Question 1

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) B) and E)
G) B) and D)

Question 2

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Accepted Answer

A)  +$10,000 accounts receivable, -$10,000 accounts payable.
B)  +$10,000 accounts receivable, +$10,000 accounts payable.
C)  +$10,000 accounts receivable, +$10,000 cash.
D)  +$10,000 accounts receivable, +$10,000 revenue.
E)  +$10,000 accounts receivable, -$10,000 revenue.F) A) and B)
G) A) and C)

Question 3

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

A) True 
 B)False

Question 4

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 5

U.S.government bonds are:

Accepted Answer

A)  High-risk and high-return investments.
B)  Low-risk and low-return investments.
C)  High-risk and low-return investments.
D)  Low-risk and high-return investments.
E)  High risk and no-return investments.F) B) and C)
G) B) and D)

Question 6

The income statement reports on operating activities at a point in time.

Accepted Answer

A) True 
 B)False

Question 7

Determine the net income of a company for which the following information is available for the month of May.

Accepted Answer

A)  $190,000.
B)  $210,000.
C)  $230,000.
D)  $400,000.
E)  $610,000.F) B) and E)
G) A) and B)

Question 8

Match between columns
                        Premises: Provide the means organizations use to pay for resources such as land,buildings,and equipment to carry out plans.
An information and measurement system that identifies,records and communicates relevant reliable and comparable information about an organization's business activities.
The part of accounting that involves recording transactions and events,either electronically or manually.
Persons using accounting information who are not directly involved in the running of the organization.
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.
The use of resources to research,develop,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.

Accepted Answer

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

Question 9

Match between columns
                        Premises: Withdrawals.
Total equity.
Assets.
Revenues.
Expenses.
Cash from operating activities.
Liabilities.
Cash from investing activities.

Accepted Answer

The Answer of Statement of cash flows and Balance sheet is...

Question 10

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Accepted Answer

The answer of A disadvantage of a sole proprietorship is...

Question 11

Use the following information as of December 31 to determine equity. Liabilities……………… $141,000
Cash…………………… 57,000
Equipment…………….. 206,000
Buildings........................ 175,000

Accepted Answer

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

Question 12

According to the cost principle,it is preferable for managers to report an estimate of an asset's value.

Accepted Answer

A) True 
 B)False

Question 13

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

Accepted Answer

A)  Assets would have increased $55,000.
B)  Assets would have decreased $55,000.
C)  Assets would have increased $19,000.
D)  Assets would have decreased $19,000.
E)  None of these.F) B) and C)
G) None of the above

Question 14

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of owner's equity?

Accepted Answer

A)  $17,000.
B)  $29,000.
C)  $71,000.
D)  $88,000.
E)  $105,000.F) C) and D)
G) C) and E)

Question 15

Cash investments by owners are listed on which of the following statements?

Accepted Answer

A)  Balance sheet.
B)  Income statement.
C)  Statement of owner's equity only.
D)  Statement of cash flows only.
E)  Statement of owner's equity and statement of cash flows.F) B) and D)
G) None of the above

Question 16

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

Accepted Answer

The answer of ______________ users of accounting information are not...

Question 17

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in ...

Question 18

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 19

In the partnership form of business,the owners are called stockholders.

Accepted Answer

A) True 
 B)False

Question 20

Another name for equity is:

Accepted Answer

A)  Net income.
B)  Expenses.
C)  Net assets.
D)  Revenue.
E)  Net loss.F) A) and B)
G) A) and D)

Exam 1: Accounting in Business

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Correct Answer
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What is the purpose of return on assets as an analytical tool?

Correct Answer
verified
Return on assets is useful in ...
View Answer

Another name for equity is:

Correct Answer
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How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Correct Answer
verified

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Correct Answer
verified

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

Correct Answer
verified

Match each of the following items with the financial statement a through d in which each item would most likely appear.An item may appear on more than one statement.

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

Correct Answer
verified

U.S.government bonds are:

Correct Answer
verified

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Correct Answer
verified

Match the following terms with the appropriate definition.

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of owner's equity?

Correct Answer
verified

The income statement reports on operating activities at a point in time.

Correct Answer
verified

Use the following information as of December 31 to determine equity. Liabilities……………… $141,000 Cash…………………… 57,000 Equipment…………….. 206,000 Buildings........................ 175,000

Correct Answer
verified

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

Correct Answer
verified

In the partnership form of business,the owners are called stockholders.

Correct Answer
verified

Determine the net income of a company for which the following information is available for the month of May.

Correct Answer
verified

Cash investments by owners are listed on which of the following 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

According to the cost principle,it is preferable for managers to report an estimate of an asset's value.

Correct Answer
verified

Exam 1: Accounting in Business

A disadvantage of a sole proprietorship is the fact that the owner has ______________.

Correct AnswerverifiedShow Answer

What is the purpose of return on assets as an analytical tool?

Correct AnswerverifiedReturn on assets is useful in ...View AnswerShow Answer

Another name for equity is:

Correct AnswerverifiedShow Answer

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Correct AnswerverifiedShow Answer

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match each of the following items with the financial statement a through d in which each item would most likely appear.An item may appear on more than one statement.

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

Correct AnswerverifiedShow Answer

U.S.government bonds are:

Correct AnswerverifiedShow Answer

The four basic financial statements include the balance sheet,income statement,statement of owner's equity,and statement of cash flows.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition.

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of owner's equity?

Correct AnswerverifiedShow Answer

The income statement reports on operating activities at a point in time.

Correct AnswerverifiedShow Answer

Use the following information as of December 31 to determine equity. Liabilities……………… $141,000 Cash…………………… 57,000 Equipment…………….. 206,000 Buildings........................ 175,000

Correct AnswerverifiedShow Answer

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period,what was the effect on the assets?

Correct AnswerverifiedShow Answer

In the partnership form of business,the owners are called stockholders.

Correct AnswerverifiedShow Answer

Determine the net income of a company for which the following information is available for the month of May.

Correct AnswerverifiedShow Answer

Cash investments by owners are listed on which of the following 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

According to the cost principle,it is preferable for managers to report an estimate of an asset's value.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Return on assets is useful in ...
View Answer

Correct Answer
verified

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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Correct Answer
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Correct Answer
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Correct Answer
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