Question 1

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

Accepted Answer

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

Question 2

The primary financial statements of a proprietorship are the income statement,statement of owner's equity,and balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

For accounting purposes,the business entity should be considered separate from its owners if the entity is

Accepted Answer

A) a corporation 
B) a proprietorship 
C) a partnership 
D) All of these choices 
A) a corporation 
B) a proprietorship 
C) a partnership 
D) All of these choices

Question 4

Which of the following is the authoritative body in the United States that has 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 5

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Accepted Answer

A) proprietorship 
B) corporation 
C) partnership 
D) governmental unit 
A) proprietorship 
B) corporation 
C) partnership 
D) governmental unit

Question 6

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 7

Financial reports are used by

Accepted Answer

A) management 
B) creditors 
C) investors 
D) All of these choices 
A) management 
B) creditors 
C) investors 
D) All of these choices

Question 8

Explain the meaning of:
(a)the objectivity concept
(b)the unit of measure concept

Accepted Answer

(a) The objectivity concept requires tha

Question 9

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Generates 90% of business revenues

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 10

Transactions affecting owner's equity include

Accepted Answer

A) owner's investments and payment of liabilities 
B) owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses 
C) owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable 
D) owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account 
A) owner's investments and payment of liabilities 
B) owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses 
C) owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable 
D) owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account

Question 11

About 90% of the businesses in the United States are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Debts owed by a business are referred to as

Accepted Answer

A) accounts receivable 
B) expenses 
C) owner's equity 
D) liabilities 
A) accounts receivable 
B) expenses 
C) owner's equity 
D) liabilities

Question 14

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received payment from 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 15

Which of the following is a manufacturing business?

Accepted Answer

A) General Motors 
B) Facebook 
C) American Airlines 
D) Target 
A) General Motors 
B) Facebook 
C) American Airlines 
D) Target

Question 16

Purchasing supplies on account increases liabilities and decreases equity.

Accepted Answer

A) True 
 B)False

Question 17

Discuss internal and external users of accounting information.What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Accepted Answer

Internal users of accounting information

Question 18

The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year.​   Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.​

Accepted Answer

The answer of The accounting equation elements and their balances...

Question 19

Most businesses in the United States are

Accepted Answer

A) proprietorships 
B) partnerships 
C) corporations 
D) cooperatives 
A) proprietorships 
B) partnerships 
C) corporations 
D) cooperatives

Question 20

Gomez Service Company paid its first installment on a note payable of $2,000.How will this transaction affect the accounting equation?

Accepted Answer

A) increase in liabilities (Notes Payable) and decrease in assets (Cash) 
B) decrease in assets (Cash) and decrease in owner's equity (Note Payable Expense) 
C) decrease in assets (Cash) and decrease in assets (Notes Receivable) 
D) decrease in assets (Cash) and decrease in liabilities (Notes Payable) 
A) increase in liabilities (Notes Payable) and decrease in assets (Cash) 
B) decrease in assets (Cash) and decrease in owner's equity (Note Payable Expense) 
C) decrease in assets (Cash) and decrease in assets (Notes Receivable) 
D) decrease in assets (Cash) and decrease in liabilities (Notes Payable)

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

The primary financial statements of a proprietorship are the income statement,statement of owner's equity,and balance sheet.

For accounting purposes,the business entity should be considered separate from its owners if the entity is

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

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

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.

Financial reports are used by

Explain the meaning of: (a)the objectivity concept (b)the unit of measure concept

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Generates 90% of business revenues

Transactions affecting owner's equity include

About 90% of the businesses in the United States are organized as corporations.

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

Debts owed by a business are referred to as

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received payment from a customer on account

Which of the following is a manufacturing business?

Purchasing supplies on account increases liabilities and decreases equity.

Discuss internal and external users of accounting information.What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year. Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.

Most businesses in the United States are

Gomez Service Company paid its first installment on a note payable of $2,000.How will this transaction affect 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

Exam 1: Introduction to Accounting and Business

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

The primary financial statements of a proprietorship are the income statement,statement of owner's equity,and balance sheet.

For accounting purposes,the business entity should be considered separate from its owners if the entity is

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

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

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.

Financial reports are used by

Explain the meaning of: (a)the objectivity concept (b)the unit of measure concept

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Generates 90% of business revenues

Transactions affecting owner's equity include

About 90% of the businesses in the United States are organized as corporations.

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

Debts owed by a business are referred to as

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received payment from a customer on account

Which of the following is a manufacturing business?

Purchasing supplies on account increases liabilities and decreases equity.

Discuss internal and external users of accounting information.What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year.​ Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.​

Most businesses in the United States are

Gomez Service Company paid its first installment on a note payable of $2,000.How will this transaction affect 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

The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year. Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.