Question 1

______________________, which is one part of accounting, is the recording of transactions and events, either manually or electronically.

Accepted Answer

Record-kee

Question 2

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 3

The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.

Accepted Answer

A) True 
 B)False

Question 4

At the beginning of the period, a company had $350,000 worth of assets, $110,000 worth of liabilities, and $240,000 worth of equity. Assume the only change during the period was a $30,000 purchase of equipment by issuing a note payable. Show the accounting equation with the appropriate amounts at the end of the period.

Accepted Answer

$380,000 =

Question 5

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 6

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Accepted Answer

A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position. 
A) Balance sheet. 
B) Statement of retained earnings. 
C) Statement of cash flows. 
D) Income statement. 
E) Statement of financial position.

Question 7

Creditors' claims on assets that reflect company obligations to provide assets, products, or services to others are called ____________________.

Accepted Answer

The answer of Creditors' claims on assets that reflect company...

Question 8

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Accepted Answer

A) True 
 B)False

Question 9

The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?

Accepted Answer

A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of the common stock is known. 
A) $900,000. 
B) $700,000. 
C) $500,000. 
D) $200,000. 
E) It is impossible to determine unless the amount of the common stock is known.

Question 10

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

Accepted Answer

A) True 
 B)False

Question 11

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 12

Another name for equity is:

Accepted Answer

A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss. 
A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss.

Question 13

Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

Accepted Answer

A) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decreasE.Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing 
A) $38,500 increase. 
B) $38,500 decrease. 
C) $132,500 decrease. 
D) $132,000 increase. 
E) $11,500 decreasE.Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing

Question 14

Revenue is properly recognized:

Accepted Answer

A) When the customer makes an order. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale of goods 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 makes an order. 
B) Only if the transaction creates an account receivable. 
C) At the end of the accounting period. 
D) Upon completion of the sale of goods 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 15

The _______________ principle requires that financial information is supported by independent, unbiased evidence.

Accepted Answer

The answer of The _______________ principle requires that financial information...

Question 16

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

Accepted Answer

A) $166,000. 
B) $146,000. 
C) $186,000. 
D) ($146,000). 
E) ($166,000). 
A) $166,000. 
B) $146,000. 
C) $186,000. 
D) ($146,000). 
E) ($166,000).

Question 17

Accounts payable appear on which of the following statements?

Accepted Answer

A) Balance sheet. 
B) Income statement. 
C) Statement of retained earnings. 
D) Statement of cash flows. 
E) Transaction statement. 
A) Balance sheet. 
B) Income statement. 
C) Statement of retained earnings. 
D) Statement of cash flows. 
E) Transaction statement.

Question 18

The income statement reports all of the following except:

Accepted Answer

A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred. 
A) Revenues earned by a business. 
B) Expenses incurred by a business. 
C) Assets owned by a business. 
D) Net income or loss earned by a business. 
E) The time period over which the earnings occurred.

Question 19

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

Accepted Answer

A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of thesE.Assets = Liabilities + Stockholders' Equity 
A) Assets would have increased $55,000. 
B) Assets would have decreased $55,000. 
C) Assets would have increased $19,000. 
D) Assets would have decreased $19,000. 
E) None of thesE.Assets = Liabilities + Stockholders' Equity

Question 20

According to the cost principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

Accepted Answer

A) True 
 B)False

______________________, which is one part of accounting, is the recording of transactions and events, either manually or electronically.

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Creditors' claims on assets that reflect company obligations to provide assets, products, or services to others are called ____________________.

Opportunities in accounting include auditing, consulting, market research, and tax planning.

The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Another name for equity is:

Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

Revenue is properly recognized:

The _______________ principle requires that financial information is supported by independent, unbiased evidence.

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

Accounts payable appear on which of the following statements?

The income statement reports all of the following except:

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

According to the cost principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

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

______________________, which is one part of accounting, is the recording of transactions and events, either manually or electronically.

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Creditors' claims on assets that reflect company obligations to provide assets, products, or services to others are called ____________________.

Opportunities in accounting include auditing, consulting, market research, and tax planning.

The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Another name for equity is:

Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

Revenue is properly recognized:

The _______________ principle requires that financial information is supported by independent, unbiased evidence.

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

Accounts payable appear on which of the following statements?

The income statement reports all of the following except:

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

According to the cost principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

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