Question 1

Which of the following accounts is not included in the calculation of net income?

Accepted Answer

A)   Services revenue.
B)   Wages expense.
C)   Rent expense.
D)   Cash.
E)   Rent revenue.F) B) and E)
G) D) and E)

Question 2

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Accepted Answer

The answer of The ________ assumption assumes that a business...

Question 3

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 stockholders' equity?

Accepted Answer

A)   $17,000.
B)   $29,000.
C)   $71,000.
D)   $88,000.
E)   $105,000.F) A) and B)
G) C) and D)

Question 4

Match the following terms with the appropriate definition.
-Objectivity principle

Accepted Answer

A)  The governmental agency that has the legal authority to establish accounting rules.
B)  Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.
C)  A report that describes a company's financial position at a point in time.
D)  A financial statement that reports the changes in equity over the reporting period; including increases from net income and decreases from dividends or net losses.
E)  The concepts and rules that govern financial accounting.F) A report that identifies cash receipts and cash payments over a period of time.G) A principle that requires the information in financial statements to be supported by independent unbiased evidence.H) An independent group consisting of individuals from many countries that identify preferred accounting practices.I) Presumes that the life of a company can be divided into periods for reporting purposes.J) Prescribes that a company report the details behind financial statements that would impact user decisions.K) C) and E)
L) B) and D)

Question 5

Flitter reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities.By the end of the year,assets had increased to $300,000 and liabilities were $75,000.Calculate its return on assets:

Accepted Answer

A)   8.8%.
B)   7.0%.
C)   5.8%.
D)   35.0%.
E)   23.3%.F) B) and E)
G) A) and E)

Question 6

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts:
 $\begin{array}{lr}
\text { Commissions earned  } & \$ 40,000 \
\text { Accounts payable } & 3,500 \
\text { Accounts receivable  } & 5,000 \
\text { Common stock} & 100,000 \
\text { Retained earnings } & 4,500 \
\text { Office equipment } & 10,000\
\text {Advertising expense}&3,200\
\text {Cash}&7,500\
\text {Land}&35,000\
\text {Note payable}&50,000\
\text {Office supplies}&1,500\
\text {Salaries expense}&12,000\
\text {Salaries payable}&1,000\
\text {Building}&100,000
\end{array}$

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 7

Match the following terms with the appropriate definition.
-Generally accepted accounting principles

Accepted Answer

A)  The governmental agency that has the legal authority to establish accounting rules.
B)  Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.
C)  A report that describes a company's financial position at a point in time.
D)  A financial statement that reports the changes in equity over the reporting period; including increases from net income and decreases from dividends or net losses.
E)  The concepts and rules that govern financial accounting.F) A report that identifies cash receipts and cash payments over a period of time.G) A principle that requires the information in financial statements to be supported by independent unbiased evidence.H) An independent group consisting of individuals from many countries that identify preferred accounting practices.I) Presumes that the life of a company can be divided into periods for reporting purposes.J) Prescribes that a company report the details behind financial statements that would impact user decisions.K) D) and F)
L) E) and G)

Question 8

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of ...

Question 9

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 10

An example of an operating activity is:

Accepted Answer

A)   Paying wages.
B)   Purchasing office equipment.
C)   Borrowing money from a bank.
D)   Selling stock.
E)   Paying off a loan.F) A) and D)
G) All of the above

Question 11

The three common forms of business ownership include sole proprietorship,partnership,and corporation.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

Identify the users and uses of accounting information.

Correct Answer
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There are two general types of users of ...
View Answer

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 stockholders' equity?

Correct Answer
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Which of the following accounts is not included in the calculation of net income?

Correct Answer
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Match the following terms with the appropriate definition. -Generally accepted accounting principles

Correct Answer
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Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Correct Answer
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Flitter reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities.By the end of the year,assets had increased to $300,000 and liabilities were $75,000.Calculate its return on assets:

Correct Answer
verified

The three common forms of business ownership include sole proprietorship,partnership,and corporation.

Correct Answer
verified

An example of an operating activity is:

Correct Answer
verified

Match the following terms with the appropriate definition. -Objectivity principle

Correct Answer
verified

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Correct Answer
verified

Exam 1: Accounting in Business

Identify the users and uses of accounting information.

Correct AnswerverifiedThere are two general types of users of ...View AnswerShow 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 stockholders' equity?

Correct AnswerverifiedShow Answer

Which of the following accounts is not included in the calculation of net income?

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Generally accepted accounting principles

Correct AnswerverifiedShow Answer

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Correct AnswerverifiedShow Answer

Flitter reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities.By the end of the year,assets had increased to $300,000 and liabilities were $75,000.Calculate its return on assets:

Correct AnswerverifiedShow Answer

The three common forms of business ownership include sole proprietorship,partnership,and corporation.

Correct AnswerverifiedShow Answer

An example of an operating activity is:

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition. -Objectivity principle

Correct AnswerverifiedShow Answer

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Correct AnswerverifiedShow Answer

Correct Answer
verified
There are two general types of users of ...
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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