Question 1

Many countries outside the United States use financial accounting standards issued by the

Accepted Answer

A) AICPA 
B) SEC 
C) IASB 
D) FASB 
A) AICPA 
B) SEC 
C) IASB 
D) FASB

Question 2

Which of the following is a manufacturing business?

Accepted Answer

A) General Motors 
B) Facebook 
C) American Airlines 
D) Target 
A) General Motors 
B) Facebook 
C) American Airlines 
D) Target

Question 3

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service.Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name.Describe how this transaction is related to the business entity concept.

Accepted Answer

Under the business entity concept,econom

Question 4

The asset created by a business when it makes a sale on account is termed

Accepted Answer

A) accounts payable 
B) prepaid expense 
C) unearned revenue 
D) accounts receivable 
A) accounts payable 
B) prepaid expense 
C) unearned revenue 
D) accounts receivable

Question 5

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Accepted Answer

A) assets increase $62,000; stockholders' equity increases $62,000 
B) assets increase $32,000; stockholders' equity increases $32,000 
C) assets increase $62,000; liabilities decrease $30,000; stockholders' equity increases $32,000 
D) assets increase $30,000; no change for liabilities; stockholders' equity increases $62,000 
A) assets increase $62,000; stockholders' equity increases $62,000 
B) assets increase $32,000; stockholders' equity increases $32,000 
C) assets increase $62,000; liabilities decrease $30,000; stockholders' equity increases $32,000 
D) assets increase $30,000; no change for liabilities; stockholders' equity increases $62,000

Question 6

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Accepted Answer

A) True 
 B)False

Question 7

What are the three sections of the statement of cash flows?

Accepted Answer

Operating Activities

Question 8

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Accepted Answer

A) True 
 B)False

Question 9

About 90% of the businesses in the United States are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 10

Donner Company is selling a piece of land adjacent to its business.An appraisal reported the market value of the land to be $120,000.The Focus Company initially offered to buy the land for $107,000.The companies settled on a purchase price of $115,000.On the same day,another piece of land on the same block sold for $122,000.Under the cost concept,what is the amount that will be used to record this transaction in the accounting records?

Accepted Answer

The answer of Donner Company is selling a piece of...

Question 11

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of cash flows 
D) statement of retained earnings 
A) income statement 
B) balance sheet 
C) statement of cash flows 
D) statement of retained earnings

Question 12

The assets and liabilities of the company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Accepted Answer

A) $212,000 
B) $44,000 
C) $128,000 
D) $84,000 
A) $212,000 
B) $44,000 
C) $128,000 
D) $84,000

Question 13

Determine the missing amount for each of the following:

Accepted Answer

The answer of Determine the missing amount for each of...

Question 14

If a building is appraised for $85,000,offered for sale at $90,000,and the buyer pays $80,000 cash for it,the buyer would record the building at $85,000.

Accepted Answer

A) True 
 B)False

Question 15

If a shareholder wanted to know how money flowed into and out of the company,which financial statement would the shareholder use?

Accepted Answer

A) income statement 
B) statement of cash flows 
C) balance sheet 
D) statement of retained earnings 
A) income statement 
B) statement of cash flows 
C) balance sheet 
D) statement of retained earnings

Question 16

Dave Ryan is the CEO of Ryan's Arcade.At the end of its accounting period,December 31,Ryan's Arcade has as liabilities of $125,000.Using the accounting equation,determine the following amounts:
a stockholders' equity as of December 31 of the current year
b stockholders' equity as of December 31 at the end of the next year,assuming that assets increased by $65,000 and liabilities increased by $35,000 during the year

Accepted Answer

a $325,000 $450,000

Question 17

Which of the following is not true of accounting principles?

Accepted Answer

A) Financial accountants follow generally accepted accounting principles GAAP. 
B) Following GAAP allows accounting information users to compare one company to another. 
C) A new accounting principle can be adopted with stockholders' approval. 
D) The Financial Accounting Standards Board FASB has primary responsibility for developing accounting principles. 
A) Financial accountants follow generally accepted accounting principles GAAP. 
B) Following GAAP allows accounting information users to compare one company to another. 
C) A new accounting principle can be adopted with stockholders' approval. 
D) The Financial Accounting Standards Board FASB has primary responsibility for developing accounting principles.

Question 18

Given the following:
 
Calculate net income or net loss.

Accepted Answer

None

Question 19

Revenue is earned only when money is received.

Accepted Answer

A) True 
 B)False

Question 20

Managerial accounting information is used by external and internal users equally.

Accepted Answer

A) True 
 B)False

Many countries outside the United States use financial accounting standards issued by the

Which of the following is a manufacturing business?

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service.Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name.Describe how this transaction is related to the business entity concept.

The asset created by a business when it makes a sale on account is termed

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

What are the three sections of the statement of cash flows?

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

About 90% of the businesses in the United States are organized as corporations.

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

The assets and liabilities of the company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Determine the missing amount for each of the following:

If a building is appraised for $85,000,offered for sale at $90,000,and the buyer pays $80,000 cash for it,the buyer would record the building at $85,000.

If a shareholder wanted to know how money flowed into and out of the company,which financial statement would the shareholder use?

Which of the following is not true of accounting principles?

Given the following: Calculate net income or net loss.

Revenue is earned only when money is received.

Managerial accounting information is used by external and internal users equally.

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Introduction to Accounting and Business

Many countries outside the United States use financial accounting standards issued by the

Which of the following is a manufacturing business?

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service.Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name.Describe how this transaction is related to the business entity concept.

The asset created by a business when it makes a sale on account is termed

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

What are the three sections of the statement of cash flows?

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

About 90% of the businesses in the United States are organized as corporations.

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

The assets and liabilities of the company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Determine the missing amount for each of the following:

If a building is appraised for $85,000,offered for sale at $90,000,and the buyer pays $80,000 cash for it,the buyer would record the building at $85,000.

If a shareholder wanted to know how money flowed into and out of the company,which financial statement would the shareholder use?

Which of the following is not true of accounting principles?

Given the following: Calculate net income or net loss.

Revenue is earned only when money is received.

Managerial accounting information is used by external and internal users equally.

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization,stock Transactions,and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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