Question 1

Which of the following isnot 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)   Corporation's resources are limited to its individual owners' resources.E) A) and D)
F) B) and C)

Question 2

Indicate how the following transactions affect the accounting equation:
(a) The purchase of supplies on account.
(b) The purchase of supplies for cash.
(c) Cash dividends paid to stockholders.
(d) Revenues received in cash.
(e) Revenues received on account.

Accepted Answer

(a) Assets increase; liabilities increas...

Question 3

Accounting information users need reports about the economic activities and condition of businesses.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)   the income statement
B)   the balance sheet
C)   the statement of cash flows
D)   the retained earnings statementE) A) and B)
F) A) and C)

Question 5

Use the accounting equation to answer each of the independent questions below.
a. At the beginning of the year, Norton Company assets were $75,000 and its stockholders' equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the stockholders' equity at the end of the year?
b. At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders' equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders' equity at the end of the year?

Accepted Answer

a. $75,000 - $38,000 = $37,000 beginning...

Question 6

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011:
  Determine the total liabilities at the end of 2011 for Franklin Company.

Accepted Answer

The answer of The accountant for Franklin Company prepared the...

Question 7

Which of the following is not true of accounting principles?

Accepted Answer

A)   Financial accountants follow generally accepted accounting principles (GAAP) .
B)   Following GAAP allows accounting information users to compare one company to another.
C)   A new accounting principle can be adopted with stockholders approval.
D)   The Financial Accounting Standards Board (FAS
B)   has primary responsibility for developing accounting principles.E) None of the above
F) A) and C)

Question 8

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Business

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.

Correct Answer
verified
(a) Assets increase; liabilities increas...
View Answer

Which of the following isnot a characteristic of a corporation?

Correct Answer
verified

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Correct Answer
verified

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

Correct Answer
verified

Accounting information users need reports about the economic activities and condition of businesses.

Correct Answer
verified

Correct Answer
verified
a. $75,000 - $38,000 = $37,000 beginning...
View Answer

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

Correct Answer
verified

Which of the following is not true of accounting principles?

Correct Answer
verified

Exam 1: Introduction to Accounting and Business

Indicate how the following transactions affect the accounting equation: (a) The purchase of supplies on account. (b) The purchase of supplies for cash. (c) Cash dividends paid to stockholders. (d) Revenues received in cash. (e) Revenues received on account.

Correct Answerverified(a) Assets increase; liabilities increas...View AnswerShow Answer

Which of the following isnot a characteristic of a corporation?

Correct AnswerverifiedShow Answer

Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

Correct AnswerverifiedShow Answer

The accountant for Franklin Company prepared the following list of account balances from the company's records for the year ended December 31, 2011: Determine the total liabilities at the end of 2011 for Franklin Company.

Correct AnswerverifiedShow Answer

Accounting information users need reports about the economic activities and condition of businesses.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. $75,000 - $38,000 = $37,000 beginning...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not true of accounting principles?

Correct AnswerverifiedShow Answer

Correct Answer
verified
(a) Assets increase; liabilities increas...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. $75,000 - $38,000 = $37,000 beginning...
View Answer

Correct Answer
verified

Correct Answer
verified