Question 1

Based on this information,is Scott Industries profitable? Explain your answer.

Accepted Answer

($165,000 Fees earned + $3,000 Interest ...

Question 2

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Accepted Answer

A) True 
 B)False

Question 3

Paid telephone bill,$220
​
​
Based on the information given above,calculate the balance of cash at June 30.Use the following format.
​
Cash,June 1 $25,000
​
Plus cash receipts for June ____________
​
Minus cash payments for June ____________
​
Cash,June 30 ____________

Accepted Answer

The answer of Paid telephone bill,$220
​
​
Based on the information given...

Question 4

How does the payment of rent for equipment affect the accounting equation?

Accepted Answer

A)   assets increase; assets decrease
B)   assets decrease; stockholders' equity decreases
C)   assets decrease; liabilities increase
D)   assets increase; stockholders' equity increasesE) A) and B)
F) A) and C)

Question 5

Within the United States,the dominant body in the primary development of accounting principles is the

Accepted Answer

A)   American Institute of Certified Public Accountants (AICP
A)  
B)   American Accounting Association (AA
A)  
C)   Financial Accounting Standards Board (FAS
B)  
D)   Institute of Management Accountants (IM
A)  E) A) and B)
F) A) and C)

Question 6

Generally accepted accounting principles regulate how and what financial information is reported by businesses.

Accepted Answer

A) True 
 B)False

Question 7

Explain the interrelationship between the balance sheet and the statement of cash flows.

Accepted Answer

The cash reported on the balan...

Question 8

Which of the following is a service business?​

Accepted Answer

A)   ​Microsoft
B)   ​Dell Computers
C)   Facebook
D)   ​WalmartE) B) and C)
F) A) and D)

Question 9

Explain the meaning of:
​(a)the measurement principle
(b)the monetary unit assumption

Accepted Answer

(a)The measurement principle requires th...

Question 10

The assets and liabilities of a company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Accepted Answer

A)   $212,000
B)   $44,000
C)   $128,000
D)   $84,000E) A) and B)
F) B) and D)

Question 11

What information does the income statement give to business users?

Accepted Answer

The income statement reports t...

Question 12

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders.

Accepted Answer

A) True 
 B)False

Question 13

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   FASB
B)   IRS
C)   SEC
D)   AICPAE) None of the above
F) A) and C)

Question 15

Goods purchased on account for future use in the business,such as supplies,are called

Accepted Answer

A)   prepaid liabilities
B)   revenues
C)   prepaid expenses
D)   liabilitiesE) A) and C)
F) A) and B)

Question 16

If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period,then the amount and direction (increase or decrease) of the period's change in total liabilities is

Accepted Answer

A)   a $17,000 increase
B)   an $88,000 decrease
C)   a $159,000 increase
D)   a $159,000 decreaseE) A) and B)
F) A) and C)

Question 17

​Which of the following asset accounts is increased when a receivable is collected?

Accepted Answer

A)   ​Accounts Receivable
B)   ​Supplies
C)   ​Accounts Payable
D)   ​CashE) A) and B)
F) None of the above

Question 18

Which of the following best describes accounting?

Accepted Answer

A)   records economic data but does not communicate the data to users according to any specific rules
B)   is an information system that provides reports to users regarding economic activities and condition of a business
C)   is of no use by individuals outside of the business
D)   is used only for filling out tax returns and for financial statements for various type of governmental reporting requirementsE) A) and B)
F) B) and C)

Question 19

Krammer Company has liabilities equal to one fourth of the total assets.Krammer's stockholders' equity is $45,000.Using the accounting equation,what is the amount of liabilities for Krammer?

Accepted Answer

Assets = Liabilities + Stockho...

Question 20

Which of the following is the best description of accounting's role in business?

Accepted Answer

A)   Accounting provides stockholders with information regarding the market value of the company's stocks.
B)   Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company.
C)   Accounting helps in decreasing the credit risk of the company.
D)   Accounting is not responsible for providing any form of information to users.That is the role of the Information Systems Department.E) B) and D)
F) B) and C)

Exam 1: Introduction to Accounting and Business

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders.

Correct AnswerverifiedShow Answer

The assets and liabilities of a company are $128,000 and $84,000,respectively.Stockholders' equity should equal

Correct AnswerverifiedShow Answer

Krammer Company has liabilities equal to one fourth of the total assets.Krammer's stockholders' equity is $45,000.Using the accounting equation,what is the amount of liabilities for Krammer?

Correct AnswerverifiedAssets = Liabilities + Stockho...View AnswerShow Answer

Which of the following best describes accounting?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Within the United States,the dominant body in the primary development of accounting principles is the

Correct AnswerverifiedShow Answer

Generally accepted accounting principles regulate how and what financial information is reported by businesses.

Correct AnswerverifiedShow Answer

Which of the following is a service business?​

Correct AnswerverifiedShow Answer

How does the payment of rent for equipment affect the accounting equation?

Correct AnswerverifiedShow Answer

Explain the meaning of: ​(a)the measurement principle (b)the monetary unit assumption

Correct Answerverified(a)The measurement principle requires th...View AnswerShow Answer

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Correct AnswerverifiedShow Answer

Which of the following is the best description of accounting's role in business?

Correct AnswerverifiedShow Answer

Explain the interrelationship between the balance sheet and the statement of cash flows.

Correct AnswerverifiedThe cash reported on the balan...View AnswerShow Answer

Paid telephone bill,$220 ​ ​ Based on the information given above,calculate the balance of cash at June 30.Use the following format. ​ Cash,June 1 $25,000 ​ Plus cash receipts for June ____________ ​ Minus cash payments for June ____________ ​ Cash,June 30 ____________

Correct AnswerverifiedShow Answer

If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period,then the amount and direction (increase or decrease) of the period's change in total liabilities is

Correct AnswerverifiedShow Answer

​Which of the following asset accounts is increased when a receivable is collected?

Correct AnswerverifiedShow Answer

What information does the income statement give to business users?

Correct AnswerverifiedThe income statement reports t...View AnswerShow Answer

Based on this information,is Scott Industries profitable? Explain your answer.

Correct Answerverified($165,000 Fees earned + $3,000 Interest ...View AnswerShow Answer

Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work.

Correct AnswerverifiedShow Answer

Goods purchased on account for future use in the business,such as supplies,are called

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Assets = Liabilities + Stockho...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Which of the following is a service business?

Correct Answer
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Correct Answer
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Explain the meaning of: (a)the measurement principle (b)the monetary unit assumption

Correct Answer
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(a)The measurement principle requires th...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The cash reported on the balan...
View Answer

Paid telephone bill,$220 Based on the information given above,calculate the balance of cash at June 30.Use the following format. Cash,June 1 $25,000 Plus cash receipts for June Minus cash payments for June Cash,June 30

Correct Answer
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Correct Answer
verified

Which of the following asset accounts is increased when a receivable is collected?

Correct Answer
verified

Correct Answer
verified
The income statement reports t...
View Answer

Correct Answer
verified
($165,000 Fees earned + $3,000 Interest ...
View Answer

Correct Answer
verified

Correct Answer
verified