Question 1

Paying an account payable increases liabilities and decreases assets.

Accepted Answer

A) True 
 B)False

Question 2

Some of the major fraudulent acts committed by senior executives started as what they considered to be small ethical lapses that grew out of control.

Accepted Answer

A) True 
 B)False

Question 3

A statement of owner's equity reports the changes in the owner's equity for a period of time.

Accepted Answer

A) True 
 B)False

Question 4

(a) A vacant lot acquired for $83,000 cash is sold for $127,000 in cash.What is the effect of the sale on thetotal amount of the seller's 
(1)assets,
(2)liabilities,and 
(3)owner's equity?​
(b) Assume that the seller owes $52,000 for the land.After receiving the $127,000 cash in 
(a),the seller pays the $52,000 owed.What is the effect of the payment on the total amount of the seller's 
(1)assets,
(2)liabilities,and 
(3)owner's equity?

Accepted Answer

(a) 
(1)Total assets increased $44,000
(

Question 5

Company G has a ratio of liabilities to stockholders' equity of 0.12 and 0.28 for Year 1 and Year 2,respectively.In contrast,Company M has a ratio of liabilities to stockholders' equity of 1.13 and 1.29 for the same period.​REQUIRED:Based on this information,which company's creditors are more at risk and why? Should the creditors of either company fear the risk of nonpayment?

Accepted Answer

Company M's creditors are more at risk t

Question 6

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called a (n)

Accepted Answer

A) prior period statement 
B) statement of owner's equity 
C) income statement 
D) balance sheet 
A) prior period statement 
B) statement of owner's equity 
C) income statement 
D) balance sheet

Question 7

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Accepted Answer

A) True 
 B)False

Question 8

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once.
-Reports only revenues and expenses

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Statement of owner's equity 
D) Statement of cash flows 
A) Income statement 
B) Balance sheet 
C) Statement of owner's equity 
D) Statement of cash flows

Question 9

Receiving payments on an account receivable increases both equity and assets.

Accepted Answer

A) True 
 B)False

Question 10

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.
​
  
-Prepare a balance sheet for Thompson Computer Services for the current year ended March 31.

Accepted Answer

The answer of The assets and liabilities of Thompson Computer...

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

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 13

Explain the meaning of the business entity concept.

Accepted Answer

The business entity concept limits the e

Question 14

Simpson Auto Body Repair purchased $20,000 of machinery.The company paid $8,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in four monthly installments.​
(a)How will the purchase affect the accounting equation?
(b)How will the payment of the first monthly installment affect the accounting equation 
(ignore interest)?

Accepted Answer

(a) Increase total assets by a net amoun

Question 15

All of the following are general-purpose financial statements except a (n)

Accepted Answer

A) balance sheet 
B) income statement 
C) statement of owner's equity 
D) cash budget 
A) balance sheet 
B) income statement 
C) statement of owner's equity 
D) cash budget

Question 16

How does the purchase of equipment by signing a note affect the accounting equation?

Accepted Answer

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

Question 17

Land originally purchased for $30,000 is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Accepted Answer

A) assets increase by $62,000; owner's equity increases by $62,000 
B) assets increase by $32,000; owner's equity increases by $32,000 
C) assets increase by $62,000; liabilities decrease by $30,000; owner's equity increases by $32,000 
D) assets increase by $30,000; no change in liabilities; owner's equity increases by $62,000 
A) assets increase by $62,000; owner's equity increases by $62,000 
B) assets increase by $32,000; owner's equity increases by $32,000 
C) assets increase by $62,000; liabilities decrease by $30,000; owner's equity increases by $32,000 
D) assets increase by $30,000; no change in liabilities; owner's equity increases by $62,000

Question 18

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Cash investment by owner

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 19

Identify which of the following items would appear on a balance sheet.

Accepted Answer

The answer of Identify which of the following items would...

Question 20

Proper ethical conduct implies that you only consider what's in your best interest.

Accepted Answer

A) True 
 B)False

Paying an account payable increases liabilities and decreases assets.

Some of the major fraudulent acts committed by senior executives started as what they considered to be small ethical lapses that grew out of control.

A statement of owner's equity reports the changes in the owner's equity for a period of time.

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called a (n)

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once. -Reports only revenues and expenses

Receiving payments on an account receivable increases both equity and assets.

Managerial accountants would be responsible for providing information regarding

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

Explain the meaning of the business entity concept.

All of the following are general-purpose financial statements except a (n)

How does the purchase of equipment by signing a note affect the accounting equation?

Land originally purchased for $30,000 is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Cash investment by owner

Identify which of the following items would appear on a balance sheet.

Proper ethical conduct implies that you only consider what's in your best interest.

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

Paying an account payable increases liabilities and decreases assets.

Some of the major fraudulent acts committed by senior executives started as what they considered to be small ethical lapses that grew out of control.

A statement of owner's equity reports the changes in the owner's equity for a period of time.

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called a (n)

No significant differences exist between the accounting standards issued by the FASB and the IASB.

Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once. -Reports only revenues and expenses

Receiving payments on an account receivable increases both equity and assets.

Managerial accountants would be responsible for providing information regarding

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

Explain the meaning of the business entity concept.

All of the following are general-purpose financial statements except a (n)

How does the purchase of equipment by signing a note affect the accounting equation?

Land originally purchased for $30,000 is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Cash investment by owner

Identify which of the following items would appear on a balance sheet.

Proper ethical conduct implies that you only consider what's in your best interest.

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