Question 1

The monetary value charged to customers for the performance of services sold is called a(n)

Accepted Answer

A)  asset 
B)  net income 
C)  capital 
D)  revenue 
A)  asset 
B)  net income 
C)  capital 
D)  revenue

Question 2

If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000,then the assets also total $300,000.

Accepted Answer

A) True 
 B)False

Question 3

How does receiving a bill to be paid next month for services received affect the accounting equation?

Accepted Answer

A)  assets decrease; stockholders' equity decreases 
B)  assets increase; liabilities increase 
C)  liabilities increase; stockholders' equity increases 
D)  liabilities increase; stockholders' equity decreases 
A)  assets decrease; stockholders' equity decreases 
B)  assets increase; liabilities increase 
C)  liabilities increase; stockholders' equity increases 
D)  liabilities increase; stockholders' equity decreases

Question 4

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

Accepted Answer

The answer of For each of the following companies,identify whether...

Question 5

A business is an organization in which basic resources or inputs,like materials and labor,are assembled and processed to provide outputs in the form of goods or services to customers.

Accepted Answer

A) True 
 B)False

Question 6

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Accepted Answer

A) True 
 B)False

Question 7

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 8

The asset created by a business when it makes a sale on account is termed

Accepted Answer

A)  accounts payable 
B)  prepaid expense 
C)  interest revenue 
D)  accounts receivable 
A)  accounts payable 
B)  prepaid expense 
C)  interest revenue 
D)  accounts receivable

Question 9

The accounting equation may be expressed as

Accepted Answer

A)  Assets = Equities − Liabilities 
B)  Assets + Liabilities = Stockholders' Equity 
C)  Assets = Revenues − Liabilities 
D)  Assets − Liabilities = Stockholders' Equity 
A)  Assets = Equities − Liabilities 
B)  Assets + Liabilities = Stockholders' Equity 
C)  Assets = Revenues − Liabilities 
D)  Assets − Liabilities = Stockholders' Equity

Question 10

From the following list of items taken from Lamar's accounting records,identify those that would appear on the income statement.

Accepted Answer

The answer of From the following list of items taken...

Question 11

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 12

Which of the following is not a business transaction?

Accepted Answer

A)  Erin,the CEO,buys $15,000 in stock,placing the money in a bank account in the name of Bob's Lawn Service. 
B)  Erin provided services to customers,earning fees of $600. 
C)  Erin purchased hedge trimmers for Bob's Lawn Service,agreeing to pay the supplier next month. 
D)  Erin pays her monthly personal credit card bill. 
A)  Erin,the CEO,buys $15,000 in stock,placing the money in a bank account in the name of Bob's Lawn Service. 
B)  Erin provided services to customers,earning fees of $600. 
C)  Erin purchased hedge trimmers for Bob's Lawn Service,agreeing to pay the supplier next month. 
D)  Erin pays her monthly personal credit card bill.

Question 13

Cash investments made by the owner in the business are reported on the statement of cash flows in the

Accepted Answer

A)  financing activities section 
B)  investing activities section 
C)  operating activities section 
D)  supplemental statement 
A)  financing activities section 
B)  investing activities section 
C)  operating activities section 
D)  supplemental statement

Question 14

​Prepare a statement of retained earnings for the current year ended March 31.

Accepted Answer

The answer of ​Prepare a statement of retained earnings for...

Question 15

Determine the missing amount for each of the following:

Accepted Answer

The answer of Determine the missing amount for each of...

Question 16

Assets that are used up during the process of earning revenue are called expenses.

Accepted Answer

A) True 
 B)False

Question 17

Identify each of the following as an (1)increase to stockholders' equity,or a (2)decrease to stockholders' equity.

Accepted Answer

The answer of Identify each of the following as an...

Question 18

Which of the following is not a business transaction?

Accepted Answer

A)  make a sales offer 
B)  sell goods for cash 
C)  receive cash for services to be rendered later 
D)  pay for supplies 
A)  make a sales offer 
B)  sell goods for cash 
C)  receive cash for services to be rendered later 
D)  pay for supplies

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

Accepted Answer

A)  a ratio of 1 indicates that liabilities equal stockholders' equity 
B)  sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity 
C)  the higher this ratio,the better able a business is to withstand poor business conditions and pay creditors 
D)  the lower this ratio,the better able a business is to withstand poor business conditions and pay creditors 
A)  a ratio of 1 indicates that liabilities equal stockholders' equity 
B)  sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity 
C)  the higher this ratio,the better able a business is to withstand poor business conditions and pay creditors 
D)  the lower this ratio,the better able a business is to withstand poor business conditions and pay creditors

Exam 1: Introduction to Accounting and Business

The monetary value charged to customers for the performance of services sold is called a(n)

If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000,then the assets also total $300,000.

How does receiving a bill to be paid next month for services received affect the accounting equation?

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

A business is an organization in which basic resources or inputs,like materials and labor,are assembled and processed to provide outputs in the form of goods or services to customers.

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

The balance sheet represents the accounting equation.

The asset created by a business when it makes a sale on account is termed

The accounting equation may be expressed as

From the following list of items taken from Lamar's accounting records,identify those that would appear on the income statement.

Managerial accountants would be responsible for providing information regarding

Which of the following is not a business transaction?

Cash investments made by the owner in the business are reported on the statement of cash flows in the

​Prepare a statement of retained earnings for the current year ended March 31.

Determine the missing amount for each of the following:

Assets that are used up during the process of earning revenue are called expenses.

Identify each of the following as an (1)increase to stockholders' equity,or a (2)decrease to stockholders' equity.

Which of the following is not a business transaction?

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

All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Prepare a statement of retained earnings for the current year ended March 31.