Question 1

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000.
What were the total dividends declared?

Accepted Answer

A)   $75,000
B)   $998,000
C)   $131,000
D)   $203,000
E)   $308,000

Question 2

The statement of cash flows reports on cash flows for:

Accepted Answer

A)   Operating activities
B)   Revenue activities
C)   Expense activities
D)   Planning activities
E)   Equity activities

Question 3

A balance sheet covers a period of time,such as a month or year.

Accepted Answer

A) True 
 B)False

Question 4

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

Accepted Answer

Ending equity = $72,...

Question 5

The area of accounting aimed at serving the decision-making needs of internal users is:

Accepted Answer

A)   Financial accounting
B)   Managerial accounting
C)   External auditing
D)   SEC reporting
E)   Governmental accounting

Question 6

Risk is the amount of uncertainty about the return we expect to earn in the future.

Accepted Answer

A) True 
 B)False

Question 7

Explain why ethics are an integral part of accounting.

Accepted Answer

The purpose of accounting is to provide ...

Question 8

Identify and describe the four basic financial statements.

Accepted Answer

The four basic financial statements are ...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 principle

Question 11

Social responsibility:

Accepted Answer

A)   Is a concern for the impact of one's actions on society as a whole.
B)   Is a code that helps in dealing with confidential information.
C)   Is required by the SEC.
D)   Requires that all businesses conduct social audits.
E)   Is mandated by the federal government.

Question 12

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Accepted Answer

$570,000.The cost principle re...

Question 13

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 and by what amount?

Accepted Answer

Assets = Liabilitie...

Question 14

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Accepted Answer

Assets = $...

Question 15

______________________ 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...

Question 16

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

Accepted Answer

Net income...

Question 17

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.

Question 18

The private board that currently has the authority to establish U.S.generally accepted accounting principles is the:

Accepted Answer

A)   APB
B)   FASB
C)   AAA
D)   AICPA
E)   SEC

Question 19

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 produce.

Question 20

Match between columns
                        Premises:  Monitor costs and ensure quality.
 Judge the soundness of a customer before making sales on credit.
 Measuring risk and return of loans.
 Assessing employment opportunities.
 Assessing the risk and return of acquiring shares.
  An insurance company receives insurance premiums for six future months’ worth of coverage.
 Helen Cho, a sole proprietor, pays for her daughter's preschool out of business funds.
 Mayan Imports receives a shipment from Mexico, which contains an invoice that is stated in pesos.
 A building is for sale at $480,000. An appraisal is given for $450,000.
 To make the balance sheet look better, Helen Cho added several thousand dollars to the Equipment account that she believed was undervalued.

Accepted Answer

The Answer of Production managers and Suppliers and Employees and is...

Exam 1: Introducing Accounting in Business

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

Correct Answer
verified

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Correct Answer
verified
$570,000.The cost principle re...
View Answer

Risk is the amount of uncertainty about the return we expect to earn in the future.

Correct Answer
verified

The private board that currently has the authority to establish U.S.generally accepted accounting principles is the:

Correct Answer
verified

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000. What were the total dividends declared?

Correct Answer
verified

Explain why ethics are an integral part of accounting.

Correct Answer
verified
The purpose of accounting is to provide ...
View Answer

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

Correct Answer
verified
Net income...
View Answer

The statement of cash flows reports on cash flows for:

Correct Answer
verified

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

Correct Answer
verified

The area of accounting aimed at serving the decision-making needs of internal users is:

Correct Answer
verified

Social responsibility:

Correct Answer
verified

Match the appropriate user to the following information needs:

A balance sheet covers a period of time,such as a month or year.

Correct Answer
verified

The income statement reports all of the following except:

Correct Answer
verified

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

Correct Answer
verified
Ending equity = $72,...
View Answer

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

Correct Answer
verified

Identify and describe the four basic financial statements.

Correct Answer
verified
The four basic financial statements are ...
View 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 and by what amount?

Correct Answer
verified
Assets = Liabilitie...
View Answer

The primary objective of financial accounting is:

Correct Answer
verified

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Correct Answer
verified
Assets = $...
View Answer

Exam 1: Introducing Accounting in Business

______________________ 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

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Correct Answerverified$570,000.The cost principle re...View AnswerShow Answer

Risk is the amount of uncertainty about the return we expect to earn in the future.

Correct AnswerverifiedShow Answer

The private board that currently has the authority to establish U.S.generally accepted accounting principles is the:

Correct AnswerverifiedShow Answer

Beginning assets were $700,000,beginning equity was $225,000,revenue for the year was $523,000,common stock issued during the year totaled $320,000,expenses for the year were $392,000,ending equity is $751,000,and ending assets are $963,000. What were the total dividends declared?

Correct AnswerverifiedShow Answer

Explain why ethics are an integral part of accounting.

Correct AnswerverifiedThe purpose of accounting is to provide ...View AnswerShow Answer

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

Correct AnswerverifiedNet income...View AnswerShow Answer

The statement of cash flows reports on cash flows for:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The area of accounting aimed at serving the decision-making needs of internal users is:

Correct AnswerverifiedShow Answer

Social responsibility:

Correct AnswerverifiedShow Answer

Match the appropriate user to the following information needs:

A balance sheet covers a period of time,such as a month or year.

Correct AnswerverifiedShow Answer

The income statement reports all of the following except:

Correct AnswerverifiedShow Answer

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

Correct AnswerverifiedEnding equity = $72,...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Identify and describe the four basic financial statements.

Correct AnswerverifiedThe four basic financial statements are ...View AnswerShow 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 and by what amount?

Correct Answerverified Assets = Liabilitie...View AnswerShow Answer

The primary objective of financial accounting is:

Correct AnswerverifiedShow Answer

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

Correct AnswerverifiedAssets = $...View AnswerShow Answer

Correct Answer
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Correct Answer
verified
$570,000.The cost principle re...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The purpose of accounting is to provide ...
View Answer

Correct Answer
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Net income...
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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Correct Answer
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Correct Answer
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Correct Answer
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Ending equity = $72,...
View Answer

Correct Answer
verified

Correct Answer
verified
The four basic financial statements are ...
View Answer

Correct Answer
verified
Assets = Liabilitie...
View Answer

Correct Answer
verified

Correct Answer
verified
Assets = $...
View Answer