Question 1

Which of the following items does not appear on the balance sheet?

Accepted Answer

A)  Cash. 
B)  Notes payable. 
C)  Accounts receivable. 
D)  Withdrawals. 
E)  Accounts payable. 
A)  Cash. 
B)  Notes payable. 
C)  Accounts receivable. 
D)  Withdrawals. 
E)  Accounts payable.

Question 2

Accounting information is only relevant for people in business.

Accepted Answer

A) True 
 B)False

Question 3

From the following information taken from the records of Peach Company at December 31 of this year,calculate equity.

Accepted Answer

A)  $1,500. 
B)  $2,500. 
C)  $7,500. 
D)  $3,500. 
E)  $6,000. 
A)  $1,500. 
B)  $2,500. 
C)  $7,500. 
D)  $3,500. 
E)  $6,000.

Question 4

Costs incurred or the using up of assets as a result of the main operations of a business are called:

Accepted Answer

A)  Liabilities. 
B)  Equity. 
C)  Revenues. 
D)  Expenses. 
E)  Net losses 
A)  Liabilities. 
B)  Equity. 
C)  Revenues. 
D)  Expenses. 
E)  Net losses

Question 5

List the three main differences between the sole proprietorship and the corporate form of business.

Accepted Answer

The answer of List the three main differences between the...

Question 6

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 7

Financial statements are an organization's primary means of financial communication and are the end result of a process,or a cycle,which begins with a business transaction like a sale.

Accepted Answer

A) True 
 B)False

Question 8

When a corporation issues only one class of shares they are called _________ shares.

Accepted Answer

The answer of When a corporation issues only one class...

Question 9

Identify the form of business organization(s)to which the following characteristics apply.
(a)Is a separate business entity.
(b)Can be owned by one person.
(c)Owner or owners are personally liable for debts of the business.
(d)Is a taxable entity.
(e)Is created by a charter from a provincial or the federal government.
(f)Keeps the accounting of its transactions separate from the owner's(s')personal transactions.
(g)May have a contract specifying the division of profits among the owners.
(h)Owner or owners are not personally liable for debts of the business.
Use the following format to indicate whether or not a characteristic applies to each type of business organization.

Accepted Answer

The answer of Identify the form of business organization(s)to which...

Question 10

The professional designation "CGA" stands for "Chartered General Accountant".

Accepted Answer

A) True 
 B)False

Question 11

Internal controls are procedures set up to:

Accepted Answer

A)  Protect assets. 
B)  Ensure accounting reports are free from error,neutral and complete. 
C)  Promote efficiency. 
D)  Ensure company policies are followed. 
E)  All of these answers are correct. 
A)  Protect assets. 
B)  Ensure accounting reports are free from error,neutral and complete. 
C)  Promote efficiency. 
D)  Ensure company policies are followed. 
E)  All of these answers are correct.

Question 12

Payment of accounts payable decreases both liabilities and assets.

Accepted Answer

A) True 
 B)False

Question 13

A primary operating objective of a business is to increase the equity of its owner or owners by:

Accepted Answer

A)  Acquiring assets. 
B)  Incurring liabilities. 
C)  Earning a profit. 
D)  Incurring expenses. 
E)  Increasing retained earnings. 
A)  Acquiring assets. 
B)  Incurring liabilities. 
C)  Earning a profit. 
D)  Incurring expenses. 
E)  Increasing retained earnings.

Question 14

Net income is the excess of expenses over revenues,whereas net loss is the excess of revenues over expenses.

Accepted Answer

A) True 
 B)False

Question 15

The balance sheet equation is:

Accepted Answer

A)  Revenues minus expenses equals net income. 
B)  Debits equal credits. 
C)  The bookkeeping phase of accounting. 
D)  Another name for the accounting equation. 
E)  Assets minus liabilities. 
A)  Revenues minus expenses equals net income. 
B)  Debits equal credits. 
C)  The bookkeeping phase of accounting. 
D)  Another name for the accounting equation. 
E)  Assets minus liabilities.

Question 16

How would the accounting equation of Lenore Turner's consulting business be affected by the billing of a client for $2,000 for consulting work completed?

Accepted Answer

A)  Accounts receivable,$2,000 increase,liabilities,$2,000 decrease. 
B)  Accounts receivable,$2,000 increase,liabilities,$2,000 increase. 
C)  Accounts receivable,$2,000 increase,cash,$2,000 increase. 
D)  Accounts receivable,$2,000 increase,equity,$2,000 increase. 
E)  Accounts receivable,$2,000 increase,cash,$2,000 decrease. 
A)  Accounts receivable,$2,000 increase,liabilities,$2,000 decrease. 
B)  Accounts receivable,$2,000 increase,liabilities,$2,000 increase. 
C)  Accounts receivable,$2,000 increase,cash,$2,000 increase. 
D)  Accounts receivable,$2,000 increase,equity,$2,000 increase. 
E)  Accounts receivable,$2,000 increase,cash,$2,000 decrease.

Question 17

Expenses are costs incurred or the using up of assets from generating revenue.

Accepted Answer

A) True 
 B)False

Question 18

Salaries paid with cash appear on which of the following statement(s)?

Accepted Answer

A)  Balance sheet. 
B)  Income statement. 
C)  Statement of changes in equity. 
D)  Statement of cash flows. 
E)  Both an income statement and statement of cash flows. 
A)  Balance sheet. 
B)  Income statement. 
C)  Statement of changes in equity. 
D)  Statement of cash flows. 
E)  Both an income statement and statement of cash flows.

Question 19

Describe source documents and their purpose.

Accepted Answer

Source documents are the business papers

Question 20

Source documents:

Accepted Answer

A)  Do not provide objective evidence about transactions. 
B)  Are a source of accounting information. 
C)  Can only be in electronic form. 
D)  Are only used for audit purposes. 
E)  Are acceptable as a substitute for financial statements. 
A)  Do not provide objective evidence about transactions. 
B)  Are a source of accounting information. 
C)  Can only be in electronic form. 
D)  Are only used for audit purposes. 
E)  Are acceptable as a substitute for financial statements.

Which of the following items does not appear on the balance sheet?

Accounting information is only relevant for people in business.

From the following information taken from the records of Peach Company at December 31 of this year,calculate equity.

Costs incurred or the using up of assets as a result of the main operations of a business are called:

List the three main differences between the sole proprietorship and the corporate form of business.

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

Financial statements are an organization's primary means of financial communication and are the end result of a process,or a cycle,which begins with a business transaction like a sale.

When a corporation issues only one class of shares they are called _________ shares.

The professional designation "CGA" stands for "Chartered General Accountant".

Internal controls are procedures set up to:

Payment of accounts payable decreases both liabilities and assets.

A primary operating objective of a business is to increase the equity of its owner or owners by:

Net income is the excess of expenses over revenues,whereas net loss is the excess of revenues over expenses.

The balance sheet equation is:

How would the accounting equation of Lenore Turner's consulting business be affected by the billing of a client for $2,000 for consulting work completed?

Expenses are costs incurred or the using up of assets from generating revenue.

Salaries paid with cash appear on which of the following statement(s)?

Describe source documents and their purpose.

Source documents:

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

Which of the following items does not appear on the balance sheet?

Accounting information is only relevant for people in business.

From the following information taken from the records of Peach Company at December 31 of this year,calculate equity.

Costs incurred or the using up of assets as a result of the main operations of a business are called:

List the three main differences between the sole proprietorship and the corporate form of business.

The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).

Financial statements are an organization's primary means of financial communication and are the end result of a process,or a cycle,which begins with a business transaction like a sale.

When a corporation issues only one class of shares they are called _________ shares.

The professional designation "CGA" stands for "Chartered General Accountant".

Internal controls are procedures set up to:

Payment of accounts payable decreases both liabilities and assets.

A primary operating objective of a business is to increase the equity of its owner or owners by:

Net income is the excess of expenses over revenues,whereas net loss is the excess of revenues over expenses.

The balance sheet equation is:

How would the accounting equation of Lenore Turner's consulting business be affected by the billing of a client for $2,000 for consulting work completed?

Expenses are costs incurred or the using up of assets from generating revenue.

Salaries paid with cash appear on which of the following statement(s)?

Describe source documents and their purpose.

Source documents:

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