Question 1

The statement of cash flows reports information on:

Accepted Answer

A)   Revenue activities
B)   Expense activities
C)   Financing activities
D)   Equity activities
E)   Asset activitiesF) None of the above
G) A) and D)

Question 2

Internal users of accounting information always include:

Accepted Answer

A)   Shareholders
B)   Managers
C)   Lenders
D)   Suppliers
E)   CustomersF) A) and B)
G) A) and D)

Question 3

Assets are the resources owned or controlled by a business.

Accepted Answer

A) True 
 B)False

Question 4

Explain the accounting equation and define its terms.

Accepted Answer

The accounting equation is stated as: As...

Question 5

Accounting is one way important information about businesses are reported to decision makers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following elements are found on the Balance Sheet?

Accepted Answer

A)   Service Revenue
B)   Net Income
C)   Operating Activities
D)   Utilities Expense
E)   Retained EarningsF) A) and E)
G) B) and E)

Question 7

Risk is:

Accepted Answer

A)   Net income divided by average total assets
B)   The reward for investment
C)   The uncertainty about the expected return that will be earned from an investment
D)   Unrelated to expected return
E)   Derived from the idea of getting something back from an investmentF) D) and E)
G) B) and E)

Question 8

The primary objective of financial accounting is to provide general-purpose financial statements to help external users analyze and interpret an organization's activities.

Accepted Answer

A) True 
 B)False

Question 9

Compute return on assets given net income of $13,764, beginning assets of $120,000 and ending assets of $176,000.

Accepted Answer

A)   4.65%
B)   7.82%
C)   9.3%
D)   11.47%
E)   21.51%F) A) and B)
G) A) and C)

Question 10

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

Accepted Answer

A) True 
 B)False

Question 11

Assets = Liabilities + Equity is known as the:

Accepted Answer

A)   Income statement equation
B)   Cost principle
C)   Objectivity principle
D)   Accounting equation
E)   Transaction principleF) A) and E)
G) A) and C)

Question 12

Beta Corporation purchased $100,000 worth of land by paying 10,000 cash and signing a $90,000 mortgage. Immediately prior to this transaction the corporation had assets, liabilities and owners' equity in the amounts of $150,000; $30,000; and $120,000 respectively. What is the total amount of Beta Corporation's assets after this transaction has been recorded?

Accepted Answer

A)   $240,000
B)   $250,000
C)   $160,000
D)   $40,000
E)   $260,000F) A) and E)
G) C) and E)

Question 13

The financial statement that shows: beginning and ending retained earnings balances and the effects of net income (loss)  and a dividend for the period is the:

Accepted Answer

A)   Statement of financial position
B)   Statement of cash flows
C)   Balance sheet
D)   Income statement
E)   Statement of retained earningsF) All of the above
G) A) and B)

Question 14

How does the objectivity principle support ethical behavior?

Accepted Answer

The objectivity principle supports ethic...

Question 15

Della's Donuts has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Accepted Answer

Net income...

Question 16

Our company has three times as many assets as it does liabilities. If total liabilities are $55,000, what is the amount of owners' equity?

Accepted Answer

A)   $55,000
B)   $110,000
C)   $165,000
D)   $220,000
E)   Cannot be determined from the given informationF) B) and D)
G) B) and C)

Question 17

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:

Accepted Answer

A)   Increased $11,000
B)   Decreased $11,000
C)   Increased $19,000
D)   Decreased $19,000
E)   Increased $61,000F) A) and D)
G) B) and E)

Question 18

The primary objective of financial accounting is:

Accepted Answer

A)   To serve the decision-making needs of internal users
B)   To provide financial statements to help external users analyze and interpret an organization's activities
C)   To monitor and control company activities
D)   To provide information on both the costs and benefits of managing products and services
E)   To know what, when and how much to produceF) D) and E)
G) A) and B)

Question 19

Assets created by selling goods and services on credit are:

Accepted Answer

A)   Accounts payable
B)   Accounts receivable
C)   Liabilities
D)   Expenses
E)   EquityF) B) and D)
G) C) and D)

Question 20

Nike had income of $350 million and average assets of $2,000 million. Its return on assets is:

Accepted Answer

A)   1.8%
B)   35%
C)   17.5%
D)   5.7%
E)   3.5%F) C) and D)
G) All of the above

Exam 1: Introducing Accounting in Business

Assets = Liabilities + Equity is known as the:

Correct Answer
verified

Internal users of accounting information always include:

Correct Answer
verified

Accounting is one way important information about businesses are reported to decision makers.

Correct Answer
verified

Nike had income of $350 million and average assets of $2,000 million. Its return on assets is:

Correct Answer
verified

Della's Donuts has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Correct Answer
verified
Net income...
View Answer

How does the objectivity principle support ethical behavior?

Correct Answer
verified
The objectivity principle supports ethic...
View Answer

Which of the following elements are found on the Balance Sheet?

Correct Answer
verified

The financial statement that shows: beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the:

Correct Answer
verified

The primary objective of financial accounting is to provide general-purpose financial statements to help external users analyze and interpret an organization's activities.

Correct Answer
verified

The statement of cash flows reports information on:

Correct Answer
verified

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:

Correct Answer
verified

Risk is:

Correct Answer
verified

Correct Answer
verified

Compute return on assets given net income of $13,764, beginning assets of $120,000 and ending assets of $176,000.

Correct Answer
verified

Assets created by selling goods and services on credit are:

Correct Answer
verified

Our company has three times as many assets as it does liabilities. If total liabilities are $55,000, what is the amount of owners' equity?

Correct Answer
verified

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

Correct Answer
verified

The primary objective of financial accounting is:

Correct Answer
verified

Explain the accounting equation and define its terms.

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

Assets are the resources owned or controlled by a business.

Correct Answer
verified

Exam 1: Introducing Accounting in Business

Assets = Liabilities + Equity is known as the:

Correct AnswerverifiedShow Answer

Internal users of accounting information always include:

Correct AnswerverifiedShow Answer

Accounting is one way important information about businesses are reported to decision makers.

Correct AnswerverifiedShow Answer

Nike had income of $350 million and average assets of $2,000 million. Its return on assets is:

Correct AnswerverifiedShow Answer

Della's Donuts has revenues of $83,000 and expenses of $64,000. Calculate its net income.

Correct AnswerverifiedNet income...View AnswerShow Answer

How does the objectivity principle support ethical behavior?

Correct AnswerverifiedThe objectivity principle supports ethic...View AnswerShow Answer

Which of the following elements are found on the Balance Sheet?

Correct AnswerverifiedShow Answer

The financial statement that shows: beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the:

Correct AnswerverifiedShow Answer

The primary objective of financial accounting is to provide general-purpose financial statements to help external users analyze and interpret an organization's activities.

Correct AnswerverifiedShow Answer

The statement of cash flows reports information on:

Correct AnswerverifiedShow Answer

If the assets of a business increased $15,000 during a period of time and its equity decreased $4,000 during the same period, liabilities in the business must have:

Correct AnswerverifiedShow Answer

Risk is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Compute return on assets given net income of $13,764, beginning assets of $120,000 and ending assets of $176,000.

Correct AnswerverifiedShow Answer

Assets created by selling goods and services on credit are:

Correct AnswerverifiedShow Answer

Our company has three times as many assets as it does liabilities. If total liabilities are $55,000, what is the amount of owners' equity?

Correct AnswerverifiedShow Answer

The International Accounting Standards Board (IASB) has the authority to impose its standards on companies around the world.

Correct AnswerverifiedShow Answer

The primary objective of financial accounting is:

Correct AnswerverifiedShow Answer

Explain the accounting equation and define its terms.

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

Assets are the resources owned or controlled by a business.

Correct AnswerverifiedShow 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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Net income...
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Correct Answer
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The objectivity principle supports ethic...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified