Question 1

The area of accounting aimed at serving the decision-making needs of internal users is

Accepted Answer

A)   financial accounting
B)   managerial accounting
C)   auditing
D)   internal control
E)   marketing

Question 2

The organization established to try to achieve global agreement on the use of a common set of accounting principles is called

Accepted Answer

A)   Accounting Standards Board
B)   Abbreviated as IFRS
C)   International Accounting Standards Board
D)   Generally accepted accounting principles
E)   All of these

Question 3

Which of the following is an example of a source document?

Accepted Answer

A)   Invoice
B)   Cheque
C)   Bank statemen
D)   Employee earnings records
E)   All of these

Question 4

The statement of cash flows measures the net effect of revenues and expenses for a specified period.

Accepted Answer

A) True 
 B)False

Question 5

Ethics

Accepted Answer

A)   are beliefs that separate right from wrong
B)   and law often coincide
C)   help to prevent conflicts of interest
D)   are very important considerations for accountants
E)   All of these

Question 6

Fees earned by a business in exchange for services provided by the business appear on which of the following statements?

Accepted Answer

A)   Balance sheet
B)   Income statement
C)   Statement of changes in equity
D)   Statement of cash flows
E)   Statement of financial position

Question 7

Source documents include all of the following except:

Accepted Answer

A)   sales invoice
B)   financial statements.
C)   cheques
D)   purchase orders
E)   bank statements

Question 8

Social responsibility is concern for the impact of our actions on society as a whole.

Accepted Answer

A) True 
 B)False

Question 9

The measurement method that requires all transactions to be recorded based on actual amount of cash received or paid, or cash-equivalent amount given in exchange, is the

Accepted Answer

A)   current cost method
B)   historical cost principle
C)   fair value method
D)   value in use method
E)   fulfilment method

Question 10

Accounting is an information system that identifies, measures, records and communicates relevant information that objectively and correctly represents an organization's economic activities.

Accepted Answer

A) True 
 B)False

Question 11

The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances:
 
-Prepare an income statement for the year ended December 31, 2020

Accepted Answer

The answer of The records of Cohen's Toy Repair Co....

Question 12

The accounting equation is the link between a company's assets, liabilities and equity.

Accepted Answer

A) True 
 B)False

Question 13

If assets are $144,000 and liabilities are $37,000, then equity equals

Accepted Answer

A)   $37,000
B)   $74,000
C)   $107,000
D)   $144,000
E)   $181,000

Question 14

A business activity that does not involve an exchange of economic consideration between two parties is called a(n)

Accepted Answer

A)   withdrawal
B)   account receivable
C)   business transaction
D)   business event
E)   equity transaction

Question 15

Select from the following list items that are likely to serve as source documents.

Accepted Answer

(a) No (b) Yes (c) Y...

Question 16

A business

Accepted Answer

A)   is one or more individuals selling products or services for profit
B)   can only have one legal form of organization
C)   can have adequate financial records without a formal accounting system
D)   has to issue shares before it opens
E)   is one or more individuals selling products or services for profit and has to issue shares before it open

Question 17

The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity?

Accepted Answer

A)   $1,00
B)   $11,000.
C)   $12,000
D)   $15,000
E)   $19,000

Question 18

Describe the revenue recognition principle.

Accepted Answer

Revenue should be recorded at the time t...

Question 19

The recording of financial transactions either manually or electronically is called

Accepted Answer

A)   accounting
B)   bookkeeping
C)   preparing financial statements
D)   auditing
E)   systems design

Question 20

Blu Lightning Co. bought supplies and testing equipment for $3,000 on credit. Enter the appropriate amounts into the accounting equation format

Accepted Answer

Assets = Liabilities...

Exam 1: Accounting in Business

If assets are $144,000 and liabilities are $37,000, then equity equals

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Ethics

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Social responsibility is concern for the impact of our actions on society as a whole.

Correct AnswerverifiedShow Answer

A business activity that does not involve an exchange of economic consideration between two parties is called a(n)

Correct AnswerverifiedShow Answer

The organization established to try to achieve global agreement on the use of a common set of accounting principles is called

Correct AnswerverifiedShow Answer

The measurement method that requires all transactions to be recorded based on actual amount of cash received or paid, or cash-equivalent amount given in exchange, is the

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Which of the following is an example of a source document?

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A business

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The accounting equation is the link between a company's assets, liabilities and equity.

Correct AnswerverifiedShow Answer

Fees earned by a business in exchange for services provided by the business appear on which of the following statements?

Correct AnswerverifiedShow Answer

The recording of financial transactions either manually or electronically is called

Correct AnswerverifiedShow Answer

Describe the revenue recognition principle.

Correct AnswerverifiedRevenue should be recorded at the time t...View AnswerShow Answer

The statement of cash flows measures the net effect of revenues and expenses for a specified period.

Correct AnswerverifiedShow Answer

The area of accounting aimed at serving the decision-making needs of internal users is

Correct AnswerverifiedShow Answer

Accounting is an information system that identifies, measures, records and communicates relevant information that objectively and correctly represents an organization's economic activities.

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The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity?

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The records of Cohen's Toy Repair Co. at December 31, 2020 showed the following account balances: -Prepare an income statement for the year ended December 31, 2020

Correct AnswerverifiedShow Answer

Select from the following list items that are likely to serve as source documents.

Correct Answerverified(a) No (b) Yes (c) Y...View AnswerShow Answer

Blu Lightning Co. bought supplies and testing equipment for $3,000 on credit. Enter the appropriate amounts into the accounting equation format

Correct AnswerverifiedAssets = Liabilities...View AnswerShow Answer

Source documents include all of the following except:

Correct AnswerverifiedShow Answer

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Revenue should be recorded at the time t...
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(a) No (b) Yes (c) Y...
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Assets = Liabilities...
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Correct Answer
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