Question 1

The monetary unit principle means that transactions are expressed using units of money as the common denominator.

Accepted Answer

A) True 
 B)False  True

Question 2

The rules adopted by the accounting profession as guides in measuring,recording,and reporting the financial affairs and activities of a business are:

Accepted Answer

A)  Both broad and specific principles. 
B)  Known as generally accepted accounting principles. 
C)  Abbreviated as GAAP. 
D)  Intended to make information in financial statements relevant and faithfully represented. 
E)  All of these answers are correct. 
A)  Both broad and specific principles. 
B)  Known as generally accepted accounting principles. 
C)  Abbreviated as GAAP. 
D)  Intended to make information in financial statements relevant and faithfully represented. 
E)  All of these answers are correct. E

Question 3

Which of the following statements is correct regarding sales invoices?

Accepted Answer

A)  A sales invoice is a type of source document. 
B)  Sellers use them for recording sales. 
C)  Buyers use them for recording purchases. 
D)  They are required for information to be objective. 
E)  All of these answers are correct. 
A)  A sales invoice is a type of source document. 
B)  Sellers use them for recording sales. 
C)  Buyers use them for recording purchases. 
D)  They are required for information to be objective. 
E)  All of these answers are correct. E

Question 4

The primary objective of financial accounting is:

Accepted Answer

A)  To help organizations keep track of financing activities. 
B)  To provide external reports to help users analyze an organization's activities. 
C)  To help an organization define its ideas,goals,and actions. 
D)  To help an organization to keep track of its buying and selling of resources. 
E)  To prepare budgets. 
A)  To help organizations keep track of financing activities. 
B)  To provide external reports to help users analyze an organization's activities. 
C)  To help an organization define its ideas,goals,and actions. 
D)  To help an organization to keep track of its buying and selling of resources. 
E)  To prepare budgets.

Question 5

A payment from a proprietorship or partnership to its owner or owners is called a(n):

Accepted Answer

A)  Dividend. 
B)  Withdrawal. 
C)  Expense. 
D)  Equity. 
E)  Cheque. 
A)  Dividend. 
B)  Withdrawal. 
C)  Expense. 
D)  Equity. 
E)  Cheque.

Question 6

If a business is not being sold or closed,the amounts reported in the accounts for assets used in operations are based on costs.This practice is justified by the:

Accepted Answer

A)  Cost principle. 
B)  Going concern principle. 
C)  Revenue recognition principle. 
D)  Business entity principle. 
E)  Monetary unit principle. 
A)  Cost principle. 
B)  Going concern principle. 
C)  Revenue recognition principle. 
D)  Business entity principle. 
E)  Monetary unit principle.

Question 7

The description of the relationship between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

Accepted Answer

A)  Balance sheet. 
B)  Accounting equation. 
C)  Business equation. 
D)  Liability equation. 
E)  Net income. 
A)  Balance sheet. 
B)  Accounting equation. 
C)  Business equation. 
D)  Liability equation. 
E)  Net income.

Question 8

A primary purpose of ________________ is to make information in financial statements relevant and faithfully represented.

Accepted Answer

The answer of A primary purpose of ________________ is to...

Question 9

Private accountants work for several employers.

Accepted Answer

A) True 
 B)False

Question 10

Non-business organizations often operate educational and religious services for profit.

Accepted Answer

A) True 
 B)False

Question 11

A characteristic of assets is their ability to provide current benefits to the business.

Accepted Answer

A) True 
 B)False

Question 12

The area of accounting aimed at serving the decision-making needs of internal users is:

Accepted Answer

A)  Financial accounting. 
B)  Managerial accounting. 
C)  Auditing. 
D)  Internal control. 
E)  Marketing. 
A)  Financial accounting. 
B)  Managerial accounting. 
C)  Auditing. 
D)  Internal control. 
E)  Marketing.

Question 13

The financial statement that shows the beginning balance of equity,the changes in equity that resulted from new investments by the owner,net income (or net loss),withdrawals,and the ending balance of equity is the:

Accepted Answer

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

Question 14

Explain why ethics and social responsibility are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 15

A characteristic of liabilities is their capacity to reduce future assets.

Accepted Answer

A) True 
 B)False

Question 16

Accounting is an information system that identifies,measures,records and communicates relevant information that faithfully represents an organization's economic activities.

Accepted Answer

A) True 
 B)False

Question 17

What is the statement of financial position? What is its purpose?

Accepted Answer

The statement of financial position,or b

Question 18

Celery Company has assets of $150,000,liabilities of $90,000,and equity of $60,000.It buys supplies for cash $5,000.What effect would this transaction have on the accounting equation?

Accepted Answer

A)  Assets,$5,000 increase,equity,$5,000 increase. 
B)  Assets,$5,000 increase,equity,$5,000 decrease. 
C)  Liabilities,$5,000 increase,equity,$5,000 decrease. 
D)  Assets,$5,000 decrease,equity,$5,000 decrease. 
E)  Assets,no effect,liabilities,no effect. 
A)  Assets,$5,000 increase,equity,$5,000 increase. 
B)  Assets,$5,000 increase,equity,$5,000 decrease. 
C)  Liabilities,$5,000 increase,equity,$5,000 decrease. 
D)  Assets,$5,000 decrease,equity,$5,000 decrease. 
E)  Assets,no effect,liabilities,no effect.

Question 19

Identify the three forms of business organizations.

Accepted Answer

The three forms of b

Question 20

The excess of expenses over revenues for a period is:

Accepted Answer

A)  Net assets. 
B)  Equity. 
C)  Net loss. 
D)  Net income. 
E)  A liability. 
A)  Net assets. 
B)  Equity. 
C)  Net loss. 
D)  Net income. 
E)  A liability.

The monetary unit principle means that transactions are expressed using units of money as the common denominator.

The rules adopted by the accounting profession as guides in measuring,recording,and reporting the financial affairs and activities of a business are:

Which of the following statements is correct regarding sales invoices?

The primary objective of financial accounting is:

A payment from a proprietorship or partnership to its owner or owners is called a(n):

If a business is not being sold or closed,the amounts reported in the accounts for assets used in operations are based on costs.This practice is justified by the:

The description of the relationship between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

A primary purpose of ________________ is to make information in financial statements relevant and faithfully represented.

Private accountants work for several employers.

Non-business organizations often operate educational and religious services for profit.

A characteristic of assets is their ability to provide current benefits to the business.

The area of accounting aimed at serving the decision-making needs of internal users is:

The financial statement that shows the beginning balance of equity,the changes in equity that resulted from new investments by the owner,net income (or net loss),withdrawals,and the ending balance of equity is the:

Explain why ethics and social responsibility are an integral part of accounting.

A characteristic of liabilities is their capacity to reduce future assets.

Accounting is an information system that identifies,measures,records and communicates relevant information that faithfully represents an organization's economic activities.

What is the statement of financial position? What is its purpose?

Celery Company has assets of $150,000,liabilities of $90,000,and equity of $60,000.It buys supplies for cash $5,000.What effect would this transaction have on the accounting equation?

Identify the three forms of business organizations.

The excess of expenses over revenues for a period is:

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 1: Accounting in Business

The monetary unit principle means that transactions are expressed using units of money as the common denominator.

The rules adopted by the accounting profession as guides in measuring,recording,and reporting the financial affairs and activities of a business are:

Which of the following statements is correct regarding sales invoices?

The primary objective of financial accounting is:

A payment from a proprietorship or partnership to its owner or owners is called a(n):

If a business is not being sold or closed,the amounts reported in the accounts for assets used in operations are based on costs.This practice is justified by the:

The description of the relationship between a company's assets,liabilities,and equity,which is expressed as Assets = Liabilities + Equity,is known as the:

A primary purpose of ________________ is to make information in financial statements relevant and faithfully represented.

Private accountants work for several employers.

Non-business organizations often operate educational and religious services for profit.

A characteristic of assets is their ability to provide current benefits to the business.

The area of accounting aimed at serving the decision-making needs of internal users is:

The financial statement that shows the beginning balance of equity,the changes in equity that resulted from new investments by the owner,net income (or net loss),withdrawals,and the ending balance of equity is the:

Explain why ethics and social responsibility are an integral part of accounting.

A characteristic of liabilities is their capacity to reduce future assets.

Accounting is an information system that identifies,measures,records and communicates relevant information that faithfully represents an organization's economic activities.

What is the statement of financial position? What is its purpose?

Celery Company has assets of $150,000,liabilities of $90,000,and equity of $60,000.It buys supplies for cash $5,000.What effect would this transaction have on the accounting equation?

Identify the three forms of business organizations.

The excess of expenses over revenues for a period is:

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters