Question 1

Revenue is earned only when money is received.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the characteristics of a limited liability company (LLC).

Accepted Answer

The answer of Discuss the characteristics of a limited liability...

Question 3

Determine the missing amount "X" for each of the following:

Accepted Answer

The answer of Determine the missing amount "X" for each...

Question 4

Financial accounting provides information to all users,while the main focus for managerial accounting is to provide information to the management.

Accepted Answer

A) True 
 B)False

Question 5

The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below.The stockholders' equity was $68,000 ($48,000 in Common Stock and $20,000 in Retained Earnings)at January 1.The shareholders invested in an additional $10,000 of common stock during the year.Net income for the year is $45,625.
​
  Prepare a statement of retained earnings for Rocky's Day Spa for the current year ended December 31.

Accepted Answer

The answer of The assets and liabilities of Rocky's Day...

Question 6

There are four transactions that affect stockholders' equity.
​
(a)What are the two types of transactions that increase stockholders' equity?
(b)What are the two types of transactions that decrease stockholders' equity?

Accepted Answer

The answer of There are four transactions that affect stockholders'...

Question 7

Two common areas of accounting that respectively provide information to internal and external users are

Accepted Answer

A)  forensic accounting and financial accounting 
B)  managerial accounting and financial accounting 
C)  managerial accounting and environmental accounting 
D)  financial accounting and tax accounting systems

Question 8

Many countries outside the United States use financial accounting standards issued by the

Accepted Answer

A)  AICPA 
B)  SEC 
C)  IASB 
D)  FASB

Question 9

Which of the following financial statements reports information as of a specific date?

Accepted Answer

A)  income statement 
B)  retained earnings statement 
C)  statement of cash flows 
D)  balance sheet

Question 10

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

Accepted Answer

A)  assets increase by $62,000; stockholders' equity increases by $62,000 
B)  assets increase by $32,000; stockholders' equity increases by $32,000 
C)  assets increase by $62,000; liabilities decrease by $30,000; stockholders' equity increases by $32,000 
D)  assets increase by $30,000; no change in liabilities; stockholders' equity increases by $62,000

Question 11

For each of the following,determine the amount of net income or net loss for the year.

Accepted Answer

The answer of For each of the following,determine the amount...

Question 12

Given the following data:
Dec.31,Year 2 Dec.31,Year 1
Total liabilities $128,250 $120,000
Total stockholders' equity 95,000 80,000
(a)Compute the ratio of liabilities to stockholders' equity for each year.Round your answer to two decimal places.
(b)Has the creditors' risk increased or decreased from December 31,Year 1,to December 31,Year 2?

Accepted Answer

The answer of Given the following data:
Dec.31,Year 2 Dec.31,Year 1
Total...

Question 13

Assets are

Accepted Answer

A)  always lower than liabilities 
B)  equal to liabilities less stockholders' equity 
C)  the same as expenses because they are acquired with cash 
D)  financed by the stockholders and / or creditors

Question 14

Financial reports are used by

Accepted Answer

A)  management 
B)  creditors 
C)  investors 
D)  all are correct

Question 15

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: (a)total revenue,(b)total expenses,(c)net income.

Accepted Answer

The answer of Selected transaction data of a business for...

Question 16

Which of the following groups of companies are all examples of a merchandising business?

Accepted Answer

A)  Delta Airlines,Marriott,Gap 
B)  Gap,Amazon,NIKE 
C)  GameStop,Sony,Dell 
D)  GameStop,Best Buy,Gap

Question 17

Prepare an income statement for the current year ended March 31.

Accepted Answer

The answer of Prepare an income statement for the current...

Question 18

An account receivable is a claim against a customer resulting from a sale on account.

Accepted Answer

A) True 
 B)False

Question 19

The debt created by a business when it makes a purchase on account is referred to as an

Accepted Answer

A)  account payable 
B)  account receivable 
C)  asset 
D)  expense payable

Question 20

Prepare a balance sheet for the current year ended March 31.

Accepted Answer

The answer of Prepare a balance sheet for the current...

Exam 1: Introduction to Accounting and Business

Revenue is earned only when money is received.

Discuss the characteristics of a limited liability company (LLC).

Determine the missing amount "X" for each of the following:

Financial accounting provides information to all users,while the main focus for managerial accounting is to provide information to the management.

There are four transactions that affect stockholders' equity. (a)What are the two types of transactions that increase stockholders' equity? (b)What are the two types of transactions that decrease stockholders' equity?

Two common areas of accounting that respectively provide information to internal and external users are

Many countries outside the United States use financial accounting standards issued by the

Which of the following financial statements reports information as of a specific date?

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

For each of the following,determine the amount of net income or net loss for the year.

Assets are

Financial reports are used by

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: (a)total revenue,(b)total expenses,(c)net income.

Which of the following groups of companies are all examples of a merchandising business?

Prepare an income statement for the current year ended March 31.

An account receivable is a claim against a customer resulting from a sale on account.

The debt created by a business when it makes a purchase on account is referred to as an

Prepare a balance sheet for the current year ended March 31.

Exam 1: Introduction to Accounting and Business

Revenue is earned only when money is received.

Discuss the characteristics of a limited liability company (LLC).

Determine the missing amount "X" for each of the following:

Financial accounting provides information to all users,while the main focus for managerial accounting is to provide information to the management.

There are four transactions that affect stockholders' equity. ​ (a)What are the two types of transactions that increase stockholders' equity? (b)What are the two types of transactions that decrease stockholders' equity?

Two common areas of accounting that respectively provide information to internal and external users are

Many countries outside the United States use financial accounting standards issued by the

Which of the following financial statements reports information as of a specific date?

Land,originally purchased for $30,000,is sold for $62,000 in cash.What is the effect of the sale on the accounting equation?

For each of the following,determine the amount of net income or net loss for the year.

Assets are

Financial reports are used by

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: (a)total revenue,(b)total expenses,(c)net income.

Which of the following groups of companies are all examples of a merchandising business?

Prepare an income statement for the current year ended March 31.

An account receivable is a claim against a customer resulting from a sale on account.

The debt created by a business when it makes a purchase on account is referred to as an

Prepare a balance sheet for the current year ended March 31.

There are four transactions that affect stockholders' equity. (a)What are the two types of transactions that increase stockholders' equity? (b)What are the two types of transactions that decrease stockholders' equity?