Question 1

Identify each of the following as an (1)increase to stockholders' equity,or a (2)decrease to stockholders' equity.

Accepted Answer

The answer of Identify each of the following as an...

Question 2

​Prepare a statement of retained earnings for the current year ended March 31.

Accepted Answer

The answer of ​Prepare a statement of retained earnings for...

Question 3

A business is an organization in which basic resources or inputs,like materials and labor,are assembled and processed to provide outputs in the form of goods or services to customers.

Accepted Answer

A) True 
 B)False

Question 4

Determine the missing amount for each of the following:

Accepted Answer

The answer of Determine the missing amount for each of...

Question 5

Cash investments made by the owner in the business are reported on the statement of cash flows in the

Accepted Answer

A)   financing activities section
B)   investing activities section
C)   operating activities section
D)   supplemental statementE) A) and B)
F) C) and D)

Question 6

The monetary value charged to customers for the performance of services sold is called a(n)

Accepted Answer

A)   asset
B)   net income
C)   capital
D)   revenueE) A) and B)
F) A) and C)

Question 7

If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000,then the assets also total $300,000.

Accepted Answer

A) True 
 B)False

Question 8

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Accepted Answer

A) True 
 B)False

Question 9

The accounting equation may be expressed as

Accepted Answer

A)   Assets = Equities − Liabilities
B)   Assets + Liabilities = Stockholders' Equity
C)   Assets = Revenues − Liabilities
D)   Assets − Liabilities = Stockholders' EquityE) A) and B)
F) B) and C)

Question 10

For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

Accepted Answer

The answer of For each of the following companies,identify whether...

Question 11

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a business transaction?

Accepted Answer

A)   Erin,the CEO,buys $15,000 in stock,placing the money in a bank account in the name of Bob's Lawn Service.
B)   Erin provided services to customers,earning fees of $600.
C)   Erin purchased hedge trimmers for Bob's Lawn Service,agreeing to pay the supplier next month.
D)   Erin pays her monthly personal credit card bill.E) A) and B)
F) All of the above

Question 13

Which of the following is not a business transaction?

Accepted Answer

A)   make a sales offer
B)   sell goods for cash
C)   receive cash for services to be rendered later
D)   pay for suppliesE) None of the above
F) B) and C)

Question 14

All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

Accepted Answer

A)   a ratio of 1 indicates that liabilities equal stockholders' equity
B)   sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity
C)   the higher this ratio,the better able a business is to withstand poor business conditions and pay creditors
D)   the lower this ratio,the better able a business is to withstand poor business conditions and pay creditorsE) C) and D)
F) A) and B)

Question 15

Assets that are used up during the process of earning revenue are called expenses.

Accepted Answer

A) True 
 B)False

Question 16

The excess of revenue over the expenses incurred in earning the revenue is called capital.

Accepted Answer

A) True 
 B)False

Question 17

How does receiving a bill to be paid next month for services received affect the accounting equation?

Accepted Answer

A)   assets decrease; stockholders' equity decreases
B)   assets increase; liabilities increase
C)   liabilities increase; stockholders' equity increases
D)   liabilities increase; stockholders' equity decreasesE) None of the above
F) C) and D)

Question 18

From the following list of items taken from Lamar's accounting records,identify those that would appear on the income statement.

Accepted Answer

The answer of From the following list of items taken...

Question 19

Managerial accountants would be responsible for providing information regarding

Accepted Answer

A)   tax reports to government agencies
B)   profit reports to owners and management
C)   expansion of a product line report to management
D)   consumer reports to customersE) A) and B)
F) All of the above

Question 20

The asset created by a business when it makes a sale on account is termed

Accepted Answer

A)   accounts payable
B)   prepaid expense
C)   interest revenue
D)   accounts receivableE) All of the above
F) B) and C)

Exam 1: Introduction to Accounting and Business

The asset created by a business when it makes a sale on account is termed

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A business is an organization in which basic resources or inputs,like materials and labor,are assembled and processed to provide outputs in the form of goods or services to customers.

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Cash investments made by the owner in the business are reported on the statement of cash flows in the

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If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000,then the assets also total $300,000.

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​Prepare a statement of retained earnings for the current year ended March 31.

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The monetary value charged to customers for the performance of services sold is called a(n)

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The accounting equation may be expressed as

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The excess of revenue over the expenses incurred in earning the revenue is called capital.

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Determine the missing amount for each of the following:

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Managerial accountants would be responsible for providing information regarding

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From the following list of items taken from Lamar's accounting records,identify those that would appear on the income statement.

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The balance sheet represents the accounting equation.

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Which of the following is not a business transaction?

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All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

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Assets that are used up during the process of earning revenue are called expenses.

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For each of the following companies,identify whether they are a service,merchandising,or manufacturing business.

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The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Correct AnswerverifiedShow Answer

How does receiving a bill to be paid next month for services received affect the accounting equation?

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Identify each of the following as an (1)increase to stockholders' equity,or a (2)decrease to stockholders' equity.

Correct AnswerverifiedShow Answer

Which of the following is not a business transaction?

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Prepare a statement of retained earnings for the current year ended March 31.

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