Question 1

Which of the following is not a characteristic of a corporation?

Accepted Answer

A) Corporations are organized as a separate legal taxable entity. 
B) Ownership is divided into shares of stock. 
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock. 
D) A corporation's resources are limited to its individual owners' resources. 
A) Corporations are organized as a separate legal taxable entity. 
B) Ownership is divided into shares of stock. 
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock. 
D) A corporation's resources are limited to its individual owners' resources.

Question 2

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 3

Two common areas of accounting that respectively provide information to internal and external users are

Accepted Answer

A) forensic accounting and financial accounting 
B) managerial accounting and financial accounting 
C) managerial accounting and environmental accounting 
D) financial accounting and tax accounting systems 
A) forensic accounting and financial accounting 
B) managerial accounting and financial accounting 
C) managerial accounting and environmental accounting 
D) financial accounting and tax accounting systems

Question 4

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

Accepted Answer

A) increase assets Cash and increase liabilities Accounts Payable 
B) increase assets Cash and increase stockholders' equity Capital Stock 
C) increase assets Accounts Receivable and decrease liabilities Accounts Payable 
D) increase assets Cash and increase assets Accounts Receivable 
A) increase assets Cash and increase liabilities Accounts Payable 
B) increase assets Cash and increase stockholders' equity Capital Stock 
C) increase assets Accounts Receivable and decrease liabilities Accounts Payable 
D) increase assets Cash and increase assets Accounts Receivable

Question 5

Four financial statements are usually prepared for a business.The statement of cash flows is usually prepared last.The retained earnings statement RES,the balance sheet B,and the income statement I are prepared in a certain order to obtain information needed for the next statement.In what order are these three statements prepared?

Accepted Answer

A) I,RES,B 
B) B,I,RES 
C) RES,I,B 
D) B,RES,I 
A) I,RES,B 
B) B,I,RES 
C) RES,I,B 
D) B,RES,I

Question 6

The business entity concept means that

Accepted Answer

A) the owner is part of the business entity 
B) an entity is organized according to state or federal statutes 
C) an entity is organized according to the rules set by the FASB 
D) the entity is an individual economic unit for which data are recorded,analyzed,and reported 
A) the owner is part of the business entity 
B) an entity is organized according to state or federal statutes 
C) an entity is organized according to the rules set by the FASB 
D) the entity is an individual economic unit for which data are recorded,analyzed,and reported

Question 7

The unit of measurement concept requires that economic data be recorded in dollars.

Accepted Answer

A) True 
 B)False

Question 8

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Accepted Answer

A) True 
 B)False

Question 9

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Accepted Answer

A) Certified Public Accountant 
B) Certified Payroll Professional 
C) Certified Internal Auditor 
D) Certified Management Accountant 
A) Certified Public Accountant 
B) Certified Payroll Professional 
C) Certified Internal Auditor 
D) Certified Management Accountant

Question 10

Assets are

Accepted Answer

A) always lower than liabilities 
B) equal to liabilities less stockholders' equity 
C) the same as expenses because they are acquired with cash 
D) financed by the stockholders and/or creditors 
A) always lower than liabilities 
B) equal to liabilities less stockholders' equity 
C) the same as expenses because they are acquired with cash 
D) financed by the stockholders and/or creditors

Question 11

Proprietorships are owned by one owner and provide only services to their customers.

Accepted Answer

A) True 
 B)False

Question 12

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Accepted Answer

A) True 
 B)False

Question 13

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31:
 
-Based on this information,is Scott Industries profitable? Explain your answer.

Accepted Answer

$165,000 Fees earned + $3,000 Interest i

Question 14

For accounting purposes,the business entity should be considered separate from its owners if the entity is

Accepted Answer

A) a corporation 
B) a proprietorship 
C) a partnership 
D) any of these 
A) a corporation 
B) a proprietorship 
C) a partnership 
D) any of these

Question 15

If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period,the period's change in total liabilities was a $65,000 increase.

Accepted Answer

A) True 
 B)False

Question 16

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31:
 
-Determine the total assets at the end of the current year for Scott Industries.

Accepted Answer

$110,000 $30,000 Cash + $14,00

Question 17

Identify each of the following as an 1 increase to stockholders' equity,or a 2 decrease to stockholders' equity.
a. Fees earned
b. Wages expense
c .Dividends
d. Lawn care revenue
e. Investment
f. Supplies expense

Accepted Answer

a.	1
b.	2

Question 18

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following asset accounts is increased when a receivable is collected?

Accepted Answer

A) Accounts Receivable 
B) Supplies 
C) Accounts Payable 
D) Cash 
A) Accounts Receivable 
B) Supplies 
C) Accounts Payable 
D) Cash

Question 20

The Financial Accounting Standards Board FASB is the authoritative body that has primary responsibility for developing accounting principles.

Accepted Answer

A) True 
 B)False

Which of the following is not a characteristic of a corporation?

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Two common areas of accounting that respectively provide information to internal and external users are

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

The business entity concept means that

The unit of measurement concept requires that economic data be recorded in dollars.

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Assets are

Proprietorships are owned by one owner and provide only services to their customers.

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31: -Based on this information,is Scott Industries profitable? Explain your answer.

For accounting purposes,the business entity should be considered separate from its owners if the entity is

If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period,the period's change in total liabilities was a $65,000 increase.

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31: -Determine the total assets at the end of the current year for Scott Industries.

Identify each of the following as an 1 increase to stockholders' equity,or a 2 decrease to stockholders' equity. a. Fees earned b. Wages expense c .Dividends d. Lawn care revenue e. Investment f. Supplies expense

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Which of the following asset accounts is increased when a receivable is collected?

The Financial Accounting Standards Board FASB is the authoritative body that has primary responsibility for developing accounting principles.

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

Which of the following is not a characteristic of a corporation?

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Two common areas of accounting that respectively provide information to internal and external users are

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

The business entity concept means that

The unit of measurement concept requires that economic data be recorded in dollars.

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Assets are

Proprietorships are owned by one owner and provide only services to their customers.

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31: -Based on this information,is Scott Industries profitable? Explain your answer.

For accounting purposes,the business entity should be considered separate from its owners if the entity is

If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period,the period's change in total liabilities was a $65,000 increase.

The accountant for Scott Industries prepared the following list of account balances from the company’s records for the year ended December 31: -Determine the total assets at the end of the current year for Scott Industries.

Identify each of the following as an 1 increase to stockholders' equity,or a 2 decrease to stockholders' equity. a. Fees earned b. Wages expense c .Dividends d. Lawn care revenue e. Investment f. Supplies expense

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Which of the following asset accounts is increased when a receivable is collected?

The Financial Accounting Standards Board FASB is the authoritative body that has primary responsibility for developing accounting principles.

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

Filters