FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting in Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

Opportunities in accounting include auditing,consulting,market research,and tax planning.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

A) 8.4%.
B) 17.2%.
C) 14.3%.
D) 15.6%.
E) 1.5%.

F) A) and B)
G) A) and C)

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

Generally,the lower the risk,the higher the return that can be expected.

If the liabilities of a business increased $75,000 during a period of time and the stockholders' equity in the business decreased $30,000 during the same period,the assets of the business must have:

The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.

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

The statement of retained earnings:

Cornelia's Closet has the following assets and liabilities for the dates given: Also,its net income,for October 1 through October 31 was $20,000 and there were no stock issuances or dividends.Determine the equity at both October 1 and October 31.

U.S.Government Treasury bonds provide low return and low risk to investors.

The Securities and Exchange Commission (SEC) has given the task of setting GAAP to the:

________ is net income divided by average total assets.

________ are beliefs that separate right from wrong and are considered accepted standards of good and bad behavior.

Prepare a April 30 balance sheet in proper form for Two Rivers Vending Service from the following alphabetical list of the accounts at April 30:

The accounts of Mason Company at the end of the past year report the following amounts: If the beginning equity for the year was $173,000,calculate the ending equity for Mason Company.

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

The income statement shows the financial position of a business on a specific date.

Risk is the uncertainty about the return we will earn.

Limited liability and indefinite business life are characteristics of a corporation.

The accountant of Action Adventure Games prepared a balance sheet after every 10-day period.The only resources invested by the stockholder were at the start of the company on June 1.During June,the first month of operation,the following balance sheets were prepared: Required: Describe the nature of each of the four transactions that took place between the balance sheet dates shown.Assume only one transaction affected each account.

Return on assets is often stated in ratio form as the amount of average total assets divided by revenue.