Question 1

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Accepted Answer

A) True 
 B)False

Question 2

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.

Accepted Answer

A) True 
 B)False

Question 3

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the Income Statement.

Accepted Answer

The answer of From the following list of accounts taken...

Question 4

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Accepted Answer

A) True 
 B)False

Question 5

Darnell Company purchased $88,000 of computer equipment from Joseph Company. Darnell Company paid for the equipment using cash that had been obtained from the initial investment by Donnie Darnell.
Which entity or entities (Darnell Company, Joseph Company, Donnie Darnell) should record the transaction involving the computer equipment on their accounting records?

Accepted Answer

Darnell Co...

Question 6

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

Accepted Answer

Under the business entity concept, econo...

Question 7

How does the purchase of equipment by signing a note affect the accounting equation?

Accepted Answer

A)   assets increase; assets decrease
B)   assets increase; liabilities decrease
C)   assets increase; liabilities increase
D)   assets increase; owner's equity increasesE) A) and C)
F) All of the above

Question 8

Which of the following is not a business transaction?

Accepted Answer

A)   make a sales offer
B)   sell goods for cash
C)   receive cash for services to be rendered later
D)   pay for suppliesE) None of the above
F) C) and D)

Question 9

The assets and liabilities of the company are $128,000 and $84,000, respectively. Owner's equity should equal

Accepted Answer

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

Question 10

Ramierez Company received their first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Accepted Answer

Increase Liabilities...

Exam 1: Introduction to Accounting and Business

Ramierez Company received their first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Correct Answer
verified
Increase Liabilities...
View Answer

Which of the following is not a business transaction?

Correct Answer
verified

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

Correct Answer
verified
Under the business entity concept, econo...
View Answer

Correct Answer
verified
Darnell Co...
View Answer

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Correct Answer
verified

The assets and liabilities of the company are $128,000 and $84,000, respectively. Owner's equity should equal

Correct Answer
verified

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Correct Answer
verified

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.

Correct Answer
verified

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the Income Statement.

Correct Answer
verified

How does the purchase of equipment by signing a note affect the accounting equation?

Correct Answer
verified

Exam 1: Introduction to Accounting and Business

Ramierez Company received their first electric bill in the amount of $60 which will be paid next month. How will this transaction affect the accounting equation?

Correct AnswerverifiedIncrease Liabilities...View AnswerShow Answer

Which of the following is not a business transaction?

Correct AnswerverifiedShow Answer

Bob Johnson is the sole owner of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took out a loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

Correct AnswerverifiedUnder the business entity concept, econo...View AnswerShow Answer

Correct AnswerverifiedDarnell Co...View AnswerShow Answer

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

Correct AnswerverifiedShow Answer

The assets and liabilities of the company are $128,000 and $84,000, respectively. Owner's equity should equal

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services.

Correct AnswerverifiedShow Answer

The unit of measurement concept requires that economic data be recorded in a common unit of measurement.

Correct AnswerverifiedShow Answer

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the Income Statement.

Correct AnswerverifiedShow Answer

How does the purchase of equipment by signing a note affect the accounting equation?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Increase Liabilities...
View Answer

Correct Answer
verified

Correct Answer
verified
Under the business entity concept, econo...
View Answer

Correct Answer
verified
Darnell Co...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified