Question 1

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n):

Accepted Answer

A) Revenue activity. 
B) Operating activity. 
C) Expense activity. 
D) Investing activity. 
E) Financing activity. 
A) Revenue activity. 
B) Operating activity. 
C) Expense activity. 
D) Investing activity. 
E) Financing activity.

Question 2

The Securities and Exchange Commission (SEC) is a government agency that has legal authority to establish GAAP.

Accepted Answer

A) True 
 B)False

Question 3

__________________ is an information and measurement system that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

Accepted Answer

The answer of __________________ is an information and measurement system...

Question 4

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

Accepted Answer

A) Business entity assumption. 
B) Revenue recognition principle. 
C) Going-concern assumption. 
D) Time-period assumption. 
E) Objectivity principle. 
A) Business entity assumption. 
B) Revenue recognition principle. 
C) Going-concern assumption. 
D) Time-period assumption. 
E) Objectivity principle.

Question 5

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of May 31 of the current year?

Accepted Answer

A) $8,300 
B) $13,050 
C) $20,500 
D) $31,100 
E) $40,400 
A) $8,300 
B) $13,050 
C) $20,500 
D) $31,100 
E) $40,400

Question 6

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Accepted Answer

A) Increased $22,000. 
B) Decreased $22,000. 
C) Increased $89,000. 
D) Decreased $156,000. 
E) Increased $156,000. 
A) Increased $22,000. 
B) Decreased $22,000. 
C) Increased $89,000. 
D) Decreased $156,000. 
E) Increased $156,000.

Question 7

Prepare a December 31 balance sheet in proper form for Smokey River Supplies, Inc. from the following list of the accounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 8

Prevor Corporation reports the following account balances at the end of its first year of operation:   Prevor's total assets equal:

Accepted Answer

A) $70,500. 
B) $72,500. 
C) $205,500. 
D) $22,500. 
E) $106,000. 
A) $70,500. 
B) $72,500. 
C) $205,500. 
D) $22,500. 
E) $106,000.

Question 9

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Accepted Answer

A) Assets, $30,000 increase; equity, $30,000 increase. 
B) Assets, $30,000 decrease; liabilities, $30,000 decrease. 
C) Assets, $30,000 decrease; liabilities, $30,000 increase. 
D) Liabilities, $30,000 decrease; equity, $30,000 increase. 
E) Assets, $30,000 decrease; equity $30,000 decreasE.Assets = Liabilities + Stockholders' Equity 
A) Assets, $30,000 increase; equity, $30,000 increase. 
B) Assets, $30,000 decrease; liabilities, $30,000 decrease. 
C) Assets, $30,000 decrease; liabilities, $30,000 increase. 
D) Liabilities, $30,000 decrease; equity, $30,000 increase. 
E) Assets, $30,000 decrease; equity $30,000 decreasE.Assets = Liabilities + Stockholders' Equity

Question 10

Ethical behavior requires that:

Accepted Answer

A) Auditors' pay not depend on the success of the client's business. 
B) Auditors invest in businesses they audit. 
C) Analysts report information favorable to their companies. 
D) Managers use accounting information to benefit themselves. 
E) Auditors' pay depends on the success of the client's business. 
A) Auditors' pay not depend on the success of the client's business. 
B) Auditors invest in businesses they audit. 
C) Analysts report information favorable to their companies. 
D) Managers use accounting information to benefit themselves. 
E) Auditors' pay depends on the success of the client's business.

Question 11

The statement of cash flows reports all of the following except:

Accepted Answer

A) Cash flows from operating activities. 
B) Cash flows from investing activities. 
C) Cash flows from financing activities. 
D) The net increase or decrease in assets for the period reported. 
E) The net increase or decrease in cash for the period reported. 
A) Cash flows from operating activities. 
B) Cash flows from investing activities. 
C) Cash flows from financing activities. 
D) The net increase or decrease in assets for the period reported. 
E) The net increase or decrease in cash for the period reported.

Question 12

In a business decision where there are ethical concerns, the preferred course of action should be one that:

Accepted Answer

A) Is agreed upon by the most managers. 
B) Maximizes the company's profits. 
C) Results in maintaining operations at the current level. 
D) Costs the least to implement. 
E) Avoids casting doubt on the decision maker and upholds trust. 
A) Is agreed upon by the most managers. 
B) Maximizes the company's profits. 
C) Results in maintaining operations at the current level. 
D) Costs the least to implement. 
E) Avoids casting doubt on the decision maker and upholds trust.

Question 13

Increases in equity from a company's sales of products or services are:

Accepted Answer

A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Stockholders' Equity. 
E) Expenses. 
A) Assets. 
B) Revenues. 
C) Liabilities. 
D) Stockholders' Equity. 
E) Expenses.

Question 14

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 15

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and Dividends by the company of $12,000. Calculate the ending equity.

Accepted Answer

A) $(5,000). 
B) $29,000. 
C) $5,000. 
D) $99,000. 
E) $75,000. 
A) $(5,000). 
B) $29,000. 
C) $5,000. 
D) $99,000. 
E) $75,000.

Question 16

Jet Styling, Inc. has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

Accepted Answer

The answer of Jet Styling, Inc. has the following beginning...

Question 17

The first section of the income statement reports cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 18

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

Accepted Answer

A) $45,000. 
B) $92,000. 
C) $98,000. 
D) $210,000. 
E) $282,000. 
A) $45,000. 
B) $92,000. 
C) $98,000. 
D) $210,000. 
E) $282,000.

Question 19

A net loss occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 20

Charlie's Chocolates Inc.'s stockholders made investments of $50,000 and dividends of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Accepted Answer

A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000. 
A) $30,000. 
B) $83,000. 
C) $64,000. 
D) $19,000. 
E) $49,000.

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n):

The Securities and Exchange Commission (SEC) is a government agency that has legal authority to establish GAAP.

__________________ is an information and measurement system that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of May 31 of the current year?

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Prepare a December 31 balance sheet in proper form for Smokey River Supplies, Inc. from the following list of the accounts:

Prevor Corporation reports the following account balances at the end of its first year of operation: Prevor's total assets equal:

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Ethical behavior requires that:

The statement of cash flows reports all of the following except:

In a business decision where there are ethical concerns, the preferred course of action should be one that:

Increases in equity from a company's sales of products or services are:

The balance sheet is based on the accounting equation.

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and Dividends by the company of $12,000. Calculate the ending equity.

Jet Styling, Inc. has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

The first section of the income statement reports cash flows from operating activities.

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

A net loss occurs when revenues exceed expenses.

Charlie's Chocolates Inc.'s stockholders made investments of $50,000 and dividends of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

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

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n):

The Securities and Exchange Commission (SEC) is a government agency that has legal authority to establish GAAP.

__________________ is an information and measurement system that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of May 31 of the current year?

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Prepare a December 31 balance sheet in proper form for Smokey River Supplies, Inc. from the following list of the accounts:

Prevor Corporation reports the following account balances at the end of its first year of operation: Prevor's total assets equal:

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Ethical behavior requires that:

The statement of cash flows reports all of the following except:

In a business decision where there are ethical concerns, the preferred course of action should be one that:

Increases in equity from a company's sales of products or services are:

The balance sheet is based on the accounting equation.

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and Dividends by the company of $12,000. Calculate the ending equity.

Jet Styling, Inc. has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

The first section of the income statement reports cash flows from operating activities.

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

A net loss occurs when revenues exceed expenses.

Charlie's Chocolates Inc.'s stockholders made investments of $50,000 and dividends of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

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