Question 1

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _____________ (increased,decreased)by $_______________.

Accepted Answer

Increased ...

Question 2

As a rule,revenues should not be recognized in the accounting records until received in cash.

Accepted Answer

A) True 
 B)False

Question 3

Source documents include all of the following except:

Accepted Answer

A)   Sales invoices.
B)   Financial statements.
C)   Cheques.
D)   Purchase orders.
E)   Bank statements.F) None of the above
G) B) and E)

Question 4

Economic events that affect an entity's accounting equation,but that are not transactions between the entity and outside parties are called:

Accepted Answer

A)   Internal transactions.
B)   Liabilities.
C)   Source documents.
D)   External transactions.
E)   Prepaid expenses.F) B) and D)
G) A) and C)

Question 5

Something of value,such as products,services and money,is called a(n) :

Accepted Answer

A)   Business transaction.
B)   Business event.
C)   Accounting equation.
D)   Economic consideration.
E)   Source document.F) A) and B)
G) C) and D)

Question 6

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Accepted Answer

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

Question 7

Verifiability ensures that information is complete,neutral and free from error.

Accepted Answer

A) True 
 B)False

Question 8

A 12-month period that ends when a company's sales activities are at their lowest point is called the _________________.

Accepted Answer

Natural bu...

Question 9

Persons using accounting information who are directly involved in the running of the organization are called ____________________.

Accepted Answer

The answer of Persons using accounting information who are directly...

Question 10

Ownership of a corporation is divided into units called shares.

Accepted Answer

A) True 
 B)False

Question 11

The accounting equation can be restated as assets - equity = liabilities.

Accepted Answer

A) True 
 B)False

Question 12

The primary objective of accounting is ______________________.

Accepted Answer

To help pe...

Question 13

If assets are $175,000 and equity is $47,000,then liabilities equal:

Accepted Answer

A)   $47,000.
B)   $128,000.
C)   $175,000.
D)   $204,000.
E)   $222,000.F) A) and B)
G) All of the above

Question 14

The equity in a partnership belongs to one owner.

Accepted Answer

A) True 
 B)False

Question 15

The recording of financial transactions either manually or electronically is called:

Accepted Answer

A)   Accounting.
B)   Bookkeeping.
C)   Preparing financial statements.
D)   Auditing.
E)   Systems design.F) A) and B)
G) B) and C)

Question 16

In accounting,the principle that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called ______________________________.

Accepted Answer

The answer of In accounting,the principle that requires that assets,services,and...

Question 17

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Accepted Answer

A) True 
 B)False

Question 18

An individual or organization that owes an amount to a business is known to the business as a:

Accepted Answer

A)   Debtor.
B)   Shareholder.
C)   Controller.
D)   Creditor.
E)   Bookkeeper.F) A) and B)
G) B) and D)

Question 19

Describe the purpose and importance of accounting

Accepted Answer

Accounting is an information system.It p...

Question 20

The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

Persons using accounting information who are directly involved in the running of the organization are called ____________________.

Correct AnswerverifiedShow Answer

The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.

Correct AnswerverifiedShow Answer

If assets are $175,000 and equity is $47,000,then liabilities equal:

Correct AnswerverifiedShow Answer

The accounting equation can be restated as assets - equity = liabilities.

Correct AnswerverifiedShow Answer

In accounting,the principle that requires that assets,services,and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called ______________________________.

Correct AnswerverifiedShow Answer

As a rule,revenues should not be recognized in the accounting records until received in cash.

Correct AnswerverifiedShow Answer

An individual or organization that owes an amount to a business is known to the business as a:

Correct AnswerverifiedShow Answer

Economic events that affect an entity's accounting equation,but that are not transactions between the entity and outside parties are called:

Correct AnswerverifiedShow Answer

The equity in a partnership belongs to one owner.

Correct AnswerverifiedShow Answer

Describe the purpose and importance of accounting

Correct AnswerverifiedAccounting is an information system.It p...View AnswerShow Answer

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the:

Correct AnswerverifiedShow Answer

Ownership of a corporation is divided into units called shares.

Correct AnswerverifiedShow Answer

Verifiability ensures that information is complete,neutral and free from error.

Correct AnswerverifiedShow Answer

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _____________ (increased,decreased)by $_______________.

Correct AnswerverifiedIncreased ...View AnswerShow Answer

Source documents include all of the following except:

Correct AnswerverifiedShow Answer

The income statement is a financial statement that shows revenues earned and expenses incurred by a business over a specified period of time.

Correct AnswerverifiedShow Answer

The recording of financial transactions either manually or electronically is called:

Correct AnswerverifiedShow Answer

Something of value,such as products,services and money,is called a(n) :

Correct AnswerverifiedShow Answer

A 12-month period that ends when a company's sales activities are at their lowest point is called the _________________.

Correct AnswerverifiedNatural bu...View AnswerShow Answer

The primary objective of accounting is ______________________.

Correct AnswerverifiedTo help pe...View AnswerShow Answer

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Accounting is an information system.It p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

During the accounting period,the assets of a business increased $12,315 and the liabilities decreased $18,590; consequently,equity in the business must have _ (increased,decreased)by $___.

Correct Answer
verified
Increased ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Natural bu...
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Correct Answer
verified
To help pe...
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