Question 1

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

Accepted Answer

A)  increase in assets (Cash)and increase in liabilities (Accounts Payable) 
B)  increase in assets (Cash)and increase in Stockholders' Equity
​ 
C)  increase in assets (Accounts Receivable)and decrease in liabilities (Accounts Payable) 
D)  increase in assets (Cash)and increase in assets (Accounts Receivable) 
A)  increase in assets (Cash)and increase in liabilities (Accounts Payable) 
B)  increase in assets (Cash)and increase in Stockholders' Equity
​ 
C)  increase in assets (Accounts Receivable)and decrease in liabilities (Accounts Payable) 
D)  increase in assets (Cash)and increase in assets (Accounts Receivable)

Question 2

If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period,the amount and direction (increase or decrease)of the period's change in total assets is a

Accepted Answer

A)  $106,000 increase 
B)  $14,000 increase 
C)  $14,000 decrease 
D)  $106,000 decrease 
A)  $106,000 increase 
B)  $14,000 increase 
C)  $14,000 decrease 
D)  $106,000 decrease

Question 3

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  statement of cash flows 
D)  statement of retained earnings 
A)  income statement 
B)  balance sheet 
C)  statement of cash flows 
D)  statement of retained earnings

Question 4

Which of the following is a business transaction?​

Accepted Answer

A)  ​purchase supplies on account 
B)  ​plan advertising for upcoming sale 
C)  ​give employees a raise beginning next month 
D)  ​submit estimate for construction project 
A)  ​purchase supplies on account 
B)  ​plan advertising for upcoming sale 
C)  ​give employees a raise beginning next month 
D)  ​submit estimate for construction project

Question 5

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

Accepted Answer

The two factors are:(1)individual charac

Question 6

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 7

On May 7,Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000.On May 15,Carpet Barn accepted a counteroffer of $95,000.On June 5,the land was assessed at a value of $115,000 for property tax purposes.On December 10,Carpet Barn Company was offered $135,000 for the land by another company.At what value should the land be recorded in Carpet Barn Company's records?

Accepted Answer

The answer of On May 7,Carpet Barn Company offered to...

Question 8

The statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

Accepted Answer

A) True 
 B)False

Question 9

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Accepted Answer

A)  Certified Public Accountant 
B)  Certified Payroll Professional 
C)  Certified Internal Auditor 
D)  Certified Management Accountant 
A)  Certified Public Accountant 
B)  Certified Payroll Professional 
C)  Certified Internal Auditor 
D)  Certified Management Accountant

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

How does paying a liability in cash affect the accounting equation?

Accepted Answer

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

Question 12

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are guidelines for behaving ethically? I.
Identify the consequences of a decision and its effect on others.
II)
Consider your obligations and responsibilities to those affected by the decision.
III)
Identify your decision based on personal standards of honesty and fairness.

Accepted Answer

A)  I and II. 
B)  II and III. 
C)  I and III. 
D)  I,II,and III. 
A)  I and II. 
B)  II and III. 
C)  I and III. 
D)  I,II,and III.

Question 14

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers.How will this business transaction affect the accounting equation?

Accepted Answer

Increase assets (Sup

Question 15

Determine the total liabilities at the end of the current year for Scott Industries.
​

Accepted Answer

The answer of Determine the total liabilities at the end...

Question 16

The ending balance of the retained earnings account appears in

Accepted Answer

A)  both the retained earnings statement and the income statement 
B)  only the retained earnings statement 
C)  both the retained earnings statement and the balance sheet 
D)  both the retained earnings statement and the statement of cash flows 
A)  both the retained earnings statement and the income statement 
B)  only the retained earnings statement 
C)  both the retained earnings statement and the balance sheet 
D)  both the retained earnings statement and the statement of cash flows

Question 17

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 incr

Question 18

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below.
​
   ​
   Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.

Accepted Answer

The answer of A summary of cash flows for Evelyn's...

Question 19

What are the three sections of the statement of cash flows?

Accepted Answer

Operating Activities

Question 20

The accounting equation can be expressed as Assets - Liabilities = Shareholder's Equity.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Business

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period,the amount and direction (increase or decrease)of the period's change in total assets is a

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Which of the following is a business transaction?​

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

The initials GAAP stand for

The statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

The assets section of the balance sheet normally presents assets in

How does paying a liability in cash affect the accounting equation?

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II) Consider your obligations and responsibilities to those affected by the decision. III) Identify your decision based on personal standards of honesty and fairness.

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers.How will this business transaction affect the accounting equation?

Determine the total liabilities at the end of the current year for Scott Industries. ​

The ending balance of the retained earnings account appears in

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below. ​ ​ Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.

What are the three sections of the statement of cash flows?

The accounting equation can be expressed as Assets - Liabilities = Shareholder's Equity.

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

Which of the following is a business transaction?

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

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below. Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.