Question 1

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Accepted Answer

A) True 
 B)False

Question 2

Donner Company is selling a piece of land adjacent to its business premises.An appraisal reported the market value of the land to be $220,000.The Focus Company initially offered to buy the land for $177,000.The companies settled on a purchase price of $212,000.On the same day,another piece of land on the same block sold for $232,000.Under the cost concept,at what amount should the land be recorded in the accounting records of Focus Company?

Accepted Answer

A)  $177,000
B)  $212,000
C)  $220,000
D)  $232,000

Question 3

Managerial accountants would be responsible for providing information regarding

Accepted Answer

A)  tax reports to government agencies
B)  profit reports to owners and management
C)  expansion of a product line report to management
D)  consumer reports to customers

Question 4

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

Accepted Answer

A)  prior period statement
B)  retained earnings statement
C)  income statement
D)  balance sheet

Question 5

Most businesses in the United States are

Accepted Answer

A)  proprietorships
B)  partnerships
C)  corporations
D)  cooperatives

Question 6

An example of an external user of accounting information is the federal government.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a service business?

Accepted Answer

A)  Microsoft
B)  Dell Computers
C)  Facebook
D)  Walmart

Question 8

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Accepted Answer

A)  FASB
B)  IRS
C)  SEC
D)  AICPA

Question 9

The initials GAAP stand for

Accepted Answer

A)  General Accounting Procedures
B)  Generally Accepted Plans
C)  Generally Accepted Accounting Principles
D)  Generally Accepted Accounting Practices

Question 10

Which of the following accounts is a liability?

Accepted Answer

A)  Accounts Payable
B)  Accounts Receivable
C)  Wages Expense
D)  Service Revenue

Question 11

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Accepted Answer

The answer of Selected transaction data of a business for...

Question 12

Dividends paid to stockholders decrease assets and increase equity.

Accepted Answer

A) True 
 B)False

Question 13

Profit is the difference between

Accepted Answer

A)  assets and liabilities
B)  the incoming cash and outgoing cash
C)  the assets purchased with cash contributed by the owner and the cash spent to operate the business
D)  the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services

Question 14

Which of the following is not a role of accounting in business?

Accepted Answer

A)  to provide reports to users about the economic activities and conditions of a business
B)  to personally guarantee loans of the business
C)  to provide information to external users to determine the economic performance and condition of the business
D)  to assess the various informational needs of users and design its accounting system to meet those needs

Question 15

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Accepted Answer

None...

Question 16

Financial reports are used by

Accepted Answer

A)  management
B)  creditors
C)  investors
D)  all are correct

Question 17

Within the United States,the dominant body in the primary development of accounting principles is the

Accepted Answer

A)  American Institute of Certified Public Accountants AICPA
B)  American Accounting Association AAA
C)  Financial Accounting Standards Board FASB
D)  Institute of Management Accountants IMA

Question 18

The Austin Land Company sold land for $85,000 in cash.The land was originally purchased for $65,000.At the time of the sale,$40,000 was still owed to Regions Bank.After the sale,The Austin Land Company paid off the loan.Explain the effect of the sale and the payoff of the loan on the accounting equation.

Accepted Answer

Total assets decrease $20,000 Cash incre...

Question 19

What information does the income statement give to business users?

Accepted Answer

The income statement reports t...

Exam 1: Introduction to Accounting and Business

Which of the following accounts is a liability?

Correct Answer
verified

Managerial accountants would be responsible for providing information regarding

Correct Answer
verified

Profit is the difference between

Correct Answer
verified

The initials GAAP stand for

Correct Answer
verified

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Correct Answer
verified

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Correct Answer
verified

Correct Answer
verified

Within the United States,the dominant body in the primary development of accounting principles is the

Correct Answer
verified

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Correct Answer
verified

Most businesses in the United States are

Correct Answer
verified

Correct Answer
verified
Total assets decrease $20,000 Cash incre...
View Answer

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

Correct Answer
verified

Dividends paid to stockholders decrease assets and increase equity.

Correct Answer
verified

An example of an external user of accounting information is the federal government.

Correct Answer
verified

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Correct Answer
verified
None...
View Answer

What information does the income statement give to business users?

Correct Answer
verified
The income statement reports t...
View Answer

Which of the following is a service business?

Correct Answer
verified

Financial reports are used by

Correct Answer
verified

Which of the following is not a role of accounting in business?

Correct Answer
verified

Exam 1: Introduction to Accounting and Business

Which of the following accounts is a liability?

Correct AnswerverifiedShow Answer

Managerial accountants would be responsible for providing information regarding

Correct AnswerverifiedShow Answer

Profit is the difference between

Correct AnswerverifiedShow Answer

The initials GAAP stand for

Correct AnswerverifiedShow Answer

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Correct AnswerverifiedShow Answer

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Within the United States,the dominant body in the primary development of accounting principles is the

Correct AnswerverifiedShow Answer

Selected transaction data of a business for September are summarized below.Determine the following amounts for September: a total revenue,b total expenses,c net income.

Correct AnswerverifiedShow Answer

Most businesses in the United States are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTotal assets decrease $20,000 Cash incre...View AnswerShow Answer

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time,such as a month or year,is called an

Correct AnswerverifiedShow Answer

Dividends paid to stockholders decrease assets and increase equity.

Correct AnswerverifiedShow Answer

An example of an external user of accounting information is the federal government.

Correct AnswerverifiedShow Answer

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Correct AnswerverifiedNone...View AnswerShow Answer

What information does the income statement give to business users?

Correct AnswerverifiedThe income statement reports t...View AnswerShow Answer

Which of the following is a service business?

Correct AnswerverifiedShow Answer

Financial reports are used by

Correct AnswerverifiedShow Answer

Which of the following is not a role of accounting in business?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Total assets decrease $20,000 Cash incre...
View Answer

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Correct Answer
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Correct Answer
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None...
View Answer

Correct Answer
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The income statement reports t...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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