Question 1

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

Accepted Answer

A)  Cost accounting 
B)  Financial accounting 
C)  Tax accounting 
D)  Managerial accounting 
A)  Cost accounting 
B)  Financial accounting 
C)  Tax accounting 
D)  Managerial accounting

Question 2

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 3

The following transactions apply to Warren Fitness Center for 2012.
1) Started the business by issuing $38,000 of common stock for cash.
2) Provided services to clients and received $28,500 cash.
3) Borrowed $7,500 from the bank.
4) Paid $6,500 for rent of equipment.
5) Purchased land for $12,000.
6) Paid $16,600 of salary expense.
7) Cash dividends of $4,500 were paid to the stockholders.
Required:
a) What are the total assets of the business at the end of 2012?
b) Prepare a Statement of Cash Flows for 2012.

Accepted Answer

a) $38,000 + $28,500

Question 4

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l| } 
\hline \text { Assets } & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } & \text { Cash Flow } \
\hline
\end{array}$$

Accepted Answer

A) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\text { NA } & =& 300 & +&300 & \text { NA } & - & 300 & =&300 & \text { NA } \
\hline
\end{array}$ 
B) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
(300)&=&NA&+&(300)&NA&-& 300&=&(300)&(300)FA\
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline(300) & = & \mathrm{NA} & + & (300) & \mathrm{NA} & - & \mathrm{NA} & = & \mathrm{NA} & \text { (300) FA } \
\hline
\end{array}$ 
D) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline(300) & = & \mathrm{NA} & + & (300) & \mathrm{NA} & - & \mathrm{NA} & = & \mathrm{NA} & (300) \mathrm{OA} \
\hline
\end{array}$ 
A) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\text { NA } & =& 300 & +&300 & \text { NA } & - & 300 & =&300 & \text { NA } \
\hline
\end{array}$ 
B) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
(300)&=&NA&+&(300)&NA&-& 300&=&(300)&(300)FA\
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline(300) & = & \mathrm{NA} & + & (300) & \mathrm{NA} & - & \mathrm{NA} & = & \mathrm{NA} & \text { (300) FA } \
\hline
\end{array}$ 
D) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline(300) & = & \mathrm{NA} & + & (300) & \mathrm{NA} & - & \mathrm{NA} & = & \mathrm{NA} & (300) \mathrm{OA} \
\hline
\end{array}$

Question 5

Expenses are shown on the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of changes in stockholders' equity. 
D)  income statement and statement of changes in stockholders' equity. 
A)  balance sheet. 
B)  income statement. 
C)  statement of changes in stockholders' equity. 
D)  income statement and statement of changes in stockholders' equity.

Question 6

Which of the following is not an element of the financial statements?

Accepted Answer

A)  Cash 
B)  Revenue 
C)  Assets 
D)  Distributions 
A)  Cash 
B)  Revenue 
C)  Assets 
D)  Distributions

Question 7

In a market, consumers are resource providers.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following financial statements provides information about a company as of a specific point in time?

Accepted Answer

A)  Income statement 
B)  Statement of changes in equity 
C)  Statement of cash flows 
D)  Balance sheet 
A)  Income statement 
B)  Statement of changes in equity 
C)  Statement of cash flows 
D)  Balance sheet

Question 9

If a corporation issues common stock for $20,000 cash, in which section of the statement of cash flows would this transaction be reported?

Accepted Answer

Financing activities
Explanati

Question 10

Borrowing money from the bank is an example of an asset source transaction.

Accepted Answer

A) True 
 B)False

Question 11

In which section of a statement of cash flows would the payment of cash dividends be reported?

Accepted Answer

A)  Financing activities. 
B)  Operating activities. 
C)  Purchasing activities. 
D)  Investing activities. 
A)  Financing activities. 
B)  Operating activities. 
C)  Purchasing activities. 
D)  Investing activities.

Question 12

Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $600 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.
Petras Company's net cash inflow from operating activities for 2012 is

Accepted Answer

A)  $600. 
B)  $550. 
C)  $350. 
D)  $300. 
A)  $600. 
B)  $550. 
C)  $350. 
D)  $300.

Question 13

Which of the following represents effects of an asset use transaction on a company's financial statements? $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Assets } = & \text { Liab. } + & \text { Equity } & \text { Rev. } - & \text { Exp. } = & \text { Net Inc. } & \text { Cash Flow } \
\hline
\end{array}$$

Accepted Answer

A) 
$$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l } 
\hline - & = & \text { NA } & + & - & \text { NA } & - & \text { NA } & = & \text { NA } & \text {-FA } \
\hline
\end{array}$$ 
B) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline- & = & - & + & \text { NA } & \text { NA } & - & - & = & - & - \text { IA } \
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline- & = &NA & + &-&-& - &NA & = & - & - \text { OA } \
\hline
\end{array}$ 
D) 
$$\text { None of these could represent the effects of an asset source transaction. }$$ 
A) 
$$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l } 
\hline - & = & \text { NA } & + & - & \text { NA } & - & \text { NA } & = & \text { NA } & \text {-FA } \
\hline
\end{array}$$ 
B) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline- & = & - & + & \text { NA } & \text { NA } & - & - & = & - & - \text { IA } \
\hline
\end{array}$ 
C) 
$\begin{array}{|l|l|l|l|l|l|l|l|l|l|l|}
\hline- & = &NA & + &-&-& - &NA & = & - & - \text { OA } \
\hline
\end{array}$ 
D) 
$$\text { None of these could represent the effects of an asset source transaction. }$$

Question 14

Accounts are subclassifications of the various elements of the financial statements.

Accepted Answer

A) True 
 B)False

Question 15

The transaction, "earned cash revenue," affects which two accounts?

Accepted Answer

A)  Revenue and Salaries Expense 
B)  Cash and Notes Payable 
C)  Cash and Revenue 
D)  Cash and Dividends 
A)  Revenue and Salaries Expense 
B)  Cash and Notes Payable 
C)  Cash and Revenue 
D)  Cash and Dividends

Question 16

Callahan Company earned $1,500 of cash revenue, paid $1,000 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?

Accepted Answer

A)  The net cash flow from operating activities was $500. 
B)  The net cash flow from investing activities was an outflow or decrease of $200. 
C)  The net cash flow from operating activities was $300. 
D)  Cash flows from financing activities were unchanged. 
A)  The net cash flow from operating activities was $500. 
B)  The net cash flow from investing activities was an outflow or decrease of $200. 
C)  The net cash flow from operating activities was $300. 
D)  Cash flows from financing activities were unchanged.

Question 17

In a market, a company that manufactures cars would be referred to as a conversion agent.

Accepted Answer

A) True 
 B)False

Question 18

The types of resources needed by a business are financial, physical, and capital resources.

Accepted Answer

A) True 
 B)False

Question 19

Managerial accounting provides information primarily to which of the following groups or individuals?

Accepted Answer

A)  Internal users 
B)  Shareholders 
C)  External users 
D)  Internal users and Shareholders 
A)  Internal users 
B)  Shareholders 
C)  External users 
D)  Internal users and Shareholders

Question 20

Which of the following describes the effects of an asset use transaction on a company's financial statements?

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Expenses are shown on the

Which of the following is not an element of the financial statements?

In a market, consumers are resource providers.

Which of the following financial statements provides information about a company as of a specific point in time?

If a corporation issues common stock for $20,000 cash, in which section of the statement of cash flows would this transaction be reported?

Borrowing money from the bank is an example of an asset source transaction.

In which section of a statement of cash flows would the payment of cash dividends be reported?

Which of the following represents effects of an asset use transaction on a company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Accounts are subclassifications of the various elements of the financial statements.

The transaction, "earned cash revenue," affects which two accounts?

Callahan Company earned $1,500 of cash revenue, paid $1,000 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?

In a market, a company that manufactures cars would be referred to as a conversion agent.

The types of resources needed by a business are financial, physical, and capital resources.

Managerial accounting provides information primarily to which of the following groups or individuals?

Which of the following describes the effects of an asset use transaction on a company's financial statements?

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 1: An Introduction to Accounting

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

Which of the following could describe the effects of an asset exchange transaction on a company's financial statements?

Jiminez Company paid a $300 cash dividend. Which of the following choices accurately reflects how this event affects the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Expenses are shown on the

Which of the following is not an element of the financial statements?

In a market, consumers are resource providers.

Which of the following financial statements provides information about a company as of a specific point in time?

If a corporation issues common stock for $20,000 cash, in which section of the statement of cash flows would this transaction be reported?

Borrowing money from the bank is an example of an asset source transaction.

In which section of a statement of cash flows would the payment of cash dividends be reported?

Which of the following represents effects of an asset use transaction on a company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow

Accounts are subclassifications of the various elements of the financial statements.

The transaction, "earned cash revenue," affects which two accounts?

Callahan Company earned $1,500 of cash revenue, paid $1,000 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?

In a market, a company that manufactures cars would be referred to as a conversion agent.

The types of resources needed by a business are financial, physical, and capital resources.

Managerial accounting provides information primarily to which of the following groups or individuals?

Which of the following describes the effects of an asset use transaction on a company's financial statements?

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters