Question 1

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Accepted Answer

A) True 
 B)False

Question 2

Revenues are:

Accepted Answer

A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company 
D) The increase in equity from a company's earning activities. 
E) The costs of assets or services used. 
A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company 
D) The increase in equity from a company's earning activities. 
E) The costs of assets or services used.

Question 3

The Sarbanes-Oxley Act (SOX)requires each issuer of securities to disclose whether is has adopted a code of ethics for its senior financial officers and the contents of that code.

Accepted Answer

A) True 
 B)False

Question 4

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000,is assessed for tax purposes at $95,000,is recognized by its purchasers as easily being worth $140,000,and is sold for $137,000.What is the effect of the sale on the accounting equation for the seller?

Accepted Answer

A) Assets increase $52,000; owner's equity increases $52,000. 
B) Assets increase $85,000; owner's equity increases $85,000. 
C) Assets increase $137,000; owner's equity increases $137,000. 
D) Assets increase $140,000; owner's equity increases $140,000. 
E) Assets decrease $85,000; owner's equity decreases $85,000. 
A) Assets increase $52,000; owner's equity increases $52,000. 
B) Assets increase $85,000; owner's equity increases $85,000. 
C) Assets increase $137,000; owner's equity increases $137,000. 
D) Assets increase $140,000; owner's equity increases $140,000. 
E) Assets decrease $85,000; owner's equity decreases $85,000.

Question 5

Describe the relation between revenues,expenses,and net income.

Accepted Answer

Revenues are the increases in

Question 6

Generally accepted accounting principles are the basic assumptions,concepts,and guidelines for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the relation between risk and return.

Accepted Answer

Net income is related to return. Risk is

Question 8

The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner,net income (or net loss); withdrawals; and the ending balance,is the:

Accepted Answer

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

Question 9

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Accepted Answer

The answer of Prepare a November 30 balance sheet in...

Question 10

The fraud triangle asserts that there are three factors that must exist for a person to commit fraud; these factors are opportunity,pressure,and rationalization.

Accepted Answer

A) True 
 B)False

Question 11

Opportunities in accounting include auditing,consulting,market research,and tax planning.

Accepted Answer

A) True 
 B)False

Question 12

Owner financing refers to resources contributed by creditors or lenders.

Accepted Answer

A) True 
 B)False

Question 13

The International Accounting Standards Board (IASB):

Accepted Answer

A) Hopes to create harmony among accounting practices of different countries. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the public. 
C) Has the authority to impose its standards on companies. 
D) Is the only source of generally accepted accounting principles (GAAP). 
E) Only applies to companies that are members of the European Union. 
A) Hopes to create harmony among accounting practices of different countries. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the public. 
C) Has the authority to impose its standards on companies. 
D) Is the only source of generally accepted accounting principles (GAAP). 
E) Only applies to companies that are members of the European Union.

Question 14

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 15

Creditors' claims on the assets of a company are called:

Accepted Answer

A) Net losses. 
B) Expenses. 
C) Revenues. 
D) Equity. 
E) Liabilities. 
A) Net losses. 
B) Expenses. 
C) Revenues. 
D) Equity. 
E) Liabilities.

Question 16

The characteristics below apply to at least one of the forms of business organization.
a.Is a separate legal entity.
b.Is allowed to be owned by one person only.
c.Owner or owners are personally liable for debts of the business.
d.Is a taxable entity.
e.Is a business entity.
f.May have a contract specifying the division of profits among the owners.
g.Has an unlimited life
Use the following format to indicate (with a "yes" or "no")whether or not a characteristic applies to each type of business organization.

Accepted Answer

The answer of The characteristics below apply to at least...

Question 17

Marian Mosely is the owner of Mosely Accounting Services.Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Accepted Answer

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

Question 18

The first section of the income statement reports cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 19

Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 20

External users include lenders,shareholders,customers,and regulators.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Revenues are:

The Sarbanes-Oxley Act (SOX)requires each issuer of securities to disclose whether is has adopted a code of ethics for its senior financial officers and the contents of that code.

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000,is assessed for tax purposes at $95,000,is recognized by its purchasers as easily being worth $140,000,and is sold for $137,000.What is the effect of the sale on the accounting equation for the seller?

Describe the relation between revenues,expenses,and net income.

Generally accepted accounting principles are the basic assumptions,concepts,and guidelines for preparing financial statements.

Discuss the relation between risk and return.

The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner,net income (or net loss); withdrawals; and the ending balance,is the:

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

The fraud triangle asserts that there are three factors that must exist for a person to commit fraud; these factors are opportunity,pressure,and rationalization.

Opportunities in accounting include auditing,consulting,market research,and tax planning.

Owner financing refers to resources contributed by creditors or lenders.

The International Accounting Standards Board (IASB):

Identify the users and uses of accounting information.

Creditors' claims on the assets of a company are called:

Marian Mosely is the owner of Mosely Accounting Services.Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

The first section of the income statement reports cash flows from operating activities.

Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts:

External users include lenders,shareholders,customers,and regulators.

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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