Question 1

Ending liabilities were $67,000,beginning equity was $87,000,common stock issued during year totaled $31,000,expenses for the year were $22,000,dividends declared totaled $13,000,ending equity for the year was $181,000,and beginning assets for the year were $222,000. What were beginning liabilities for the year?

Accepted Answer

A)  $154,000
B)  $155,000
C)  $212,000
D)  $248,000
E)  $135,000F) A) and B)
G) All of the above

Question 2

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 3

The question of when revenue should be recognized on the income statement (according to GAAP)  is addressed by the:

Accepted Answer

A)  Revenue recognition principle
B)  Going-concern principle
C)  Objectivity principle
D)  Business entity principle
E)  Cost principleF) B) and C)
G) A) and D)

Question 4

From the information given,prepare a November 30 balance sheet.
On November 1 of the current year,Lois Bell began Lois Bell,Interior Design as a corporation with an initial investment of $50,000 cash.On November 30 her records showed the following (alphabetically arranged) selected accounts and amounts:

Accepted Answer

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Question 5

The three major activities of a business are operating,investing,and financing.

Accepted Answer

A) True 
 B)False

Question 6

Explain the role of accounting in the information age.

Accepted Answer

Accounting is an information and measure...

Question 7

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Accepted Answer

A)  ABC Company,For the year ended 12/31/13,Balance Sheet
B)  For the year ended 12/31/13,Balance Sheet,ABC Company
C)  Balance Sheet,12/31/13,ABC Company
D)  12/31/13,ABC Company,Balance Sheet
E)  ABC Company,Balance Sheet,12/31/13F) C) and D)
G) A) and B)

Question 9

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

Accepted Answer

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Question 10

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Accepted Answer

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

Question 11

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Accepted Answer

A)  Monetary unit assumption
B)  Going-concern assumption
C)  Cost assumption
D)  Business entity assumption
E)  Full disclosure assumptionF) A) and D)
G) A) and E)

Question 12

Congress passed the Sarbanes-Oxley Act to

Accepted Answer

A)  Provide jobs to U.S.accountants and limit the number of jobs sent outside the country.
B)  Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports,although at this time the penalties are token amounts.
C)  Help curb financial abuses at companies that issue their stock to the public.
D)  Force auditors to attest to the absolute accuracy of the financial statements.
E)  Require that all companies publicly disclose their internal control plans.F) None of the above
G) C) and D)

Question 13

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Accepted Answer

$27,000 - $22,000 - ...

Question 14

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

Accepted Answer

A)  Supplies increases by $800 and Accounts Payable increases by $800.
B)  Cash decreases by $800 and Accounts Payable increases by $800.
C)  Cash decreases by $800 and Supplies increases by $800.
D)  Cash decreases by $800 and Accounts Payable decreases by $800.
E)  Equipment increases by $800 and Accounts Payable increases by $800.F) A) and B)
G) C) and D)

Question 15

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Accepted Answer

A)  Business entity principle
B)  Monetary unit principle
C)  Going-concern principle
D)  Objectivity principle
E)  Full disclosure principleF) A) and D)
G) C) and D)

Question 16

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.F) All of the above
G) C) and D)

Question 17

Recording the items on the financial statements in dollars is done because of the:

Accepted Answer

A)  Objectivity principle
B)  Monetary unit principle
C)  Revenue recognition principle
D)  Going-concern principle
E)  Cost principleF) B) and D)
G) B) and C)

Question 18

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Accepted Answer

A)  +$10,000 accounts receivable,-$10,000 accounts payable.
B)  +$10,000 accounts receivable,+$10,000 accounts payable.
C)  +$10,000 accounts receivable,+$10,000 cash.
D)  +$10,000 accounts receivable,+$10,000 consulting revenue.
E)  +$10,000 accounts receivable,-$10,000 consulting revenue.F) C) and D)
G) A) and B)

Question 19

The income statement shows the financial position of a business on a specific date.

Accepted Answer

A) True 
 B)False

Question 20

What is the opportunity component of the fraud triangle?

Accepted Answer

A)  A person thinks that there is a way to commit fraud without much chance of getting caught.
B)  A person has a really good reason to commit fraud.
C)  A person does not think of the fraudulent activity as bad.
D)  A person persuades two or more other people to assist with the fraud.
E)  A person is concerned about the impact of their actions on society.F) A) and B)
G) C) and D)

Exam 1: Introducing Financial Accounting

Explain the role of accounting in the information age.

Correct Answer
verified
Accounting is an information and measure...
View Answer

The three major activities of a business are operating,investing,and financing.

Correct Answer
verified

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Correct Answer
verified
$27,000 - $22,000 - ...
View Answer

The income statement shows the financial position of a business on a specific date.

Correct Answer
verified

What is the opportunity component of the fraud triangle?

Correct Answer
verified

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Correct Answer
verified

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

Correct Answer
verified
_TB6947_00...
View Answer

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Correct Answer
verified

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Correct Answer
verified

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Correct Answer
verified

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Correct Answer
verified

Recording the items on the financial statements in dollars is done because of the:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
_TB6947_00...
View Answer

Congress passed the Sarbanes-Oxley Act to

Correct Answer
verified

The income statement reports all of the following except:

Correct Answer
verified

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Correct Answer
verified

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

Correct Answer
verified

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Correct Answer
verified

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Correct Answer
verified

Exam 1: Introducing Financial Accounting

Explain the role of accounting in the information age.

Correct AnswerverifiedAccounting is an information and measure...View AnswerShow Answer

The three major activities of a business are operating,investing,and financing.

Correct AnswerverifiedShow Answer

Della's Donuts had cash inflows from operating activities of $27,000,cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Correct Answerverified$27,000 - $22,000 - ...View AnswerShow Answer

The income statement shows the financial position of a business on a specific date.

Correct AnswerverifiedShow Answer

What is the opportunity component of the fraud triangle?

Correct AnswerverifiedShow Answer

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was the ending equity for the year?

Correct AnswerverifiedShow Answer

Janelle McKnight starts a business called Newberry Cleaning.The following events occurred during its first month of business.Show the effects of each transaction using the accounting equation by completing the table below.The effects of the first transaction are shown as an example.

Correct Answerverified_TB6947_00...View AnswerShow Answer

The accounting guideline prescribing that financial statement information be supported by independent,unbiased evidence other than someone's belief or opinion is the:

Correct AnswerverifiedShow Answer

Marian Mosely is the owner of Mosely Accounting Services.Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Correct AnswerverifiedShow Answer

The statement of cash flows reports on cash flows separated into operating,investing,and financing activities over a period of time.

Correct AnswerverifiedShow Answer

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

Correct AnswerverifiedShow Answer

Recording the items on the financial statements in dollars is done because of the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified_TB6947_00...View AnswerShow Answer

Congress passed the Sarbanes-Oxley Act to

Correct AnswerverifiedShow Answer

The income statement reports all of the following except:

Correct AnswerverifiedShow Answer

Managerial accounting is an area of accounting that provides internal reports to assist the decision- making needs of internal users.

Correct AnswerverifiedShow Answer

Margate Inc.purchases supplies on credit for $800.How would Margate record this transaction?

Correct AnswerverifiedShow Answer

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

Correct AnswerverifiedShow Answer

Which of the following is the correct sequence for the heading for ABC Company's 2013 balance sheet?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Accounting is an information and measure...
View Answer

Correct Answer
verified

Correct Answer
verified
$27,000 - $22,000 - ...
View Answer

Correct Answer
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verified
_TB6947_00...
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verified
_TB6947_00...
View Answer

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