Question 1

If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000,is offered for sale at $150,000,is assessed for tax purposes at $95,000,is recognized by the purchaser as easily being worth $140,000,and is purchased for $137,000,the land should be recorded in the purchaser's books at:

Accepted Answer

A)   $95,000.
B)   $137,000.
C)   $138,500.
D)   $140,000.
E)   $150,000.F) A) and B)
G) All of the above

Question 2

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease? By what amount?

Accepted Answer

Assets inc...

Question 3

There are three major types of business activities.________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

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

Question 4

Match the following activities with the appropriate section of the statement of cash flows.
-Cash received from customers.

Accepted Answer

A)  Financing activity
B)  Investing activity
C)  Operating activityD) All of the above
E) A) and B)

Question 5

Technology:

Accepted Answer

A)   Has replaced accounting.
B)   Has not improved the clerical accuracy of accounting.
C)   Reduces the time, effort and cost of recordkeeping.
D)   In accounting has replaced the need for decision makers.
E)   In accounting is only available to large corporations.F) C) and D)
G) A) and E)

Question 6

The statement of cash flows:

Accepted Answer

A)   Reports how equity changes at a point in time.
B)   Reports how equity changes over a period of time.
C)   Reports on cash flows for operating, financing, and investing activities over a period of time.
D)   Reports on cash flows for operating, financing, and investing activities at a point in time.
E)   Reports on amounts for assets, liabilities, and equity at a point in time.F) None of the above
G) A) and B)

Question 7

Use the following information for Meeker Corp.to determine the amount of equity to report.
  Cash $70,000 Buildings 125,000 Land 205,000 Liabilities 130,000\begin{array} { l l } 	ext { Cash } & \$ 70,000 \	ext { Buildings } & 125,000 \	ext { Land } & 205,000 \	ext { Liabilities } & 130,000\end{array} Cash  Buildings  Land  Liabilities ​$70,000125,000205,000130,000​

Accepted Answer

A)   $390,000.
B)   $140,000.
C)   $20,000.
D)   $530,000.
E)   $270,000. F) A) and B)
G) All of the above

Question 8

On December 15 of the current year,Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year.Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Accepted Answer

A)   Monetary unit assumption.
B)   Going-concern assumption.
C)   Measurement (Cost)  principle.
D)   Business entity assumption.
E)   Revenue recognition principle.F) None of the above
G) A) and B)

Question 9

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are creditors' claims on ass...

Question 10

A corporation is:

Accepted Answer

A)   A business legally separate from its owners.
B)   Controlled by the FASB.
C)   Not responsible for its own acts and own debts.
D)   The same as a limited liability partnership.
E)   Not subject to double taxation.F) A) and C)
G) A) and E)

Question 11

A net loss occurs when revenues exceed expenses.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

The answer of Creditors' claims on assets that reflect company...

Question 14

Generally,the lower the risk,the higher the return that can be expected.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following accounts is not included in the liability section of the balance sheet?

Accepted Answer

A)   Accounts receivable.
B)   Wages payable.
C)   Accounts payable.
D)   Notes payable.
E)   Taxes payable.F) A) and B)
G) A) and C)

Question 16

Explain the accounting equation and define its terms.

Accepted Answer

The accounting equation is stated as: As...

Question 17

The accounts of Mason Company at the end of the past year report the following amounts:
 $$\begin{array} { l r } 
\text { Accounts } & \text { Amount } \
\hline \text { Dividend } & \$ 15,500 \
\text { Reveruses } & \$ 97,000 \
\text { Expenses } & \$ 43,800 \
\text { Stock issuances } & 2,000
\end{array}$$ 
If the beginning equity for the year was $173,000,calculate the ending equity for Mason Company.

Accepted Answer

The answer of The accounts of Mason Company at the...

Question 18

If assets are $365,000 and equity is $120,000,then liabilities are:

Accepted Answer

A)   $120,000.
B)   $245,000.
C)   $365,000.
D)   $485,000.
E)   $610,000.F) B) and D)
G) All of the above

Question 19

The measurement principle,also called the cost principle:

Accepted Answer

A)   Prescribes that accounting information is based on actual cost.
B)   Provides guidance on when a company must recognize revenue.
C)   Prescribes that a company report the details behind financial statements that would impact users' decisions.
D)   Prescribes that a company record the expenses it incurred to generate the revenue reported.
E)   Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.F) C) and E)
G) B) and E)

Question 20

Match the following terms with the appropriate definition.
-The area of accounting aimed at serving external users by providing them with general-purpose financial statements.

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) A) and B)
K) A) and H)

Exam 1: Accounting in Business

A corporation is:

Correct Answer
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If assets are $365,000 and equity is $120,000,then liabilities are:

Correct Answer
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What distinguishes liabilities from equity?

Correct Answer
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Liabilities are creditors' claims on ass...
View Answer

Technology:

Correct Answer
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Correct Answer
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Correct Answer
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If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease? By what amount?

Correct Answer
verified
Assets inc...
View Answer

Match the following activities with the appropriate section of the statement of cash flows. -Cash received from customers.

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

Correct Answer
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The statement of cash flows:

Correct Answer
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Which of the following accounts is not included in the liability section of the balance sheet?

Correct Answer
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Explain the accounting equation and define its terms.

Correct Answer
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The accounting equation is stated as: As...
View Answer

Match the following terms with the appropriate definition. -The area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Correct Answer
verified

There are three major types of business activities.________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Correct Answer
verified

A net loss occurs when revenues exceed expenses.

Correct Answer
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Use the following information for Meeker Corp.to determine the amount of equity to report. $\begin{array} { l l } \text { Cash } & \$ 70,000 \\\text { Buildings } & 125,000 \\\text { Land } & 205,000 \\\text { Liabilities } & 130,000\end{array}$

Correct Answer
verified

Generally,the lower the risk,the higher the return that can be expected.

Correct Answer
verified

Correct Answer
verified

The measurement principle,also called the cost principle:

Correct Answer
verified

Revenue is properly recognized:

Correct Answer
verified

Exam 1: Accounting in Business

A corporation is:

Correct AnswerverifiedShow Answer

If assets are $365,000 and equity is $120,000,then liabilities are:

Correct AnswerverifiedShow Answer

What distinguishes liabilities from equity?

Correct AnswerverifiedLiabilities are creditors' claims on ass...View AnswerShow Answer

Technology:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period,did the assets of the company increase or decrease? By what amount?

Correct AnswerverifiedAssets inc...View AnswerShow Answer

Match the following activities with the appropriate section of the statement of cash flows. -Cash received from customers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The statement of cash flows:

Correct AnswerverifiedShow Answer

Which of the following accounts is not included in the liability section of the balance sheet?

Correct AnswerverifiedShow Answer

Explain the accounting equation and define its terms.

Correct AnswerverifiedThe accounting equation is stated as: As...View AnswerShow Answer

Match the following terms with the appropriate definition. -The area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Correct AnswerverifiedShow Answer

There are three major types of business activities.________ activities involve the acquisition and disposal of resources that an organization uses to acquire and sell its products or services.

Correct AnswerverifiedShow Answer

A net loss occurs when revenues exceed expenses.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Generally,the lower the risk,the higher the return that can be expected.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The measurement principle,also called the cost principle:

Correct AnswerverifiedShow Answer

Revenue is properly recognized:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Liabilities are creditors' claims on ass...
View 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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Assets inc...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The accounting equation is stated as: As...
View Answer

Correct Answer
verified

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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