Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Net income occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 3

Objectivity means that financial information is supported by independent unbiased evidence.

Accepted Answer

A) True 
 B)False

Question 4

A company's balance sheet shows: cash $24,000,accounts receivable $30,000,equipment $50,000,and equity $72,000.What is the amount of liabilities?

Accepted Answer

A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000. 
A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000.

Question 5

The three major types of business activities are operating,financing,and investing.

Accepted Answer

A) True 
 B)False

Question 6

The accounting concept that requires financial statement information to be supported by independent,unbiased evidence other than someone's belief or opinion is:

Accepted Answer

A) Business entity assumption. 
B) Monetary unit assumption. 
C) Going-concern assumption. 
D) Time-period assumption. 
E) Objectivity 
A) Business entity assumption. 
B) Monetary unit assumption. 
C) Going-concern assumption. 
D) Time-period assumption. 
E) Objectivity

Question 7

Zion Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000. 
A) Assets increase by $75,000 and expenses increase by $75,000. 
B) Assets increase by $75,000 and expenses decrease by $75,000. 
C) Liabilities increase by $75,000 and expenses decrease by $75,000. 
D) Assets decrease by $75,000 and expenses decrease by $75,000. 
E) Assets increase by $75,000 and liabilities increase by $75,000.

Question 8

Technology:

Accepted Answer

A) Has replaced accounting. 
B) Has not changed the work that accountants do. 
C) Has closely linked accounting with consulting, planning, and other financial services. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations. 
A) Has replaced accounting. 
B) Has not changed the work that accountants do. 
C) Has closely linked accounting with consulting, planning, and other financial services. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations.

Question 9

How does the objectivity principle support ethical behavior?

Accepted Answer

The objectivity principle supports ethic

Question 10

Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.

Accepted Answer

A) True 
 B)False

Question 11

An income statement reports on investing and financing activities.

Accepted Answer

A) True 
 B)False

Question 12

Harris Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

Accepted Answer

A) 8.4% 
B) 17.2% 
C) 14.3% 
D) 15.6% 
E) 1.5% 
A) 8.4% 
B) 17.2% 
C) 14.3% 
D) 15.6% 
E) 1.5%

Question 13

Assets removed from the business by the business owner for personal use are called ____________.

Accepted Answer

The answer of Assets removed from the business by the...

Question 14

The statement of cash flows identifies cash flows separated into operating,investing,and financing activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 15

______________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services.

Accepted Answer

The answer of ______________ activities involve using resources to research,develop,purchase,produce,distribute,and...

Question 16

All of the following are true regarding ethics except:

Accepted Answer

A) Ethics are beliefs that separate right from wrong. 
B) Ethics rules are often set for CPAs. 
C) Ethics do not affect the operations or outcome of a company. 
D) Are critical in accounting. 
E) Ethics can be hard to apply. 
A) Ethics are beliefs that separate right from wrong. 
B) Ethics rules are often set for CPAs. 
C) Ethics do not affect the operations or outcome of a company. 
D) Are critical in accounting. 
E) Ethics can be hard to apply.

Question 17

The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Accepted Answer

A) True 
 B)False

Question 18

Reston had income of $150 million and average invested assets of $1,800 million.Its return on assets is:

Accepted Answer

A) 8.3%. 
B) 83.3%. 
C) 12%. 
D) 120%. 
E) 16.7%. 
A) 8.3%. 
B) 83.3%. 
C) 12%. 
D) 120%. 
E) 16.7%.

Question 19

Risk is the uncertainty about the return we expect to earn.

Accepted Answer

A) True 
 B)False

Question 20

Assets created by selling goods and services on credit are:

Accepted Answer

A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity. 
A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity.

Exam 1: Accounting in Business

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

Net income occurs when revenues exceed expenses.

Objectivity means that financial information is supported by independent unbiased evidence.

A company's balance sheet shows: cash $24,000,accounts receivable $30,000,equipment $50,000,and equity $72,000.What is the amount of liabilities?

The three major types of business activities are operating,financing,and investing.

The accounting concept that requires financial statement information to be supported by independent,unbiased evidence other than someone's belief or opinion is:

Zion Company has assets of $600,000,liabilities of $250,000,and equity of $350,000.It buys office equipment on credit for $75,000.What would be the effects of this transaction on the accounting equation?

Technology:

How does the objectivity principle support ethical behavior?

Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.

An income statement reports on investing and financing activities.

Harris Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

Assets removed from the business by the business owner for personal use are called ____________.

The statement of cash flows identifies cash flows separated into operating,investing,and financing activities over a period of time.

______________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services.

All of the following are true regarding ethics except:

The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

Reston had income of $150 million and average invested assets of $1,800 million.Its return on assets is:

Risk is the uncertainty about the return we expect to earn.

Assets created by selling goods and services on credit are:

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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