Question 1

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

Accepted Answer

Return on assets is useful in ...

Question 2

From the information given below,prepare a November income statement,a November statement of retained earnings,and a November 30 balance sheet.On November 1 of the current year,Victoria Garza,the sole stockholder,began Garza Décor with an initial investment of $50,000 cash in exchange for common stock.On November 30,her records showed the following items and amounts.
 $\begin{array}{|l|c|l|c|}
\hline \text { Accounts payable } & \$ 12,000 & \text { Office furnishings . } & \$ 40,000 \
\hline \text { Accounts receivable. } & 19,000 & \text { Rent expense } & 9,600 \
\hline \text { Cash. } & 21,200 & \text { Salaries expense } & 4,200 \
\hline \text { Dividends. } & 6,000 & \text { Telephone expense. } &250 \
\hline \text { Fees earned. } & 34,000 & \text { Common stock } & 50,000 \
\hline \text { Notes payable } & 4,250 \
\hline
\end{array}$

Accepted Answer

None...

Question 3

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

Accepted Answer

A)   Revenues.
B)   Expenses.
C)   Dividends.
D)   Stockholder investments.
E)   Cash.F) A) and E)
G) A) and D)

Question 4

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Accepted Answer

A)   Objectives
B)   Qualitative characteristics
C)   Uniformity
D)   Elements
E)   Recognition and measurementF) A) and B)
G) D) and E)

Question 5

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

Accepted Answer

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

Question 6

Cornelia's Closet has the following account balances for the dates given:
 $$\begin{array} { l c c } 
& \text { October } 1 & \text { October 31 } \
 \text { Cash } & \$ 40,000 & 60,000 \
\text { Accounts Receivable } & 40,000 & 38,000 \
\text { Accounts payable } & 6,000 & ?
\end{array}$$ 
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Accepted Answer

October 1^st Equity = $...

Question 7

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Accepted Answer

A)   1.8%.
B)   35%.
C)   17.5%.
D)   5.7%.
E)   3.5%.F) A) and D)
G) A) and C)

Question 8

Identify and describe the four basic financial statements:

Accepted Answer

The four basic financial statements are ...

Question 9

Match the following terms with the appropriate definition.
-Monetary unit principle

Accepted Answer

A)  The principle that assumes transactions and events can be expressed in money units.
B)  The cost of assets or services used to earn revenue.
C)  The principle that requires a business to be accounted for separately from its owners.
D)  Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.
E)  Creditor's claims on assets.F) The relation between a company's assets, liabilities, and equity.G) The principle that revenue is recorded when earned through providing goods or services.H) A financial statement that lists cash inflows (receipts)  and cash outflows (payments) ; the cash flows are arranged by operating, investing, and financing activities.I) Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.J) B) and E)
K) D) and E)

Question 10

Describe the three types of activities reported on the statement of cash flows.

Accepted Answer

The three types of activities reported i...

Question 11

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Accepted Answer

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

Question 12

Match the following terms with the appropriate definition.
-Income statement

Accepted Answer

A)  The principle that assumes transactions and events can be expressed in money units.
B)  The cost of assets or services used to earn revenue.
C)  The principle that requires a business to be accounted for separately from its owners.
D)  Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.
E)  Creditor's claims on assets.F) The relation between a company's assets, liabilities, and equity.G) The principle that revenue is recorded when earned through providing goods or services.H) A financial statement that lists cash inflows (receipts)  and cash outflows (payments) ; the cash flows are arranged by operating, investing, and financing activities.I) Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.J) A) and C)
K) E) and G)

Question 13

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Assess whether a company has paid all required taxes and complied with securities rules.

Accepted Answer

A)  Purchasing Managers
B)  Lenders
C)  Suppliers
D)  Regulators
E)  ShareholdersF) C) and D)
G) B) and C)

Question 14

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) B) and C)
G) A) and E)

Question 15

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Accepted Answer

A)   $365,000.
B)   $239,000.
C)   $189,000.
D)   $315,000.
E)   $277,000.F) A) and D)
G) B) and E)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

A limited partnership:

Accepted Answer

A)   Includes a general partner with unlimited liability.
B)   Is subject to double taxation.
C)   Has owners called stockholders.
D)   Is the same as a corporation.
E)   May only have two partners.F) A) and B)
G) B) and E)

Question 19

Net income occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 20

Match the following terms with the appropriate definition.
-Expenses

Accepted Answer

A)  The principle that assumes transactions and events can be expressed in money units.
B)  The cost of assets or services used to earn revenue.
C)  The principle that requires a business to be accounted for separately from its owners.
D)  Describes a company's revenues and expenses along with the resulting net income or loss over a period of time.
E)  Creditor's claims on assets.F) The relation between a company's assets, liabilities, and equity.G) The principle that revenue is recorded when earned through providing goods or services.H) A financial statement that lists cash inflows (receipts)  and cash outflows (payments) ; the cash flows are arranged by operating, investing, and financing activities.I) Happenings, such as changes in market value, that effect the accounting equation and are reliably measured.J) F) and H)
K) A) and B)

Exam 1: Accounting in Business

Correct Answer
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October 1^st Equity = $...
View Answer

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

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

Match the following terms with the appropriate definition. -Expenses

Correct Answer
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A limited partnership:

Correct Answer
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The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Correct Answer
verified

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether a company has paid all required taxes and complied with securities rules.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Correct Answer
verified

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

Correct Answer
verified

Net income occurs when revenues exceed expenses.

Correct Answer
verified

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

Correct Answer
verified

Match the following terms with the appropriate definition. -Monetary unit principle

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

Correct Answer
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Correct Answer
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None...
View Answer

Describe the three types of activities reported on the statement of cash flows.

Correct Answer
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The three types of activities reported i...
View Answer

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Correct Answer
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Identify and describe the four basic financial statements:

Correct Answer
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The four basic financial statements are ...
View Answer

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Correct Answer
verified

Match the following terms with the appropriate definition. -Income statement

Correct Answer
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Exam 1: Accounting in Business

Correct AnswerverifiedOctober 1st Equity = $...View AnswerShow Answer

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

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

Match the following terms with the appropriate definition. -Expenses

Correct AnswerverifiedShow Answer

A limited partnership:

Correct AnswerverifiedShow Answer

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Correct AnswerverifiedShow Answer

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether a company has paid all required taxes and complied with securities rules.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Net income occurs when revenues exceed expenses.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Monetary unit principle

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

Describe the three types of activities reported on the statement of cash flows.

Correct AnswerverifiedThe three types of activities reported i...View AnswerShow Answer

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Correct AnswerverifiedShow Answer

Identify and describe the four basic financial statements:

Correct AnswerverifiedThe four basic financial statements are ...View AnswerShow Answer

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Income statement

Correct AnswerverifiedShow Answer

Correct Answer
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October 1^st Equity = $...
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Correct Answer
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Return on assets is useful in ...
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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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Correct Answer
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None...
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The three types of activities reported i...
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Correct Answer
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The four basic financial statements are ...
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