Question 1

A company has assets of $500,000 and equity of $350,000. What is the amount of liabilities?

Accepted Answer

Liabilitie...

Question 2

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Accepted Answer

A)   Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase
B)   Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect
C)   Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect
D)   Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase
E)   Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decreaseF) None of the above
G) C) and E)

Question 3

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Accepted Answer

A) True 
 B)False

Question 4

The International Accounting Standards Board (IASB)

Accepted Answer

A)   Hopes to create harmony among accounting practices of different countries
B)   Is the government group that establishes reporting requirements for companies that issue stock to the public
C)   Has the authority to impose its standards on companies
D)   Is the only source of U.S. generally accepted accounting principles (GAAP) 
E)   Applies only to companies that are members of the European UnionF) A) and C)
G) A) and E)

Question 5

Operating activities:

Accepted Answer

A)   Are the means organizations must use to pay for resources like land, buildings and equipment
B)   Involve using resources to research, develop, purchase, produce, distribute and market products and services
C)   Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services
D)   Are also called asset management
E)   Are also called strategic managementF) C) and D)
G) B) and C)

Question 6

Planning activities:

Accepted Answer

A)   Are the means organizations must use to pay for resources
B)   Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services
C)   Involve defining the ideas, goals and actions of an organization
D)   Are the carrying out of an organization's plans
E)   Involve using resources to research, develop, purchase, produce and market products and servicesF) A) and E)
G) C) and D)

Question 7

Fast-Forward has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

Accepted Answer

The answer of Fast-Forward has the following beginning cash balance...

Question 8

From the information given, prepare a November income statement.
On November 1 of the current year, Lois Bell began Lois Bell, Interior Design as a corporation with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) selected accounts and amounts:

Accepted Answer

The answer of From the information given, prepare a November...

Question 9

Maslow's Consulting Inc. had retained earnings of $172,500 at December 31, 2010. Net income for 2011 amounted to $56,400. Dividends during 2009 were $48,000. Prepare the statement of retained earnings for 2011.

Accepted Answer

The answer of Maslow's Consulting Inc. had retained earnings of...

Question 10

Fast-Forward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements regarding account classification is true?

Accepted Answer

A)   Assets and revenues are the same thing
B)   If employees have not yet been paid for their work, the company has wages payable
C)   Retained earnings equal cash which the company has earned and kept
D)   Revenue is another term for profit
E)   Revenue minus expense equals retained earningsF) D) and E)
G) B) and D)

Question 12

Identify the users and uses of accounting information.

Accepted Answer

There are two general types of users of ...

Question 13

If net income for the period was $134,250, dividends distributed were $76,530 and Ending Retained Earnings was $862,520, what was the Beginning Retained Earnings for the period?

Accepted Answer

A)   $1,073,300
B)   $651,740
C)   $804,800
D)   $920,240
E)   $728,270F) A) and B)
G) B) and D)

Question 14

An example of an operating activity is:

Accepted Answer

A)   Paying wages
B)   Purchasing office equipment
C)   Borrowing money from a bank
D)   Selling stock
E)   Paying off a loanF) B) and E)
G) A) and C)

Question 15

Generally accepted accounting principles are the basic assumptions, concepts and guidelines for preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 16

The purchase of supplies must appear on the statement of cash flows as an investing activity because it involves the purchase of assets.

Accepted Answer

A) True 
 B)False

Question 17

Fast-Forward reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets. By the end of the year, assets had increased to $300,000. Calculate the return on assets.

Accepted Answer

$17,500/[(200,000 + ...

Question 18

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Accepted Answer

A)   Liabilities
B)   Equity
C)   Withdrawals
D)   Expenses
E)   Contributed CapitalF) B) and C)
G) A) and C)

Question 19

Fast-Forward has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by owners in exchange for stock of $6,000. Its ending equity is:

Accepted Answer

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

Question 20

What distinguishes liabilities from equity?

Accepted Answer

Liabilities are creditors' claims on ass...

Exam 1: Introducing Accounting in Business

What distinguishes liabilities from equity?

Correct Answer
verified
Liabilities are creditors' claims on ass...
View Answer

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Correct Answer
verified

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Correct Answer
verified

Maslow's Consulting Inc. had retained earnings of $172,500 at December 31, 2010. Net income for 2011 amounted to $56,400. Dividends during 2009 were $48,000. Prepare the statement of retained earnings for 2011.

Correct Answer
verified

Fast-Forward has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by owners in exchange for stock of $6,000. Its ending equity is:

Correct Answer
verified

Which of the following statements regarding account classification is true?

Correct Answer
verified

The International Accounting Standards Board (IASB)

Correct Answer
verified

Generally accepted accounting principles are the basic assumptions, concepts and guidelines for preparing financial statements.

Correct Answer
verified

Fast-Forward has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

Correct Answer
verified

Planning activities:

Correct Answer
verified

An example of an operating activity is:

Correct Answer
verified

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Correct Answer
verified

A company has assets of $500,000 and equity of $350,000. What is the amount of liabilities?

Correct Answer
verified
Liabilitie...
View Answer

Identify the users and uses of accounting information.

Correct Answer
verified
There are two general types of users of ...
View Answer

Fast-Forward reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets. By the end of the year, assets had increased to $300,000. Calculate the return on assets.

Correct Answer
verified
$17,500/[(200,000 + ...
View Answer

If net income for the period was $134,250, dividends distributed were $76,530 and Ending Retained Earnings was $862,520, what was the Beginning Retained Earnings for the period?

Correct Answer
verified

The purchase of supplies must appear on the statement of cash flows as an investing activity because it involves the purchase of assets.

Correct Answer
verified

Correct Answer
verified

Operating activities:

Correct Answer
verified

Fast-Forward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

Correct Answer
verified

Exam 1: Introducing Accounting in Business

What distinguishes liabilities from equity?

Correct AnswerverifiedLiabilities are creditors' claims on ass...View AnswerShow Answer

The statement of cash flows shows the net effect of revenues and expenses for a reporting period.

Correct AnswerverifiedShow Answer

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Correct AnswerverifiedShow Answer

Maslow's Consulting Inc. had retained earnings of $172,500 at December 31, 2010. Net income for 2011 amounted to $56,400. Dividends during 2009 were $48,000. Prepare the statement of retained earnings for 2011.

Correct AnswerverifiedShow Answer

Fast-Forward has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by owners in exchange for stock of $6,000. Its ending equity is:

Correct AnswerverifiedShow Answer

Which of the following statements regarding account classification is true?

Correct AnswerverifiedShow Answer

The International Accounting Standards Board (IASB)

Correct AnswerverifiedShow Answer

Generally accepted accounting principles are the basic assumptions, concepts and guidelines for preparing financial statements.

Correct AnswerverifiedShow Answer

Fast-Forward has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

Correct AnswerverifiedShow Answer

Planning activities:

Correct AnswerverifiedShow Answer

An example of an operating activity is:

Correct AnswerverifiedShow Answer

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

Correct AnswerverifiedShow Answer

A company has assets of $500,000 and equity of $350,000. What is the amount of liabilities?

Correct AnswerverifiedLiabilitie...View AnswerShow Answer

Identify the users and uses of accounting information.

Correct AnswerverifiedThere are two general types of users of ...View AnswerShow Answer

Fast-Forward reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets. By the end of the year, assets had increased to $300,000. Calculate the return on assets.

Correct Answerverified$17,500/[(200,000 + ...View AnswerShow Answer

If net income for the period was $134,250, dividends distributed were $76,530 and Ending Retained Earnings was $862,520, what was the Beginning Retained Earnings for the period?

Correct AnswerverifiedShow Answer

The purchase of supplies must appear on the statement of cash flows as an investing activity because it involves the purchase of assets.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Operating activities:

Correct AnswerverifiedShow Answer

Fast-Forward paid $6,000 in dividends. This amount should be included as an expense on the income statement.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Liabilities are creditors' claims on ass...
View Answer

Correct Answer
verified

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Correct Answer
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Liabilitie...
View Answer

Correct Answer
verified
There are two general types of users of ...
View Answer

Correct Answer
verified
$17,500/[(200,000 + ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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