Question 1

The three basic elements of the statement of cash flows are ________.

Accepted Answer

A) operating activities,investing activities,and financing activities 
B) assets,liabilities,and shareholders' equity 
C) revenues,expenses,and net income or loss 
D) retained earnings,net income,and dividends 
A) operating activities,investing activities,and financing activities 
B) assets,liabilities,and shareholders' equity 
C) revenues,expenses,and net income or loss 
D) retained earnings,net income,and dividends

Question 2

Liabilities are ________.

Accepted Answer

A) amounts that the business owes 
B) amounts that the business owns 
C) Shareholder claims on the assets of the business 
D) matched with revenues to calculate income 
A) amounts that the business owes 
B) amounts that the business owns 
C) Shareholder claims on the assets of the business 
D) matched with revenues to calculate income

Question 3

Team Shirts has $240,000 in total current assets and $190,000 in total current liabilities.Calculate the current ratio for Team Shirts.Round your answer to one decimal place.

Accepted Answer

$240,000/$

Question 4

Equity ________.

Accepted Answer

A) represents shareholders' claims to the assets of a business 
B) represents capital contributions to the business by lenders 
C) represents capital owed by customers 
D) is equal to assets plus liabilities 
A) represents shareholders' claims to the assets of a business 
B) represents capital contributions to the business by lenders 
C) represents capital owed by customers 
D) is equal to assets plus liabilities

Question 5

Clean Sweep contracted to clean an office building in July for $1,500.The work was contracted in July.The building was completely cleaned in August and Clean Sweep received a payment of $500.The remaining payment of $1,000 was received in September.Discuss how this event would be reported in the monthly financial statements for July,August and September.

Accepted Answer

The financial records were not affected

Question 6

The FASB,or Financial Accounting Standards Board,is currently the standards-setting body for rules that U.S.publicly-held companies must use in preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Explain the differences between accruals and deferrals.

Accepted Answer

An accrual is a transaction in which the

Question 8

Accounts receivable are classified as ________.

Accepted Answer

A) current assets 
B) current liabilities 
C) noncurrent assets 
D) noncurrent liabilities 
A) current assets 
B) current liabilities 
C) noncurrent assets 
D) noncurrent liabilities

Question 9

An example of a detective control is requiring that the cash drawer be compared with the sales recorded by the register.

Accepted Answer

A) True 
 B)False

Question 10

A financial statement provides information that ________.

Accepted Answer

A) is specific to a business enterprise 
B) is industry-wide information 
C) is economy-wide information 
D) includes the owner's personal financial records 
A) is specific to a business enterprise 
B) is industry-wide information 
C) is economy-wide information 
D) includes the owner's personal financial records

Question 11

Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements.

Accepted Answer

A) True 
 B)False

Question 12

Accrual accounting is an accounting system in which ________.

Accepted Answer

A) measurement of income is NOT based on cash receipts and cash disbursements 
B) measurement of income is based on cash receipts and cash disbursements 
C) all businesses prepare reports required by the FASB 
D) there are no timing differences 
A) measurement of income is NOT based on cash receipts and cash disbursements 
B) measurement of income is based on cash receipts and cash disbursements 
C) all businesses prepare reports required by the FASB 
D) there are no timing differences

Question 13

An account receivable is ________.

Accepted Answer

A) an accrual 
B) a deferral 
C) a cash sale to a customer 
D) cash collected from a customer 
A) an accrual 
B) a deferral 
C) a cash sale to a customer 
D) cash collected from a customer

Question 14

In June,Team Shirts collected $2,250 from customers,paid $600 for T-shirts,and paid $500 for rent.Net cash from operations was ________.

Accepted Answer

A) $1,950 
B) $1,650 
C) $1,150 
D) $2,250 
A) $1,950 
B) $1,650 
C) $1,150 
D) $2,250

Question 15

On July 1,Team Shirts paid $600 for three months' worth of advertising beginning on July 1.What is Advertising expense for the MONTH ended August 31?

Accepted Answer

A) $0 
B) $200 
C) $400 
D) $600 
A) $0 
B) $200 
C) $400 
D) $600

Question 16

Team Shirts sold $125 worth of T-shirts to a customer on credit.This transaction includes ________.

Accepted Answer

A) an account receivable 
B) an account payable 
C) a prepaid sale 
D) T-shirt expense 
A) an account receivable 
B) an account payable 
C) a prepaid sale 
D) T-shirt expense

Question 17

An example of a corrective control is requiring that on a regular basis management must follow up on all errors and irregularities identified.

Accepted Answer

A) True 
 B)False

Question 18

If a company spends $25 on copy paper,the amount is not material compared with the total office supplies budget of $250,000.

Accepted Answer

A) True 
 B)False

Question 19

Detective controls are ________.

Accepted Answer

A) designed to monitor business risks 
B) designed to identify when an error or irregularity has occurred 
C) designed to stop a problem before it starts 
D) directed at recovering from an error 
A) designed to monitor business risks 
B) designed to identify when an error or irregularity has occurred 
C) designed to stop a problem before it starts 
D) directed at recovering from an error

Question 20

Assets are recorded at their original cost to the company at the time of purchase.This is the ________ principle.

Accepted Answer

A) historical-cost 
B) full-disclosure 
C) matching 
D) revenue recognition 
A) historical-cost 
B) full-disclosure 
C) matching 
D) revenue recognition

The three basic elements of the statement of cash flows are ________.

Liabilities are ________.

Team Shirts has $240,000 in total current assets and $190,000 in total current liabilities.Calculate the current ratio for Team Shirts.Round your answer to one decimal place.

Equity ________.

The FASB,or Financial Accounting Standards Board,is currently the standards-setting body for rules that U.S.publicly-held companies must use in preparing financial statements.

Explain the differences between accruals and deferrals.

Accounts receivable are classified as ________.

An example of a detective control is requiring that the cash drawer be compared with the sales recorded by the register.

A financial statement provides information that ________.

Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements.

Accrual accounting is an accounting system in which ________.

An account receivable is ________.

In June,Team Shirts collected $2,250 from customers,paid $600 for T-shirts,and paid $500 for rent.Net cash from operations was ________.

On July 1,Team Shirts paid $600 for three months' worth of advertising beginning on July 1.What is Advertising expense for the MONTH ended August 31?

Team Shirts sold $125 worth of T-shirts to a customer on credit.This transaction includes ________.

An example of a corrective control is requiring that on a regular basis management must follow up on all errors and irregularities identified.

If a company spends $25 on copy paper,the amount is not material compared with the total office supplies budget of $250,000.

Detective controls are ________.

Assets are recorded at their original cost to the company at the time of purchase.This is the ________ principle.

Business: Whats It All About

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 2: Qualities of Accounting Information

The three basic elements of the statement of cash flows are ________.

Liabilities are ________.

Team Shirts has $240,000 in total current assets and $190,000 in total current liabilities.Calculate the current ratio for Team Shirts.Round your answer to one decimal place.

Equity ________.

The FASB,or Financial Accounting Standards Board,is currently the standards-setting body for rules that U.S.publicly-held companies must use in preparing financial statements.

Explain the differences between accruals and deferrals.

Accounts receivable are classified as ________.

An example of a detective control is requiring that the cash drawer be compared with the sales recorded by the register.

A financial statement provides information that ________.

Accrual accounting is an accounting system in which the measurement of income is based on cash receipts and cash disbursements.

Accrual accounting is an accounting system in which ________.

An account receivable is ________.

In June,Team Shirts collected $2,250 from customers,paid $600 for T-shirts,and paid $500 for rent.Net cash from operations was ________.

On July 1,Team Shirts paid $600 for three months' worth of advertising beginning on July 1.What is Advertising expense for the MONTH ended August 31?

Team Shirts sold $125 worth of T-shirts to a customer on credit.This transaction includes ________.

An example of a corrective control is requiring that on a regular basis management must follow up on all errors and irregularities identified.

If a company spends $25 on copy paper,the amount is not material compared with the total office supplies budget of $250,000.

Detective controls are ________.

Assets are recorded at their original cost to the company at the time of purchase.This is the ________ principle.

Business: Whats It All About

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters