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Exam 1: Accounting in Action

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Question 121

Multiple Choice

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If total liabilities decreased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period?

A) $50,000 decrease
B) $10,000 decrease
C) $10,000 increase
D) $50,000 increase

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Question 122

Multiple Choice

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Which of the following is not a reason one set of international accounting standards are needed?

A) multinational corporations.
B) mergers and acquisitions.
C) information technology.
D) all of these answer choices are correct.
IFRS.

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Question 123

Multiple Choice

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Which of the following is not part of the accounting process?

A problem with the monetary unit assumption is that

If the transaction causes an asset account to decrease, which of the following related effects may occur?

Teamboo Company's stockholders' equity at the beginning of August 2018 was $750,000. During the month, the company earned net income of $175,000 and paid dividends of $75,000. At the end of August 2018, what is the amount of stockholders' equity?

Which of the following will not cause a change in the stockholders' equity of a business?

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that

At the beginning of 2018, Hold Steady Company had total assets of $520,000 and total liabilities of $250,000. Answer each of the following questions. 1. If total assets increased $60,000 and stockholders' equity decreased $90,000 during the year, determine the amount of total liabilities at the end of the year. 2. During the year, total liabilities decreased $75,000 and stockholders' equity increased $50,000. Compute the amount of total assets at the end of the year. 3. If total assets decreased $100,000 and total liabilities increased $55,000 during the year, determine the amount of stockholders' equity at the end of the year.

Net income for the period is determined by subtracting total expenses and drawings from total revenues.

If total liabilities decreased by $50,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period?

Match the items below

Accounting is an information system that identifies, _____________, and _____________ the economic events of an organization.

A basic assumption of accounting assumes that the dollar is

Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses.

Match the following terms and definitions. a. Accounts receivable b. Creditor c. Accounts payable d. Note payable _______ (1) Amounts due from customers _______ (2) Amounts owed to suppliers for goods and services purchased _______ (3) Amounts owed to bank _______ (4) Party to whom money is owed

IFRS, compared to GAAP, tends to be more

GAAP, compared to IFRS, tends to be more

Which of the following would not be considered an internal user of accounting data for the GHI Company?

If services are rendered on account, then