Question 1

Profit is also called _____________.

Accepted Answer

The answer of Profit is also called _____________....

Question 2

The business entity principle requires that an owner keep accounting records separate from personal records or records of any other businesses owned.

Accepted Answer

A) True 
 B)False

Question 3

If financial information is relevant,this means that:

Accepted Answer

A)  Decision makers can depend on it. 
B)  It can affect the types of decisions made by users. 
C)  The information is prepared using the same accounting procedures from one accounting period to the next. 
D)  Users are able to compare different companies,if all the companies use similar accounting practices. 
E)  The financial statements have not been prepared according to GAAP. 
A)  Decision makers can depend on it. 
B)  It can affect the types of decisions made by users. 
C)  The information is prepared using the same accounting procedures from one accounting period to the next. 
D)  Users are able to compare different companies,if all the companies use similar accounting practices. 
E)  The financial statements have not been prepared according to GAAP.

Question 4

Revenue is recognized in most businesses:

Accepted Answer

A)  When the customer's order is received. 
B)  Only if the transaction creates an account receivable. 
C)  Only if paid in cash. 
D)  Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price. 
E)  When cash from a sale is received. 
A)  When the customer's order is received. 
B)  Only if the transaction creates an account receivable. 
C)  Only if paid in cash. 
D)  Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price. 
E)  When cash from a sale is received.

Question 5

Payments of cash by a corporation to its shareholders are called:

Accepted Answer

A)  Dividends. 
B)  Cheques. 
C)  Shareholders equity. 
D)  Withdrawals. 
E)  Expenses. 
A)  Dividends. 
B)  Cheques. 
C)  Shareholders equity. 
D)  Withdrawals. 
E)  Expenses.

Question 6

Net income is equal to the change in equity due to operating activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 7

Source documents identify and describe _______________ and provide objective evidence and amounts for recording.

Accepted Answer

Transactio

Question 8

The accounting principle that requires financial statement information to be based on costs incurred in business transactions,and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Accepted Answer

A)  Accounting equation. 
B)  Cost principle. 
C)  Going concern principle. 
D)  Revenue recognition principle. 
E)  Business entity principle. 
A)  Accounting equation. 
B)  Cost principle. 
C)  Going concern principle. 
D)  Revenue recognition principle. 
E)  Business entity principle.

Question 9

The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the:

Accepted Answer

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

Question 10

Generally accepted accounting principles are:

Accepted Answer

A)  Not used in the real world. 
B)  Are required to make financial statement information relevant and faithfully represented. 
C)  Are only used for internal reporting. 
D)  Are only used by auditors. 
E)  Are only used for reporting to Canada Revenue Agency. 
A)  Not used in the real world. 
B)  Are required to make financial statement information relevant and faithfully represented. 
C)  Are only used for internal reporting. 
D)  Are only used by auditors. 
E)  Are only used for reporting to Canada Revenue Agency.

Question 11

An exchange between two parties of economic consideration such as goods,services,money,or rights to collect money is called:

Accepted Answer

A)  The accounting equation. 
B)  Bookkeeping. 
C)  A business transaction. 
D)  An audit. 
E)  A gift. 
A)  The accounting equation. 
B)  Bookkeeping. 
C)  A business transaction. 
D)  An audit. 
E)  A gift.

Question 12

At the request of the Board of Directors,internal auditors perform the audit function to protect shareholder interests.

Accepted Answer

A) True 
 B)False

Question 13

Prepare a balance sheet in good form at December 31,2015 for Draydon Insurance Co.from the following items:

Accepted Answer

The answer of Prepare a balance sheet in good form...

Question 14

Career opportunities in accounting include:

Accepted Answer

A)  Budgeting. 
B)  Auditing. 
C)  Cost accounting. 
D)  Management consulting. 
E)  All of these answers are correct. 
A)  Budgeting. 
B)  Auditing. 
C)  Cost accounting. 
D)  Management consulting. 
E)  All of these answers are correct.

Question 15

If a parcel of land is offered for sale at $45,000,is assessed for tax purposes at $20,000,is considered by its purchasers to be worth $36,000,and is purchased for $34,000,the land should be recorded in the purchaser's books at:

Accepted Answer

A)  $20,000. 
B)  $34,000. 
C)  $36,000. 
D)  $45,000. 
E)  $54,000. 
A)  $20,000. 
B)  $34,000. 
C)  $36,000. 
D)  $45,000. 
E)  $54,000.

Question 16

The internal functions of a business include:

Accepted Answer

A)  Research and development. 
B)  Purchasing. 
C)  Marketing. 
D)  Servicing. 
E)  All of these answers are correct. 
A)  Research and development. 
B)  Purchasing. 
C)  Marketing. 
D)  Servicing. 
E)  All of these answers are correct.

Question 17

Liabilities represent non-owner financing.

Accepted Answer

A) True 
 B)False

Question 18

A partnership:

Accepted Answer

A)  Is also called a sole proprietorship. 
B)  Has unlimited liability. 
C)  Has to have a written agreement in order to be legal. 
D)  Is a legal organization separate from its owners. 
E)  Is a non-business organization. 
A)  Is also called a sole proprietorship. 
B)  Has unlimited liability. 
C)  Has to have a written agreement in order to be legal. 
D)  Is a legal organization separate from its owners. 
E)  Is a non-business organization.

Question 19

At January 1,2015,the records of Anna Turcza's law practice showed equity at $47,200.Net income for 2015 was $16,200,and Anna withdrew $3,000 in cash during the year.Prepare the statement of changes in equity for 2015.

Accepted Answer

The answer of At January 1,2015,the records of Anna Turcza's...

Question 20

Internal controls include procedures to protect assets and prevent fraud.

Accepted Answer

A) True 
 B)False

Profit is also called _____________.

The business entity principle requires that an owner keep accounting records separate from personal records or records of any other businesses owned.

If financial information is relevant,this means that:

Revenue is recognized in most businesses:

Payments of cash by a corporation to its shareholders are called:

Net income is equal to the change in equity due to operating activities over a period of time.

Source documents identify and describe _______________ and provide objective evidence and amounts for recording.

The accounting principle that requires financial statement information to be based on costs incurred in business transactions,and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the:

Generally accepted accounting principles are:

An exchange between two parties of economic consideration such as goods,services,money,or rights to collect money is called:

At the request of the Board of Directors,internal auditors perform the audit function to protect shareholder interests.

Prepare a balance sheet in good form at December 31,2015 for Draydon Insurance Co.from the following items:

Career opportunities in accounting include:

If a parcel of land is offered for sale at $45,000,is assessed for tax purposes at $20,000,is considered by its purchasers to be worth $36,000,and is purchased for $34,000,the land should be recorded in the purchaser's books at:

The internal functions of a business include:

Liabilities represent non-owner financing.

A partnership:

At January 1,2015,the records of Anna Turcza's law practice showed equity at $47,200.Net income for 2015 was $16,200,and Anna withdrew $3,000 in cash during the year.Prepare the statement of changes in equity for 2015.

Internal controls include procedures to protect assets and prevent fraud.

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

Profit is also called _____________.

The business entity principle requires that an owner keep accounting records separate from personal records or records of any other businesses owned.

If financial information is relevant,this means that:

Revenue is recognized in most businesses:

Payments of cash by a corporation to its shareholders are called:

Net income is equal to the change in equity due to operating activities over a period of time.

Source documents identify and describe _______________ and provide objective evidence and amounts for recording.

The accounting principle that requires financial statement information to be based on costs incurred in business transactions,and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the:

Generally accepted accounting principles are:

An exchange between two parties of economic consideration such as goods,services,money,or rights to collect money is called:

At the request of the Board of Directors,internal auditors perform the audit function to protect shareholder interests.

Prepare a balance sheet in good form at December 31,2015 for Draydon Insurance Co.from the following items:

Career opportunities in accounting include:

If a parcel of land is offered for sale at $45,000,is assessed for tax purposes at $20,000,is considered by its purchasers to be worth $36,000,and is purchased for $34,000,the land should be recorded in the purchaser's books at:

The internal functions of a business include:

Liabilities represent non-owner financing.

A partnership:

At January 1,2015,the records of Anna Turcza's law practice showed equity at $47,200.Net income for 2015 was $16,200,and Anna withdrew $3,000 in cash during the year.Prepare the statement of changes in equity for 2015.

Internal controls include procedures to protect assets and prevent fraud.

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