Question 1

Revenue is earned only when money is received.

Accepted Answer

A) True 
 B)False

Question 2

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a characteristic of a corporation?

Accepted Answer

A) Corporations are organized as a separate legal taxable entity. 
B) Ownership is divided into shares of stock. 
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock. 
D) A corporation's resources are limited to its individual owners' resources. 
A) Corporations are organized as a separate legal taxable entity. 
B) Ownership is divided into shares of stock. 
C) Corporations experience an ease in obtaining large amounts of resources by issuing stock. 
D) A corporation's resources are limited to its individual owners' resources.

Question 4

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Accepted Answer

The answer of Using the following accounting equation elements and...

Question 5

The assets and liabilities of Rocky's Day Spa at December 31 and its expenses for the year are listed below.The capital of the owner was $68,000 at January 1.The owner invested an additional $10,000 during the year.Net income for the year is $45,625.​   Prepare an income statement for the current year ended December 31.

Accepted Answer

The answer of The assets and liabilities of Rocky's Day...

Question 6

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Provided a service to a customer on account

Accepted Answer

A) Increase assets, increase liabilities 
B) Increase liabilities, decrease owner's equity 
C) Increase assets, increase owner's equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease owner's equity 
A) Increase assets, increase liabilities 
B) Increase liabilities, decrease owner's equity 
C) Increase assets, increase owner's equity 
D) No effect 
E) Decrease assets, decrease liabilities
F)Decrease assets, decrease owner's equity

Question 7

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Accepted Answer

A) increase an asset, decrease another asset 
B) decrease an asset, decrease a liability 
C) increase an asset, increase a liability 
D) increase an asset, increase owner's equity 
A) increase an asset, decrease another asset 
B) decrease an asset, decrease a liability 
C) increase an asset, increase a liability 
D) increase an asset, increase owner's equity

Question 8

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Often used as an alternative to a partnership

Accepted Answer

A) Proprietorship 
B) Partnership 
C) Corporation 
D) Limited liability company (LL
C)  
A) Proprietorship 
B) Partnership 
C) Corporation 
D) Limited liability company (LL
C)

Question 9

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Accepted Answer

Accounting reports w

Question 10

Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Accepted Answer

The answer of Using the following accounting equation elements and...

Question 11

Profit is the difference between

Accepted Answer

A) assets and liabilities 
B) the incoming cash and outgoing cash 
C) the assets purchased with cash contributed by the owner and the cash spent to operate the business 
D) the amounts received from customers for goods or services and the amounts paid forthe inputs used to provide the goods or services 
A) assets and liabilities 
B) the incoming cash and outgoing cash 
C) the assets purchased with cash contributed by the owner and the cash spent to operate the business 
D) the amounts received from customers for goods or services and the amounts paid forthe inputs used to provide the goods or services

Question 12

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 13

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.
​
  
-What information does the income statement give to business users?

Accepted Answer

The income statement reports t

Revenue is earned only when money is received.

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Which of the following is not a characteristic of a corporation?

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Provided a service to a customer on account

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Often used as an alternative to a partnership

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Profit is the difference between

The balance sheet represents the accounting equation.

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Introduction to Accounting and Business

Revenue is earned only when money is received.

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Which of the following is not a characteristic of a corporation?

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Provided a service to a customer on account

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Often used as an alternative to a partnership

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Profit is the difference between

The balance sheet represents the accounting equation.

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters