Question 1

The accounting equation can be restated as: Assets - Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 2

Describe the income statement and the relation between revenues, expenses, and net income or loss.

Accepted Answer

The income statement describes a company

Question 3

Operating activities:

Accepted Answer

A) Are the means organizations use to pay for resources like land, buildings and equipment. 
B) Involve using resources to research, develop, purchase, produce, distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management. 
A) Are the means organizations use to pay for resources like land, buildings and equipment. 
B) Involve using resources to research, develop, purchase, produce, distribute and market products and services. 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 
D) Are also called asset management. 
E) Are also called strategic management.

Question 4

Regulators often have legal authority over certain activities of organizations.

Accepted Answer

A) True 
 B)False

Question 5

Rushing had income of $150 million and average invested assets of $1,800 million. Its return on assets is:

Accepted Answer

A) 8.3%. 
B) 83.3%. 
C) 12%. 
D) 120%. 
E) 16.7%. 
A) 8.3%. 
B) 83.3%. 
C) 12%. 
D) 120%. 
E) 16.7%.

Question 6

A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

Accepted Answer

A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000. 
A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000.

Question 7

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Accepted Answer

A) True 
 B)False

Question 8

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide

Question 9

Identifying the proper ethical path is usually easy.

Accepted Answer

A) True 
 B)False

Question 10

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i

Question 11

The term ___________ refers to a liability that promises a future outflow of resources.

Accepted Answer

The answer of The term ___________ refers to a liability...

Question 12

An example of a financing activity is:

Accepted Answer

A) Buying office supplies. 
B) Obtaining a long-term loan. 
C) Buying office equipment. 
D) Selling inventory. 
E) Buying land. 
A) Buying office supplies. 
B) Obtaining a long-term loan. 
C) Buying office equipment. 
D) Selling inventory. 
E) Buying land.

Question 13

Arrow's net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%.
Return on Assets = Net Income/Average Assets
Return on Assets = $117 million/$1,400 million = 8.36%

Accepted Answer

A) True 
 B)False

Question 14

A limited partnership:

Accepted Answer

A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) May only have two partners. 
A) Includes a general partner with unlimited liability. 
B) Is subject to double taxation. 
C) Has owners called stockholders. 
D) Is the same as a corporation. 
E) May only have two partners.

Question 15

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Accepted Answer

Assets inc

Question 16

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Accepted Answer

A) Liabilities. 
B) Equity. 
C) Dividends. 
D) Expenses. 
E) Common Stock. 
A) Liabilities. 
B) Equity. 
C) Dividends. 
D) Expenses. 
E) Common Stock.

Question 17

The accountant of Action Adventure Games, Inc. prepared a balance sheet after every 10 day period. The only resources invested by the owner were at the start of the company on June 1. During June, the first month of operation, the following balance sheets were prepared:       Required:
Describe the nature of each of the four transactions that took place between the balance sheet dates shown. Assume only one transaction affected each account.

Accepted Answer

The answer of The accountant of Action Adventure Games, Inc....

Question 18

Speedy has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

Accepted Answer

A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%. 
A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%.

Question 19

Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?

Accepted Answer

A) Assets would decrease $80,000 and liabilities would decrease $80,000. 
B) Assets would decrease $80,000 and equity would increase $80,000. 
C) Assets would increase $80,000 and equity would decrease $80,000. 
D) Assets would increase $80,000 and liabilities would increase $80,000. 
E) Liabilities would decrease $80,000 and equity would increase $80,000. 
A) Assets would decrease $80,000 and liabilities would decrease $80,000. 
B) Assets would decrease $80,000 and equity would increase $80,000. 
C) Assets would increase $80,000 and equity would decrease $80,000. 
D) Assets would increase $80,000 and liabilities would increase $80,000. 
E) Liabilities would decrease $80,000 and equity would increase $80,000.

Question 20

____________________ is the process undertaken in recent years by the FASB and IASB aimed at reducing inconsistencies between U.S. GAAP and IFRS.

Accepted Answer

The answer of ____________________ is the process undertaken in recent...

The accounting equation can be restated as: Assets - Equity = Liabilities.

Describe the income statement and the relation between revenues, expenses, and net income or loss.

Operating activities:

Regulators often have legal authority over certain activities of organizations.

Rushing had income of $150 million and average invested assets of $1,800 million. Its return on assets is:

A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Explain why ethics are an integral part of accounting.

Identifying the proper ethical path is usually easy.

Describe the three types of activities reported on the statement of cash flows.

The term ___________ refers to a liability that promises a future outflow of resources.

An example of a financing activity is:

Arrow's net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%. Return on Assets = Net Income/Average Assets Return on Assets = $117 million/$1,400 million = 8.36%

A limited partnership:

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Speedy has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?

____________________ is the process undertaken in recent years by the FASB and IASB aimed at reducing inconsistencies between U.S. GAAP and IFRS.

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 accounting equation can be restated as: Assets - Equity = Liabilities.

Describe the income statement and the relation between revenues, expenses, and net income or loss.

Operating activities:

Regulators often have legal authority over certain activities of organizations.

Rushing had income of $150 million and average invested assets of $1,800 million. Its return on assets is:

A company's balance sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and equity $72,000. What is the amount of liabilities?

A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.

Explain why ethics are an integral part of accounting.

Identifying the proper ethical path is usually easy.

Describe the three types of activities reported on the statement of cash flows.

The term ___________ refers to a liability that promises a future outflow of resources.

An example of a financing activity is:

Arrow's net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%. Return on Assets = Net Income/Average Assets Return on Assets = $117 million/$1,400 million = 8.36%

A limited partnership:

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:

Speedy has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?

____________________ is the process undertaken in recent years by the FASB and IASB aimed at reducing inconsistencies between U.S. GAAP and IFRS.

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