Question 1

Match between columns
                        Premises:  An information and measurement system that identifies records and communicates relevant, reliable and comparable information about an organization's business activities
 The use of resources to research, develops, purchase, produce, distribute and market products and services
 . The acquisition and disposing of resources that an organization uses to acquire and sell products and services
 The idea that accounting information is based on actual cost
 Provide the means organizations use to pay for resources such as land, buildings and equipment to carry out plans
 Persons using accounting information who are not directly involved in the running of the organization
 The part of accounting that involves recording transactions and events, either electronically or manually
 Beliefs that distinguish right from wrong
 Persons using accounting information who are directly involved in managing the organization
 Concern for the impact of actions on society

Accepted Answer

The Answer of Accounting and Recordkeeping and External users and is...

Question 2

Describe the three important guidelines for revenue recognition.

Accepted Answer

The answer of Describe the three important guidelines for revenue...

Question 3

Congress passed the Sarbanes-Oxley Act to

Accepted Answer

A) Provide jobs to U.S.accountants and limit the number of jobs sent outside the country 
B) Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports,although at this time the penalties are token amounts 
C) Help curb financial abuses at companies that issue their stock to the public 
D) Force auditors to attest to the absolute accuracy of the financial statements 
E) Require that all companies publicly disclose their internal control plans

Question 4

Compute return on assets given net income of $13,764,beginning assets of $120,000 and ending assets of $176,000.

Accepted Answer

A) 4.65% 
B) 7.82% 
C) 9.3% 
D) 11.47% 
E) 21.51%

Question 5

Fast-Forward paid $6,000 in dividends.This amount should be included as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 6

Operating activities:

Accepted Answer

A) Are the means organizations must use to pay for resources like land,buildings and equipment 
B) Involve using resources to research,develop,purchase,produce,distribute and market products and services 
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services 
D) Are also called asset management 
E) Are also called strategic management

Question 7

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:
 $$\begin{array} { | l | r | } 
\hline \text { Accounts receivable } & \$ 10,000 \
\hline \text { Accounts payable } & 18,000 \
\hline \text { Building } & 28,000 \
\hline \text { Common stock } & 30,000 \
\hline \text { Cash } & 8,000 \
\hline \text { Notes payable } & 45,000 \
\hline \text { Office equipment } & 12,000 \
\hline \text { Retained earnings } & ? \
\hline \text { Trucks } & 55,000 \
\hline
\end{array}$$

Accepted Answer

The answer of Prepare a November 30 balance sheet in...

Question 8

The International Accounting Standards Board (IASB)is the government group that establishes reporting requirements for companies that issue stock to the public.

Accepted Answer

A) True 
 B)False

Question 9

Revenues are:

Accepted Answer

A) The same as net income 
B) The excess of expenses over assets 
C) Resources owned or controlled by a company 
D) Increases in retained earnings from a company's earning activities 
E) The costs of assets or services used

Question 10

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000.
What is the Ending Equity for the year?

Accepted Answer

A) $700,160 
B) $331,590 
C) $134,250 
D) $612,560 
E) $175,040

Question 11

What are two questions that an owner might be able to answer by looking at accounting information?

Accepted Answer

The answer of What are two questions that an owner...

Question 12

Match between columns
                        Premises:  Cash received from a one-time sale of used office equipment
 Cash received from customers
 Cash paid for utilities
 Cash paid for dividends
 Cash paid for a delivery van to be used in the business
 Cash received from stockholders from issuance of stock

Accepted Answer

The Answer of Investing activity and Financing activity and Operating is...

Question 13

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

Accepted Answer

The answer of A ____________________ is a non-corporate business that...

Question 14

The question of when revenue should be recognized on the income statement (according to GAAP)is addressed by the:

Accepted Answer

A) Revenue recognition principle 
B) Going-concern principle 
C) Objectivity principle 
D) Business entity principle 
E) Cost principle

Question 15

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000.
What is Net Income for the year?

Accepted Answer

A) $700,160 
B) $331,590 
C) $134,250 
D) $612,560 
E) $175,040

Question 16

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

Accepted Answer

The answer of ______________ users of accounting information are users...

Question 17

Assets = Liabilities + Equity is known as the:

Accepted Answer

A) Income statement equation 
B) Cost principle 
C) Objectivity principle 
D) Accounting equation 
E) Transaction principle

Question 18

The accounts of Garfield Company listed with the increases or decreases that occurred during the past year are as follows.
 $$\begin{array} { | l | r | r | } 
\hline \text { Account } & \text { Increase } & \text { Decrease } \
\hline \text { Cash } & \$ 25,000 & \
\hline \text { Accounts receivable } & & \$ ( 5,000 ) \
\hline \text { Accounts payable } & & ( 11,000 ) \
\hline \text { Notes payable } & 16,000 & \
\hline
\end{array}$$ 
The only items affecting the equity accounts are: net income,an investment of $3,000 by the owner in exchange for stock and dividends of $11,000.Using the balance sheet equation,compute net income for the past year.

Accepted Answer

The answer of The accounts of Garfield Company listed with...

Question 19

Bert and John Jacobs are the owners of the Life is good $\to$ T-shirt company.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle which supports your answer.

Accepted Answer

The answer of Bert and John Jacobs are the owners...

Question 20

The three major activities of a business are operating,investing and financing.

Accepted Answer

A) True 
 B)False

Exam 1: Introducing Accounting in Business

Match each definition to its term

Describe the three important guidelines for revenue recognition.

Congress passed the Sarbanes-Oxley Act to

Compute return on assets given net income of $13,764,beginning assets of $120,000 and ending assets of $176,000.

Fast-Forward paid $6,000 in dividends.This amount should be included as an expense on the income statement.

Operating activities:

The International Accounting Standards Board (IASB)is the government group that establishes reporting requirements for companies that issue stock to the public.

Revenues are:

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000. What is the Ending Equity for the year?

What are two questions that an owner might be able to answer by looking at accounting information?

Classify the following activities according to the appropriate section of the statement of cash flows.

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

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000. What is Net Income for the year?

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

Assets = Liabilities + Equity is known as the:

Bert and John Jacobs are the owners of the Life is good $\to$ T-shirt company.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle which supports your answer.

The three major activities of a business are operating,investing and financing.

Exam 1: Introducing Accounting in Business

Match each definition to its term

Describe the three important guidelines for revenue recognition.

Congress passed the Sarbanes-Oxley Act to

Compute return on assets given net income of $13,764,beginning assets of $120,000 and ending assets of $176,000.

Fast-Forward paid $6,000 in dividends.This amount should be included as an expense on the income statement.

Operating activities:

The International Accounting Standards Board (IASB)is the government group that establishes reporting requirements for companies that issue stock to the public.

Revenues are:

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000. What is the Ending Equity for the year?

What are two questions that an owner might be able to answer by looking at accounting information?

Classify the following activities according to the appropriate section of the statement of cash flows.

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

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Beginning Assets were $437,600,Beginning Liabilities were $262,560,Common Stock sold during the year totaled $45,000,Revenue for the year was $414,250,Expenses for the year were $280,000,Dividends declared was $22,700,and Ending Liabilities is $$350,000. What is Net Income for the year?

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

Assets = Liabilities + Equity is known as the:

Bert and John Jacobs are the owners of the Life is good →\to→ T-shirt company.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle which supports your answer.

The three major activities of a business are operating,investing and financing.

Bert and John Jacobs are the owners of the Life is good $\to$ T-shirt company.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle which supports your answer.