Question 1

Countries outside the United States use financial accounting standards issued by the

Accepted Answer

A)  LLC 
B)  SEC 
C)  IASB 
D)  GAAP 
A)  LLC 
B)  SEC 
C)  IASB 
D)  GAAP

Question 2

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following isnot 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)  A 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)  A corporation's resources are limited to its individual owners' resources.

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

Which of the following is a manufacturing business?

Accepted Answer

A)  Amazon.com. 
B)  Wal-Mart. 
C)  Ford Motors. 
D)  Delta Airlines 
A)  Amazon.com. 
B)  Wal-Mart. 
C)  Ford Motors. 
D)  Delta Airlines

Question 6

Which of the following group of companies are all examples of a merchandising business?

Accepted Answer

A)  Delta Airlines, Marriott, Gap 
B)  Gap, Amazon, NIKE 
C)  GameStop, Sony, Dell 
D)  GameStop, Best Buy, Gap 
A)  Delta Airlines, Marriott, Gap 
B)  Gap, Amazon, NIKE 
C)  GameStop, Sony, Dell 
D)  GameStop, Best Buy, Gap

Question 7

An account receivable is typically classified as a revenue.

Accepted Answer

A) True 
 B)False

Question 8

Goods purchased on account for future use in the business, such as supplies, are called

Accepted Answer

A)  prepaid liabilities 
B)  revenues 
C)  prepaid expenses 
D)  liabilities 
A)  prepaid liabilities 
B)  revenues 
C)  prepaid expenses 
D)  liabilities

Question 9

Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

Accepted Answer

A)  assets increase $75,000; stockholders' equity increases $75,000 
B)  assets increase $55,000; stockholders' equity increases $55,000 
C)  assets increase $75,000; liabilities decrease $20,000; stockholders' equity increases $55,000 
D)  assets increase $20,000; no change for liabilities; stockholders' equity increases $75,000 
A)  assets increase $75,000; stockholders' equity increases $75,000 
B)  assets increase $55,000; stockholders' equity increases $55,000 
C)  assets increase $75,000; liabilities decrease $20,000; stockholders' equity increases $55,000 
D)  assets increase $20,000; no change for liabilities; stockholders' equity increases $75,000

Question 10

Indicate whether each of the following represents an asset, liability, or owner's equity item.

Accepted Answer

The answer of Indicate whether each of the following represents...

Question 11

Earning revenue

Accepted Answer

A)  increases assets, increases stockholders' equity 
B)  increases assets, decreases stockholders' equity 
C)  increases one asset, decreases another asset 
D)  decreases assets, increases liabilities 
A)  increases assets, increases stockholders' equity 
B)  increases assets, decreases stockholders' equity 
C)  increases one asset, decreases another asset 
D)  decreases assets, increases liabilities

Question 12

Given below are the accounts and amounts for Bright Futures Company as of August 31, 2011. All of the revenue and expense amounts are for the month of August.
   Based on the data provided for Bright Futures Company, prepare in good format an income statement for the month ended August 31, 2011.

Accepted Answer

The answer of Given below are the accounts and amounts...

Question 13

Which of the following best describes accounting?

Accepted Answer

A)  records economic data but does not communicate the data to users according to any specific rules. 
B)  is an information system that provides reports to users regarding economic activities and condition of a business. 
C)  is of no use by individuals outside of the business. 
D)  is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements. 
A)  records economic data but does not communicate the data to users according to any specific rules. 
B)  is an information system that provides reports to users regarding economic activities and condition of a business. 
C)  is of no use by individuals outside of the business. 
D)  is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements.

Question 14

Given below are the accounts and amounts for Bright Futures Company as of August 31, 2011. All of the revenue and expense amounts are for the month of August.
   Based on the data provided for Bright Futures Company, prepare in good format a retained earnings statement for the month ended August 31, 2011.

Accepted Answer

The answer of Given below are the accounts and amounts...

Question 15

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 assets at the end of 2011 for Franklin Company.

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

Accepted Answer

A) True 
 B)False

Question 18

A summary of cash flows for Lopez Wedding Planning for the year ended December 31, 2011 is shown below.
     Prepare a statement of cash flows for Lopez Wedding Planning for the year ended December 31, 2011.

Accepted Answer

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

Question 19

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 $127,000. On June 20, the land was assessed at a value of $88,000 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)  $88,000 
C)  $140,000 
D)  $127,000 
A)  $115,000 
B)  $88,000 
C)  $140,000 
D)  $127,000

Question 20

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

Accepted Answer

A) True 
 B)False

Countries outside the United States use financial accounting standards issued by the

The balance sheet represents the accounting equation.

Which of the following isnot a characteristic of a corporation?

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.

Which of the following is a manufacturing business?

Which of the following group of companies are all examples of a merchandising business?

An account receivable is typically classified as a revenue.

Goods purchased on account for future use in the business, such as supplies, are called

Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

Indicate whether each of the following represents an asset, liability, or owner's equity item.

Earning revenue

Given below are the accounts and amounts for Bright Futures Company as of August 31, 2011. All of the revenue and expense amounts are for the month of August. Based on the data provided for Bright Futures Company, prepare in good format an income statement for the month ended August 31, 2011.

Which of the following best describes accounting?

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 assets at the end of 2011 for Franklin Company.

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

A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

A summary of cash flows for Lopez Wedding Planning for the year ended December 31, 2011 is shown below. Prepare a statement of cash flows for Lopez Wedding Planning for the year ended December 31, 2011.

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

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

Countries outside the United States use financial accounting standards issued by the

The balance sheet represents the accounting equation.

Which of the following isnot a characteristic of a corporation?

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.

Which of the following is a manufacturing business?

Which of the following group of companies are all examples of a merchandising business?

An account receivable is typically classified as a revenue.

Goods purchased on account for future use in the business, such as supplies, are called

Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?

Indicate whether each of the following represents an asset, liability, or owner's equity item.

Earning revenue

Given below are the accounts and amounts for Bright Futures Company as of August 31, 2011. All of the revenue and expense amounts are for the month of August. Based on the data provided for Bright Futures Company, prepare in good format an income statement for the month ended August 31, 2011.

Which of the following best describes accounting?

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 assets at the end of 2011 for Franklin Company.

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

A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers.

A summary of cash flows for Lopez Wedding Planning for the year ended December 31, 2011 is shown below. Prepare a statement of cash flows for Lopez Wedding Planning for the year ended December 31, 2011.

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

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