Question 1

A parcel of land 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 purchased 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 offered for sale...

Question 2

Match between columns
                        Premises:  Monitor costs and ensure quality.
 Judge the soundness of a customer before making sales on credit.
 Measuring risk and return of loans.
 Assessing employment opportunities.
 Assessing the risk and return of acquiring shares.
  An insurance company receives insurance premiums for six future months’ worth of coverage.
 Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
 Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
 A building is for sale at $480,000. An appraisal is given for $450,000.
 To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.

Accepted Answer

The Answer of Production managers and Suppliers and Employees and is...

Question 3

The primary objective of financial accounting is:

Accepted Answer

A)  To serve the decision-making needs of internal users. 
B)  To provide financial statements to help external users analyze and interpret an organization's activities. 
C)  To monitor and control company activities. 
D)  To provide information on both the costs and benefits of managing products and services. 
E)  To know what, when and how much to produce.

Question 4

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)  Governmental accounting

Question 5

The income statement reports all of the following except:

Accepted Answer

A)  Revenues earned by a business. 
B)  Expenses incurred by a business. 
C)  Assets owned by a business. 
D)  Net income or loss earned by a business. 
E)  The time period over which the earnings occurred.

Question 6

Identify and describe the four basic financial statements.

Accepted Answer

The answer of Identify and describe the four basic financial...

Question 7

Social responsibility:

Accepted Answer

A)  Is a concern for the impact of one's actions on society as a whole. 
B)  Is a code that helps in dealing with confidential information. 
C)  Is required by the SEC. 
D)  Requires that all businesses conduct social audits. 
E)  Is mandated by the federal government.

Question 8

Explain why ethics are an integral part of accounting.

Accepted Answer

The answer of Explain why ethics are an integral part...

Question 9

Risk is the amount of uncertainty about the return we expect to earn in the future.

Accepted Answer

A) True 
 B)False

Question 10

The private board that currently has the authority to establish U.S.generally accepted accounting principles is the:

Accepted Answer

A)  APB 
B)  FASB 
C)  AAA 
D)  AICPA 
E)  SEC

Question 11

______________________ are procedures set up to protect company property and equipment,ensure reliable accounting reports,promote efficiency,and encourage adherence to company policies.

Accepted Answer

The answer of ______________________ are procedures set up to protect...

Question 12

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000.
What were the total dividends declared?

Accepted Answer

A)  $75,000 
B)  $998,000 
C)  $131,000 
D)  $203,000 
E)  $308,000

Question 13

Recording the items on the financial statements in dollars is done because of the:

Accepted Answer

A)  Objectivity principle 
B)  Monetary unit principle 
C)  Revenue recognition principle 
D)  Going-concern principle 
E)  Cost principle

Question 14

Della's Donuts has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Accepted Answer

The answer of Della's Donuts has revenues of $83,000 and...

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 17

The statement of cash flows reports on cash flows for:

Accepted Answer

A)  Operating activities 
B)  Revenue activities 
C)  Expense activities 
D)  Planning activities 
E)  Equity activities

Question 18

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Accepted Answer

The answer of A company has liabilities of $475,000 and...

Question 19

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

Accepted Answer

The answer of Cool Tours had beginning equity of $72,000,net...

Question 20

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 and by what amount?

Accepted Answer

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

Exam 1: Introducing Accounting in Business

A parcel of land 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 purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Match the appropriate user to the following information needs:

The primary objective of financial accounting is:

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

The income statement reports all of the following except:

Identify and describe the four basic financial statements.

Social responsibility:

Explain why ethics are an integral part of accounting.

Risk is the amount of uncertainty about the return we expect to earn in the future.

The private board that currently has the authority to establish U.S.generally accepted accounting principles is the:

______________________ are procedures set up to protect company property and equipment,ensure reliable accounting reports,promote efficiency,and encourage adherence to company policies.

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000. What were the total dividends declared?

Recording the items on the financial statements in dollars is done because of the:

Della's Donuts has revenues of $83,000 and expenses of $64,000.Calculate its net income.

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

The income statement shows the financial position of a business on a specific date.

The statement of cash flows reports on cash flows for:

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

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 and by what amount?