Question 1

The income statement reports all of the following except:

Accepted Answer

A)  Revenues earned by a business.
B)  Expenses incurred by a business.
C)  Assets owned by a business.
D)  Net income or loss earned by a business.
E)  The time period over which the earnings occurred.F) B) and E)
G) None of the above

Question 2

When expenses exceed revenues,the resulting change in equity is:

Accepted Answer

A)  Net assets.
B)  Negative equity.
C)  Net loss.
D)  Net income.
E)  A liability.F) A) and D)
G) C) and D)

Question 3

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Accepted Answer

A) True 
 B)False

Question 4

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Accepted Answer

A)  $61,000 increase.
B)  $37,000 increase.
C)  $7,000 decrease.
D)  $7,000 increase.
E)  $34,000 decreasE.Net Increase/(Decrease) in Cash = Cash Flows from Operating Activities + Cash Flows from Investing Activities + Cash Flows from Financing ActivitiesF) B) and D)
G) C) and E)

Question 5

The balance sheet is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 6

The accountant of Action Adventure Games prepared a balance sheet after every 10 day period.The only resources invested by the owner were at the start of the company on June 1.During June,the first month of operation,the following balance sheets were prepared:    Required:
Describe the nature of each of the four transactions that took place between the balance sheet dates shown.Assume only one transaction affected each account.

Accepted Answer

The answer of The accountant of Action Adventure Games prepared...

Question 7

The difference between a company's assets and its liabilities,or net assets is:

Accepted Answer

A)  Net income.
B)  Expense.
C)  Equity.
D)  Revenue.
E)  Net loss.F) A) and C)
G) D) and E)

Question 8

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Accepted Answer

A)  1.8%.
B)  35%.
C)  17.5%.
D)  5.7%.
E)  3.5%.F) B) and C)
G) B) and D)

Question 9

______________ users of accounting information are not directly involved in running the organization.

Accepted Answer

The answer of ______________ users of accounting information are not...

Question 10

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n) :

Accepted Answer

A)  Revenue activity.
B)  Operating activity.
C)  Expense activity.
D)  Investing activity.
E)  Financing activity.F) B) and C)
G) A) and B)

Question 11

Zippy had cash inflows from operations $60,500;cash outflows from investing activities of $47,000;and cash inflows from financing of $25,000.The net change in cash was:

Accepted Answer

A)  $38,500 increase.
B)  $38,500 decrease.
C)  $132,500 decrease.
D)  $132,000 increase.
E)  $11,500 decreasE.Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from InvestingF) B) and C)
G) D) and E)

Question 12

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Accepted Answer

A)  Cash was received from providing services to a customer.
B)  The company paid an amount due on credit.
C)  Equipment was purchased for cash.
D)  A utility bill was received for the current month,to be paid in the following month.
E)  Advertising expense for the month was paid in cash.F) A) and B)
G) B) and C)

Question 13

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting in Business

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n) :

Correct Answer
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______________ users of accounting information are not directly involved in running the organization.

Correct Answer
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Zippy had cash inflows from operations $60,500;cash outflows from investing activities of $47,000;and cash inflows from financing of $25,000.The net change in cash was:

Correct Answer
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The income statement reports all of the following except:

Correct Answer
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Correct Answer
verified

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Correct Answer
verified

The balance sheet is based on the accounting equation.

Correct Answer
verified

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Correct Answer
verified

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Correct Answer
verified

When expenses exceed revenues,the resulting change in equity is:

Correct Answer
verified

The difference between a company's assets and its liabilities,or net assets is:

Correct Answer
verified

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Correct Answer
verified

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Correct Answer
verified

Exam 1: Accounting in Business

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n) :

Correct AnswerverifiedShow Answer

______________ users of accounting information are not directly involved in running the organization.

Correct AnswerverifiedShow Answer

Zippy had cash inflows from operations $60,500;cash outflows from investing activities of $47,000;and cash inflows from financing of $25,000.The net change in cash was:

Correct AnswerverifiedShow Answer

The income statement reports all of the following except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.

Correct AnswerverifiedShow Answer

The balance sheet is based on the accounting equation.

Correct AnswerverifiedShow Answer

Operating activities include long-term borrowing and repaying cash from lenders,and cash investments or withdrawals by the owner.

Correct AnswerverifiedShow Answer

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Correct AnswerverifiedShow Answer

When expenses exceed revenues,the resulting change in equity is:

Correct AnswerverifiedShow Answer

The difference between a company's assets and its liabilities,or net assets is:

Correct AnswerverifiedShow Answer

Cage Company had income of $350 million and average invested assets of $2,000 million.Its return on assets (ROA) is:

Correct AnswerverifiedShow Answer

The accounting equation for Ying Company shows a decrease in its assets and a decrease in its equity.Which of the following transactions could have caused that effect?

Correct AnswerverifiedShow Answer

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