Question 1

Describe the income statement and the relation between revenues,expenses,and net income or loss.

Accepted Answer

The income statement describes a company...

Question 2

The business entity 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 owner.
E)  Prescribes that a company record the expenses it incurred to generate the revenue reported.

Question 3

Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Accepted Answer

A) True 
 B)False

Question 4

Use the following information as of December 31 to determine equity.

Accepted Answer

A)  $57,000.
B)  $141,000.
C)  $297,000.
D)  $438,000.
E)  $579,000.

Question 5

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

Accepted Answer

A)  Financial accounting.
B)  Managerial accounting.
C)  External auditing.
D)  SEC reporting.
E)  Bookkeeping.

Question 6

All of the following are classified as assets except:

Accepted Answer

A)  Accounts Payable.
B)  Accounts Receivable.
C)  Cash.
D)  Supplies.
E)  Prepaid Insurance.

Question 7

The Financial Accounting Standards Board (FASB)is a group tasked with setting generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 8

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Accepted Answer

A)  $365,000.
B)  $239,000.
C)  $189,000.
D)  $315,000.
E)  $277,000.

Question 9

Outflows of cash and other resources to stockholders are:

Accepted Answer

A)  Liabilities.
B)  Dividends.
C)  Expenses.
D)  Stock issuances.
E)  Revenues.

Question 10

The accounting equation is ________.

Accepted Answer

Assets = L...

Question 11

Objectivity means that financial information is supported by independent,unbiased evidence; it demands more than a person's opinion.

Accepted Answer

A) True 
 B)False

Question 12

A ________ is a business that is owned by only one person.

Accepted Answer

The answer of A ________ is a business that is...

Question 13

Match between columns
                        Premises: Assess whether an organization is likely to repay its loans with interest.
Judge the soundness of a customer before making sales on credit.
Assess whether a company has paid all required taxes and complied with securities rules.
Know what,when,and how much to purchase.
Decide whether to buy,hold,or sell a company's stock.

Accepted Answer

The Answer of Shareholders and Regulators and Suppliers and Purchasing is...

Question 14

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 retained earnings.
C)  Statement of cash flows.
D)  Income statement.
E)  Statement of financial position.

Question 15

A company acquires equipment for $75,000 cash.This represents a(n) :

Accepted Answer

A)  Operating activity.
B)  Investing activity.
C)  Financing activity.
D)  Revenue activity.
E)  Expense activity.

Question 16

The primary objective of financial accounting is to:

Accepted Answer

A)  Serve the decision-making needs of internal users.
B)  Provide accounting information that serves external users.
C)  Monitor consumer needs,tastes,and price concerns.
D)  Provide information on both the costs and benefits of looking after products and services.
E)  Know what,when,and how much product to produce.

Question 17

The income statement reports all of the following except:

Accepted Answer

A)  Revenues earned by a business.
B)  Expenses incurred by a business.
C)  Assets owned by a business.
D)  Net income or loss earned by a business.
E)  The time period over which the earnings occurred.

Question 18

Net income is sometimes called earnings or profit.

Accepted Answer

A) True 
 B)False

Question 19

The stockholders' claim on assets,also known as net assets,is called ________.

Accepted Answer

The answer of The stockholders' claim on assets,also known as...

Question 20

A disadvantage of a sole proprietorship is the fact that the owner has ________.

Accepted Answer

The answer of A disadvantage of a sole proprietorship is...

Exam 1: Accounting in Business

Describe the income statement and the relation between revenues,expenses,and net income or loss.

Correct Answer
verified
The income statement describes a company...
View Answer

The business entity assumption:

Correct Answer
verified

The stockholders' claim on assets,also known as net assets,is called ________.

Correct Answer
verified

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

Correct Answer
verified

The following is a list of selected users of accounting information.Match the appropriate user to the following decisions they make with accounting information.

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Correct Answer
verified

Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Correct Answer
verified

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

Correct Answer
verified

Use the following information as of December 31 to determine equity.

Correct Answer
verified

A company acquires equipment for $75,000 cash.This represents a(n) :

Correct Answer
verified

Objectivity means that financial information is supported by independent,unbiased evidence; it demands more than a person's opinion.

Correct Answer
verified

All of the following are classified as assets except:

Correct Answer
verified

Net income is sometimes called earnings or profit.

Correct Answer
verified

The primary objective of financial accounting is to:

Correct Answer
verified

The income statement reports all of the following except:

Correct Answer
verified

A disadvantage of a sole proprietorship is the fact that the owner has ________.

Correct Answer
verified

A ________ is a business that is owned by only one person.

Correct Answer
verified

Outflows of cash and other resources to stockholders are:

Correct Answer
verified

The accounting equation is ________.

Correct Answer
verified
Assets = L...
View Answer

The Financial Accounting Standards Board (FASB)is a group tasked with setting generally accepted accounting principles (GAAP).

Correct Answer
verified

Exam 1: Accounting in Business

Describe the income statement and the relation between revenues,expenses,and net income or loss.

Correct AnswerverifiedThe income statement describes a company...View AnswerShow Answer

The business entity assumption:

Correct AnswerverifiedShow Answer

The stockholders' claim on assets,also known as net assets,is 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

The following is a list of selected users of accounting information.Match the appropriate user to the following decisions they make with accounting information.

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Correct AnswerverifiedShow Answer

Financial accounting is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Use the following information as of December 31 to determine equity.

Correct AnswerverifiedShow Answer

A company acquires equipment for $75,000 cash.This represents a(n) :

Correct AnswerverifiedShow Answer

Objectivity means that financial information is supported by independent,unbiased evidence; it demands more than a person's opinion.

Correct AnswerverifiedShow Answer

All of the following are classified as assets except:

Correct AnswerverifiedShow Answer

Net income is sometimes called earnings or profit.

Correct AnswerverifiedShow Answer

The primary objective of financial accounting is to:

Correct AnswerverifiedShow Answer

The income statement reports all of the following except:

Correct AnswerverifiedShow Answer

A disadvantage of a sole proprietorship is the fact that the owner has ________.

Correct AnswerverifiedShow Answer

A ________ is a business that is owned by only one person.

Correct AnswerverifiedShow Answer

Outflows of cash and other resources to stockholders are:

Correct AnswerverifiedShow Answer

The accounting equation is ________.

Correct AnswerverifiedAssets = L...View AnswerShow Answer

The Financial Accounting Standards Board (FASB)is a group tasked with setting generally accepted accounting principles (GAAP).

Correct AnswerverifiedShow Answer

Correct Answer
verified
The income statement describes a company...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Assets = L...
View Answer

Correct Answer
verified