Question 1

A payment to a creditor will decrease assets and increase liabilities.

Accepted Answer

A) True 
 B)False

Question 2

A transaction

Accepted Answer

A) affects the financial position of an entity. 
B) maintains the equality of the balance sheet equation. 
C) affects the cash position of an entity. 
D) will always change values on the income statement. 
E) both A and B 
A) affects the financial position of an entity. 
B) maintains the equality of the balance sheet equation. 
C) affects the cash position of an entity. 
D) will always change values on the income statement. 
E) both A and B

Question 3

Mexland Company,acquired land costing $25,000.Mexland Company paid $10,000 in cash and issued a short-term note for the balance.The effect of this transaction on Mexland Company,would be to

Accepted Answer

A) increase the land account by $25,000,decrease the cash account by $10,000,and decrease the balance in the notes payable account by $15,000. 
B) increase the land account by $25,000,decrease the cash account by $10,000,and decrease the balance in the notes receivable account by $15,000. 
C) increase the land account by $25,000,decrease the cash account by $10,000,and increase the balance in the notes receivable account by $15,000. 
D) increase the land account by $10,000 and decrease the cash account by $10,000. 
E) increase the land account by $25,000,decrease the cash account by $10,000,and increase the balance in the notes payable account by $15,000. 
A) increase the land account by $25,000,decrease the cash account by $10,000,and decrease the balance in the notes payable account by $15,000. 
B) increase the land account by $25,000,decrease the cash account by $10,000,and decrease the balance in the notes receivable account by $15,000. 
C) increase the land account by $25,000,decrease the cash account by $10,000,and increase the balance in the notes receivable account by $15,000. 
D) increase the land account by $10,000 and decrease the cash account by $10,000. 
E) increase the land account by $25,000,decrease the cash account by $10,000,and increase the balance in the notes payable account by $15,000.

Question 4

Financial accounting serves external decision makers,such as suppliers,banks,government agencies,and stockholders.

Accepted Answer

A) True 
 B)False

Question 5

An example of stockholders' equity is

Accepted Answer

A) accounts payable. 
B) accounts receivable. 
C) capital stock. 
D) marketable securities. 
E) cash and cash equivalents. 
A) accounts payable. 
B) accounts receivable. 
C) capital stock. 
D) marketable securities. 
E) cash and cash equivalents.

Question 6

International Financial Reporting Standards are

Accepted Answer

A) used by all European Union countries. 
B) never used by corporations operating in the United States. 
C) identical to Generally Accepted Accounting Principles. 
D) guidelines used by corporations to determine a company's fair value upon cessation. 
E) drastically different from Generally Accepted Accounting Principles. 
A) used by all European Union countries. 
B) never used by corporations operating in the United States. 
C) identical to Generally Accepted Accounting Principles. 
D) guidelines used by corporations to determine a company's fair value upon cessation. 
E) drastically different from Generally Accepted Accounting Principles.

Question 7

The hierarchy (1 is top)of U.S.accounting rule-making responsibility is

Accepted Answer

A) 1.congress,2.AICPA,3.FASB. 
B) 1.SEC,2.IASB,3.FASB. 
C) 1.FASB,2.IASB,3.AICPA. 
D) 1.congress,2.SEC,3.FASB. 
E) 1.PCAOB,2.FASB,3.IASB. 
A) 1.congress,2.AICPA,3.FASB. 
B) 1.SEC,2.IASB,3.FASB. 
C) 1.FASB,2.IASB,3.AICPA. 
D) 1.congress,2.SEC,3.FASB. 
E) 1.PCAOB,2.FASB,3.IASB.

A payment to a creditor will decrease assets and increase liabilities.

A transaction

Mexland Company,acquired land costing $25,000.Mexland Company paid $10,000 in cash and issued a short-term note for the balance.The effect of this transaction on Mexland Company,would be to

Financial accounting serves external decision makers,such as suppliers,banks,government agencies,and stockholders.

An example of stockholders' equity is

International Financial Reporting Standards are

The hierarchy (1 is top)of U.S.accounting rule-making responsibility is

Measuring Income to Assess Performance

Recording Transactions

Accrual Accounting and Financial Statements

Statement of Cash Flows

Accounting for Sales

Inventories and Cost of Goods Sold

Long-Lived Assets

Liabilities and Interest

Stockholders Equity

Intercorporate Investments and Consolidations

Financial Statement Analysis

Filters

Exam 1: Accounting: the Language of Business

A payment to a creditor will decrease assets and increase liabilities.

A transaction

Mexland Company,acquired land costing $25,000.Mexland Company paid $10,000 in cash and issued a short-term note for the balance.The effect of this transaction on Mexland Company,would be to

Financial accounting serves external decision makers,such as suppliers,banks,government agencies,and stockholders.

An example of stockholders' equity is

International Financial Reporting Standards are

The hierarchy (1 is top)of U.S.accounting rule-making responsibility is

Measuring Income to Assess Performance

Recording Transactions

Accrual Accounting and Financial Statements

Statement of Cash Flows

Accounting for Sales

Inventories and Cost of Goods Sold

Long-Lived Assets

Liabilities and Interest

Stockholders Equity

Intercorporate Investments and Consolidations

Financial Statement Analysis

Filters