Question 1

If assets are $99,000 and liabilities are $32,000, then equity equals:

Accepted Answer

A)  $131,000.
B)  $32,000.
C)  $198,000.
D)  $67,000.
E)  $99,000.F) A) and B)
G) All of the above

Question 2

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 3

The income statement reports all of the following except:

Accepted Answer

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

Question 4

Return on assets is also known as return on investment.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

Accepted Answer

A)  Cash.
B)  Revenues.
C)  Expenses.
D)  Owner investments.
E)  Withdrawals.F) A) and C)
G) A) and D)

Question 6

The difference between a company's assets and its liabilities, or net assets is:

Accepted Answer

A)  Expense.
B)  Net loss.
C)  Equity.
D)  Net income.
E)  Revenue.F) A) and C)
G) All of the above

Question 7

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

Question 8

Use the following information as of December 31 to determine equity.   Cash $57,000 Buildings 175,000 Equipment 206,000 Ijabilities 141,000\begin{array} { l l } 	ext { Cash } & \$ 57,000 \	ext { Buildings } & 175,000 \	ext { Equipment } & 206,000 \	ext { Ijabilities } & 141,000\end{array} Cash  Buildings  Equipment  Ijabilities ​$57,000175,000206,000141,000​

Accepted Answer

A)  $141,000.
B)  $579,000.
C)  $297,000.
D)  $438,000.
E)  $57,000. F) B) and D)
G) C) and D)

Question 9

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 10

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A)  Services revenue.
B)  Accounts receivable.
C)  Supplies.
D)  Cash.
E)  Land.F) A) and E)
G) A) and D)

Question 12

Match between columns
                        Premises: The part of accounting that involves recording transactions and events, either electronically or manually.
Accounting specialists that have met educational and experience requirements, passed an examination and exhibit ethical characteristics to achieve a professional certification.
An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities.
Beliefs that distinguish right from wrong, considered accepted standards of good and bad behavior.
The area of accounting that serves the decision-making needs of internal users.
The area of accounting aimed at serving external users by providing them with general-purpose financial statements.
Persons using accounting information who are directly involved in managing and operating the organization.
A model that asserts the factors that must exist for a person to commit fraud.
Persons using accounting information who are not directly involved in running the organization.

Accepted Answer

The Answer of Ethics and Internal users and Recordkeeping and is...

Question 13

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

Accepted Answer

A)  Cash was received from providing services to a customer.
B)  A utility bill was received for the current month, to be paid in the following month.
C)  The company paid an amount due on credit.
D)  Equipment was purchased for cash.
E)  Advertising expense for the month was paid in cash.F) C) and D)
G) All of the above

Question 14

All of the following are classified as assets except:

Accepted Answer

A)  Prepaid Insurance.
B)  Accounts Receivable.
C)  Supplies.
D)  Accounts Payable.
E)  Cash.F) None of the above
G) D) and E)

Question 15

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

Accepted Answer

A) True 
 B)False

Question 16

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following accounts is not included in the asset section of the balance sheet?

Accepted Answer

A)  Wages expense.
B)  Land.
C)  Buildings.
D)  Furniture.
E)  Supplies.F) A) and C)
G) D) and E)

Question 18

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Accepted Answer

A)  $12,100.
B)  $49,100.
C)  $30,900.
D)  $10,900.
E)  $32,100.F) B) and C)
G) B) and D)

Question 19

Accounts payable appear on which of the following statements?

Accepted Answer

A)  Balance sheet.
B)  Statement of cash flows.
C)  Transaction statement.
D)  Statement of owner's equity.
E)  Income statement.F) A) and B)
G) All of the above

Question 20

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Accepted Answer

The four broad areas of accounting are f...

Exam 1: Accounting in Business

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

Correct Answer
verified

All of the following are classified as assets except:

Correct Answer
verified

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Correct Answer
verified

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

Correct Answer
verified

Use the following information as of December 31 to determine equity. $\begin{array} { l l } \text { Cash } & \$ 57,000 \\\text { Buildings } & 175,000 \\\text { Equipment } & 206,000 \\\text { Ijabilities } & 141,000\end{array}$

Correct Answer
verified

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Correct Answer
verified
The four broad areas of accounting are f...
View Answer

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Correct Answer
verified

Which of the following accounts is not included in the asset section of the balance sheet?

Correct Answer
verified

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

Correct Answer
verified

If assets are $99,000 and liabilities are $32,000, then equity equals:

Correct Answer
verified

The difference between a company's assets and its liabilities, or net assets is:

Correct Answer
verified

The income statement reports all of the following except:

Correct Answer
verified

Which of the following accounts is not included in the asset section of the balance sheet?

Correct Answer
verified

Accounts payable appear on which of the following statements?

Correct Answer
verified

Match the appropriate definition with the following terms.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

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 Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Correct Answer
verified

Correct Answer
verified

Return on assets is also known as return on investment.

Correct Answer
verified

Exam 1: Accounting in Business

Which of the following accounts is not included in the calculation of a company's ending owner's equity?

Correct AnswerverifiedShow Answer

All of the following are classified as assets except:

Correct AnswerverifiedShow Answer

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?

Correct AnswerverifiedShow Answer

Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Identify several opportunities in accounting and distinguish between private accounting and public accounting.

Correct AnswerverifiedThe four broad areas of accounting are f...View AnswerShow Answer

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Correct AnswerverifiedShow Answer

Which of the following accounts is not included in the asset section of the balance sheet?

Correct AnswerverifiedShow Answer

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

Correct AnswerverifiedShow Answer

If assets are $99,000 and liabilities are $32,000, then equity equals:

Correct AnswerverifiedShow Answer

The difference between a company's assets and its liabilities, or net assets is:

Correct AnswerverifiedShow Answer

The income statement reports all of the following except:

Correct AnswerverifiedShow Answer

Which of the following accounts is not included in the asset section of the balance sheet?

Correct AnswerverifiedShow Answer

Accounts payable appear on which of the following statements?

Correct AnswerverifiedShow Answer

Match the appropriate definition with the following terms.

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

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 Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Return on assets is also known as return on investment.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The four broad areas of accounting are f...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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