Question 1

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 2

If equity is $300,000 and liabilities are $192,000,then assets equal:

Accepted Answer

A)  $108,000.
B)  $192,000.
C)  $300,000.
D)  $492,000.
E)  $792,000.F) B) and E)
G) B) and D)

Question 3

All of the following are classified as liabilities except:

Accepted Answer

A)  Accounts Receivable.
B)  Notes Payable.
C)  Wages Payable.
D)  Accounts Payable.
E)  Taxes Payable.F) A) and D)
G) D) and E)

Question 4

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Accepted Answer

A) True 
 B)False

Question 5

Technology:

Accepted Answer

A)  Has replaced accounting.
B)  Has not improved the clerical accuracy of accounting.
C)  Reduces the time,effort and cost of recordkeeping.
D)  In accounting has replaced the need for decision makers.
E)  In accounting is only available to large corporations.F) A) and B)
G) A) and C)

Question 6

The term ___________ refers to a liability that promises a future outflow of resources.

Accepted Answer

The answer of The term ___________ refers to a liability...

Question 7

All of the following regarding a Certified Public Accountant are true except:

Accepted Answer

A)  Must meet education and experience requirements.
B)  Must pass an examination.
C)  Must exhibit ethical character.
D)  May also be a Certified Management Accountant.
E)  Cannot hold any certificate other than a CPA.F) C) and D)
G) A) and D)

Question 8

On December 15 of the current year,Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year.Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Accepted Answer

A)  Monetary unit assumption.
B)  Going-concern assumption.
C)  Cost principle.
D)  Business entity assumption.
E)  Revenue recognition principle.F) None of the above
G) A) and B)

Question 9

External users include lenders,shareholders,customers,and regulators.

Accepted Answer

A) True 
 B)False

Question 10

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash,and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services,is called the:

Accepted Answer

A)  Going-concern assumption.
B)  Cost principle.
C)  Revenue recognition principle.
D)  Objectivity principle.
E)  Business entity assumption.F) A) and C)
G) A) and B)

Question 11

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Accepted Answer

A)  Accounting equation.
B)  Cost principle.
C)  Going-concern assumption.
D)  Realization principle.
E)  Business entity assumption.F) A) and C)
G) All of the above

Question 12

Generally accepted accounting principles are the basic assumptions,concepts,and guidelines for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 13

Distributions of cash or other resources by a business to its owners are called:

Accepted Answer

A)  Withdrawals.
B)  Expenses.
C)  Assets.
D)  Retained earnings.
E)  Net Income.F) A) and B)
G) A) and C)

Question 14

If a company receives $12,000 from the owner to establish a proprietorship,the effect on the accounting equation would be:

Accepted Answer

A)  Assets decrease $12,000 and equity decreases $12,000.
B)  Assets increase $12,000 and liabilities decrease $12,000.
C)  Assets increase $12,000 and liabilities increase $12,000.
D)  Liabilities increase $12,000 and equity decreases $12,000.
E)  Assets increase $12,000 and equity increases $12,000.F) B) and C)
G) D) and E)

Question 15

All of the following are classified as liabilities except:

Accepted Answer

A)  Accounts Receivable.
B)  Notes Payable.
C)  Wages Payable.
D)  Accounts Payable.
E)  Taxes Payable.F) A) and E)
G) B) and C)

Question 16

The statement of cash flows reports all of the following except:

Accepted Answer

A)  Cash flows from operating activities.
B)  Cash flows from investing activities.
C)  Cash flows from financing activities.
D)  The net increase or decrease in assets for the period reported.
E)  The net increase or decrease in cash for the period reported.F) C) and D)
G) A) and B)

Question 17

Ending capital reported on the statement of owner's equity is calculated by adding owner investments and net losses and subtracting net income and withdrawals.

Accepted Answer

A) True 
 B)False

Question 18

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Accepted Answer

A)  Liabilities.
B)  Equity.
C)  Withdrawals.
D)  Expenses.
E)  Owner's Investment.F) B) and E)
G) C) and E)

Question 19

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Accepted Answer

A)  $30,000.
B)  $83,000.
C)  $64,000.
D)  $19,000.
E)  $49,000.F) C) and D)
G) All of the above

Question 20

Use the following information for Meeker Corp.to determine the amount of equity to report.

Accepted Answer

A)  $390,000.
B)  $140,000.
C)  $20,000.
D)  $530,000.
E)  $270,000.F) None of the above
G) D) and E)

Exam 1: Accounting in Business

All of the following are classified as liabilities except:

Correct Answer
verified

Correct Answer
verified

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Correct Answer
verified

If a company receives $12,000 from the owner to establish a proprietorship,the effect on the accounting equation would be:

Correct Answer
verified

All of the following are classified as liabilities except:

Correct Answer
verified

The term ___________ refers to a liability that promises a future outflow of resources.

Correct Answer
verified

External users include lenders,shareholders,customers,and regulators.

Correct Answer
verified

Ending capital reported on the statement of owner's equity is calculated by adding owner investments and net losses and subtracting net income and withdrawals.

Correct Answer
verified

Technology:

Correct Answer
verified

Correct Answer
verified

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Correct Answer
verified

Use the following information for Meeker Corp.to determine the amount of equity to report.

Correct Answer
verified

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Correct Answer
verified

If equity is $300,000 and liabilities are $192,000,then assets equal:

Correct Answer
verified

All of the following regarding a Certified Public Accountant are true except:

Correct Answer
verified

Distributions of cash or other resources by a business to its owners are called:

Correct Answer
verified

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Correct Answer
verified

The statement of cash flows reports all of the following except:

Correct Answer
verified

Generally accepted accounting principles are the basic assumptions,concepts,and guidelines for preparing financial statements.

Correct Answer
verified

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Correct Answer
verified

Exam 1: Accounting in Business

All of the following are classified as liabilities except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Correct AnswerverifiedShow Answer

If a company receives $12,000 from the owner to establish a proprietorship,the effect on the accounting equation would be:

Correct AnswerverifiedShow Answer

All of the following are classified as liabilities except:

Correct AnswerverifiedShow Answer

The term ___________ refers to a liability that promises a future outflow of resources.

Correct AnswerverifiedShow Answer

External users include lenders,shareholders,customers,and regulators.

Correct AnswerverifiedShow Answer

Ending capital reported on the statement of owner's equity is calculated by adding owner investments and net losses and subtracting net income and withdrawals.

Correct AnswerverifiedShow Answer

Technology:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000.The company has revenues of $83,000 and expenses of $64,000.Calculate its net income.

Correct AnswerverifiedShow Answer

Use the following information for Meeker Corp.to determine the amount of equity to report.

Correct AnswerverifiedShow Answer

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Correct AnswerverifiedShow Answer

If equity is $300,000 and liabilities are $192,000,then assets equal:

Correct AnswerverifiedShow Answer

All of the following regarding a Certified Public Accountant are true except:

Correct AnswerverifiedShow Answer

Distributions of cash or other resources by a business to its owners are called:

Correct AnswerverifiedShow Answer

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity,pressure,and rationalization.

Correct AnswerverifiedShow Answer

The statement of cash flows reports all of the following except:

Correct AnswerverifiedShow Answer

Generally accepted accounting principles are the basic assumptions,concepts,and guidelines for preparing financial statements.

Correct AnswerverifiedShow Answer

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange,is the:

Correct AnswerverifiedShow Answer

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