Question 1

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

Accepted Answer

Total asse...

Question 2

Generally Accepted Accounting Principles:

Accepted Answer

A)   Focus on the review of a situation
B)   Does not require financial statements
C)   Never change
D)   Intend to make information on the financial statements relevant, reliable and comparable
E)   Oversees Security and Exchange CommissionF) B) and E)
G) C) and E)

Question 3

On December 15, 2010, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2011. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2011 and not 2010?

Accepted Answer

A)   Monetary unit principle
B)   Going-concern principle
C)   Cost principle
D)   Business entity principle
E)   Revenue recognition principleF) All of the above
G) A) and E)

Question 4

Dividends are expenses of a business.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Accepted Answer

A)   They are identical
B)   They are entirely different conceptual frameworks
C)   They are similar but not identical
D)   Neither has anything to do with accounting
E)   They both relate only to publicly traded companiesF) All of the above
G) C) and D)

Question 6

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)   $579,000F) C) and D)
G) A) and B)

Question 7

Return on assets is:

Accepted Answer

A)   Also called rate of return
B)   Computed by dividing net income by beginning assets plus ending assets divided by two
C)   Computed by multiplying net income by total assets
D)   Used in helping evaluate expenses
E)   Found on the balance sheetF) B) and D)
G) A) and B)

Question 8

The records of Skymaster Airplane Rentals show the following information as of December 31, 2011

Dividends of $52,000 were paid during 2011.
Using the above information, prepare a statement of retained earnings for 2011

Accepted Answer

The answer of The records of Skymaster Airplane Rentals show...

Question 9

______________ is the area of accounting aimed at serving external users.

Accepted Answer

Financial ...

Question 10

Data for Madison Realty are as follows:
   
Madison Realty paid dividends of $30,000 during 2011. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2011.

Accepted Answer

The answer of Data for Madison Realty are as follows:
...

Question 11

Which of the following is the primary purpose of accounting?

Accepted Answer

A)   To establish a business
B)   To identify, record and communicate business transactions
C)   To deceive stockholders
D)   To keep from paying taxes
E)   To establish credit for a companyF) B) and E)
G) None of the above

Question 12

Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were $280,000, Dividends declared was $22,700, and Ending Liabilities is   $$350,000. What is the Ending Equity for the year?

Accepted Answer

A)   $700,160
B)   $331,590
C)   $134,250
D)   $612,560
E)   $175,040 F) B) and E)
G) A) and E)

Question 13

The four basic financial statements include the balance sheet, income statement, statement of retained earnings and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Accepted Answer

A) True 
 B)False

Question 15

The balance sheet equation is:

Accepted Answer

A)   Revenues minus expenses equal net income
B)   Debits equal credits
C)   The bookkeeping phase of accounting
D)   Another name for the accounting equation
E)   Assets minus liabilities and equityF) B) and C)
G) None of the above

Question 16

Ending Liabilities are 67,000, Beginning Equity was $87,000, Common Stock sold during year totaled $31,000, Expenses for the year were $22,000, Dividends declared totaled $13,000, Ending Equity for the year is $181,000 and Beginning Assets for the year were $222,000. What are the Ending Assets for the year?

Accepted Answer

A)   $154,000
B)   $134,000
C)   $212,000
D)   $248,000
E)   $155,000F) B) and E)
G) None of the above

Question 17

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Accepted Answer

A)   Increased $22,000
B)   Decreased $22,000
C)   Increased $89,000
D)   Decreased $156,000
E)   Increased $156,000F) A) and B)
G) A) and E)

Question 18

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of equity?

Accepted Answer

A)   $17,000
B)   $29,000
C)   $71,000
D)   $88,000
E)   $105,000F) C) and D)
G) None of the above

Question 19

Which of the following accounting principles dictates when expenses are recognized?

Accepted Answer

A)   Revenue recognition principle
B)   Monetary unit principle
C)   Business entity principle
D)   Matching principle
E)   Full disclosure principleF) B) and C)
G) A) and C)

Question 20

______________________ are procedures set up to protect company property and equipment, ensure reliable accounting reports, promote efficiency and encourage adherence to company policies.

Accepted Answer

The answer of ______________________ are procedures set up to protect...

Exam 1: Introducing Accounting in Business

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

Correct Answer
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Total asse...
View Answer

Return on assets is:

Correct Answer
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Which of the following is the primary purpose of accounting?

Correct Answer
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Generally Accepted Accounting Principles:

Correct Answer
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The four basic financial statements include the balance sheet, income statement, statement of retained earnings and statement of cash flows.

Correct Answer
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Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Correct Answer
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Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2011. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2011.

Correct Answer
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Dividends are expenses of a business.

Correct Answer
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The balance sheet equation is:

Correct Answer
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If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Correct Answer
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______________ is the area of accounting aimed at serving external users.

Correct Answer
verified
Financial ...
View Answer

Beginning Assets were $437,600, Beginning Liabilities were $262,560, Common Stock sold during the year totaled $45,000, Revenue for the year was $414,250, Expenses for the year were $280,000, Dividends declared was $22,700, and Ending Liabilities is $$350,000. What is the Ending Equity for the year?

Correct Answer
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Correct Answer
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A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of equity?

Correct Answer
verified

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Correct Answer
verified

On December 15, 2010, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2011. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2011 and not 2010?

Correct Answer
verified

Which of the following accounting principles dictates when expenses are recognized?

Correct Answer
verified

The records of Skymaster Airplane Rentals show the following information as of December 31, 2011 Dividends of $52,000 were paid during 2011. Using the above information, prepare a statement of retained earnings for 2011

Correct Answer
verified

______________________ are procedures set up to protect company property and equipment, ensure reliable accounting reports, promote efficiency and encourage adherence to company policies.

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

Correct Answer
verified

Exam 1: Introducing Accounting in Business

ParFour's total liabilities are $130,000 and its equity is $340,000. Calculate the company's total assets.

Correct AnswerverifiedTotal asse...View AnswerShow Answer

Return on assets is:

Correct AnswerverifiedShow Answer

Which of the following is the primary purpose of accounting?

Correct AnswerverifiedShow Answer

Generally Accepted Accounting Principles:

Correct AnswerverifiedShow Answer

The four basic financial statements include the balance sheet, income statement, statement of retained earnings and statement of cash flows.

Correct AnswerverifiedShow Answer

Investing activities are the acquiring and selling of resources that an organization uses in its everyday operations.

Correct AnswerverifiedShow Answer

Data for Madison Realty are as follows: Madison Realty paid dividends of $30,000 during 2011. From the above data, prepare Madison Realty's statement of retained earnings for the year ended December 31, 2011.

Correct AnswerverifiedShow Answer

Dividends are expenses of a business.

Correct AnswerverifiedShow Answer

The balance sheet equation is:

Correct AnswerverifiedShow Answer

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

Correct AnswerverifiedShow Answer

______________ is the area of accounting aimed at serving external users.

Correct AnswerverifiedFinancial ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of equity?

Correct AnswerverifiedShow Answer

Which of the following statements best describes the relationship of U.S. GAAP and IFRS?

Correct AnswerverifiedShow Answer

On December 15, 2010, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2011. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2011 and not 2010?

Correct AnswerverifiedShow Answer

Which of the following accounting principles dictates when expenses are recognized?

Correct AnswerverifiedShow Answer

The records of Skymaster Airplane Rentals show the following information as of December 31, 2011 Dividends of $52,000 were paid during 2011. Using the above information, prepare a statement of retained earnings for 2011

Correct AnswerverifiedShow Answer

______________________ are procedures set up to protect company property and equipment, ensure reliable accounting reports, promote efficiency and encourage adherence to company policies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Total asse...
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Financial ...
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