) 7.5% 
C) 6.7% 
D) 20.0% 
E) 18.8%

Exam 1: Accounting in Business

If assets are $365,000 and equity is $120,000,then liabilities are:

Viscount Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

Della's Donuts owner made investments of $50,000 and withdrawals of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

The assets of a company total $700,000; the liabilities,$200,000.What are the claims of the owners?

Strategic management is the process of determining the right mix of operating activities for the type of organization,its plans,and its markets.

Return on assets reflects the effectiveness of a company's ability to generate profit through productive use of its assets.

Explain the accounting equation and define its terms.

An example of an operating activity is:

The ______________ assumption assumes business will continue operating indefinitely instead of being closed or sold.

Which of the following accounting principles would require that all goods and services purchased be recorded at cost?

Internal operating activities include research and development,distribution,and human resources.

What is the balance sheet? What is its purpose?

There are at least three types of partnerships that limit the partners' liability.They are 1)_____________________,2)___________________,and 3)______________________.

A partnership is a business owned by two or more people.

Bookkeeping is the recording of transactions and events and is only part of accounting.

Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Social responsibility:

Quick Computer Service had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

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

Filters

There are at least three types of partnerships that limit the partners' liability.They are 1)___________,2)_,and 3)______________.