Question 1

Cash collected from customers before goods are delivered will increase ________.

Accepted Answer

A)  assets and increase revenues 
B)  revenues and decrease liabilities 
C)  liabilities and increase assets 
D)  liabilities and decrease revenues 
A)  assets and increase revenues 
B)  revenues and decrease liabilities 
C)  liabilities and increase assets 
D)  liabilities and decrease revenues

Question 2

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

Accepted Answer

A)  recognition 
B)  matching 
C)  stable monetary unit 
D)  conservatism 
A)  recognition 
B)  matching 
C)  stable monetary unit 
D)  conservatism

Question 3

In the United States,Generally Accepted Accounting Principles are developed primarily by ________.

Accepted Answer

A)  International Accounting Standards Board 
B)  Financial Accounting Standards Board 
C)  Securities and Exchange Commission 
D)  International Accounting Federation 
A)  International Accounting Standards Board 
B)  Financial Accounting Standards Board 
C)  Securities and Exchange Commission 
D)  International Accounting Federation

Question 4

The following information was extracted from the accounting records of Vogel Company:
$$\begin{array} { l l } 
\text { beginning Paid-in Capital } & \$ 90,000 \
\text {beginning Retained Earnings } & \$ 300,000 \
\text { beginning Assets } & \$ 455,006 \
\text { Contributicns by owners } & \$ 0 \
\text { Revenues } & \$ 200,000 \
\text { Expenses } & \$ 155,000
\end{array}$$
At the beginning of the period,what is the total amount of liabilities?

Accepted Answer

A)  $65,000 
B)  $100,000 
C)  $155,000 
D)  $245,000 
A)  $65,000 
B)  $100,000 
C)  $155,000 
D)  $245,000

Question 5

On May 1,Gomez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gomez Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on June 1?

Accepted Answer

A)  $0 
B)  $9,000 
C)  $18,000 
D)  $27,000 
A)  $0 
B)  $9,000 
C)  $18,000 
D)  $27,000

Question 6

The adjusting entry for wages earned but unpaid results in a(n)________.

Accepted Answer

A)  increase in expenses and an increase in liabilities 
B)  increase in expenses and a decrease in liabilities 
C)  decrease in expenses and a decrease in liabilities 
D)  decrease in expenses and an increase in liabilities 
A)  increase in expenses and an increase in liabilities 
B)  increase in expenses and a decrease in liabilities 
C)  decrease in expenses and a decrease in liabilities 
D)  decrease in expenses and an increase in liabilities

Question 7

Which of the following explains the change in Retained Earnings from the beginning of the year to the end of the year?

Accepted Answer

A)  revenues and expenses 
B)  contributions by owners 
C)  purchases of inventory 
D)  a purchase of a plant asset 
A)  revenues and expenses 
B)  contributions by owners 
C)  purchases of inventory 
D)  a purchase of a plant asset

Question 8

Listed below are the transactions for Kaiman Company:
1.The owners invest $100,000 in the company in exchange for common stock.
2.The company purchases equipment costing $30,000 with a note payable.The equipment has a ten year life and no salvage value.The company uses the straight-line method of depreciation.
3.The company purchases inventory costing $10,000 by paying cash.
4.The company paid $8,000 for four months' rent in advance.
5.The company sold inventory for $9,000 cash.The cost of the inventory was $5,000.
6.The company used one month of rent.
7.The company declared a cash dividend of $500.
8.Depreciation expense on the equipment was recorded for the month.
Required:
Prepare journal entries for the above transactions.

Accepted Answer

The answer of Listed below are the transactions for Kaiman...

Question 9

Adjusting entries at the end of an accounting period record explicit transactions.

Accepted Answer

A) True 
 B)False

Question 10

Source documents are associated with ________.

Accepted Answer

A)  Generally Accepted Accounting Principles 
B)  implicit transactions 
C)  explicit transactions 
D)  compound entries 
A)  Generally Accepted Accounting Principles 
B)  implicit transactions 
C)  explicit transactions 
D)  compound entries

Question 11

Under accrual basis accounting,research and development expenses for new products are recorded as ________.

Accepted Answer

A)  assets and written off systematically over the expected life 
B)  assets and expensed when paid in cash 
C)  assets and expensed when the related products are sold 
D)  expenses immediately 
A)  assets and written off systematically over the expected life 
B)  assets and expensed when paid in cash 
C)  assets and expensed when the related products are sold 
D)  expenses immediately

Question 12

Accounting information only helps assess past financial performance.

Accepted Answer

A) True 
 B)False

Question 13

When depreciating a fixed asset,the residual value is not considered.

Accepted Answer

A) True 
 B)False

Question 14

The income statement summarizes a company's operating performance ________ and the balance sheet shows a company's financial position ________.

Accepted Answer

A)  at a point in time; over a period of time 
B)  at a point in time; at a point in time 
C)  over a period of time; over a period of time 
D)  over a period of time; at a point in time 
A)  at a point in time; over a period of time 
B)  at a point in time; at a point in time 
C)  over a period of time; over a period of time 
D)  over a period of time; at a point in time

Question 15

Liabilities are the entity's economic obligations to owners.

Accepted Answer

A) True 
 B)False

Question 16

On January 1,2015,Arizona Company acquired a machine for $33,000.Annual depreciation expense equals $3,000.The residual value of the machine is $3,000.What is the book value of the machine on December 31,2016?

Accepted Answer

A)  $3,000 
B)  $27,000 
C)  $30,000 
D)  $33,000 
A)  $3,000 
B)  $27,000 
C)  $30,000 
D)  $33,000

Question 17

In a corporation,stockholders' equity has two parts called ________ and ________.

Accepted Answer

A)  dividends; net profit 
B)  paid in capital; dividends 
C)  net profit; retained earnings 
D)  paid-in capital; retained earnings 
A)  dividends; net profit 
B)  paid in capital; dividends 
C)  net profit; retained earnings 
D)  paid-in capital; retained earnings

Question 18

For nonprofit organizations,the income statement is ________.

Accepted Answer

A)  used 
B)  replaced with the statement of stockholders' equity 
C)  replaced with the statement of activities 
D)  replaced with the statement of cash flows 
A)  used 
B)  replaced with the statement of stockholders' equity 
C)  replaced with the statement of activities 
D)  replaced with the statement of cash flows

Question 19

Under the accrual basis of accounting,the impact of transactions is recorded when cash is received or paid.

Accepted Answer

A) True 
 B)False

Question 20

On April 1,2012,Company Z lends $200,000 to Company Y on a 8% note.For the six months ending June 30,2012,what amount of interest revenue will Company Z report on this note?

Accepted Answer

A)  $4,000 
B)  $8,000 
C)  $12,000 
D)  $16,000 
A)  $4,000 
B)  $8,000 
C)  $12,000 
D)  $16,000

Cash collected from customers before goods are delivered will increase ________.

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

In the United States,Generally Accepted Accounting Principles are developed primarily by ________.

On May 1,Gomez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gomez Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on June 1?

The adjusting entry for wages earned but unpaid results in a(n)________.

Which of the following explains the change in Retained Earnings from the beginning of the year to the end of the year?

Adjusting entries at the end of an accounting period record explicit transactions.

Source documents are associated with ________.

Under accrual basis accounting,research and development expenses for new products are recorded as ________.

Accounting information only helps assess past financial performance.

When depreciating a fixed asset,the residual value is not considered.

The income statement summarizes a company's operating performance and the balance sheet shows a company's financial position .

Liabilities are the entity's economic obligations to owners.

On January 1,2015,Arizona Company acquired a machine for $33,000.Annual depreciation expense equals $3,000.The residual value of the machine is $3,000.What is the book value of the machine on December 31,2016?

In a corporation,stockholders' equity has two parts called and .

For nonprofit organizations,the income statement is ________.

Under the accrual basis of accounting,the impact of transactions is recorded when cash is received or paid.

On April 1,2012,Company Z lends $200,000 to Company Y on a 8% note.For the six months ending June 30,2012,what amount of interest revenue will Company Z report on this note?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

Cash collected from customers before goods are delivered will increase ________.

One of the limitations of the balance sheet is that the dollar amounts for different assets reflect different levels of inflation.That is the result of the ________ assumption.

In the United States,Generally Accepted Accounting Principles are developed primarily by ________.

On May 1,Gomez Company paid $36,000 for rent.The rent covers the period May 1 through August 31.Gomez Company recorded Prepaid Rent of $36,000.What is the balance in the Prepaid Rent account on June 1?

The adjusting entry for wages earned but unpaid results in a(n)________.

Which of the following explains the change in Retained Earnings from the beginning of the year to the end of the year?

Adjusting entries at the end of an accounting period record explicit transactions.

Source documents are associated with ________.

Under accrual basis accounting,research and development expenses for new products are recorded as ________.

Accounting information only helps assess past financial performance.

When depreciating a fixed asset,the residual value is not considered.

The income statement summarizes a company's operating performance ________ and the balance sheet shows a company's financial position ________.

Liabilities are the entity's economic obligations to owners.

On January 1,2015,Arizona Company acquired a machine for $33,000.Annual depreciation expense equals $3,000.The residual value of the machine is $3,000.What is the book value of the machine on December 31,2016?

In a corporation,stockholders' equity has two parts called ________ and ________.

For nonprofit organizations,the income statement is ________.

Under the accrual basis of accounting,the impact of transactions is recorded when cash is received or paid.

On April 1,2012,Company Z lends $200,000 to Company Y on a 8% note.For the six months ending June 30,2012,what amount of interest revenue will Company Z report on this note?

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

The income statement summarizes a company's operating performance and the balance sheet shows a company's financial position .

In a corporation,stockholders' equity has two parts called and .