Question 1

All of the following are True regarding ethics except:

Accepted Answer

A)  Ethics are beliefs that separate right from wrong. 
B)  Ethics rules are often set for CPAs. 
C)  Ethics do not affect the operations or outcome of a company. 
D)  Are critical in accounting. 
E)  Ethics can be hard to apply. 
A)  Ethics are beliefs that separate right from wrong. 
B)  Ethics rules are often set for CPAs. 
C)  Ethics do not affect the operations or outcome of a company. 
D)  Are critical in accounting. 
E)  Ethics can be hard to apply. C

Question 2

Accounting is an ______________________ that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

Accepted Answer

Information and measurement system (or information system

Question 3

Owner's withdrawals are expenses.

Accepted Answer

A) True 
 B)False  False

Question 4

The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

Accepted Answer

A) True 
 B)False

Question 5

The group that attempts to create more harmony among the accounting practices of different countries is the:

Accepted Answer

A)  AICPA. 
B)  IASB. 
C)  CAP. 
D)  SEC. 
E)  FASB. 
A)  AICPA. 
B)  IASB. 
C)  CAP. 
D)  SEC. 
E)  FASB.

Question 6

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

Accepted Answer

A)  Going-concern assumption. 
B)  Matching principle. 
C)  Cost principle. 
D)  Business entity assumption. 
E)  Consideration assumption. 
A)  Going-concern assumption. 
B)  Matching principle. 
C)  Cost principle. 
D)  Business entity assumption. 
E)  Consideration assumption.

Question 7

A partnership is a business owned by two or more people.

Accepted Answer

A) True 
 B)False

Question 8

External users include lenders, shareholders, customers, and regulators.

Accepted Answer

A) True 
 B)False

Question 9

_________________ is net income divided by average total assets.

Accepted Answer

The answer of _________________ is net income divided by average...

Question 10

Harris Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

Accepted Answer

A)  8.4% 
B)  17.2% 
C)  14.3% 
D)  15.6% 
E)  1.5% 
A)  8.4% 
B)  17.2% 
C)  14.3% 
D)  15.6% 
E)  1.5%

Question 11

Increases in equity from a company's earnings activities are:

Accepted Answer

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

Question 12

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 13

Revenues are:

Accepted Answer

A)  The same as net income. 
B)  The excess of expenses over assets. 
C)  Resources owned or controlled by a company. 
D)  The increase in equity from a company's earning activities. 
E)  The costs of assets or services used. 
A)  The same as net income. 
B)  The excess of expenses over assets. 
C)  Resources owned or controlled by a company. 
D)  The increase in equity from a company's earning activities. 
E)  The costs of assets or services used.

Question 14

Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts:

Accepted Answer

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

Question 15

Good ethics are good business.

Accepted Answer

A) True 
 B)False

Question 16

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:

Accepted Answer

A)  Business entity assumption. 
B)  Monetary unit assumption. 
C)  Going-concern assumption. 
D)  Time-period assumption. 
E)  Objectivity. 
A)  Business entity assumption. 
B)  Monetary unit assumption. 
C)  Going-concern assumption. 
D)  Time-period assumption. 
E)  Objectivity.

Question 17

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 18

From the information given below, prepare a November income statement, a November statement of owner's equity, and a November 30 balance sheet. On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts.

Accepted Answer

The answer of From the information given below, prepare a...

Question 19

Reston 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 20

Describe the relation between revenues, expenses, and net income.

Accepted Answer

Revenues are the increases in

Exam 1: Accounting in Business

All of the following are True regarding ethics except:

Accounting is an ______________________ that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

Owner's withdrawals are expenses.

The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

The group that attempts to create more harmony among the accounting practices of different countries is the:

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

A partnership is a business owned by two or more people.

External users include lenders, shareholders, customers, and regulators.

_________________ is net income divided by average total assets.

Harris Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

Increases in equity from a company's earnings activities are:

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Revenues are:

Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts:

Good ethics are good business.

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is:

The balance sheet is based on the accounting equation.

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

Describe the relation between revenues, expenses, and net income.

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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