Question 1

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)  The increase in equity from a company's sales of products and services.
E)  The costs of assets or services used.F) A) and B)
G) A) and E)

Question 2

Which of the following factors is not a component of the fraud triangle?

Accepted Answer

A)  Opportunity
B)  Pressure
C)  Rationalization
D)  All of the above are components of the fraud triangle.E) A) and C)
F) B) and C)

Question 3

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

Accepted Answer

A)  $190,000.
B)  $210,000.
C)  $230,000.
D)  $400,000.
E)  $610,000.F) A) and D)
G) None of the above

Question 4

________ are the increases in equity from a company's sales of products and services to customers.

Accepted Answer

The answer of ________ are the increases in equity from...

Question 5

The accounting equation can be restated as: Assets − Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 6

Accounting is an information and measurement system that identifies,records,and communicates an organization's business activities.

Accepted Answer

A) True 
 B)False

Question 7

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Accepted Answer

The answer of Congress passed the ________ to help curb...

Question 8

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Accepted Answer

A) True 
 B)False

Question 9

Data for Kennedy Realty are as follows:
  Dividends of $30,000 were paid during the year.There were no stockholder investments.Using the above data,prepare Kennedy Realty's Statement of Retained Earnings for the year ended December 31.

Accepted Answer

The answer of Data for Kennedy Realty are as follows:
...

Question 10

The time period assumption:

Accepted Answer

A)  Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
B)  Means that we can express transactions and events in monetary,or money,units.
C)  Presumes that the life of a company can be divided into time periods,such as months and years,and that useful reports can be prepared for those periods.
D)  Means that a business is accounted for separately from other business entities,including its owner.
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported.F) A) and B)
G) A) and C)

Question 11

Financing activities provide the resources organizations use to pay for resources such as land,buildings,and equipment.

Accepted Answer

A) True 
 B)False

Question 12

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)  The company paid an amount due on credit.
C)  Equipment was purchased for cash.
D)  A utility bill was received for the current month,to be paid in the following month.
E)  Advertising expense for the month was paid in cash.F) A) and D)
G) C) and D)

Question 13

Specific accounting principles are basic assumptions,concepts,and guidelines for preparing financial statements and arise out of long-used accounting practice.

Accepted Answer

A) True 
 B)False

Question 14

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 C)
G) A) and E)

Question 15

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

Soo Lin,the sole stockholder,began an Internet Consulting practice and completed these transactions during April of the current year:
  Show the effects of the above transactions on the accounting equation of Soo Lin,Consultant.Use the following format for your answers.The first item is shown as an example.
Increase = I Decrease = D No effect = N

Accepted Answer

The answer of Soo Lin,the sole stockholder,began an Internet Consulting...

Question 18

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

Accepted Answer

A)  Revenues.
B)  Expenses.
C)  Dividends.
D)  Beginning Retained Earnings.
E)  Cash.F) A) and B)
G) B) and E)

Question 19

Resources a company owns or controls that are expected to yield future benefits are:

Accepted Answer

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

Question 20

Operating activities:

Accepted Answer

A)  Are the means organizations 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.F) C) and D)
G) A) and D)

Exam 1: Accounting in Business

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

Correct Answer
verified

Financing activities provide the resources organizations use to pay for resources such as land,buildings,and equipment.

Correct Answer
verified

Data for Kennedy Realty are as follows: Dividends of $30,000 were paid during the year.There were no stockholder investments.Using the above data,prepare Kennedy Realty's Statement of Retained Earnings for the year ended December 31.

Correct Answer
verified

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Correct Answer
verified

The accounting equation can be restated as: Assets − Equity = Liabilities.

Correct Answer
verified

Accounting is an information and measurement system that identifies,records,and communicates an organization's business activities.

Correct Answer
verified

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Correct Answer
verified

________ are the increases in equity from a company's sales of products and services to customers.

Correct Answer
verified

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

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

Correct Answer
verified

Revenues are:

Correct Answer
verified

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

Correct Answer
verified

Which of the following factors is not a component of the fraud triangle?

Correct Answer
verified

Specific accounting principles are basic assumptions,concepts,and guidelines for preparing financial statements and arise out of long-used accounting practice.

Correct Answer
verified

The time period assumption:

Correct Answer
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Resources a company owns or controls that are expected to yield future benefits are:

Correct Answer
verified

Operating activities:

Correct Answer
verified

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Correct Answer
verified

Correct Answer
verified

All of the following are classified as liabilities except:

Correct Answer
verified

Exam 1: Accounting in Business

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

Correct AnswerverifiedShow Answer

Financing activities provide the resources organizations use to pay for resources such as land,buildings,and equipment.

Correct AnswerverifiedShow Answer

Data for Kennedy Realty are as follows: Dividends of $30,000 were paid during the year.There were no stockholder investments.Using the above data,prepare Kennedy Realty's Statement of Retained Earnings for the year ended December 31.

Correct AnswerverifiedShow Answer

Internal users include lenders,shareholders,brokers and nonexecutive employees.

Correct AnswerverifiedShow Answer

The accounting equation can be restated as: Assets − Equity = Liabilities.

Correct AnswerverifiedShow Answer

Accounting is an information and measurement system that identifies,records,and communicates an organization's business activities.

Correct AnswerverifiedShow Answer

External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.

Correct AnswerverifiedShow Answer

________ are the increases in equity from a company's sales of products and services to customers.

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Revenues are:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following factors is not a component of the fraud triangle?

Correct AnswerverifiedShow Answer

Specific accounting principles are basic assumptions,concepts,and guidelines for preparing financial statements and arise out of long-used accounting practice.

Correct AnswerverifiedShow Answer

The time period assumption:

Correct AnswerverifiedShow Answer

Resources a company owns or controls that are expected to yield future benefits are:

Correct AnswerverifiedShow Answer

Operating activities:

Correct AnswerverifiedShow Answer

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are classified as liabilities except:

Correct AnswerverifiedShow Answer

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