Question 1

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

Accepted Answer

(a) The objectivity concept requires tha

Question 2

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 3

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below.
     Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

Accepted Answer

The answer of A summary of cash flows for Alex...

Question 4

Revenues are reported when

Accepted Answer

A)  a contract is signed 
B)  cash is received from the customer 
C)  work is begun on the job 
D)  work is completed on the job 
A)  a contract is signed 
B)  cash is received from the customer 
C)  work is begun on the job 
D)  work is completed on the job

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

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011:
   Determine the total liabilities at the end of 2011 for Franklin Company.

Accepted Answer

The answer of The accountant for Franklin Company prepared the...

Question 7

At the end of its accounting period, December 31, 2011, Hsu's Financial Services has assets of $575,000 and stockholders' equity of $335,000. Using the accounting equation and considering each case independently, determine the following amounts.
a. Hsu's liabilities as of December 31, 2011.
b. Hsu's liabilities as of December 31, 2012, assuming that assets increased by $56,000 and stockholders' equity decreased by $32,000.
c. Net income or net loss during 2012, assuming that as of December 31, 2012, assets were $592,000, liabilities were $450,000, and there were no additional capital stock sales or dividends paid in 2012.

Accepted Answer

a. $575,000 - 335,000 = $240,0

Question 8

Which of the following groups are considered to be internal usersof accounting information?

Accepted Answer

A)  Employees and customers 
B)  Customers and vendors 
C)  Employees and managers 
D)  Government and banks 
A)  Employees and customers 
B)  Customers and vendors 
C)  Employees and managers 
D)  Government and banks

Question 9

Indicate how the following transactions affect the accounting equation:
(a) The purchase of supplies on account.
(b) The purchase of supplies for cash.
(c) Cash dividends paid to stockholders.
(d) Revenues received in cash.
(e) Revenues received on account.

Accepted Answer

(a) Assets increase; liabilities increas

Question 10

Transactions affecting stockholders' equity include

Accepted Answer

A)  shares of capital stock issued to stockholders and payment of liabilities 
B)  shares of capital stock issued to stockholders, dividends declared and paid to stockholders, revenues, and expenses 
C)  shares of capital stock issued to stockholders, revenues, expenses, and collection of accounts receivable 
D)  dividends declared and paid to stockholders, revenues, expenses, and purchases of supplies on account 
A)  shares of capital stock issued to stockholders and payment of liabilities 
B)  shares of capital stock issued to stockholders, dividends declared and paid to stockholders, revenues, and expenses 
C)  shares of capital stock issued to stockholders, revenues, expenses, and collection of accounts receivable 
D)  dividends declared and paid to stockholders, revenues, expenses, and purchases of supplies on account

Question 11

Declaring and paying cash dividends

Accepted Answer

A)  increase expenses 
B)  decrease expenses 
C)  increase cash 
D)  decrease stockholders' equity 
A)  increase expenses 
B)  decrease expenses 
C)  increase cash 
D)  decrease stockholders' equity

Question 12

Assets are

Accepted Answer

A)  always greater than liabilities 
B)  either cash or accounts receivables 
C)  the same as expenses because they are acquired with cash 
D)  financed by owners and/or creditors 
A)  always greater than liabilities 
B)  either cash or accounts receivables 
C)  the same as expenses because they are acquired with cash 
D)  financed by owners and/or creditors

Question 13

Expenses are recorded when

Accepted Answer

A)  cash is paid for services rendered 
B)  a bill is received in advance of services rendered 
C)  assets are used in the process of earning revenue 
D)  none of these 
A)  cash is paid for services rendered 
B)  a bill is received in advance of services rendered 
C)  assets are used in the process of earning revenue 
D)  none of these

Question 14

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

Accepted Answer

Accounting reports w

Question 15

Cash dividends paid to stockholders decrease assets and increase equity.

Accepted Answer

A) True 
 B)False

Question 16

CPA Associates was organized on January 1, 2011, as a corporation. List the errors that you find in the following financial statements and prepare the corrected statements for the three months ended March 31, 2011.

Accepted Answer

Errors in the CPA Associates f

Question 17

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

Accepted Answer

The objective of financial acc

Question 18

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)  retained earnings statement 
C)  income statement 
D)  balance sheet 
A)  prior period statement 
B)  retained earnings statement 
C)  income statement 
D)  balance sheet

Question 19

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Accepted Answer

A)  Certified Public Accountant 
B)  Certified Payroll Professional 
C)  Certified Internal Auditor 
D)  Certified Management Accountant 
A)  Certified Public Accountant 
B)  Certified Payroll Professional 
C)  Certified Internal Auditor 
D)  Certified Management Accountant

Question 20

The assets and liabilities of S&P Day Spa at December 31, 2011, and its revenue and expenses for the year are listed below. The Retained Earnings balance was $57,830 at January 1, 2011.
   Based on the data provided for S&P Day Spa, prepare a retained earnings statement for the year ended December 31, 2011.

Accepted Answer

The answer of The assets and liabilities of S&P Day...

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

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

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below. Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

Revenues are reported when

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

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

Which of the following groups are considered to be internal usersof accounting information?

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.

Transactions affecting stockholders' equity include

Declaring and paying cash dividends

Assets are

Expenses are recorded when

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

Cash dividends paid to stockholders decrease assets and increase equity.

CPA Associates was organized on January 1, 2011, as a corporation. List the errors that you find in the following financial statements and prepare the corrected statements for the three months ended March 31, 2011.

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

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)

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

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

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

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

A summary of cash flows for Alex Design Services for the year ended December 31, 2012, is shown below. Prepare a statement of cash flows for Alex Design Services for the year ended December 31, 2012.

Revenues are reported when

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

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

Which of the following groups are considered to be internal usersof accounting information?

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.

Transactions affecting stockholders' equity include

Declaring and paying cash dividends

Assets are

Expenses are recorded when

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

Cash dividends paid to stockholders decrease assets and increase equity.

CPA Associates was organized on January 1, 2011, as a corporation. List the errors that you find in the following financial statements and prepare the corrected statements for the three months ended March 31, 2011.

What is the major difference between the objective of financial accounting and the objective of managerial accounting?

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)

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

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

Filters