Question 1

Which of the items below is not a business entity?

Accepted Answer

A)   entrepreneurship
B)   proprietorship
C)   partnership
D)   corporationE) A) and B)
F) All of the above

Question 2

Explain the meaning of the business entity assumption.

Accepted Answer

The business entity assumption limits th...

Question 3

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 stockholders' equity
C)  Increase assets, increase stockholders' equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease stockholders' equityG) All of the above
H) B) and E)

Question 4

Which of the following financial statements reports information as of a specific date?

Accepted Answer

A)   income statement
B)   statement of stockholders' equity
C)   statement of cash flows
D)   balance sheetE) All of the above
F) A) and B)

Question 5

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Accepted Answer

A)   income statement
B)   balance sheet
C)   statement of cash flows
D)   statement of stockholders' equityE) C) and D)
F) B) and C)

Question 6

On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000. On May 15, Carpet Barn accepted a counteroffer of $95,000. On June 5, the land was assessed at a value of $115,000 for property tax purposes. On December 10, Carpet Barn Company was offered $135,000 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

Accepted Answer

The answer of On May 7, Carpet Barn Company offered...

Question 7

Purchasing supplies on account increases liabilities and decreases equity.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a role of accounting in business?

Accepted Answer

A)   to provide reports to users about the economic activities and conditions of a business
B)   to personally guarantee loans of the business
C)   to provide information to external users to determine the economic performance and condition of the business
D)   to assess the various informational needs of users and design its accounting system to meet those needsE) B) and C)
F) None of the above

Exam 1: Accounting and Business

Explain the meaning of the business entity assumption.

Correct Answer
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The business entity assumption limits th...
View Answer

Correct Answer
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A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Correct Answer
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Which of the items below is not a business entity?

Correct Answer
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Which of the following is not a role of accounting in business?

Correct Answer
verified

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 Answer
verified

Purchasing supplies on account increases liabilities and decreases equity.

Correct Answer
verified

Which of the following financial statements reports information as of a specific date?

Correct Answer
verified

Exam 1: Accounting and Business

Explain the meaning of the business entity assumption.

Correct AnswerverifiedThe business entity assumption limits th...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Correct AnswerverifiedShow Answer

Which of the items below is not a business entity?

Correct AnswerverifiedShow Answer

Which of the following is not a role of accounting in business?

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

Purchasing supplies on account increases liabilities and decreases equity.

Correct AnswerverifiedShow Answer

Which of the following financial statements reports information as of a specific date?

Correct AnswerverifiedShow Answer

Correct Answer
verified
The business entity assumption limits th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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