Question 1

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

Accepted Answer

A) True 
 B)False

Question 2

There are three major types of business activities. ______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.

Accepted Answer

The answer of There are three major types of business...

Question 3

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

Accepted Answer

A) 7.1% 
B) 7.5% 
C) 6.7% 
D) 20.0% 
E) 18.8% 
A) 7.1% 
B) 7.5% 
C) 6.7% 
D) 20.0% 
E) 18.8%

Question 4

How does the going-concern principle affect reporting asset values of a business?

Accepted Answer

The going-concern principle means that f

Question 5

Use the following information for Meeker Corp. to determine the amount of equity to report.

Accepted Answer

A) $390,000. 
B) $140,000. 
C) $20,000. 
D) $530,000. 
E) $270,000. 
A) $390,000. 
B) $140,000. 
C) $20,000. 
D) $530,000. 
E) $270,000.

Question 6

There are at least three types of partnerships that limit the partners' liability. They are 1) _____________________, 2) ___________________, and 3) ______________________.

Accepted Answer

limited partnership,

Question 7

Liabilities are the owner's claim on assets.

Accepted Answer

A) True 
 B)False

Question 8

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

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.

Question 9

The income statement describes revenues earned and expenses incurred over a specified period of time due to earnings activities.

Accepted Answer

A) True 
 B)False

Question 10

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

Accepted Answer

A) True 
 B)False

Question 11

All of the following regarding a Certified Public Accountant are true except:

Accepted Answer

A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA. 
A) Must meet education and experience requirements. 
B) Must pass an examination. 
C) Must exhibit ethical character. 
D) May also be a Certified Management Accountant. 
E) Cannot hold any certificate other than a CPA.

Question 12

Identify the three basic forms of business organizations and their key attributes.

Accepted Answer

The three basic forms of business organi

Question 13

The area of accounting aimed at serving the decision making needs of internal users is:

Accepted Answer

A) Financial accounting. 
B) Managerial accounting. 
C) External auditing. 
D) SEC reporting. 
E) Bookkeeping. 
A) Financial accounting. 
B) Managerial accounting. 
C) External auditing. 
D) SEC reporting. 
E) Bookkeeping.

Question 14

An example of an investing activity is:

Accepted Answer

A) Paying wages of employees. 
B) Dividends paid by the company. 
C) Purchase of land. 
D) Selling inventory. 
E) Contributions from stockholders. 
A) Paying wages of employees. 
B) Dividends paid by the company. 
C) Purchase of land. 
D) Selling inventory. 
E) Contributions from stockholders.

Question 15

There are three major types of business activities. ________________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Accepted Answer

The answer of There are three major types of business...

Question 16

Owners of a corporation are called shareholders or stockholders.

Accepted Answer

A) True 
 B)False

Question 17

______________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Accepted Answer

Financial

Question 18

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 19

A partnership:

Accepted Answer

A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders. 
A) Is also called a sole proprietorship. 
B) Has unlimited liability for its partners. 
C) Has to have a written agreement in order to be legal. 
D) Is a legal organization separate from its owners. 
E) Has owners called shareholders.

Question 20

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

Accepted Answer

A) $223,000. 
B) $240,000. 
C) $268,000. 
D) $274,000. 
E) $208,000. 
A) $223,000. 
B) $240,000. 
C) $268,000. 
D) $274,000. 
E) $208,000.

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

There are three major types of business activities. ______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

How does the going-concern principle affect reporting asset values of a business?

Use the following information for Meeker Corp. to determine the amount of equity to report.

There are at least three types of partnerships that limit the partners' liability. They are 1) ___________, 2) _, and 3) ______________.

Liabilities are the owner's claim on assets.

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

The income statement describes revenues earned and expenses incurred over a specified period of time due to earnings activities.

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

All of the following regarding a Certified Public Accountant are true except:

Identify the three basic forms of business organizations and their key attributes.

The area of accounting aimed at serving the decision making needs of internal users is:

An example of an investing activity is:

There are three major types of business activities. ________________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Owners of a corporation are called shareholders or stockholders.

______________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

A partnership:

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

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

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

There are three major types of business activities. ______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

How does the going-concern principle affect reporting asset values of a business?

Use the following information for Meeker Corp. to determine the amount of equity to report.

There are at least three types of partnerships that limit the partners' liability. They are 1) _____________________, 2) ___________________, and 3) ______________________.

Liabilities are the owner's claim on assets.

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

The income statement describes revenues earned and expenses incurred over a specified period of time due to earnings activities.

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

All of the following regarding a Certified Public Accountant are true except:

Identify the three basic forms of business organizations and their key attributes.

The area of accounting aimed at serving the decision making needs of internal users is:

An example of an investing activity is:

There are three major types of business activities. ________________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Owners of a corporation are called shareholders or stockholders.

______________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

A partnership:

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

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

There are at least three types of partnerships that limit the partners' liability. They are 1) ___________, 2) _, and 3) ______________.