Question 1

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

Accepted Answer

A) $20,000. 
B) $50,000. 
C) $42,500. 
D) $34,000. 
E) $22,500. 
A) $20,000. 
B) $50,000. 
C) $42,500. 
D) $34,000. 
E) $22,500.

Question 2

The ____________________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

Accepted Answer

The answer of The ____________________ describes a company's revenues and...

Question 3

If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation when the first rent payment is collected?

Accepted Answer

A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700. 
A) Assets would decrease $700 and liabilities would decrease $700. 
B) Assets would decrease $700 and equity would increase $700. 
C) Assets would increase $700 and equity would decrease $700. 
D) Assets would increase $700 and equity would increase $700. 
E) Liabilities would decrease $700 and equity would increase $700.

Question 4

Identify the risk and the return in each of the following examples.
a. Investing $500 in a certificate of deposit at 4.5% interest.
b. Placing a $100 bet on an NBA game.
c. Investing $10,000 in Microsoft stock.
d. Borrowing $20,000 in student loans.

Accepted Answer

a. The risk involved is that the investo

Question 5

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 6

The FASB and IASB are attempting to converge and enhance the conceptual framework that guides standard setting, however the differences between U.S. GAAP and IFRS greatly outweigh the similarities.

Accepted Answer

A) True 
 B)False

Question 7

A common characteristic of __________ is their ability to yield expected future benefits to a business.

Accepted Answer

The answer of A common characteristic of __________ is their...

Question 8

____________ are the increases in equity from a company's sales of products and services to customers.

Accepted Answer

The answer of ____________ are the increases in equity from...

Question 9

The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:

Accepted Answer

A) Statement of financial position. 
B) Statement of cash flows. 
C) Balance sheet. 
D) Income statement. 
E) Statement of changes in stockholders' equity. 
A) Statement of financial position. 
B) Statement of cash flows. 
C) Balance sheet. 
D) Income statement. 
E) Statement of changes in stockholders' equity.

Question 10

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The four broad areas of accounting are f

Question 11

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Accepted Answer

The answer of A disadvantage of a sole proprietorship is...

Question 12

Using the accounting equation, equity is equal to ________________________.

Accepted Answer

assets min

Question 13

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

Accepted Answer

A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000. 
A) $190,000. 
B) $210,000. 
C) $230,000. 
D) $400,000. 
E) $610,000.

Question 14

An example of an operating activity is:

Accepted Answer

A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan. 
A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan.

Question 15

______________ users of accounting information are not directly involved in running the organization.

Accepted Answer

The answer of ______________ users of accounting information are not...

Question 16

Resources a company owns or controls that are expected to yield future benefits 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 17

Ending retained earnings on the statement of retained earnings is calculated by adding stockholder investments and net losses and subtracting net income and dividends.

Accepted Answer

A) True 
 B)False

Question 18

If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:

Accepted Answer

A) Assets decrease $12,000 and equity decreases $12,000. 
B) Assets increase $12,000 and liabilities decrease $12,000. 
C) Assets increase $12,000 and liabilities increase $12,000. 
D) Liabilities increase $12,000 and equity decreases $12,000. 
E) Assets increase $12,000 and equity increases $12,000. 
A) Assets decrease $12,000 and equity decreases $12,000. 
B) Assets increase $12,000 and liabilities decrease $12,000. 
C) Assets increase $12,000 and liabilities increase $12,000. 
D) Liabilities increase $12,000 and equity decreases $12,000. 
E) Assets increase $12,000 and equity increases $12,000.

Question 19

Cash investments by stockholders are listed 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) All of the above. 
A) Balance sheet. 
B) Income statement. 
C) Statement of retained earnings. 
D) Statement of cash flows. 
E) All of the above.

Question 20

Cornelia's Closet has the following account balances for the dates given:   Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.

Accepted Answer

October 1^st Equity = $

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

The ____________________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation when the first rent payment is collected?

Identify the risk and the return in each of the following examples. a. Investing $500 in a certificate of deposit at 4.5% interest. b. Placing a $100 bet on an NBA game. c. Investing $10,000 in Microsoft stock. d. Borrowing $20,000 in student loans.

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

The FASB and IASB are attempting to converge and enhance the conceptual framework that guides standard setting, however the differences between U.S. GAAP and IFRS greatly outweigh the similarities.

A common characteristic of __________ is their ability to yield expected future benefits to a business.

____________ are the increases in equity from a company's sales of products and services to customers.

The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Using the accounting equation, equity is equal to ________________________.

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

An example of an operating activity is:

______________ users of accounting information are not directly involved in running the organization.

Resources a company owns or controls that are expected to yield future benefits are:

Ending retained earnings on the statement of retained earnings is calculated by adding stockholder investments and net losses and subtracting net income and dividends.

If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:

Cash investments by stockholders are listed on which of the following statements?

Cornelia's Closet has the following account balances for the dates given: Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.

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

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Exam 1: Introducing Financial Accounting

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

The ____________________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation when the first rent payment is collected?

Identify the risk and the return in each of the following examples. a. Investing $500 in a certificate of deposit at 4.5% interest. b. Placing a $100 bet on an NBA game. c. Investing $10,000 in Microsoft stock. d. Borrowing $20,000 in student loans.

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

The FASB and IASB are attempting to converge and enhance the conceptual framework that guides standard setting, however the differences between U.S. GAAP and IFRS greatly outweigh the similarities.

A common characteristic of __________ is their ability to yield expected future benefits to a business.

____________ are the increases in equity from a company's sales of products and services to customers.

The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Using the accounting equation, equity is equal to ________________________.

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

An example of an operating activity is:

______________ users of accounting information are not directly involved in running the organization.

Resources a company owns or controls that are expected to yield future benefits are:

Ending retained earnings on the statement of retained earnings is calculated by adding stockholder investments and net losses and subtracting net income and dividends.

If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:

Cash investments by stockholders are listed on which of the following statements?

Cornelia's Closet has the following account balances for the dates given: Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.

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