The total assets and the total liabilities of Atlas Financial Services are shown below.There were no capital contributions and no withdrawals during the year. \[\begin{array} { | l | r | r | } \hline & \text { Total Assets } & \text { Total Liabilities } \\ \hline \text { Beginning of year } & \$ 400,000 & \$ 295,000 \\ \hline \text { End of year } & 440,000 & 320,000 \\ \hline \end{array}\] What was the amount of net income for the year?

A) $40,000 B) $25,000 C) $15,000 D) $65,000 A) $40,000 B) $25,000 C) $15,000 D) $65,000

Exam 1: Accounting and the Business Environment

Springer Company,a sole proprietorship,had the following transactions in August: Earned $2,000 of revenues on account; collected $4,000 from a customer for services provided last month; incurred $800 of repair expense and paid cash; paid $500 for rent that it owed from the previous month. What is the net income in August?

(Multiple Choice)

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Question 181

The primary objective of financial reporting is to provide information useful for making investment and lending decisions.

(True/False)

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Question 182

The most that the owner of a sole proprietorship can lose,as a result of business debts or lawsuits,is the amount he/she has invested in the business.

(True/False)

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Question 183

The statement of cash flows informs users about the changes in the owner's capital account over a period of time.

(True/False)

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Question 184

The amount of net income is transferred from to .

(Multiple Choice)

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Question 185

The economic resources of a business such as furniture,building,and land are its ________.

(Multiple Choice)

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Question 186

Jason Ford has been the sole owner of a bicycle sales and repair shop for several years.Which of the following business types would limit Jason's personal liability exposure to the entity's debts?

(Multiple Choice)

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Question 187

An owner's withdrawals affect the business's net income or net loss and are recorded as an expense.

(True/False)

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Question 188

The total assets and the total liabilities of Atlas Financial Services are shown below.There were no capital contributions and no withdrawals during the year. Total Assets Total Liabilities Beginning of year \ 400,000 \ 295,000 End of year 440,000 320,000 What was the amount of net income for the year?

(Multiple Choice)

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Question 189

Which of the following is a characteristic of a limited-liability company (LLC)?

(Multiple Choice)

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Question 190

Which of the following is TRUE of the owner's capital account?

(Multiple Choice)

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Question 191

Regarding the accounting equation,which of the following is a correct statement?

(Multiple Choice)

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Question 192

Saturn Company paid $10,000 on accounts payable.How does this transaction affect the accounting equation of Saturn?

(Multiple Choice)

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Question 193

Financial accounting focuses on information for decision makers outside of the business,such as creditors and taxing authorities.

(True/False)

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Question 194

Business owners use accounting information to set goals,evaluate progress toward those goals,and make adjustments when needed.

(True/False)

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Question 195

On the statement of cash flows,investing activities include cash contributions by the owner.

(True/False)

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Question 196

Which of the following is shown on the balance sheet as well as the statement of cash flows?

(Multiple Choice)

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Question 197

Regarding generally accepted accounting principles (GAAP),which of the following statements is incorrect?

(Multiple Choice)

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Question 198

Financial analysts perform reviews of companies to ensure compliance to rules and regulations.

(True/False)

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Question 199

Which of the following transactions will affect the balance of Owner,Capital?

(Multiple Choice)

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Question 200

Showing 181 - 200 of 246

Exam 1: Accounting and the Business Environment

The primary objective of financial reporting is to provide information useful for making investment and lending decisions.

The most that the owner of a sole proprietorship can lose,as a result of business debts or lawsuits,is the amount he/she has invested in the business.

The statement of cash flows informs users about the changes in the owner's capital account over a period of time.

The amount of net income is transferred from ________ to ________.

The economic resources of a business such as furniture,building,and land are its ________.

Jason Ford has been the sole owner of a bicycle sales and repair shop for several years.Which of the following business types would limit Jason's personal liability exposure to the entity's debts?

An owner's withdrawals affect the business's net income or net loss and are recorded as an expense.

Which of the following is a characteristic of a limited-liability company (LLC)?

Which of the following is TRUE of the owner's capital account?

Regarding the accounting equation,which of the following is a correct statement?

Saturn Company paid $10,000 on accounts payable.How does this transaction affect the accounting equation of Saturn?

Financial accounting focuses on information for decision makers outside of the business,such as creditors and taxing authorities.

Business owners use accounting information to set goals,evaluate progress toward those goals,and make adjustments when needed.

On the statement of cash flows,investing activities include cash contributions by the owner.

Which of the following is shown on the balance sheet as well as the statement of cash flows?

Regarding generally accepted accounting principles (GAAP),which of the following statements is incorrect?

Financial analysts perform reviews of companies to ensure compliance to rules and regulations.

Which of the following transactions will affect the balance of Owner,Capital?

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

The amount of net income is transferred from to .