Question 1

Which of the following best describes accounting?

Accepted Answer

A)  records economic data but does not communicate the data to users according to any specific rules 
B)  is an information system that provides reports to users regarding economic activities and condition of a business 
C)  is of no use by individuals outside of the business 
D)  is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements 
A)  records economic data but does not communicate the data to users according to any specific rules 
B)  is an information system that provides reports to users regarding economic activities and condition of a business 
C)  is of no use by individuals outside of the business 
D)  is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements

Question 2

How does the payment of rent for equipment affect the accounting equation?

Accepted Answer

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

Question 3

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 4

Based on this information,is Scott Industries profitable? Explain your answer.

Accepted Answer

($165,000 Fees earned + $3,000 Interest

Question 5

Paid telephone bill,$220
​
​
Based on the information given above,calculate the balance of cash at June 30.Use the following format.
​
Cash,June 1 $25,000
​
Plus cash receipts for June ____________
​
Minus cash payments for June ____________
​
Cash,June 30 ____________

Accepted Answer

The answer of Paid telephone bill,$220
​
​
Based on the information given...

Question 6

What information does the income statement give to business users?

Accepted Answer

The income statement reports t

Question 7

Explain the interrelationship between the balance sheet and the statement of cash flows.

Accepted Answer

The cash reported on the balan

Question 8

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Accepted Answer

A) True 
 B)False

Question 9

Krammer Company has liabilities equal to one fourth of the total assets.Krammer's stockholders' equity is $45,000.Using the accounting equation,what is the amount of liabilities for Krammer?

Accepted Answer

Assets = Liabilities + Stockho

Question 10

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 11

If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period,then the amount and direction (increase or decrease)of the period's change in total liabilities is

Accepted Answer

A)  a $17,000 increase 
B)  an $88,000 decrease 
C)  a $159,000 increase 
D)  a $159,000 decrease 
A)  a $17,000 increase 
B)  an $88,000 decrease 
C)  a $159,000 increase 
D)  a $159,000 decrease

Question 12

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders.

Accepted Answer

A) True 
 B)False

Question 13

The assets and liabilities of a company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Accepted Answer

A)  $212,000 
B)  $44,000 
C)  $128,000 
D)  $84,000 
A)  $212,000 
B)  $44,000 
C)  $128,000 
D)  $84,000

Question 14

​Which of the following asset accounts is increased when a receivable is collected?

Accepted Answer

A)  ​Accounts Receivable 
B)  ​Supplies 
C)  ​Accounts Payable 
D)  ​Cash 
A)  ​Accounts Receivable 
B)  ​Supplies 
C)  ​Accounts Payable 
D)  ​Cash

Question 15

Goods purchased on account for future use in the business,such as supplies,are called

Accepted Answer

A)  prepaid liabilities 
B)  revenues 
C)  prepaid expenses 
D)  liabilities 
A)  prepaid liabilities 
B)  revenues 
C)  prepaid expenses 
D)  liabilities

Question 16

Explain the meaning of:
​(a)the measurement principle
(b)the monetary unit assumption

Accepted Answer

(a)The measurement principle requires th

Question 17

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 (AICP
A)  
B)  American Accounting Association (AA
A)  
C)  Financial Accounting Standards Board (FAS
B)  
D)  Institute of Management Accountants (IM
A)  
A)  American Institute of Certified Public Accountants (AICP
A)  
B)  American Accounting Association (AA
A)  
C)  Financial Accounting Standards Board (FAS
B)  
D)  Institute of Management Accountants (IM
A)

Question 18

Which of the following is the best description of accounting's role in business?

Accepted Answer

A)  Accounting provides stockholders with information regarding the market value of the company's stocks. 
B)  Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company. 
C)  Accounting helps in decreasing the credit risk of the company. 
D)  Accounting is not responsible for providing any form of information to users.That is the role of the Information Systems Department. 
A)  Accounting provides stockholders with information regarding the market value of the company's stocks. 
B)  Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company. 
C)  Accounting helps in decreasing the credit risk of the company. 
D)  Accounting is not responsible for providing any form of information to users.That is the role of the Information Systems Department.

Question 19

Generally accepted accounting principles regulate how and what financial information is reported by businesses.

Accepted Answer

A) True 
 B)False

Question 20

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Business

Which of the following best describes accounting?

How does the payment of rent for equipment affect the accounting equation?

Which of the following is a service business?​

Based on this information,is Scott Industries profitable? Explain your answer.

Paid telephone bill,$220 ​ ​ Based on the information given above,calculate the balance of cash at June 30.Use the following format. ​ Cash,June 1 $25,000 ​ Plus cash receipts for June ____________ ​ Minus cash payments for June ____________ ​ Cash,June 30 ____________

What information does the income statement give to business users?

Explain the interrelationship between the balance sheet and the statement of cash flows.

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Krammer Company has liabilities equal to one fourth of the total assets.Krammer's stockholders' equity is $45,000.Using the accounting equation,what is the amount of liabilities for Krammer?

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

If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period,then the amount and direction (increase or decrease)of the period's change in total liabilities is

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders.

The assets and liabilities of a company are $128,000 and $84,000,respectively.Stockholders' equity should equal

​Which of the following asset accounts is increased when a receivable is collected?

Goods purchased on account for future use in the business,such as supplies,are called

Explain the meaning of: ​(a)the measurement principle (b)the monetary unit assumption

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

Which of the following is the best description of accounting's role in business?

Generally accepted accounting principles regulate how and what financial information is reported by businesses.

An income statement is a summary of the revenues and expenses of a business as of a specific date.

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 service business?

Paid telephone bill,$220 Based on the information given above,calculate the balance of cash at June 30.Use the following format. Cash,June 1 $25,000 Plus cash receipts for June Minus cash payments for June Cash,June 30

Which of the following asset accounts is increased when a receivable is collected?

Explain the meaning of: (a)the measurement principle (b)the monetary unit assumption