Question 1

Explain the interrelationship between the balance sheet and the statement of cash flows.

Accepted Answer

The cash reported on the balan

Question 2

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

Accepted Answer

The objective of financial acc

Question 3

Discuss the characteristics of a limited liability company LLC.

Accepted Answer

A limited liability company LLC combines

Question 4

Goods purchased on account for future use in the business,such as supplies,are called

Accepted Answer

A) prepaid liabilities 
B) revenues 
C) prepaid expenses 
D) liabilities 
A) prepaid liabilities 
B) revenues 
C) prepaid expenses 
D) liabilities

Question 5

Which of the following is not an asset?

Accepted Answer

A) investments 
B) cash 
C) inventory 
D) stockholders' equity 
A) investments 
B) cash 
C) inventory 
D) stockholders' equity

Question 6

The cost concept is the basis for entering the purchase price into the accounting records.

Accepted Answer

A) True 
 B)False

Question 7

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 liabilities at the end of the current year for Scott Industries.

Accepted Answer

$37,000 
$12,000 Acc

Question 8

The stockholders' rights to the assets rank ahead of the creditors' rights to the assets.

Accepted Answer

A) True 
 B)False

Question 9

The unit of measure concept

Accepted Answer

A) is only used in the financial statements of manufacturing companies 
B) is not important when applying the cost concept 
C) requires that different units be used for assets and liabilities 
D) requires that economic data be reported in yen in Japan or dollars in the United States 
A) is only used in the financial statements of manufacturing companies 
B) is not important when applying the cost concept 
C) requires that different units be used for assets and liabilities 
D) requires that economic data be reported in yen in Japan or dollars in the United States

Question 10

The assets section of the balance sheet normally presents assets in

Accepted Answer

A) alphabetical order 
B) the order of largest to smallest dollar amounts 
C) the order in which they will be converted into cash or used in operations 
D) the order of smallest to largest dollar amounts 
A) alphabetical order 
B) the order of largest to smallest dollar amounts 
C) the order in which they will be converted into cash or used in operations 
D) the order of smallest to largest dollar amounts

Question 11

Receiving a bill or otherwise being notified that an amount is owed is not recorded until the amount is paid.

Accepted Answer

A) True 
 B)False

Question 12

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Accepted Answer

The three factors are: 1 individual char

Question 13

Which of the following best describes accounting?

Accepted Answer

A) records economic data but does not communicate the data to users according to any specific rules 
B) is an information system that provides reports to users regarding economic activities and condition of a business 
C) is of no use by individuals outside of the business 
D) is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements 
A) records economic data but does not communicate the data to users according to any specific rules 
B) is an information system that provides reports to users regarding economic activities and condition of a business 
C) is of no use by individuals outside of the business 
D) is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements

Question 14

A corporation is a business that is legally separate and distinct from its owners.

Accepted Answer

A) True 
 B)False

Question 15

Company G has a ratio of liabilities to stockholders' equity of 0.12 and 0.28 for Year 1 and Year 2,respectively.In contrast,Company M has a ratio of liabilities to stockholders' equity of 1.13 and 1.29 for the same period.
REQUIRED:
Based on this information,which company's creditors are more at risk and why? Should the creditors of either company fear the risk of nonpayment?

Accepted Answer

Company M's creditors are more at risk t

Question 16

If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period,the period's change in total stockholders' equity was a $200,000 increase.

Accepted Answer

A) True 
 B)False

Question 17

Transactions affecting stockholders' equity include

Accepted Answer

A) capital contributions and payment of liabilities 
B) capital contributions,stockholder dividends,earning of revenues,and incurrence of expenses 
C) capital contributions,earning of revenues,incurrence of expenses,and collection of accounts receivable 
D) stockholder dividends,earning of revenues,incurrence of expenses,and purchase of supplies on account 
A) capital contributions and payment of liabilities 
B) capital contributions,stockholder dividends,earning of revenues,and incurrence of expenses 
C) capital contributions,earning of revenues,incurrence of expenses,and collection of accounts receivable 
D) stockholder dividends,earning of revenues,incurrence of expenses,and purchase of supplies on account

Question 18

Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

Accepted Answer

A) partnership 
B) corporation 
C) proprietorship 
D) government entity 
A) partnership 
B) corporation 
C) proprietorship 
D) government entity

Question 19

Proper ethical conduct implies that you only consider what's in your best interest.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following concepts relates to separating the reporting of business and personal economic transactions?

Accepted Answer

A) cost concept 
B) unit of measure concept 
C) business entity concept 
D) objectivity concept 
A) cost concept 
B) unit of measure concept 
C) business entity concept 
D) objectivity concept

Explain the interrelationship between the balance sheet and the statement of cash flows.

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

Discuss the characteristics of a limited liability company LLC.

Goods purchased on account for future use in the business,such as supplies,are called

Which of the following is not an asset?

The cost concept is the basis for entering the purchase price into the accounting records.

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 liabilities at the end of the current year for Scott Industries.

The stockholders' rights to the assets rank ahead of the creditors' rights to the assets.

The unit of measure concept

The assets section of the balance sheet normally presents assets in

Receiving a bill or otherwise being notified that an amount is owed is not recorded until the amount is paid.

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Which of the following best describes accounting?

A corporation is a business that is legally separate and distinct from its owners.

If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period,the period's change in total stockholders' equity was a $200,000 increase.

Transactions affecting stockholders' equity include

Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

Proper ethical conduct implies that you only consider what's in your best interest.

Which of the following concepts relates to separating the reporting of business and personal economic transactions?

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

Explain the interrelationship between the balance sheet and the statement of cash flows.

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

Discuss the characteristics of a limited liability company LLC.

Goods purchased on account for future use in the business,such as supplies,are called

Which of the following is not an asset?

The cost concept is the basis for entering the purchase price into the accounting records.

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 liabilities at the end of the current year for Scott Industries.

The stockholders' rights to the assets rank ahead of the creditors' rights to the assets.

The unit of measure concept

The assets section of the balance sheet normally presents assets in

Receiving a bill or otherwise being notified that an amount is owed is not recorded until the amount is paid.

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Which of the following best describes accounting?

A corporation is a business that is legally separate and distinct from its owners.

If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period,the period's change in total stockholders' equity was a $200,000 increase.

Transactions affecting stockholders' equity include

Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

Proper ethical conduct implies that you only consider what's in your best interest.

Which of the following concepts relates to separating the reporting of business and personal economic transactions?

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