Question 1

A business's equity comes from

Accepted Answer

A)  its creditors. 
B)  investments by owners. 
C)  amounts earned by the business. 
D)  both B and C

Question 2

An asset decrease resulting from consumption of resources to earn revenue is

Accepted Answer

A)  a net loss. 
B)  a liability. 
C)  an expense. 
D)  an asset source transaction.

Question 3

The balance sheet for Raymond Company shows total assets of $4,000,liabilities of $1,500,and retained earnings of $1,200.Based on this information,the amount of common stock must be

Accepted Answer

A)  $1,300. 
B)  $5,500. 
C)  $4,200. 
D)  $1,700.

Question 4

Radium Company earned $15,000 of cash revenue.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 5

Accounting information focused on the needs of external users is

Accepted Answer

A)  financial accounting. 
B)  managerial accounting. 
C)  claims accounting. 
D)  not-for-profit accounting.

Question 6

An investor provides resources to a business in exchange for

Accepted Answer

A)  physical resources. 
B)  priority of claims in event of liquidation. 
C)  an ownership interest in the business. 
D)  a promise that the resources will be repaid at a given date.

Question 7

The sources of a business's assets are liabilities and distributions to owners.

Accepted Answer

A) True 
 B)False

Question 8

Pardee Company earned $25,000 of cash revenue.What kind of transaction is this?

Accepted Answer

A)  asset use transaction 
B)  asset exchange transaction 
C)  asset source transaction 
D)  claims source transaction

Question 9

What was the cash flow from financing activities?

Accepted Answer

A)  an inflow of $60,000 
B)  an inflow of $52,000 
C)  an inflow of $36,000 
D)  an inflow of $48,000

Question 10

Most assets must be reported on the balance sheet at

Accepted Answer

A)  their current replacement cost. 
B)  fair market value. 
C)  an amount estimated by the company's management. 
D)  historical cost.

Question 11

Use the following information to prepare an income statement for Burleson Company for the year ended December 31,2012.
1.revenue from services,$28,000
2.paid $10,000 cash for land
3.paid operating expenses,$21,000
4.paid dividends to stockholders,$4,000
5.issued $6,000 of common stock for cash

Accepted Answer

The answer of Use the following information to prepare an...

Question 12

Each of the following requirements is independent of the others.
a)Bruno Corporation has liabilities of $80,000 and equity of $110,000.What is the amount of Bruno's assets? ________________________________________________
b)Wilder Company has assets of $320,000 and liabilities of $100,000.What is the amount of equity? ______________________________________________________
c)Limon Company has assets of $90,000 and liabilities of $40,000.What is the amount of claims? _____________________________________________________________

Accepted Answer

The answer of Each of the following requirements is independent...

Question 13

Bridges Company earned $4,000 in cash revenues,paid cash expenses of $3,450,and paid a cash dividend of $300 to its owners.It engaged in no other transactions during the period.Which of the following statements is true?

Accepted Answer

A)  The cash flow from financing activities was $0. 
B)  The net cash flow from operating activities was an inflow or increase of $550. 
C)  The net cash flow from operating activities was an inflow or increase of $250. 
D)  The cash flow from investing activities was an increase of $250.

Question 14

Accounts are subclassifications of the various elements of the financial statements.

Accepted Answer

A) True 
 B)False

Question 15

An asset source transaction increases a business's assets and the claims to assets.

Accepted Answer

A) True 
 B)False

Question 16

Fill in the missing information by identifying dollar amounts a,b,c,and d.All transactions were for cash.

Accepted Answer

The answer of Fill in the missing information by identifying...

Question 17

The claims side of the accounting equation

Accepted Answer

A)  lists the resources that a business owns or controls. 
B)  lists the sources of the business's assets. 
C)  must balance out to zero. 
D)  indicates the amount of profit that a business has earned.

Question 18

Accounting information is said to be reliable if

Accepted Answer

A)  it is based on recent information. 
B)  it was prepared by someone with good credentials in accounting,such as a certified public accountant. 
C)  it can be independently verified. 
D)  it complies with rules and standards of the Internal Revenue Service.

Question 19

Howard Corporation paid a $3,000 cash dividend to its stockholders.

Accepted Answer

The answer of Howard Corporation paid a $3,000 cash dividend...

Question 20

A company's retained earnings at the beginning and ending of the accounting period were $48,000 and $55,000,respectively.If the company had revenues of $61,000 and expenses of $50,000,the amount of cash dividends paid must have been

Accepted Answer

A)  $2,000. 
B)  $9,000. 
C)  $3,000. 
D)  $4,000.

Exam 1: An Introduction to Accounting

A business's equity comes from

An asset decrease resulting from consumption of resources to earn revenue is

The balance sheet for Raymond Company shows total assets of $4,000,liabilities of $1,500,and retained earnings of $1,200.Based on this information,the amount of common stock must be

Radium Company earned $15,000 of cash revenue.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accounting information focused on the needs of external users is

An investor provides resources to a business in exchange for

The sources of a business's assets are liabilities and distributions to owners.

Pardee Company earned $25,000 of cash revenue.What kind of transaction is this?

What was the cash flow from financing activities?

Most assets must be reported on the balance sheet at

Use the following information to prepare an income statement for Burleson Company for the year ended December 31,2012. 1.revenue from services,$28,000 2.paid $10,000 cash for land 3.paid operating expenses,$21,000 4.paid dividends to stockholders,$4,000 5.issued $6,000 of common stock for cash

Bridges Company earned $4,000 in cash revenues,paid cash expenses of $3,450,and paid a cash dividend of $300 to its owners.It engaged in no other transactions during the period.Which of the following statements is true?

Accounts are subclassifications of the various elements of the financial statements.

An asset source transaction increases a business's assets and the claims to assets.

Fill in the missing information by identifying dollar amounts a,b,c,and d.All transactions were for cash.

The claims side of the accounting equation

Accounting information is said to be reliable if

Howard Corporation paid a $3,000 cash dividend to its stockholders.

A company's retained earnings at the beginning and ending of the accounting period were $48,000 and $55,000,respectively.If the company had revenues of $61,000 and expenses of $50,000,the amount of cash dividends paid must have been