Question 1

U.S. Government Treasury bonds provide low return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 2

Assets created by selling goods and services on credit are:

Accepted Answer

A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity. 
A) Accounts payable. 
B) Accounts receivable. 
C) Liabilities. 
D) Expenses. 
E) Equity.

Question 3

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

Accepted Answer

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

Question 4

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Accepted Answer

A) Objectives 
B) Qualitative characteristics 
C) Uniformity 
D) Elements 
E) Recognition and measurement 
A) Objectives 
B) Qualitative characteristics 
C) Uniformity 
D) Elements 
E) Recognition and measurement

Question 5

A ____________________ is a business that is owned by only one person.

Accepted Answer

The answer of A ____________________ is a business that is...

Question 6

Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.

Accepted Answer

A) True 
 B)False

Question 7

The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

Accepted Answer

A) True 
 B)False

Question 8

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 9

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period, the assets of the business must have:

Accepted Answer

A) Decreased $105,000. 
B) Decreased $45,000. 
C) Increased $30,000. 
D) Increased $45,000. 
E) Increased $105,000. 
A) Decreased $105,000. 
B) Decreased $45,000. 
C) Increased $30,000. 
D) Increased $45,000. 
E) Increased $105,000.

Question 10

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. Calculate the ending equity.

Accepted Answer

A) $88,000. 
B) $25,000. 
C) $97,000. 
D) $38,000. 
E) $47,000. 
A) $88,000. 
B) $25,000. 
C) $97,000. 
D) $38,000. 
E) $47,000.

Question 11

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 12

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 13

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Accepted Answer

A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000. 
A) Accounts payable decreases $10,000. 
B) Accounts payable increases $10,000. 
C) Cash increases $10,000. 
D) Revenue increases $10,000. 
E) Revenue decreases $10,000.

Question 14

A sole proprietorship is a business owned by one or more persons.

Accepted Answer

A) True 
 B)False

Question 15

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?

Accepted Answer

A) Assets would decrease $1,750 and liabilities would decrease $1,750. 
B) One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect. 
C) Assets would increase $1,750 and equity would increase $1,750. 
D) Assets would increase $1,750 and liabilities would increase $1,750. 
E) Liabilities would decrease $1,750 and equity would increase $1,750. 
A) Assets would decrease $1,750 and liabilities would decrease $1,750. 
B) One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect. 
C) Assets would increase $1,750 and equity would increase $1,750. 
D) Assets would increase $1,750 and liabilities would increase $1,750. 
E) Liabilities would decrease $1,750 and equity would increase $1,750.

Question 16

Financial accounting is the area of accounting that serves the decision making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 17

If a company is considering the purchase of a parcel of land that was originally acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:

Accepted Answer

A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000. 
A) $95,000. 
B) $137,000. 
C) $138,500. 
D) $140,000. 
E) $150,000.

Question 18

The International Accounting Standards Board (IASB):

Accepted Answer

A) Hopes to create harmony among accounting practices globally to improve comparability. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the investing public. 
C) Has the authority to impose its standards on companies around the world. 
D) Is the only source of generally accepted accounting principles (GAAP). 
E) Only applies to companies that are members of the European Union. 
A) Hopes to create harmony among accounting practices globally to improve comparability. 
B) Is the government group that establishes reporting requirements for companies that issue stock to the investing public. 
C) Has the authority to impose its standards on companies around the world. 
D) Is the only source of generally accepted accounting principles (GAAP). 
E) Only applies to companies that are members of the European Union.

Question 19

The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

Accepted Answer

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

Question 20

The ________________ assumption states that transactions and events are expressed in money units.

Accepted Answer

The answer of The ________________ assumption states that transactions and...

U.S. Government Treasury bonds provide low return and low risk to investors.

Assets created by selling goods and services on credit are:

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

A ____________________ is a business that is owned by only one person.

Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.

The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period, the assets of the business must have:

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. Calculate the ending equity.

What is the purpose of return on assets as an analytical tool?

Identify the users and uses of accounting information.

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

A sole proprietorship is a business owned by one or more persons.

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?

Financial accounting is the area of accounting that serves the decision making needs of internal users.

The International Accounting Standards Board (IASB):

The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

The ________________ assumption states that transactions and events are expressed in money units.

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

U.S. Government Treasury bonds provide low return and low risk to investors.

Assets created by selling goods and services on credit are:

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

A ____________________ is a business that is owned by only one person.

Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.

The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period, the assets of the business must have:

Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. Calculate the ending equity.

What is the purpose of return on assets as an analytical tool?

Identify the users and uses of accounting information.

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

A sole proprietorship is a business owned by one or more persons.

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?

Financial accounting is the area of accounting that serves the decision making needs of internal users.

The International Accounting Standards Board (IASB):

The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

The ________________ assumption states that transactions and events are expressed in money units.

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