Question 1

Liabilities are reported on the

Accepted Answer

A) income statement 
B) retained earnings statement 
C) statement of cash flows 
D) balance sheet 
A) income statement 
B) retained earnings statement 
C) statement of cash flows 
D) balance sheet

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

On April 25,Gregg Repair Service extended an offer of $115,000 for land that had been priced for sale at $140,000.On May 3,Gregg Repair Service accepted the seller's counteroffer of $125,000.On June 20,the land was assessed at a value of $95,000 for property tax purposes.On August 4,Gregg Repair Service was offered $150,000 for the land by a national retail chain.At what value should the land be recorded in Gregg Repair Service's records?

Accepted Answer

A) $115,000 
B) $95,000 
C) $140,000 
D) $125,000 
A) $115,000 
B) $95,000 
C) $140,000 
D) $125,000

Question 5

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

Accepted Answer

The answer of For each of the following companies,identify whether...

Question 6

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Accepted Answer

A) True 
 B)False

Question 7

Expenses are assets that are used up during the process of earning revenue.

Accepted Answer

A) True 
 B)False

Question 8

Identify each of the following as either internal or external users of accounting information.

Accepted Answer

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

Question 9

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 10

Discuss the characteristics of a LLC (Limited liability company).

Accepted Answer

A Limited liability company (LLC)combine

Question 11

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 12

At the end of its accounting period,December 31,2010,Miller's Arcade has assets of $450,000 and liabilities of $125,000.Using the accounting equation,determine the following amounts:

Accepted Answer

The answer of At the end of its accounting period,December...

Question 13

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 14

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing

Accepted Answer

A) the income statement 
B) the balance sheet 
C) the statement of cash flows 
D) the retained earnings statement 
A) the income statement 
B) the balance sheet 
C) the statement of cash flows 
D) the retained earnings statement

Question 15

Amos Moving Services' account balances at March 31,2014,the end of the current year,are listed below.The Retained Earnings balance was $180,000 at April 1,2013,the beginning of the current year.
 $\begin{array}{llll}
\text { AccountsPayable } & \$ 2,000 & \text { Miscellaneous Expense } & \$ 1,030 \
\text { Accounts Receivable } & 10,340 & \text { Office Expense } & 1,240 \
\text { Cash } & 21,420 & \text { Sipplies } & 1,670 \
\text { FeesEarned } & 73,450 & \text { Wages Expense } & 23,550 \
\text { Land } & 47,000 & \text { Dividends } & 16,570 \
\text { Building } & 157,630 & \text { Capital Stock } & 25,000
\end{array}$ 
Based on the data provided for Amos Moving Services,prepare a retained earnings statement for the year ended March 31,2014.

Accepted Answer

The answer of Amos Moving Services' account balances at March...

Question 16

How does paying a liability in cash affect the accounting equation?

Accepted Answer

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

Question 17

Trendsetter Travel Services began business on January 1,2014.Balances at December 31,2014,are listed below.
   
Prepare an income statement,retained earnings statement,and a balance sheet for Trendsetter Travel Services.

Accepted Answer

The answer of Trendsetter Travel Services began business on January...

Question 18

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Accepted Answer

A) True 
 B)False

Question 19

If stockholders wanted to know how money flowed into and out of the company,what financial statement would they use?

Accepted Answer

A) income statement 
B) statement of cash flows 
C) balance sheet 
D) none of these 
A) income statement 
B) statement of cash flows 
C) balance sheet 
D) none of these

Question 20

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) 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) Corporation's resources are limited to its individual owners' resources.

Liabilities are reported on the

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

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

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

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Expenses are assets that are used up during the process of earning revenue.

Identify each of the following as either internal or external users of accounting information.

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

Discuss the characteristics of a LLC (Limited liability company).

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

At the end of its accounting period,December 31,2010,Miller's Arcade has assets of $450,000 and liabilities of $125,000.Using the accounting equation,determine the following amounts:

The objectivity concept requires that

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing

How does paying a liability in cash affect the accounting equation?

Trendsetter Travel Services began business on January 1,2014.Balances at December 31,2014,are listed below. Prepare an income statement,retained earnings statement,and a balance sheet for Trendsetter Travel Services.

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

If stockholders wanted to know how money flowed into and out of the company,what financial statement would they use?

Which of the following is not a characteristic of 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

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Exam 1: Introduction to Accounting and Business

Liabilities are reported on the

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

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

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

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Expenses are assets that are used up during the process of earning revenue.

Identify each of the following as either internal or external users of accounting information.

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

Discuss the characteristics of a LLC (Limited liability company).

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

At the end of its accounting period,December 31,2010,Miller's Arcade has assets of $450,000 and liabilities of $125,000.Using the accounting equation,determine the following amounts:

The objectivity concept requires that

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing

How does paying a liability in cash affect the accounting equation?

Trendsetter Travel Services began business on January 1,2014.Balances at December 31,2014,are listed below. Prepare an income statement,retained earnings statement,and a balance sheet for Trendsetter Travel Services.

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

If stockholders wanted to know how money flowed into and out of the company,what financial statement would they use?

Which of the following is not a characteristic of 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

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