Question 1

If equity is $300,000 and liabilities are $192,000,then assets equal:

Accepted Answer

A)  $108,000
B)  $192,000
C)  $300,000
D)  $492,000
E)  $792,000F) A) and E)
G) A) and D)

Question 2

A corporation:

Accepted Answer

A)  Is a legal entity separate and distinct from its owners.
B)  Must have many owners.
C)  Has shareholders who have unlimited liability for the acts of the corporation.
D)  Is the same as a limited liability partnership.
E)  Does not have to pay taxes.F) A) and E)
G) A) and B)

Question 3

The Maximum Experience Company acquired a building for $500,000.Maximum Experience had an appraisal done and found that the building was worth $575,000.The seller had paid $300,000 for the building six years ago.Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?

Accepted Answer

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

Question 4

On August 1,Marietta Appliance Repair paid $2,500 cash to rent office space for the month of August.How would Marietta record this transaction?

Accepted Answer

A)  Accounts Payable increases by $2,500 and Rent Expense increases by $2,500.
B)  Cash increases by $2,500 and Rent Revenue increases by $2,500.
C)  Cash decreases by $2,500 and Accounts Payable increases by $2,500.
D)  Cash decreases by $2,500 and Rent Expense decreases by $2,500.
E)  Cash decreases by $2,500 and Rent Expense increases by $2,500.F) C) and D)
G) B) and C)

Question 5

Assets created by selling goods and services on credit are:

Accepted Answer

A)  Accounts payable
B)  Accounts receivable
C)  Liabilities
D)  Expenses
E)  EquityF) All of the above
G) A) and C)

Question 6

On September 30,Ambiance Inc.receives its electric bill for the month of September in the amount of $300.Ambiance sets the bill aside since it is not yet due.How would Ambiance record this transaction?

Accepted Answer

A)  Cash decreases by $300 and Utilities Expense increases by $300.
B)  Accounts Payable increases by $300 and Utilities Expense increases by $300.
C)  Accounts Payable decreases by $300 and Utilities Expense increases by $300.
D)  Cash decreases by $300 and Accounts Payable decreases by $300.
E)  Cash increases by $300 and Utility Expense decreases by $300.F) D) and E)
G) All of the above

Question 7

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Accepted Answer

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Question 8

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 9

Sara Bloom has prepared the following analysis of September transactions for her business,Blooming Florist.Unfortunately,she has lost some information.Determine the missing amounts (a) through (c) below:

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB6947_00...

Question 10

If beginning retained earnings was $184,300,net income for the period was $200,000,and ending retained earnings was $322,000,what was the total amount of dividends distributed for the period?

Accepted Answer

A)  $62,300
B)  $306,300
C)  $337,700
D)  $706,300
E)  $137,700F) A) and B)
G) A) and C)

Question 11

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 net income for the year?

Accepted Answer

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

Question 12

The financial statement that describes where a company's cash came from and how it was spent during 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 earnings.F) C) and D)
G) B) and E)

Question 13

The business entity assumption requires that a business be accounted for separately from other business entities,including its owner or owners.

Accepted Answer

A) True 
 B)False

Question 14

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 was net income for the year?

Accepted Answer

A)  $ 41,000
B)  $ 76,000
C)  $ 53,000
D)  $ 98,000
E)  $ 35,000F) C) and E)
G) B) and D)

Question 15

A corporation purchased a $40,000 delivery truck by paying $4,000 cash and signing a $36,000 note payable.Immediately prior to this transaction the corporation had assets,liabilities,and owners' equity in the amounts of $75,000,$52,000,and $23,000 respectively.What is the total amount of the corporation's assets after this transaction has been recorded?

Accepted Answer

A)  $115,000
B)  $111,000
C)  $79,000
D)  $71,000
E)  $75,000F) A) and D)
G) None of the above

Question 16

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 earn a large profit.
D)  To reduce taxes owed for the business.
E)  To establish credit for a company.F) All of the above
G) D) and E)

Question 17

Revenues are increases in retained earnings from a company's earnings activities.

Accepted Answer

A) True 
 B)False

Question 18

Identify the three basic forms of business organizations.

Accepted Answer

The three basic forms of busin...

Question 19

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash.This represents a(n) :

Accepted Answer

A)  Revenue activity
B)  Operating activity
C)  Expense activity
D)  Investing activity
E)  Financing activityF) A) and B)
G) A) and C)

Question 20

The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.

Accepted Answer

A) True 
 B)False

Exam 1: Introducing Financial Accounting

Assets created by selling goods and services on credit are:

Correct Answer
verified

Revenues are increases in retained earnings from a company's earnings activities.

Correct Answer
verified

Sara Bloom has prepared the following analysis of September transactions for her business,Blooming Florist.Unfortunately,she has lost some information.Determine the missing amounts (a) through (c) below:

Correct Answer
verified
_TB6947_00...
View Answer

A corporation:

Correct Answer
verified

On August 1,Marietta Appliance Repair paid $2,500 cash to rent office space for the month of August.How would Marietta record this transaction?

Correct Answer
verified

On September 30,Ambiance Inc.receives its electric bill for the month of September in the amount of $300.Ambiance sets the bill aside since it is not yet due.How would Ambiance record this transaction?

Correct Answer
verified

Correct Answer
verified

Identify the three basic forms of business organizations.

Correct Answer
verified
The three basic forms of busin...
View 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 net income for the year?

Correct Answer
verified

If equity is $300,000 and liabilities are $192,000,then assets equal:

Correct Answer
verified

Which of the following is the primary purpose of accounting?

Correct Answer
verified

Correct Answer
verified

The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.

Correct Answer
verified

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

Correct Answer
verified

If beginning retained earnings was $184,300,net income for the period was $200,000,and ending retained earnings was $322,000,what was the total amount of dividends distributed for the period?

Correct Answer
verified

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash.This represents a(n) :

Correct Answer
verified

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

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Correct Answer
verified
_TB6947_00...
View Answer

The business entity assumption requires that a business be accounted for separately from other business entities,including its owner or owners.

Correct Answer
verified

Exam 1: Introducing Financial Accounting

Assets created by selling goods and services on credit are:

Correct AnswerverifiedShow Answer

Revenues are increases in retained earnings from a company's earnings activities.

Correct AnswerverifiedShow Answer

Sara Bloom has prepared the following analysis of September transactions for her business,Blooming Florist.Unfortunately,she has lost some information.Determine the missing amounts (a) through (c) below:

Correct Answerverified_TB6947_00...View AnswerShow Answer

A corporation:

Correct AnswerverifiedShow Answer

On August 1,Marietta Appliance Repair paid $2,500 cash to rent office space for the month of August.How would Marietta record this transaction?

Correct AnswerverifiedShow Answer

On September 30,Ambiance Inc.receives its electric bill for the month of September in the amount of $300.Ambiance sets the bill aside since it is not yet due.How would Ambiance record this transaction?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Identify the three basic forms of business organizations.

Correct AnswerverifiedThe three basic forms of busin...View AnswerShow 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 net income for the year?

Correct AnswerverifiedShow Answer

If equity is $300,000 and liabilities are $192,000,then assets equal:

Correct AnswerverifiedShow Answer

Which of the following is the primary purpose of accounting?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.

Correct AnswerverifiedShow Answer

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

Correct AnswerverifiedShow Answer

If beginning retained earnings was $184,300,net income for the period was $200,000,and ending retained earnings was $322,000,what was the total amount of dividends distributed for the period?

Correct AnswerverifiedShow Answer

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash.This represents a(n) :

Correct AnswerverifiedShow Answer

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

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

Correct Answerverified_TB6947_00...View AnswerShow Answer

The business entity assumption requires that a business be accounted for separately from other business entities,including its owner or owners.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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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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The three basic forms of busin...
View 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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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
_TB6947_00...
View Answer

Correct Answer
verified