Question 1

The income statement reports on operating activities at a point in time.

Accepted Answer

A) True 
 B)False

Question 2

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:

Accepted Answer

The answer of Prepare a April 30 balance sheet in...

Question 3

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

Accepted Answer

A)  Assets increase $1,300 and liabilities decrease $1,300.
B)  One asset increases $1,300 and another asset decreases $1,300,causing no effect.
C)  Assets decrease $1,300 and equity decreases $1,300.
D)  Assets decrease $1,300 and equity increases $1,300.
E)  Assets increase $1,300 and liabilities increase $1,300.F) B) and D)
G) A) and D)

Question 4

The _______________ principle requires that financial information is supported by independent,unbiased evidence.

Accepted Answer

The answer of The _______________ principle requires that financial information...

Question 5

Grandmark Printing pays $2,000 rent to the landlord of the building where its facilities are located.How does this transaction affect the accounting equation for Grandmark?

Accepted Answer

A)  Assets would decrease $2,000 and liabilities would decrease $2,000.
B)  Assets would decrease $2,000 and equity would decrease $2,000.
C)  Assets would increase $2,000 and equity would increase $2,000.
D)  Assets would increase $2,000 and liabilities would increase $2,000.
E)  Liabilities would decrease $2,000 and equity would increase $2,000.F) A) and B)
G) B) and D) B

Question 6

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 E)
G) A) and D)

Question 7

Creditors' claims on assets that reflect company obligations to provide assets,products,or services to others are called ____________________.

Accepted Answer

liabilities

Question 8

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500;Accounts Receivable,$7,250;Supplies,$650;Equipment,$12,000;Accounts Payable,$9,300.What is the amount of owner's equity as of May 31 of the current year?

Accepted Answer

A)  $8,300
B)  $13,050
C)  $20,500
D)  $31,100
E)  $40,400F) B) and D)
G) None of the above

Question 9

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

Question 10

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Accepted Answer

A) True 
 B)False

Question 11

Creditors' claims on the assets of a company are called:

Accepted Answer

A)  Net losses.
B)  Expenses.
C)  Revenues.
D)  Equity.
E)  Liabilities.F) A) and C)
G) D) and E)

Question 12

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Accepted Answer

A)  Balance sheet.
B)  Statement of owner's equity.
C)  Statement of cash flows.
D)  Income statement.
E)  Statement of financial position.F) A) and E)
G) B) and E)

Question 13

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

Accepted Answer

A)  Revenues.
B)  Expenses.
C)  Withdrawals.
D)  Owner investments.
E)  Cash.F) B) and D)
G) None of the above

Question 14

General accounting principles arise from long-used accounting practices.

Accepted Answer

A) True 
 B)False

Question 15

From the information given below,prepare a November income statement,a November statement of owner's equity,and a November 30 balance sheet.On November 1 of the current year,Victoria Garza began Garza Décor with an initial investment of $50,000 cash.On November 30,her records showed the following (alphabetically arranged)items and amounts.

Accepted Answer

The answer of From the information given below,prepare a November...

Question 16

Verity Siding Company,owned by S.Verity,began operations in May and completed the following transactions during that first month of operations.Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below.Do not determine new account balances after each transaction.Determine the final total for each account and verify that the equation is in balance.

Accepted Answer

The answer of Verity Siding Company,owned by S.Verity,began operations in...

Question 17

On August 31 of the current year,the assets and liabilities of Gladstone,Inc.are as follows: Cash $30,000;Supplies,$600;Equipment,$10,000;Accounts Payable,$8,500.What is the amount of owner's equity as of August 31 of the current year?

Accepted Answer

A)  $49,100
B)  $32,100
C)  $12,100
D)  $10,900
E)  $30,900F) A) and B)
G) All of the above B

Question 18

Revenue is properly recognized:

Accepted Answer

A)  When the customer makes an order.
B)  Only if the transaction creates an account receivable.
C)  At the end of the accounting period.
D)  Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price.
E)  When cash from a sale is received.F) B) and E)
G) B) and D)

Question 19

The accounting equation is ______________________________.

Accepted Answer

Assets = L...

Question 20

Ethical behavior requires that:

Accepted Answer

A)  Auditors' pay not depend on the success of the client's business.
B)  Auditors invest in businesses they audit.
C)  Analysts report information favorable to their companies.
D)  Managers use accounting information to benefit themselves.
E)  Auditors' pay depends on the success of the client's business.F) A) and B)
G) A) and C)

Exam 1: Accounting in Business

The income statement reports on operating activities at a point in time.

Correct Answer
verified

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:

Correct Answer
verified

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

Correct Answer
verified

The _______________ principle requires that financial information is supported by independent,unbiased evidence.

Correct Answer
verified

Grandmark Printing pays $2,000 rent to the landlord of the building where its facilities are located.How does this transaction affect the accounting equation for Grandmark?

Correct Answer
verified
B

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

Creditors' claims on assets that reflect company obligations to provide assets,products,or services to others are called ____________________.

Correct Answer
verified
liabilities

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500;Accounts Receivable,$7,250;Supplies,$650;Equipment,$12,000;Accounts Payable,$9,300.What is the amount of owner's equity as of May 31 of the current year?

Correct Answer
verified

The accounting equation implies that: Assets + Liabilities = Equity.

Correct Answer
verified

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Correct Answer
verified

Creditors' claims on the assets of a company are called:

Correct Answer
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The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

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

Correct Answer
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General accounting principles arise from long-used accounting practices.

Correct Answer
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Correct Answer
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Correct Answer
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On August 31 of the current year,the assets and liabilities of Gladstone,Inc.are as follows: Cash $30,000;Supplies,$600;Equipment,$10,000;Accounts Payable,$8,500.What is the amount of owner's equity as of August 31 of the current year?

Correct Answer
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B

Revenue is properly recognized:

Correct Answer
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The accounting equation is ______________________________.

Correct Answer
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Assets = L...
View Answer

Ethical behavior requires that:

Correct Answer
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Exam 1: Accounting in Business

The income statement reports on operating activities at a point in time.

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

If a company uses $1,300 of its cash to purchase supplies,the effect on the accounting equation would be:

Correct AnswerverifiedShow Answer

The _______________ principle requires that financial information is supported by independent,unbiased evidence.

Correct AnswerverifiedShow Answer

Grandmark Printing pays $2,000 rent to the landlord of the building where its facilities are located.How does this transaction affect the accounting equation for Grandmark?

Correct AnswerverifiedB

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

Creditors' claims on assets that reflect company obligations to provide assets,products,or services to others are called ____________________.

Correct Answerverifiedliabilities

On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500;Accounts Receivable,$7,250;Supplies,$650;Equipment,$12,000;Accounts Payable,$9,300.What is the amount of owner's equity as of May 31 of the current year?

Correct AnswerverifiedShow Answer

The accounting equation implies that: Assets + Liabilities = Equity.

Correct AnswerverifiedShow Answer

The Securities and Exchange Commission (SEC)is a government agency that has legal authority to establish GAAP.

Correct AnswerverifiedShow Answer

Creditors' claims on the assets of a company are called:

Correct AnswerverifiedShow Answer

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

General accounting principles arise from long-used accounting practices.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On August 31 of the current year,the assets and liabilities of Gladstone,Inc.are as follows: Cash $30,000;Supplies,$600;Equipment,$10,000;Accounts Payable,$8,500.What is the amount of owner's equity as of August 31 of the current year?

Correct AnswerverifiedB

Revenue is properly recognized:

Correct AnswerverifiedShow Answer

The accounting equation is ______________________________.

Correct AnswerverifiedAssets = L...View AnswerShow Answer

Ethical behavior requires that:

Correct AnswerverifiedShow Answer

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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B

Correct Answer
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liabilities

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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B

Correct Answer
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Correct Answer
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Assets = L...
View Answer

Correct Answer
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