Question 1

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

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)  Bookkeeping.F) A) and C)
G) C) and D)

Question 4

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

Accepted Answer

A)  7.1%
B)  7.5%
C)  6.7%
D)  20.0%
E)  18.8%F) A) and E)
G) B) and C)

Question 5

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

Accepted Answer

A) True 
 B)False

Question 6

There are three major types of business activities. ________________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Accepted Answer

The answer of There are three major types of business...

Question 7

Identify the three basic forms of business organizations and their key attributes.

Accepted Answer

The three basic forms of business organi...

Question 8

Liabilities are the owner's claim on assets.

Accepted Answer

A) True 
 B)False

Question 9

Use the following information for Meeker Corp. to determine the amount of equity to report.

Accepted Answer

A)  $390,000.
B)  $140,000.
C)  $20,000.
D)  $530,000.
E)  $270,000.F) B) and E)
G) None of the above

Question 10

The income statement describes revenues earned and expenses incurred over a specified period of time due to earnings activities.

Accepted Answer

A) True 
 B)False

Question 11

A partnership:

Accepted Answer

A)  Is also called a sole proprietorship.
B)  Has unlimited liability for its partners.
C)  Has to have a written agreement in order to be legal.
D)  Is a legal organization separate from its owners.
E)  Has owners called shareholders.F) All of the above
G) A) and B)

Question 12

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

Accepted Answer

A)  $223,000.
B)  $240,000.
C)  $268,000.
D)  $274,000.
E)  $208,000.F) A) and D)
G) B) and C)

Question 13

Owners of a corporation are called shareholders or stockholders.

Accepted Answer

A) True 
 B)False

Question 14

There are three major types of business activities. ______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.

Accepted Answer

The answer of There are three major types of business...

Question 15

All of the following regarding a Certified Public Accountant are true except:

Accepted Answer

A)  Must meet education and experience requirements.
B)  Must pass an examination.
C)  Must exhibit ethical character.
D)  May also be a Certified Management Accountant.
E)  Cannot hold any certificate other than a CPA.F) None of the above
G) A) and E)

Question 16

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 17

______________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Accepted Answer

Financial ...

Question 18

How does the going-concern principle affect reporting asset values of a business?

Accepted Answer

The going-concern principle means that f...

Question 19

An example of an investing activity is:

Accepted Answer

A)  Paying wages of employees.
B)  Dividends paid by the company.
C)  Purchase of land.
D)  Selling inventory.
E)  Contributions from stockholders.F) A) and E)
G) D) and E)

Question 20

There are at least three types of partnerships that limit the partners' liability. They are 1) _____________________, 2) ___________________, and 3) ______________________.

Accepted Answer

limited partnership,...

Exam 1: Introducing Financial Accounting

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:

Correct AnswerverifiedShow Answer

There are at least three types of partnerships that limit the partners' liability. They are 1) _____________________, 2) ___________________, and 3) ______________________.

Correct Answerverifiedlimited partnership,...View AnswerShow Answer

How does the going-concern principle affect reporting asset values of a business?

Correct AnswerverifiedThe going-concern principle means that f...View AnswerShow Answer

A partnership:

Correct AnswerverifiedShow Answer

There are three major types of business activities. ______________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.

Correct AnswerverifiedShow Answer

From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured.

Correct AnswerverifiedShow Answer

Liabilities are the owner's claim on assets.

Correct AnswerverifiedShow Answer

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

Correct AnswerverifiedShow Answer

Identify the three basic forms of business organizations and their key attributes.

Correct AnswerverifiedThe three basic forms of business organi...View AnswerShow Answer

There are three major types of business activities. ________________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Correct AnswerverifiedShow Answer

The income statement describes revenues earned and expenses incurred over a specified period of time due to earnings activities.

Correct AnswerverifiedShow Answer

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Use the following information for Meeker Corp. to determine the amount of equity to report.

Correct AnswerverifiedShow Answer

An example of an investing activity is:

Correct AnswerverifiedShow Answer

All of the following regarding a Certified Public Accountant are true except:

Correct AnswerverifiedShow Answer

Owners of a corporation are called shareholders or stockholders.

Correct AnswerverifiedShow Answer

______________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Correct AnswerverifiedFinancial ...View AnswerShow Answer

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There are at least three types of partnerships that limit the partners' liability. They are 1) ___________, 2) _, and 3) ______________.

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limited partnership,...
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The going-concern principle means that f...
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The three basic forms of business organi...
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Financial ...
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