Question 1

Technology:

Accepted Answer

A) Has replaced accounting. 
B) Has not improved the clerical accuracy of accounting. 
C) Reduces the time, effort and cost of recordkeeping. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations. 
A) Has replaced accounting. 
B) Has not improved the clerical accuracy of accounting. 
C) Reduces the time, effort and cost of recordkeeping. 
D) In accounting has replaced the need for decision makers. 
E) In accounting is only available to large corporations. C

Question 2

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False  False

Question 3

The characteristics below apply to at least one of the forms of business organization.
a. Is a separate legal entity.
b. Is allowed to be owned by one person only.
c. Individual owners are personally liable for debts of the business.
d. Is a separately taxable entity.
e. Is a business entity.
f. May have a contract specifying the division of profits among the partners.
g. Has an unlimited life.
Use the following format to indicate (with a "yes" or "no") whether or not a characteristic applies to each type of business organization.

Accepted Answer

The answer of The characteristics below apply to at least...

Question 4

On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Accepted Answer

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

Question 5

A partnership is a business owned by two or more people.

Accepted Answer

A) True 
 B)False

Question 6

Revenues are:

Accepted Answer

A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used. 
A) The same as net income. 
B) The excess of expenses over assets. 
C) Resources owned or controlled by a company. 
D) The increase in equity from a company's sales of products and services. 
E) The costs of assets or services used.

Question 7

U.S. government bonds are:

Accepted Answer

A) High-risk and high-return investments. 
B) Low-risk and low-return investments. 
C) High-risk and low-return investments. 
D) Low-risk and high-return investments. 
E) High risk and no-return investments. 
A) High-risk and high-return investments. 
B) Low-risk and low-return investments. 
C) High-risk and low-return investments. 
D) Low-risk and high-return investments. 
E) High risk and no-return investments.

Question 8

In recent years, the FASB and IASB have pursued a process aimed at reducing inconsistencies and improving comparability between U.S. GAAP and IFRS. This process is known as:

Accepted Answer

A) Consistency 
B) Matching 
C) Quantifying 
D) Convergence 
E) Globalization 
A) Consistency 
B) Matching 
C) Quantifying 
D) Convergence 
E) Globalization

Question 9

Unlimited liability and separate taxation of the business are advantages of a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 10

Creditors' claims on the assets of a company are called:

Accepted Answer

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

Question 11

Every business transaction leaves the accounting equation in balance.

Accepted Answer

A) True 
 B)False

Question 12

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Question 13

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 14

In accounting, the rule 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 the ________________________.

Accepted Answer

The answer of In accounting, the rule that requires that...

Question 15

Identify and describe the four basic financial statements.

Accepted Answer

The four basic financial statements are

Question 16

Determine the net income (net loss) of a company for which the following information is available for the month of September.

Accepted Answer

A) $404,000. 
B) ($4,000). 
C) $162,000. 
D) $4,000. 
E) ($204,000). 
A) $404,000. 
B) ($4,000). 
C) $162,000. 
D) $4,000. 
E) ($204,000).

Question 17

When expenses exceed revenues, the resulting change in equity is:

Accepted Answer

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

Question 18

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in U.S. dollars.

Accepted Answer

A) True 
 B)False

Question 19

The accounting principle that requires accounting information to be based on actual cost 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 assumption. 
D) Realization principle. 
E) Business entity assumption. 
A) Accounting equation. 
B) Cost principle. 
C) Going-concern assumption. 
D) Realization principle. 
E) Business entity assumption.

Question 20

If equity is $300,000 and liabilities are $192,000, then assets equal:

Accepted Answer

A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000. 
A) $108,000. 
B) $192,000. 
C) $300,000. 
D) $492,000. 
E) $792,000.

Technology:

The income statement shows the financial position of a business on a specific date.

A partnership is a business owned by two or more people.

Revenues are:

U.S. government bonds are:

In recent years, the FASB and IASB have pursued a process aimed at reducing inconsistencies and improving comparability between U.S. GAAP and IFRS. This process is known as:

Unlimited liability and separate taxation of the business are advantages of a sole proprietorship.

Creditors' claims on the assets of a company are called:

Every business transaction leaves the accounting equation in balance.

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

In accounting, the rule 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 the ________________________.

Identify and describe the four basic financial statements.

Determine the net income (net loss) of a company for which the following information is available for the month of September.

When expenses exceed revenues, the resulting change in equity is:

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in U.S. dollars.

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:

If equity is $300,000 and liabilities are $192,000, then assets equal:

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 1: Introducing Financial Accounting

Technology:

The income statement shows the financial position of a business on a specific date.

A partnership is a business owned by two or more people.

Revenues are:

U.S. government bonds are:

In recent years, the FASB and IASB have pursued a process aimed at reducing inconsistencies and improving comparability between U.S. GAAP and IFRS. This process is known as:

Unlimited liability and separate taxation of the business are advantages of a sole proprietorship.

Creditors' claims on the assets of a company are called:

Every business transaction leaves the accounting equation in balance.

An external transaction is an exchange within an entity that may or may not affect the accounting equation.

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

In accounting, the rule 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 the ________________________.

Identify and describe the four basic financial statements.

Determine the net income (net loss) of a company for which the following information is available for the month of September.

When expenses exceed revenues, the resulting change in equity is:

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in U.S. dollars.

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:

If equity is $300,000 and liabilities are $192,000, then assets equal:

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters