Question 1

Most businesses in the United States are

Accepted Answer

A) proprietorships 
B) partnerships 
C) corporations 
D) cooperatives 
A) proprietorships 
B) partnerships 
C) corporations 
D) cooperatives

Question 2

An example of an external user of accounting information is the federal government.

Accepted Answer

A) True 
 B)False

Question 3

What information does the income statement give to business users?

Accepted Answer

The income statement reports t

Question 4

The Austin Land Company sold land for $85,000 in cash.The land was originally purchased for $65,000.At the time of the sale,$40,000 was still owed to Regions Bank.After the sale,The Austin Land Company paid off the loan.Explain the effect of the sale and the payoff of the loan on the accounting equation.

Accepted Answer

Total assets decrease $20,000 Cash incre

Question 5

Profit is the difference between

Accepted Answer

A) assets and liabilities 
B) the incoming cash and outgoing cash 
C) the assets purchased with cash contributed by the owner and the cash spent to operate the business 
D) the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services 
A) assets and liabilities 
B) the incoming cash and outgoing cash 
C) the assets purchased with cash contributed by the owner and the cash spent to operate the business 
D) the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services

Question 6

Which of the following accounts is a liability?

Accepted Answer

A) Accounts Payable 
B) Accounts Receivable 
C) Wages Expense 
D) Service Revenue 
A) Accounts Payable 
B) Accounts Receivable 
C) Wages Expense 
D) Service Revenue

Question 7

Which of the following is not a role of accounting in business?

Accepted Answer

A) to provide reports to users about the economic activities and conditions of a business 
B) to personally guarantee loans of the business 
C) to provide information to external users to determine the economic performance and condition of the business 
D) to assess the various informational needs of users and design its accounting system to meet those needs 
A) to provide reports to users about the economic activities and conditions of a business 
B) to personally guarantee loans of the business 
C) to provide information to external users to determine the economic performance and condition of the business 
D) to assess the various informational needs of users and design its accounting system to meet those needs

Question 8

Donner Company is selling a piece of land adjacent to its business premises.An appraisal reported the market value of the land to be $220,000.The Focus Company initially offered to buy the land for $177,000.The companies settled on a purchase price of $212,000.On the same day,another piece of land on the same block sold for $232,000.Under the cost concept,at what amount should the land be recorded in the accounting records of Focus Company?

Accepted Answer

A) $177,000 
B) $212,000 
C) $220,000 
D) $232,000 
A) $177,000 
B) $212,000 
C) $220,000 
D) $232,000

Question 9

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Accepted Answer

None

Question 11

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Accepted Answer

The answer of Selected transaction data of a business for...

Question 12

Which of the following is a service business?

Accepted Answer

A) Microsoft 
B) Dell Computers 
C) Facebook 
D) Walmart 
A) Microsoft 
B) Dell Computers 
C) Facebook 
D) Walmart

Question 13

The initials GAAP stand for

Accepted Answer

A) General Accounting Procedures 
B) Generally Accepted Plans 
C) Generally Accepted Accounting Principles 
D) Generally Accepted Accounting Practices 
A) General Accounting Procedures 
B) Generally Accepted Plans 
C) Generally Accepted Accounting Principles 
D) Generally Accepted Accounting Practices

Question 14

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Accepted Answer

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

Question 15

Financial reports are used by

Accepted Answer

A) management 
B) creditors 
C) investors 
D) all are correct 
A) management 
B) creditors 
C) investors 
D) all are correct

Question 16

Within the United States,the dominant body in the primary development of accounting principles is the

Accepted Answer

A) American Institute of Certified Public Accountants AICPA 
B) American Accounting Association AAA 
C) Financial Accounting Standards Board FASB 
D) Institute of Management Accountants IMA 
A) American Institute of Certified Public Accountants AICPA 
B) American Accounting Association AAA 
C) Financial Accounting Standards Board FASB 
D) Institute of Management Accountants IMA

Question 17

Dividends paid to stockholders decrease assets and increase equity.

Accepted Answer

A) True 
 B)False

Question 18

Managerial accountants would be responsible for providing information regarding

Accepted Answer

A) tax reports to government agencies 
B) profit reports to owners and management 
C) expansion of a product line report to management 
D) consumer reports to customers 
A) tax reports to government agencies 
B) profit reports to owners and management 
C) expansion of a product line report to management 
D) consumer reports to customers

Question 19

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

Accepted Answer

A) prior period statement 
B) retained earnings statement 
C) income statement 
D) balance sheet 
A) prior period statement 
B) retained earnings statement 
C) income statement 
D) balance sheet

Most businesses in the United States are

An example of an external user of accounting information is the federal government.

What information does the income statement give to business users?

Profit is the difference between

Which of the following accounts is a liability?

Which of the following is not a role of accounting in business?

The excess of revenue over the expenses incurred in earning the revenue is called capital.

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Which of the following is a service business?

The initials GAAP stand for

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Financial reports are used by

Within the United States,the dominant body in the primary development of accounting principles is the

Dividends paid to stockholders decrease assets and increase equity.

Managerial accountants would be responsible for providing information regarding

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

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

Most businesses in the United States are

An example of an external user of accounting information is the federal government.

What information does the income statement give to business users?

Profit is the difference between

Which of the following accounts is a liability?

Which of the following is not a role of accounting in business?

The excess of revenue over the expenses incurred in earning the revenue is called capital.

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Which of the following is a service business?

The initials GAAP stand for

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Financial reports are used by

Within the United States,the dominant body in the primary development of accounting principles is the

Dividends paid to stockholders decrease assets and increase equity.

Managerial accountants would be responsible for providing information regarding

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

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