Question 1

Expenses are shown on the

Accepted Answer

A) balance sheet. 
B) income statement. 
C) statement of changes in stockholders' equity. 
D) both b and C.Expenses and revenues are reported on the income statement. Only permanent accounts are shown on the balance sheet. Net income is shown on the statement of stockholders' equity, but expenses are not. 
A) balance sheet. 
B) income statement. 
C) statement of changes in stockholders' equity. 
D) both b and C.Expenses and revenues are reported on the income statement. Only permanent accounts are shown on the balance sheet. Net income is shown on the statement of stockholders' equity, but expenses are not. B

Question 2

A business's temporary accounts include revenues, expenses, and retained earnings.

Accepted Answer

A) True 
 B)False  False

Question 3

Indicate whether each of the following statements about accounting information is true or false
_______ a) Financial accounting is primarily intended to satisfy the information needs of external resource providers.
_______ b) Financial accounting information is useful only to banks and stockholders.
_______ c) The accounting information intended to satisfy the needs of a company's employees is managerial accounting information.
_______ d) GAAP requires that companies adhere to managerial accounting standards.
_______ e) Managerial accounting information is usually more detailed than financial accounting information.

Accepted Answer

a) True b) False c) True d) False e) True
Explanation: While banks and stockholders are major users of financial accounting information, company managers, government regulators, financial analysts and potential investors are all users as well. There are no set standards for managerial accounting. GAAP involves financial, not managerial, accounting.

Question 4

The amount of assets on Petras's 2013 balance sheet is

Accepted Answer

A) $2,165. 
B) $390. 
C) $2,065. 
D) $395. 
A) $2,165. 
B) $390. 
C) $2,065. 
D) $395.

Question 5

Indicate whether each of the following statements about retained earnings is true or false.
_______ a) A dividend paid to stockholders decreases retained earnings.
_______ b) Issuing common stock for cash increases retained earnings.
_______ c) The amount of net income for a period must equal retained earnings.
_______ d) The purchase of a truck decreases retained earnings.
_______ e) The amount of net income for a period increases retained earnings.

Accepted Answer

a) True b) False c) False d) False e) Tr

Question 6

The transaction, "earned cash revenue," affects which two accounts?

Accepted Answer

A) Revenue and Salaries Expense 
B) Cash and Notes Payable 
C) Cash and Revenue 
D) Cash and Dividends 
A) Revenue and Salaries Expense 
B) Cash and Notes Payable 
C) Cash and Revenue 
D) Cash and Dividends

Question 7

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

Accepted Answer

Markets include consumers, conversion ag

Question 8

What is meant by the term double-entry bookkeeping?

Accepted Answer

All transactions affect the accounting e

Question 9

Which types of accounts are closed out to retained earnings at the end of an accounting period?

Accepted Answer

Revenues, expenses, and dividends are te

Question 10

The value created by a business may be called income or earnings.

Accepted Answer

A) True 
 B)False

Question 11

The total equity of Timberlake Company at the beginning of 2013 amounted to $5,500. During 2013 the company reported net income of $1,800 and paid a $500 dividend. If retained earnings at the end of 2013 is $2,200, what was beginning common stock?

Accepted Answer

A) $3,300 
B) $2,800 
C) $1,300 
D) $4,600 
A) $3,300 
B) $2,800 
C) $1,300 
D) $4,600

Question 12

Stinespring Company was founded in 2012. It acquired $35,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2012 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business.
Required:
a) Explain the term, "business liquidation."
b) What amount of cash should Stinespring Company have had on hand immediately before going out of business?
c) What amount of cash will Stinespring's creditors receive?
d) What amount of cash will Stinespring's stockholders receive?

Accepted Answer

a) Liquidation is the process of dividin

Question 13

Vegas Co. issued a note to purchase a building.

Accepted Answer

(I) (I) (N) (N) (N) (N) (N)
Explanation:

Question 14

What financial statement elements are reported on a balance sheet?

Accepted Answer

A BUSINESS'S BALANCE

Question 15

The amount of retained earnings on La Paz's 2012 balance sheet was

Accepted Answer

A) $3,100. 
B) $2,700. 
C) $300. 
D) $700. 
A) $3,100. 
B) $2,700. 
C) $300. 
D) $700.

Question 16

During 2013, Bledsoe Company earned $6,700 of cash revenue, paid cash dividends of $950 to owners and paid $5,000 for cash expenses. Liabilities were unchanged. Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

Accepted Answer

A) Assets increased by $7,700. 
B) Assets increased by $750. 
C) Equity increased by $2,700. 
D) Both B and C 
A) Assets increased by $7,700. 
B) Assets increased by $750. 
C) Equity increased by $2,700. 
D) Both B and C

Question 17

The amount of total equity on Petras' 2012 balance sheet is

Accepted Answer

A) $1,250. 
B) $900. 
C) $300. 
D) $1,300. 
A) $1,250. 
B) $900. 
C) $300. 
D) $1,300.

Question 18

The total in Petras' retained earnings account BEFORE closing in 2012 is

Accepted Answer

A) $0. 
B) $300. 
C) $350. 
D) none of the above 
A) $0. 
B) $300. 
C) $350. 
D) none of the above

Question 19

"GAAP" stands for

Accepted Answer

A) Government Authorized Accounting Procedures 
B) Generally Applied Accounting Procedures 
C) Generally Accepted Accounting Principles 
D) Generally Authorized Auditing Principles 
A) Government Authorized Accounting Procedures 
B) Generally Applied Accounting Procedures 
C) Generally Accepted Accounting Principles 
D) Generally Authorized Auditing Principles

Question 20

Which of the following represents effects of an asset use transaction on a company's financial statements?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Expenses are shown on the

A business's temporary accounts include revenues, expenses, and retained earnings.

The amount of assets on Petras's 2013 balance sheet is

The transaction, "earned cash revenue," affects which two accounts?

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

What is meant by the term double-entry bookkeeping?

Which types of accounts are closed out to retained earnings at the end of an accounting period?

The value created by a business may be called income or earnings.

The total equity of Timberlake Company at the beginning of 2013 amounted to $5,500. During 2013 the company reported net income of $1,800 and paid a $500 dividend. If retained earnings at the end of 2013 is $2,200, what was beginning common stock?

Vegas Co. issued a note to purchase a building.

What financial statement elements are reported on a balance sheet?

The amount of retained earnings on La Paz's 2012 balance sheet was

During 2013, Bledsoe Company earned $6,700 of cash revenue, paid cash dividends of $950 to owners and paid $5,000 for cash expenses. Liabilities were unchanged. Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

The amount of total equity on Petras' 2012 balance sheet is

The total in Petras' retained earnings account BEFORE closing in 2012 is

"GAAP" stands for

Which of the following represents effects of an asset use transaction on a company's financial statements?

Accounting for Accruals and Deferrals

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships, Partnerships, and Corporations

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

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Exam 1: An Introduction to Accounting

Expenses are shown on the

A business's temporary accounts include revenues, expenses, and retained earnings.

The amount of assets on Petras's 2013 balance sheet is

The transaction, "earned cash revenue," affects which two accounts?

Who are the three distinct types of participants in a market? Briefly describe the role of each group of participants.

What is meant by the term double-entry bookkeeping?

Which types of accounts are closed out to retained earnings at the end of an accounting period?

The value created by a business may be called income or earnings.

The total equity of Timberlake Company at the beginning of 2013 amounted to $5,500. During 2013 the company reported net income of $1,800 and paid a $500 dividend. If retained earnings at the end of 2013 is $2,200, what was beginning common stock?

Vegas Co. issued a note to purchase a building.

What financial statement elements are reported on a balance sheet?

The amount of retained earnings on La Paz's 2012 balance sheet was

During 2013, Bledsoe Company earned $6,700 of cash revenue, paid cash dividends of $950 to owners and paid $5,000 for cash expenses. Liabilities were unchanged. Which of the following accurately describes the effect of these events on the elements of the company's financial statements?

The amount of total equity on Petras' 2012 balance sheet is

The total in Petras' retained earnings account BEFORE closing in 2012 is

"GAAP" stands for

Which of the following represents effects of an asset use transaction on a company's financial statements?

Accounting for Accruals and Deferrals

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships, Partnerships, and Corporations

Statement of Cash Flows

Financial Statement Analysis Available Online in the Connect Library

Filters