Question 1

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

Accepted Answer

A) True 
 B)False

Question 2

The accounting equation can be restated as: Assets - Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 3

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

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 6

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 7

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

Accepted Answer

A) True 
 B)False

Question 8

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

Accepted Answer

A)  Business entity assumption.
B)  Revenue recognition principle.
C)  Going-concern assumption.
D)  Time-period assumption.
E)  Objectivity principle.F) C) and E)
G) All of the above

Question 9

Describe the three important guidelines for revenue recognition.

Accepted Answer

The three important guidelines for reven...

Question 10

Technology:

Accepted Answer

A)  Has replaced accounting.
B)  Has not improved the clerical accuracy of accounting.
C)  Reduces the time, effort and cost of recordkeeping.
D)  In accounting has replaced the need for decision makers.
E)  In accounting is only available to large corporations.F) C) and E)
G) D) and E)

Question 11

External users include lenders, shareholders, customers, and regulators.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accounts is not included in the calculation of a company's ending stockholders' equity?

Accepted Answer

A)  Revenues.
B)  Expenses.
C)  Dividends.
D)  Common stock.
E)  Cash.F) B) and E)
G) B) and D)

Question 13

As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.

Accepted Answer

A) True 
 B)False

Question 14

Another name for equity is:

Accepted Answer

A)  Net income.
B)  Expenses.
C)  Net assets.
D)  Revenue.
E)  Net loss.F) A) and E)
G) None of the above

Question 15

The conceptual framework that the Financial Accounting Standards Board (FASB)  and the International Accounting Standards Board (IASB)  are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Accepted Answer

A)  Objectives
B)  Qualitative characteristics
C)  Uniformity
D)  Elements
E)  Recognition and measurementF) C) and E)
G) B) and E)

Question 16

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

Accepted Answer

The three basic forms of business organi...

Question 17

A common characteristic of __________ is their ability to yield expected future benefits to a business.

Accepted Answer

The answer of A common characteristic of __________ is their...

Question 18

The _______________ principle requires that financial information is supported by independent, unbiased evidence.

Accepted Answer

The answer of The _______________ principle requires that financial information...

Question 19

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

Question 20

The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?

Accepted Answer

A)  Monetary unit assumption.
B)  Going-concern assumption.
C)  Cost principle.
D)  Business entity assumption.
E)  Revenue recognition principle.F) B) and D)
G) All of the above

Exam 1: Accounting in Business

Describe the three important guidelines for revenue recognition.

Correct AnswerverifiedThe three important guidelines for reven...View AnswerShow Answer

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Correct AnswerverifiedShow Answer

External users include lenders, shareholders, customers, and regulators.

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 Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?

Correct AnswerverifiedShow Answer

As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

Correct AnswerverifiedShow Answer

Investing activities are the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.

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

The accounting equation can be restated as: Assets - Equity = Liabilities.

Correct AnswerverifiedShow Answer

A common characteristic of __________ is their ability to yield expected future benefits to a business.

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

Another name for equity is:

Correct AnswerverifiedShow Answer

The accounting equation implies that: Assets + Liabilities = Equity.

Correct AnswerverifiedShow Answer

Technology:

Correct AnswerverifiedShow Answer

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

Correct AnswerverifiedShow Answer

The _______________ principle requires that financial information is supported by independent, unbiased evidence.

Correct AnswerverifiedShow Answer

Which of the following accounts is not included in the calculation of a company's ending stockholders' equity?

Correct AnswerverifiedShow Answer

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

Correct AnswerverifiedShow Answer

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The three important guidelines for reven...
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The three basic forms of business organi...
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