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)  Measurement (Cost) principle.
C)  Going-concern assumption.
D)  Realization principle.
E)  Business entity assumption.

Question 2

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  $263,800.
B)  $432,200.
C)  $171,000.
D)  $167,800.
E)  $252,000.

Question 4

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 the choices are correct.

Question 5

A company reported total equity of $145,000 at the beginning of the year.The company reported $210,000 in revenues and $165,000 in expenses for the year.There were no stockholder investments or dividends during the year.Liabilities at the end of the year totaled $92,000.What are the total assets of the company at the end of the year?

Accepted Answer

A)  $45,000.
B)  $92,000.
C)  $98,000.
D)  $210,000.
E)  $282,000.

Question 6

Increases in equity from a company's sales of products or services are:

Accepted Answer

A)  Assets.
B)  Revenues.
C)  Liabilities.
D)  Stockholders' Equity.
E)  Expenses.

Question 7

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

Accepted Answer

The three types of activities reported i...

Question 8

The basic financial statements include all of the following except:

Accepted Answer

A)  Balance Sheet.
B)  Income Statement.
C)  Statement of Retained Earnings.
D)  Statement of Cash Flows.
E)  Statement of Changes in Assets.

Question 9

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments of $6,000.Its ending equity is:

Accepted Answer

A)  $223,000.
B)  $240,000.
C)  $268,000.
D)  $274,000.
E)  $208,000.

Question 10

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

Accepted Answer

A) True 
 B)False  False

Question 11

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

Accepted Answer

A)  Cash.
B)  Accounts receivable.
C)  Supplies.
D)  Land.
E)  Services revenue.

Question 12

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.

Question 13

The going concern 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 owners.
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question 14

An income statement reports on investing and financing activities.

Accepted Answer

A) True 
 B)False  False

Question 15

Assets created by selling goods and services on credit are:

Accepted Answer

A)  Accounts payable.
B)  Accounts receivable.
C)  Liabilities.
D)  Expenses.
E)  Equity.

Question 16

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. A

Question 17

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.

Question 18

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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...

Exam 1: Introducing Financial Statements

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

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Correct Answer
verified

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

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

Correct Answer
verified

Increases in equity from a company's sales of products or services are:

Correct Answer
verified

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

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

The basic financial statements include all of the following except:

Correct Answer
verified

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments of $6,000.Its ending equity is:

Correct Answer
verified

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

Correct Answer
verified
False

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

Correct Answer
verified

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

Correct Answer
verified

The going concern assumption:

Correct Answer
verified

An income statement reports on investing and financing activities.

Correct Answer
verified
False

Assets created by selling goods and services on credit are:

Correct Answer
verified

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

Correct Answer
verified
A

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

Correct Answer
verified

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 1: Introducing Financial Statements

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

The four common forms of business ownership include sole proprietorship,partnership,corporation,and limited liability company (LLC).

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Increases in equity from a company's sales of products or services are:

Correct AnswerverifiedShow 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 basic financial statements include all of the following except:

Correct AnswerverifiedShow Answer

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments of $6,000.Its ending equity is:

Correct AnswerverifiedShow Answer

The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The going concern assumption:

Correct AnswerverifiedShow Answer

An income statement reports on investing and financing activities.

Correct AnswerverifiedFalse

Assets created by selling goods and services on credit are:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

The income statement describes revenues earned and expenses incurred along with the resulting net income or loss over a specified period of time,due to earnings activities.

Correct AnswerverifiedShow Answer

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business 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 Answer
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The three types of activities reported i...
View Answer

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False

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False

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A

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