Question 1

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Accepted Answer

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

Question 2

In accounting,the principle that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called ______________________________.

Accepted Answer

The answer of In accounting,the principle that requires that assets,services,and...

Question 3

An individual or organization that owes an amount to a business is known to the business as a:

Accepted Answer

A)  Debtor. 
B)  Shareholder. 
C)  Controller. 
D)  Creditor. 
E)  Bookkeeper. 
A)  Debtor. 
B)  Shareholder. 
C)  Controller. 
D)  Creditor. 
E)  Bookkeeper.

Question 4

The accounting equation can be restated as assets - equity = liabilities.

Accepted Answer

A) True 
 B)False

Question 5

Economic events that affect an entity's accounting equation,but that are not transactions between the entity and outside parties are called:

Accepted Answer

A)  Internal transactions. 
B)  Liabilities. 
C)  Source documents. 
D)  External transactions. 
E)  Prepaid expenses. 
A)  Internal transactions. 
B)  Liabilities. 
C)  Source documents. 
D)  External transactions. 
E)  Prepaid expenses.

Question 6

Source documents include all of the following except:

Accepted Answer

A)  Sales invoices. 
B)  Financial statements. 
C)  Cheques. 
D)  Purchase orders. 
E)  Bank statements. 
A)  Sales invoices. 
B)  Financial statements. 
C)  Cheques. 
D)  Purchase orders. 
E)  Bank statements.

Question 7

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _____________ (increased,decreased)by $_______________.

Accepted Answer

Increased

Question 8

The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Accepted Answer

A) True 
 B)False

Question 9

Persons using accounting information who are directly involved in the running of the organization are called ____________________.

Accepted Answer

The answer of Persons using accounting information who are directly...

Question 10

A 12-month period that ends when a company's sales activities are at their lowest point is called the _________________.

Accepted Answer

Natural bu

Question 11

Describe the purpose and importance of accounting

Accepted Answer

Accounting is an information system.It p

Question 12

The primary objective of accounting is ______________________.

Accepted Answer

To help pe

Question 13

The equity in a partnership belongs to one owner.

Accepted Answer

A) True 
 B)False

Question 14

Verifiability ensures that information is complete,neutral and free from error.

Accepted Answer

A) True 
 B)False

Question 15

If assets are $175,000 and equity is $47,000,then liabilities equal:

Accepted Answer

A)  $47,000. 
B)  $128,000. 
C)  $175,000. 
D)  $204,000. 
E)  $222,000. 
A)  $47,000. 
B)  $128,000. 
C)  $175,000. 
D)  $204,000. 
E)  $222,000.

Question 16

The recording of financial transactions either manually or electronically is called:

Accepted Answer

A)  Accounting. 
B)  Bookkeeping. 
C)  Preparing financial statements. 
D)  Auditing. 
E)  Systems design. 
A)  Accounting. 
B)  Bookkeeping. 
C)  Preparing financial statements. 
D)  Auditing. 
E)  Systems design.

Question 17

Ownership of a corporation is divided into units called shares.

Accepted Answer

A) True 
 B)False

Question 18

As a rule,revenues should not be recognized in the accounting records until received in cash.

Accepted Answer

A) True 
 B)False

Question 19

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Accepted Answer

A) True 
 B)False

Question 20

Something of value,such as products,services and money,is called a(n):

Accepted Answer

A)  Business transaction. 
B)  Business event. 
C)  Accounting equation. 
D)  Economic consideration. 
E)  Source document. 
A)  Business transaction. 
B)  Business event. 
C)  Accounting equation. 
D)  Economic consideration. 
E)  Source document.

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

In accounting,the principle that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called ______________________________.

An individual or organization that owes an amount to a business is known to the business as a:

The accounting equation can be restated as assets - equity = liabilities.

Economic events that affect an entity's accounting equation,but that are not transactions between the entity and outside parties are called:

Source documents include all of the following except:

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _ (increased,decreased)by $___.

The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Persons using accounting information who are directly involved in the running of the organization are called ____________________.

A 12-month period that ends when a company's sales activities are at their lowest point is called the _________________.

Describe the purpose and importance of accounting

The primary objective of accounting is ______________________.

The equity in a partnership belongs to one owner.

Verifiability ensures that information is complete,neutral and free from error.

If assets are $175,000 and equity is $47,000,then liabilities equal:

The recording of financial transactions either manually or electronically is called:

Ownership of a corporation is divided into units called shares.

As a rule,revenues should not be recognized in the accounting records until received in cash.

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Something of value,such as products,services and money,is called a(n):

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

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

In accounting,the principle that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called ______________________________.

An individual or organization that owes an amount to a business is known to the business as a:

The accounting equation can be restated as assets - equity = liabilities.

Economic events that affect an entity's accounting equation,but that are not transactions between the entity and outside parties are called:

Source documents include all of the following except:

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _____________ (increased,decreased)by $_______________.

The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Persons using accounting information who are directly involved in the running of the organization are called ____________________.

A 12-month period that ends when a company's sales activities are at their lowest point is called the _________________.

Describe the purpose and importance of accounting

The primary objective of accounting is ______________________.

The equity in a partnership belongs to one owner.

Verifiability ensures that information is complete,neutral and free from error.

If assets are $175,000 and equity is $47,000,then liabilities equal:

The recording of financial transactions either manually or electronically is called:

Ownership of a corporation is divided into units called shares.

As a rule,revenues should not be recognized in the accounting records until received in cash.

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Something of value,such as products,services and money,is called a(n):

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

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _ (increased,decreased)by $___.