Question 1

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

Accepted Answer

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

Question 2

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Accepted Answer

A) True 
 B)False

Question 3

Accounts payable appear on which of the following statements?

Accepted Answer

A)   Balance sheet.
B)   Income statement.
C)   Statement of retained earnings.
D)   Statement of cash flows.
E)   Transaction statement.F) B) and C)
G) C) and D)

Question 4

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

Accepted Answer

A) True 
 B)False

Question 5

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide ...

Question 6

General accounting principles stem from long-used accounting practices.

Accepted Answer

A) True 
 B)False

Question 7

Match the following terms with the appropriate definition.
-Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

Accepted Answer

A)  Internal users
B)  Fraud triangle
C)  Managerial accounting
D)  Ethics
E)  External usersF) Certified Public Accountant (CP
A)  G) Financial accountingH) AccountingI) RecordkeepingJ) E) and F)
K) F) and H)

Question 8

Match each of the following terms with the most appropriate definition.
-Evidence of inflows of resources such as cash and other assets from stockholders.

Accepted Answer

A)  Assets
B)  Expenses
C)  Return on assets
D)  Accounting equation
E)  RiskF) Common stockG) DividendsH) LiabilitiesI) A) and D)
J) B) and D)

Question 9

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Accepted Answer

A)   Cash was received from providing services to a customer.
B)   The company paid an amount due on credit.
C)   Equipment was purchased for cash.
D)   A utility bill was received for the current month, to be paid in the following month.
E)   Advertising expense for the month was paid in cash.F) D) and E)
G) A) and B)

Question 10

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

Accepted Answer

Financial ...

Question 11

There are three major types of business activities.________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

Accepted Answer

The answer of There are three major types of business...

Question 12

The ________ assumption states that transactions and events are expressed in money units.

Accepted Answer

The answer of The ________ assumption states that transactions and...

Question 13

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

Question 14

Identifying the proper ethical path is usually easy.

Accepted Answer

A) True 
 B)False

Question 15

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 16

A partnership:

Accepted Answer

A)   Is also called a sole proprietorship.
B)   Has unlimited liability for its partners.
C)   Has to have a written agreement in order to be legal.
D)   Is a legal organization separate from its owners.
E)   Has owners called shareholders.F) C) and D)
G) D) and E)

Question 17

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Accepted Answer

Measuremen...

Question 18

If assets are $300,000 and liabilities are $192,000,then equity equals:

Accepted Answer

A)   $108,000.
B)   $192,000.
C)   $300,000.
D)   $492,000.
E)   $792,000.F) B) and D)
G) None of the above

Question 19

Which of the following purposes would financial statements serve for external users?

Accepted Answer

A)   To find information about projected costs and revenues of proposed products.
B)   To assess employee performance and compensation.
C)   To assist in monitoring consumer needs and price concerns.
D)   To fulfill regulatory requirements for companies whose stock is sold to the public.
E)   To determine purchasing needs.F) A) and B)
G) B) and D)

Question 20

If the liabilities of a business increased $75,000 during a period of time and the equity in the business decreased $30,000 during the same period,the assets of the business must have:

Accepted Answer

A)   Decreased $105,000.
B)   Decreased $45,000.
C)   Increased $30,000.
D)   Increased $45,000.
E)   Increased $105,000.F) A) and D)
G) A) and B)

Exam 1: Accounting in Business

Explain why ethics are an integral part of accounting.

Correct AnswerverifiedThe purpose of accounting is to provide ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The Financial Accounting Standards Board is the governmental agency that sets both broad and specific accounting principles.

Correct AnswerverifiedShow Answer

A partnership:

Correct AnswerverifiedShow Answer

There are three major types of business activities.________ activities involve using resources to research,develop,purchase,produce,distribute,and market products and services and receiving amounts from selling products and services.

Correct AnswerverifiedShow Answer

Accounts payable appear on which of the following statements?

Correct AnswerverifiedShow Answer

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Correct AnswerverifiedShow Answer

In accounting,the rule that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called the ________.

Correct AnswerverifiedMeasuremen...View AnswerShow Answer

Identifying the proper ethical path is usually easy.

Correct AnswerverifiedShow Answer

If the liabilities of a business increased $75,000 during a period of time and the equity in the business decreased $30,000 during the same period,the assets of the business must have:

Correct AnswerverifiedShow Answer

Which of the following purposes would financial statements serve for external users?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFinancial ...View AnswerShow Answer

Stockholders' equity is increased when cash is received from customers in payment of previously recorded accounts receivable.

Correct AnswerverifiedShow Answer

Match each of the following terms with the most appropriate definition. -Evidence of inflows of resources such as cash and other assets from stockholders.

Correct AnswerverifiedShow Answer

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

Correct AnswerverifiedShow Answer

General accounting principles stem from long-used accounting practices.

Correct AnswerverifiedShow Answer

The ________ assumption states that transactions and events are expressed in money units.

Correct AnswerverifiedShow Answer

If assets are $300,000 and liabilities are $192,000,then equity equals:

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

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 AnswerverifiedShow Answer

Correct Answer
verified
The purpose of accounting is to provide ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Measuremen...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Financial ...
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