Question 1

FastLane has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

Accepted Answer

A)  7.7%. 
B)  8.5%. 
C)  9.5%. 
D)  11.8%. 
E)  13.0%. 
A)  7.7%. 
B)  8.5%. 
C)  9.5%. 
D)  11.8%. 
E)  13.0%.

Question 2

A balance sheet covers a period of time such as a month or year.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Identifying the proper ethical path is easy.

Accepted Answer

A) True 
 B)False

Question 5

Photometer 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; liabilities, no effect; equity, $30,000 increase. 
B)  Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. 
C)  Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect. 
D)  Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase. 
E)  Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease. 
A)  Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase. 
B)  Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect. 
C)  Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect. 
D)  Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase. 
E)  Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.

Question 6

An example of a financing activity is:

Accepted Answer

A)  Buying office supplies. 
B)  Obtaining a long-term loan. 
C)  Buying office equipment. 
D)  Selling inventory. 
E)  Buying land. 
A)  Buying office supplies. 
B)  Obtaining a long-term loan. 
C)  Buying office equipment. 
D)  Selling inventory. 
E)  Buying land.

Question 7

Every business transaction leaves the accounting equation in balance.

Accepted Answer

A) True 
 B)False

Question 8

Creditors claims on assets that reflect obligations to transfer assets are called ____________.

Accepted Answer

The answer of Creditors claims on assets that reflect obligations...

Question 9

Identify and describe the four basic financial statements:

Accepted Answer

The four basic financial statements are

Question 10

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

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

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 13

The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 14

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of

Question 15

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

Accepted Answer

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

Question 16

Bookkeeping is the recording of transactions and events and is only part of accounting.

Accepted Answer

A) True 
 B)False

Question 17

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 owner's equity. 
E)  Financial Status Statement. 
A)  Balance sheet. 
B)  Income statement. 
C)  Statement of cash flows. 
D)  Statement of owner's equity. 
E)  Financial Status Statement.

Question 18

Using the accounting equation, equity is equal to _______________________.

Accepted Answer

Assets min

Question 19

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Accepted Answer

The answer of If the liabilities of a company increased...

Question 20

Resources that are expected to yield future benefits 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.

Exam 1: Accounting in Business

FastLane has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

A balance sheet covers a period of time such as a month or year.

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

Identifying the proper ethical path is easy.

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

An example of a financing activity is:

Every business transaction leaves the accounting equation in balance.

Creditors claims on assets that reflect obligations to transfer assets are called ____________.

Identify and describe the four basic financial statements:

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

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

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

The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.

Identify the users and uses of accounting information.

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

Bookkeeping is the recording of transactions and events and is only part of accounting.

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):

Using the accounting equation, equity is equal to _______________________.

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Resources that are expected to yield future benefits are:

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

Filters