Question 1

Identify which of the following accounts appear on a balance sheet.

Accepted Answer

A)  Cash 
B)  Fees Eamed 
C)  Capital Stock 
D)  Wages Payable 
E)  Rent Expense
F) Prepaid Ackertising
G) Land 
A)  Cash 
B)  Fees Eamed 
C)  Capital Stock 
D)  Wages Payable 
E)  Rent Expense
F) Prepaid Ackertising
G) Land

Question 2

a. A vacant lot acquired for $83,000 cash is sold for $127,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?
b. Assume that the seller owes $52,000 on a loan 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) stockholders' equity?

Accepted Answer

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

Question 3

An account receivable is typically classified as a revenue.

Accepted Answer

A) True 
 B)False

Question 4

If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyer would record the building at $85,000.

Accepted Answer

A) True 
 B)False

Question 5

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

Accepted Answer

A)  indefinitely 
B)  one year 
C)  two years 
D)  none of these 
A)  indefinitely 
B)  one year 
C)  two years 
D)  none of these

Question 6

Selected transactions completed by a corporation are described below. Indicate the effects of each transaction on assets, liabilities, and stockholders' equity by inserting "+" for increase and "-" for decrease in the appropriate columns at the right. If appropriate, you may insert more than one symbol in a column.

Accepted Answer

The answer of Selected transactions completed by a corporation are...

Question 7

Schultz Tax Services, a tax preparation business had the following transactions during the month of June:
1. Received cash for providing accounting services, $3,000.
2. Billed customers on account for providing services, $7,000.
3. Paid advertising expense, $800.
4. Received cash from customers on account, $3,800.
5. paid cash dividends, $1,500.
6. Received telephone bill, $220.
7. Paid telephone bill, $220
Based on the information given above, calculate the balance of Cash at June 30. (Hint: Use the following reconciliation.)
$\begin{array}{lr}
\text { Cash, June } 1 & \$ 25,000 \
\text { Plus: cash receipts for June } & \_\_\_ \
\text { Minus: cash payments for June } & \_\_\_\\text { Cash, June } 30&\_\_\_
\end{array}$

Accepted Answer

The answer of Schultz Tax Services, a tax preparation business...

Question 8

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 $62,000; stockholders' equity increases $62,000 
B)  assets increase $32,000; stockholders' equity increases $32,000 
C)  assets increase $62,000; liabilities decrease $30,000; stockholders' equity increases $32,000 
D)  assets increase $30,000; no change for liabilities; stockholders' equity increases $62,000 
A)  assets increase $62,000; stockholders' equity increases $62,000 
B)  assets increase $32,000; stockholders' equity increases $32,000 
C)  assets increase $62,000; liabilities decrease $30,000; stockholders' equity increases $32,000 
D)  assets increase $30,000; no change for liabilities; stockholders' equity increases $62,000

Question 9

The role of accounting is to provide many different users with financial information to make economic decisions.

Accepted Answer

A) True 
 B)False

Question 10

Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Accepted Answer

Increase Liabilities

Question 11

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 12

A retained earnings statement reports all changes in cash for a period of time.

Accepted Answer

A) True 
 B)False

Question 13

Determine the missing amount for each of the following:

Accepted Answer

The answer of Determine the missing amount for each of...

Question 14

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Accepted Answer

A) True 
 B)False

Question 15

Two common areas of accounting that respectively provide information to internal and external users are

Accepted Answer

A)  forensic accounting and financial accounting 
B)  managerial accounting and financial accounting 
C)  managerial accounting and environmental accounting 
D)  financial accounting and tax accounting systems 
A)  forensic accounting and financial accounting 
B)  managerial accounting and financial accounting 
C)  managerial accounting and environmental accounting 
D)  financial accounting and tax accounting systems

Question 16

Allen Marks is the sole stockholder of Great Marks Company. As at December 31, 2013, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2014, Allen Marks purchased an additional $73,000 of capital stock and received $33,000 in cash dividends from the business. What is the amount of net income of Great Marks Company during 2014, assuming that as of December 31, 2014, assets were $995,000, and liabilities were $270,000?

Accepted Answer

A)  $ 45,000 
B)  $ 50,000 
C)  $106,000 
D)  $370,000 
A)  $ 45,000 
B)  $ 50,000 
C)  $106,000 
D)  $370,000

Question 17

Proprietorships are owned by two or more individuals and provide only services to their customers.

Accepted Answer

A) True 
 B)False

Question 18

The objectivity concept requires that

Accepted Answer

A)  business transactions must be consistent with the objectives of the entity 
B)  the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards 
C)  accounting principles must meet the objectives of the Security and Exchange Commission 
D)  amounts recorded in the financial statements must be based on independently verifiable evidence 
A)  business transactions must be consistent with the objectives of the entity 
B)  the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards 
C)  accounting principles must meet the objectives of the Security and Exchange Commission 
D)  amounts recorded in the financial statements must be based on independently verifiable evidence

Question 19

The unit of measure concept

Accepted Answer

A)  is only used in the financial statements of manufacturing companies 
B)  is not important when applying the cost concept 
C)  requires that different units be used for assets and liabilities 
D)  requires that economic data be reported in yen in Japan or dollars in the United States 
A)  is only used in the financial statements of manufacturing companies 
B)  is not important when applying the cost concept 
C)  requires that different units be used for assets and liabilities 
D)  requires that economic data be reported in yen in Japan or dollars in the United States

Question 20

Name and describe the four primary financial statements for a corporation.

Accepted Answer

1. Income Statement: A summary of the re

Exam 1: Introduction to Accounting and Business

Identify which of the following accounts appear on a balance sheet.

An account receivable is typically classified as a revenue.

If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyer would record the building at $85,000.

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

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

The role of accounting is to provide many different users with financial information to make economic decisions.

Ramierez Company received its first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

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

A retained earnings statement reports all changes in cash for a period of time.

Determine the missing amount for each of the following:

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Two common areas of accounting that respectively provide information to internal and external users are

Proprietorships are owned by two or more individuals and provide only services to their customers.

The objectivity concept requires that

The unit of measure concept

Name and describe the four primary financial statements for a corporation.

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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