Question 1

Which of the following is a manufacturing business?

Accepted Answer

A)  General Motors
B)  Facebook
C)  American Airlines
D)  TargetE) B) and C)
F) A) and D)

Question 2

The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year.​  Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.​

Accepted Answer

The answer of The accounting equation elements and their balances...

Question 3

About 90% of the businesses in the United States are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 4

Gomez Service Company paid its first installment on a note payable of $2,000.How will this transaction affect the accounting equation?

Accepted Answer

A)  increase in liabilities (Notes Payable)  and decrease in assets (Cash) 
B)  decrease in assets (Cash)  and decrease in owner's equity (Note Payable Expense) 
C)  decrease in assets (Cash)  and decrease in assets (Notes Receivable) 
D)  decrease in assets (Cash)  and decrease in liabilities (Notes Payable) E) A) and B)
F) A) and C)

Question 5

Explain the meaning of:
(a)the objectivity concept
(b)the unit of measure concept

Accepted Answer

(a) The objectivity concept requires tha...

Question 6

For accounting purposes,the business entity should be considered separate from its owners if the entity is

Accepted Answer

A)  a corporation
B)  a proprietorship
C)  a partnership
D)  All of these choicesE) A) and B)
F) C) and D)

Question 7

Most businesses in the United States are

Accepted Answer

A)  proprietorships
B)  partnerships
C)  corporations
D)  cooperativesE) A) and D)
F) None of the above

Question 8

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

Accepted Answer

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

Question 9

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Accepted Answer

A)  proprietorship
B)  corporation
C)  partnership
D)  governmental unitE) All of the above
F) A) and D)

Question 10

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Generates 90% of business revenues

Accepted Answer

A)  Proprietorship
B)  Partnership
C)  Corporation
D)  Limited liability company (LL
C)  E) B) and D)
F) A) and B)

Question 11

The statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the authoritative body in the United States that has the primary responsibility for developing accounting principles?

Accepted Answer

A)  FASB
B)  IRS
C)  SEC
D)  AICPAE) B) and C)
F) B) and D)

Question 13

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

Accepted Answer

A)  accounts payable
B)  prepaid expense
C)  unearned revenue
D)  accounts receivableE) A) and C)
F) B) and C)

Question 14

Financial reports are used by

Accepted Answer

A)  management
B)  creditors
C)  investors
D)  All of these choicesE) All of the above
F) A) and D)

Question 15

The primary financial statements of a proprietorship are the income statement,statement of owner's equity,and balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

Purchasing supplies on account increases liabilities and decreases equity.

Accepted Answer

A) True 
 B)False

Question 17

Debts owed by a business are referred to as

Accepted Answer

A)  accounts receivable
B)  expenses
C)  owner's equity
D)  liabilitiesE) A) and B)
F) A) and C)

Question 18

Transactions affecting owner's equity include

Accepted Answer

A)  owner's investments and payment of liabilities
B)  owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses
C)  owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable
D)  owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on accountE) A) and B)
F) A) and C)

Question 19

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received payment from a customer on account

Accepted Answer

A)  Increase assets, increase liabilities
B)  Increase liabilities, decrease owner's equity
C)  Increase assets, increase owner's equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease owner's equityG) A) and B)
H) D) and E)

Question 20

Discuss internal and external users of accounting information.What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Accepted Answer

Internal users of accounting information...

Exam 1: Introduction to Accounting and Business

Purchasing supplies on account increases liabilities and decreases equity.

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Which of the following is a manufacturing business?

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Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Generates 90% of business revenues

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

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Gomez Service Company paid its first installment on a note payable of $2,000.How will this transaction affect the accounting equation?

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Discuss internal and external users of accounting information.What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Correct AnswerverifiedInternal users of accounting information...View AnswerShow Answer

Most businesses in the United States are

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About 90% of the businesses in the United States are organized as corporations.

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Debts owed by a business are referred to as

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The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year.​ Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.​

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Which of the following is the authoritative body in the United States that has the primary responsibility for developing accounting principles?

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For accounting purposes,the business entity should be considered separate from its owners if the entity is

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Explain the meaning of: (a)the objectivity concept (b)the unit of measure concept

Correct Answerverified(a) The objectivity concept requires tha...View AnswerShow Answer

The statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

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

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Transactions affecting owner's equity include

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An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Correct AnswerverifiedShow Answer

The primary financial statements of a proprietorship are the income statement,statement of owner's equity,and balance sheet.

Correct AnswerverifiedShow Answer

Financial reports are used by

Correct AnswerverifiedShow Answer

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Received payment from a customer on account

Correct AnswerverifiedShow Answer

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Internal users of accounting information...
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The accounting equation elements and their balances of Awesome Travel Services at December 31 are listed below.There were no additional investments or withdrawals by J.Trendsetter during the year. Prepare an income statement,statement of owner's equity,and a balance sheet as of December 31.

Correct Answer
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(a) The objectivity concept requires tha...
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