Question 1

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Accepted Answer

Accounting reports w...

Question 2

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Often used as an alternative to a partnership

Accepted Answer

A)  Proprietorship
B)  Partnership
C)  Corporation
D)  Limited liability company (LL
C)  E) C) and D)
F) B) and D)

Question 3

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Accepted Answer

The answer of Using the following accounting equation elements and...

Question 4

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Provided a service to a customer on account

Accepted Answer

A)  Increase assets, increase liabilities
B)  Increase liabilities, decrease owner's equity
C)  Increase assets, increase owner's equity
D)  No effect
E)  Decrease assets, decrease liabilitiesF) Decrease assets, decrease owner's equityG) C) and F)
H) D) and F)

Question 5

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Accepted Answer

A)  increase an asset, decrease another asset
B)  decrease an asset, decrease a liability
C)  increase an asset, increase a liability
D)  increase an asset, increase owner's equityE) A) and B)
F) B) and C)

Question 6

Profit is the difference between

Accepted Answer

A)  assets and liabilities
B)  the incoming cash and outgoing cash
C)  the assets purchased with cash contributed by the owner and the cash spent to operate the business
D)  the amounts received from customers for goods or services and the amounts paid forthe inputs used to provide the goods or servicesE) A) and C)
F) A) and B)

Question 7

Which of the following is not a characteristic of a corporation?

Accepted Answer

A)  Corporations are organized as a separate legal taxable entity.
B)  Ownership is divided into shares of stock.
C)  Corporations experience an ease in obtaining large amounts of resources by issuing stock.
D)  A corporation's resources are limited to its individual owners' resources.E) A) and B)
F) C) and D)

Question 8

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.
​
 
-What information does the income statement give to business users?

Accepted Answer

The income statement reports t...

Question 9

Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Accepted Answer

The answer of Using the following accounting equation elements and...

Question 10

Revenue is earned only when money is received.

Accepted Answer

A) True 
 B)False

Question 11

The balance sheet represents the accounting equation.

Accepted Answer

A) True 
 B)False

Question 12

The assets and liabilities of Rocky's Day Spa at December 31 and its expenses for the year are listed below.The capital of the owner was $68,000 at January 1.The owner invested an additional $10,000 during the year.Net income for the year is $45,625.​  Prepare an income statement for the current year ended December 31.

Accepted Answer

The answer of The assets and liabilities of Rocky's Day...

Question 13

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Business

The balance sheet represents the accounting equation.

Correct Answer
verified

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Correct Answer
verified
Accounting reports w...
View Answer

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Correct Answer
verified

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Correct Answer
verified

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Correct Answer
verified

Profit is the difference between

Correct Answer
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Which of the following is not a characteristic of a corporation?

Correct Answer
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Correct Answer
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The income statement reports t...
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Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Provided a service to a customer on account

Correct Answer
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Correct Answer
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Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Correct Answer
verified

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Often used as an alternative to a partnership

Correct Answer
verified

Revenue is earned only when money is received.

Correct Answer
verified

Exam 1: Introduction to Accounting and Business

The balance sheet represents the accounting equation.

Correct AnswerverifiedShow Answer

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.

Correct AnswerverifiedAccounting reports w...View AnswerShow Answer

A business paid $7,000 to a creditor in payment of an amount owed.The effect of the transaction on the accounting equation was to

Correct AnswerverifiedShow Answer

Using the following accounting equation elements and their balances,prepare,in good form,a statement of owner's equity for Bright Futures Company for the month ended August 31.

Correct AnswerverifiedShow Answer

The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

Correct AnswerverifiedShow Answer

Profit is the difference between

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a corporation?

Correct AnswerverifiedShow Answer

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

Match each transaction with its effect on the accounting equation. Each letter may be used more than once. -Provided a service to a customer on account

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Using the following accounting equation elements and their balances,prepare,in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Correct AnswerverifiedShow Answer

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once. -Often used as an alternative to a partnership

Correct AnswerverifiedShow Answer

Revenue is earned only when money is received.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Accounting reports w...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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