Question 1

A common characteristic of __________ is their ability to provide future benefits to a business.

Accepted Answer

The answer of A common characteristic of __________ is their...

Question 2

Limited liability is a key consideration as to why corporations can raise resources from shareholders.

Accepted Answer

A) True 
 B)False

Question 3

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

Accepted Answer

A) True 
 B)False

Question 4

The primary objective of accounting is to help people make better decisions.

Accepted Answer

A) True 
 B)False

Question 5

How does the cost principle support ethical behaviour?

Accepted Answer

The cost principle supports ethical beha

Question 6

A statement of profit and loss is another name for:

Accepted Answer

A)  The income statement. 
B)  The balance sheet. 
C)  The statement of cash flows. 
D)  The statement of changes in equity. 
E)  The accounting equation. 
A)  The income statement. 
B)  The balance sheet. 
C)  The statement of cash flows. 
D)  The statement of changes in equity. 
E)  The accounting equation.

Question 7

The business entity principle:

Accepted Answer

A)  Requires that sole proprietors have unlimited liability. 
B)  Requires that partnership income be taxed at the partnership level. 
C)  Means that business records should be kept separate from the owner's personal records. 
D)  Requires that partnerships have written agreements. 
E)  Requires that corporations have shareholders. 
A)  Requires that sole proprietors have unlimited liability. 
B)  Requires that partnership income be taxed at the partnership level. 
C)  Means that business records should be kept separate from the owner's personal records. 
D)  Requires that partnerships have written agreements. 
E)  Requires that corporations have shareholders.

Question 8

List the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities

Question 9

Joe Bob has prepared the following analysis of September transactions for his business,Joe Bob's Spareribs.Unfortunately,he has lost some information.Calculate the missing information.

Accepted Answer

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

Question 10

Fees earned by a business in exchange for services provided by the business appear on which of the following statements?

Accepted Answer

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

Question 11

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period,equity in the business must have:

Accepted Answer

A)  Increased $14,000. 
B)  Decreased $14,000. 
C)  Increased $4,000. 
D)  Decreased $4,000. 
E)  Decreased $6,000. 
A)  Increased $14,000. 
B)  Decreased $14,000. 
C)  Increased $4,000. 
D)  Decreased $4,000. 
E)  Decreased $6,000.

Question 12

Ethics:

Accepted Answer

A)  Are beliefs that separate right from wrong. 
B)  And law often coincide. 
C)  Help to prevent conflicts of interest. 
D)  Are very important considerations for accountants. 
E)  All of these answers are correct. 
A)  Are beliefs that separate right from wrong. 
B)  And law often coincide. 
C)  Help to prevent conflicts of interest. 
D)  Are very important considerations for accountants. 
E)  All of these answers are correct.

Question 13

The accounting equation is __________________________________.

Accepted Answer

Assets = L

Question 14

The legitimate claims of a business's creditors take precedence over the claims of the business owner or owners.

Accepted Answer

A) True 
 B)False

Question 15

A company that is currently in the process of liquidating is considered to be a going concern.

Accepted Answer

A) True 
 B)False

Question 16

Professional accountants can be:

Accepted Answer

A)  Chartered Accountants. 
B)  Certified General Accountants. 
C)  Certified Management Accountants. 
D)  Certified General Accountants or Chartered Accountants. 
E)  Any of the above. 
A)  Chartered Accountants. 
B)  Certified General Accountants. 
C)  Certified Management Accountants. 
D)  Certified General Accountants or Chartered Accountants. 
E)  Any of the above.

Question 17

Accounting is an information and measurement system that:

Accepted Answer

A)  Identifies economic activities. 
B)  Records economic activities. 
C)  Communicates economic information. 
D)  Identifies and records economic activities. 
E)  All of these answers are correct. 
A)  Identifies economic activities. 
B)  Records economic activities. 
C)  Communicates economic information. 
D)  Identifies and records economic activities. 
E)  All of these answers are correct.

Question 18

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

Accepted Answer

A) True 
 B)False

Question 19

In the partnership form of business,the owners of a business are called shareholders.

Accepted Answer

A) True 
 B)False

Question 20

Blu Lightning Co.spent $6,000 in cash for a computer.Enter the appropriate amounts into the accounting equation format.

Accepted Answer

Assets = Liabilities

A common characteristic of __________ is their ability to provide future benefits to a business.

Limited liability is a key consideration as to why corporations can raise resources from shareholders.

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

The primary objective of accounting is to help people make better decisions.

How does the cost principle support ethical behaviour?

A statement of profit and loss is another name for:

The business entity principle:

List the three types of activities reported on the statement of cash flows.

Joe Bob has prepared the following analysis of September transactions for his business,Joe Bob's Spareribs.Unfortunately,he has lost some information.Calculate the missing information.

Fees earned by a business in exchange for services provided by the business appear on which of the following statements?

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period,equity in the business must have:

Ethics:

The accounting equation is __________________________________.

The legitimate claims of a business's creditors take precedence over the claims of the business owner or owners.

A company that is currently in the process of liquidating is considered to be a going concern.

Professional accountants can be:

Accounting is an information and measurement system that:

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

In the partnership form of business,the owners of a business are called shareholders.

Blu Lightning Co.spent $6,000 in cash for a computer.Enter the appropriate amounts into the accounting equation format.

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

A common characteristic of __________ is their ability to provide future benefits to a business.

Limited liability is a key consideration as to why corporations can raise resources from shareholders.

The purchase of supplies for cash impacts both the investing and financing sides of the accounting equation.

The primary objective of accounting is to help people make better decisions.

How does the cost principle support ethical behaviour?

A statement of profit and loss is another name for:

The business entity principle:

List the three types of activities reported on the statement of cash flows.

Joe Bob has prepared the following analysis of September transactions for his business,Joe Bob's Spareribs.Unfortunately,he has lost some information.Calculate the missing information.

Fees earned by a business in exchange for services provided by the business appear on which of the following statements?

If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period,equity in the business must have:

Ethics:

The accounting equation is __________________________________.

The legitimate claims of a business's creditors take precedence over the claims of the business owner or owners.

A company that is currently in the process of liquidating is considered to be a going concern.

Professional accountants can be:

Accounting is an information and measurement system that:

Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

In the partnership form of business,the owners of a business are called shareholders.

Blu Lightning Co.spent $6,000 in cash for a computer.Enter the appropriate amounts into the accounting equation format.

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