Question 1

The ______________ assumption assumes business will continue operating indefinitely instead of being closed or sold.

Accepted Answer

The answer of The ______________ assumption assumes business will continue...

Question 2

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 3

Nick's had income of $350 million and average invested assets of $2,000 million. Its ROA is:

Accepted Answer

A)  1.8%. 
B)  35%. 
C)  17.5%. 
D)  5.7%. 
E)  3.5%. 
A)  1.8%. 
B)  35%. 
C)  17.5%. 
D)  5.7%. 
E)  3.5%.

Question 4

Assets are the resources of a company and are expected to yield future benefits.

Accepted Answer

A) True 
 B)False

Question 5

An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)

Accepted Answer

A) True 
 B)False

Question 6

A company acquires equipment for $75,000 cash. This represents a(n)

Accepted Answer

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

Question 7

Describe the three important guidelines for revenue recognition.

Accepted Answer

The three important guidelines for reven

Question 8

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 9

The area of accounting aimed at serving the decision making needs of internal users is:

Accepted Answer

A)  Financial accounting. 
B)  Managerial accounting. 
C)  External auditing. 
D)  SEC reporting. 
E)  Bookkeeping. 
A)  Financial accounting. 
B)  Managerial accounting. 
C)  External auditing. 
D)  SEC reporting. 
E)  Bookkeeping.

Question 10

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Accepted Answer

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

Question 11

A payment to an owner is called a(n):

Accepted Answer

A)  Liability. 
B)  Withdrawal. 
C)  Expense. 
D)  Contribution. 
E)  Investment. 
A)  Liability. 
B)  Withdrawal. 
C)  Expense. 
D)  Contribution. 
E)  Investment.

Question 12

The owner's claim on assets is called _________________.

Accepted Answer

The answer of The owner's claim on assets is called...

Question 13

Identify the two main groups involved in establishing generally accepted accounting principles.

Accepted Answer

The FASB is the private group

Question 14

All of the following regarding a Certified Public Accountant are True except:

Accepted Answer

A)  Must meet education and experience requirements. 
B)  Must pass an examination. 
C)  Must exhibit ethical character. 
D)  May also be a Certified Management Accountant. 
E)  Cannot hold any certificate other than a CPA. 
A)  Must meet education and experience requirements. 
B)  Must pass an examination. 
C)  Must exhibit ethical character. 
D)  May also be a Certified Management Accountant. 
E)  Cannot hold any certificate other than a CPA.

Question 15

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land account transaction amount to handle the sale of the land in the seller's books is:

Accepted Answer

A)  $85,000 increase. 
B)  $85,000 decrease. 
C)  $137,000 increase. 
D)  $137,000 decrease. 
E)  $140,000 decrease. 
A)  $85,000 increase. 
B)  $85,000 decrease. 
C)  $137,000 increase. 
D)  $137,000 decrease. 
E)  $140,000 decrease.

Question 16

How does the objectivity principle support ethical behavior?

Accepted Answer

The objectivity principle supports ethic

Question 17

Objectivity means that financial information is supported by independent unbiased evidence.

Accepted Answer

A) True 
 B)False

Question 18

The accounting equation is _____________________________.

Accepted Answer

Assets = L

Question 19

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

Accepted Answer

A) True 
 B)False

Question 20

A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Accepted Answer

The answer of A parcel of land is offered for...

Exam 1: Accounting in Business

The ______________ assumption assumes business will continue operating indefinitely instead of being closed or sold.

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

Nick's had income of $350 million and average invested assets of $2,000 million. Its ROA is:

Assets are the resources of a company and are expected to yield future benefits.

An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.)

A company acquires equipment for $75,000 cash. This represents a(n)

Describe the three important guidelines for revenue recognition.

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

The area of accounting aimed at serving the decision making needs of internal users is:

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

A payment to an owner is called a(n):

The owner's claim on assets is called _________________.

Identify the two main groups involved in establishing generally accepted accounting principles.

All of the following regarding a Certified Public Accountant are True except:

How does the objectivity principle support ethical behavior?

Objectivity means that financial information is supported by independent unbiased evidence.

The accounting equation is _____________________________.

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

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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