Acct1100 Chapter 1 test - k‘—— Question 1 0 out of 4...

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Unformatted text preview: k‘——/ Question 1 0 out of 4 points On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: as Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9.300. What is the amount of owner’s equity as of May 31 of the current year? Selected Answer: $20,500. Answers: $49,700. $13,050. $20,500. $31,100. $40,400. I Response incorrect Feedback: MC Qu. 141 On May 31 of the current... AACSB: Analytical Thinking Accessibility: Keyboard Navigation , AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 3 Hard Review Test Submission: Chapter 1 Objective Test — Page 2 of 15 Learning Objective: D1-A1 Define and interpret the accounting equation and each of its components. Topic: The Accounting Equation Question 2 4 out of 4 points if assets are $365,000 and equity is $120,000, then iiabilities are: if Selected Answer: , $2‘45,000. Answers: $120,000. __, $245,000. $365,000. $485,000. $610,000. ‘ Response correct Feedback: MC Qu. 153 If assets are... . AACSB: Anaiytical Thinking Accessibility: Keyboard Navigation AICPA: BB Industry AlCPA: FN Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 01—A1 Define and interpret the accounting equation and each of its components. Topic: The Accounting Equation Question 3 4 out of 4 points 7‘ The materiality constraint: Selected Answer: Prescribes that only information that would influence the decisions of a reasonable person need be disclosed. Answers: Prescribes that accounting information is based on actual cost. Provides guidance on when a company must recognize revenue. Piescribes that only information that would influence the decisions of a reasonable person need be disclosed. Prescribes that a company record the expenses it incurred to generate the revenue reported. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Review Test Submission: Chapter 1 Objective Test — Page 3 of 15 Response correct Feed back: MC Qu. 205 The materiality constraint: AACSB: Communication Accessibility: Keyboard Navigaticm AlCPA: BB Industry AlCPA: BB Legal AlCPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Explain generally accepted accounting principles and define and apply several accounting principles. Topic: Generally Accepted Accounting Principles Question 4 4 out of 4 points Which of the following accounts is not included in the calculation of net income? Selected Answer: , Cash. Answers: Services revenue. Wages expense. Rent expense. Cash. Rent revenue. Response correct Feedback: MC Qu. 214 Which of the following accounts... AACSB: Communication Accessibility: Keyboard Navigation AlCPA: BB Industry AlCPA: FN Reporting Blooms: Remember Difficulty: 1 Easy Learning Objective: 01—P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Question 5 4 out of 4 points When expenses exceed revenues, the resulting change in equity is called: Selected Answer: : Net loss. Answers: Net assets. Negative equity. . Net lass. Review Test Submission: Chapter 1 Objective Test — Page 4 of 15 Net income. A liability. Response correct Feedback: MC Qu. 137 When expenses exceed... AACSB: Communication Aocessibiiity: Keyboard Navigation AICPA: BB industry AICPA: FN Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Question 6 ‘ 0 out of 4 points Chou Co. has a net income of $43,000, assets at the beginning of the year are . $250,000 and assets at the end of the year are $300,000. Compute its return on ”8 assets. - Selected Answer: [None Given] Answers: 8.4%. 17.2%. 14.3%. 15.6%. 1.5%. Response incorrect Feed back: MC Qu. 157 Chou Co. has a net income... AACSB: Analytic-l Thinking Accessibility: Keyboard Navigation AICPA: BB Resource Management AICPA: FN Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 01-A2 Compute and interpret return on assets. Topic: Return on Assets Question 7 0 out of 4 points A partnership: ma Selected Answer: Has owners called shareholders. Answers: Is also called a sole proprietorship. Review Test Submission: Chapter 1 Objective Test — Page 5 of 15 .. Has unlimited liability for its partners. Has to have a written agreement in order to be legal. Is a legal organization separate from its owners. Has owners called shareholders. Response incorrect Feedback: MC On. 112 A partnership: AACSB; Communication Accessrbility: Keyboard Navigation AICPA: BB Legal AICPA: FN Reporting Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-04 Explain generaily accepted accounting principles and define and apply several accounting principles. Topic: Generally Accepted Accounting Principles Question 8 4 out of 4 points The area of accounting aimed at sewing the decision making needs of internal users fits: Selected Answer: . Managerial accounting. Answers: Financial accounting. 1 Managerial accounting. External auditing- SEC reporting. Bookkeeping. Response correct Feedback: MC Qu. 90 The area of accounting aimed... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB Industry AICPA: FN Reporting Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-C2 Identify users and uses of, and opportunities in, accounting. Topic: Users of Accounting Information Question 9 4 out of 4 points The primary objective of financial accounting is to: “I!" Provide accounting information that serves external users. Review Test Submission: Chapter 1 Objective Test — Page 6 of 15 Selected Answer: Answers: Response Feedback: Question 10 Serve the decision-making needs of internal users. . Provide accounting information that serves external users. Monitor and control company activities. Provide information on both the costs and benefits of looking after products and services. Know what, when, and how much product to produce. correct MC Qu. 89 The primary objective offinancial... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB Industry AICPA: FN Reporting Blooms: Understand Difficulty: 2 Medium Learning Objective: 01—02 Identify users and uses of, and opportunities in, accounting. Topic: Users of Accounting Information 4 out of 4 points Which of the following accounts is not included in the liability section of the balance 5‘ sheet? Selected Answen Accounts receivable. Answers: -_ Accounts receivable. Wages payable. Accounts payable. Notes payable. Taxes payable. Response correct Feedback: MC Qu. 213 Which of the following accounts... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB industry AICPA: FN Reporting Blooms: Remember Difficulty: 1 Easy Learning Objective: 01—P2 identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Review Test Submission: Chapter 1 Objective Test A Page 7 of 15 Question 11 4 out of 4 points . Operating activities: 51‘ Selected ‘r, Answer: Involve using resources to research, develop, purchase, produce, distribute and market products and services. Answers: Are the means organizations use to pay for resources like land, buildings and equipment. 5 involve using resources to research, develop, purchase, produce, distribute and market products and services. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. Are also called asset management. Are also called strategic management. Response correct Feedback: MC Qu. 123 Operating activities: AACSB: Communication Accessibility: Keyboard Navigation AECPA: BB Industry AlCPA: FN Decision Making Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-05 Appendix iB~ldentify and describe the three major activities of organizations. Learning Objective: 01-P2 identify and prepare basic financial statements and explain how they interrelate. Topic: Business Activities and the Accounting Equation Topic: Financial Statements QUestion 12 4 out of 4 points Congress passed the Dodd—Frank Wall Street Reform and Consumer Protection Act if (or Dodd-Frank) to: Selected Answer: . , All of the above. Answers: Promote accountability and transparency in the financial system. Put an end to the notion of “too big to fail." Protect the taxpayer by ending bailouts. Protect consumers from abusive financial services. All of the above. Review Test Submission: Chapter 1 Objective Test —~ Page 8 of 15 Response correct Feedback: MC Qu. 210 Congress passed the Dodd—Frank... Accessibility: Keyboard Navigation AICPA: BB Legal AICPA: FN Reporting Biooms: Understand Difficulty: 2 Medium Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles. Topic: Ethics Topic: Generally Accepted Accounting Principles Question 13 4 out of 4 points _ Cash investments by owners are listed on which of the following statements? if Selected Answer: - _, Statement of owner‘s equity and statement of cash flows. Answers: Balance sheet. income statement. Statement of owner's equity only. Statement of cash flows only. . 2 Statement of owner's equity and statement of cash flows. Response correct Feedback: MC Qu. 168 Cash investments by owners are... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB Industry AICPA: FN Reporting Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Question 14 4 out of 4 points ., The statement of cash flows reports all of the following except hi Selected Answer: J The net increase or decrease in assets for the period reported. Answers: Cash flows from operating activities. Cash flows from investing activities. Cash flows from financing activities. ‘ The net increase or decrease in assets for the period reported. Review Test Submission: Chapter 1 Objective Test —— ; Page 9 of 15 The net increase or decrease in cash for the period reported. Response correct Feedback: MC Cu. 160 The statement of cash flows... AACSB: Communication Accessibility: Keyboard Navigation AECPA: BB Industry AICPA: FN Reporting Blooms: Understand Difficulty: 2 Medium Learning Objective: 01—P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Question 15 0 out of 4 points Charlie's Chocolates’ owner made investments of $50,000 and withdrawals of _, $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate 14m . . its net income. Selected Answer: [None Given] Answers: $30,000. $83,000. $64,000. J $19,000. $49,000. Response incorrect Feedback: MC Cu. 186 Charlies Chocolates owner made... AACSB: Analytical Thinking Accessibility: Keyboard Navigation AiCPA: BB Industry AICPA: FN Reporting Blooms: Apply Difficulty: 3 Hard Learning Objective: 01—P1 Analyze business transactions using the accounting equation. Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements Topic: Transaction Analysis Question 16 4 out of 4 points , if equity is $300,000 and liabilities are $192,000, then assets equal: {if Selected Answer: -7 7. $492,000. Answers: $108,000. Review Test Submission: Chapter 1 Objective Test — Page 10 of 15 $192,000. $300,000. $492,000. $792,000. Response correct Feedback: MC Qu. 126 If equity is... AACSB: Analytical Thinking Accessibility: Keyboard Navigation AlCPA: BB industry AlCPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 01~A1 Define and interpret the accounting equation and each of its components. Topic: The Accounting Equation Question 17 _ 4 out of 4 points If Houston Company billed a client for $10,000 of consulting work completed, the a accounts receivable asset increases by $10,000 and: Selected Answer: , Revenue increases $10,000. Answers: Accounts payable decreases $10,000. Accounts payable increases $10,000. Cash increases $10,000. 4- , Revenue increases $10,000. Revenue decreases $10,000 Response correct Feedback: MC Qu. 146 If Houston Company billed... AACSB: Analytical Thinking Accessibility: Keyboard Navigation AlCPA: BB industry AlCPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 01—P1 Analyze business transactions using the accounting equation. Topic: Transaction Analysis Question 18 4 out of 4 points Which of the following accounts is not included in the asset section of the balance and sheet? Review Test Submission: Chapter 1 Objective Test A Page 11 of 15 Selected Answer: .142 Wages expense. Answers: Buildings. Wages expense. Supplies. Land. Furniture. 0 Response correct Feedback: MC Qu. 212 Which of the following accounts... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB industry AICPA: FN Reporting Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Topic: Financial Statements l Question 19 0 out of 4 points An exchange of value between two entities that yields a change in the accounting M equation is called: Selected Answer. The accounting equation. Answers: The accounting equation. Recordkeeping or bookkeeping. _ . An external transaction. An asset Net Income. Response incorrect Feedback: MC Qu. 144 An exchange of value... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB industry AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-131 Analyze business transactions using the acc0unting equation. Topic: Transaction Analysis Review Test Submission: Chapter 1 Objective Test — Page 12 of 15 Question 20 4 out of 4 points .. A corporation is: id Selected Answer: - . A business legally separate from its owners. Answers: A business legally separate from its owners. Controlled by the FASB. Not responsible for its own acts and own debts. The same as a limited liability partnership. Not subject to double taxation. I Response correct Feedback: MC Qu. 97 A corporation... AACSB: Communication Accessibility: Keyboard Navigation . AICPA: BB Legal AICPA: FN Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Explain generally accepted accounting principles and define and apply several accounting principles. Topic: Generally Accepted Accounting Principles Question 21 4 out of 4 points Which of the following accounting principles require that all goods and services ii purchased be recorded at actual cost? Selected Answer: -_; Measurement (Cost) principle. Answers: Going-concern assumption. Expense recognition (Matching) principle. Measurement (Cost) principle. Business entity assumption. Consideration assumption. Response correct Feedback: MC Qu. 113 Which of the following accounting... AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB Legal AICPA: FN Measurement Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-C4 Explain generally accepted accounting principles and define and apply several accounting principles- Topic: Generally Accepted Accounting Principles Review Test Submission: Chapter 1 Objective Test — Page 13 of 15 Question 22 4 out of 4 points Grandmark Printing pays $2,000 rent to the landlord of the building where its facilities 5:; are located. How does this transaction affect the accounting equation for Grandmark? Selected Answer: Answers: Response Feedback: Question 23 i Assets would decrease $2,000 and equity would decrease $2,000. Assets would decrease $2,000 and liabilities would decrease $2,000. Assets would decrease $2,000 and equity would decrease $2,000. Assets would increase $2,000 and equity would increase $2,000. Assets would increase $2,000 and liabilities would increase $2,000. l Liabilities would decrease $2,000 and equity would increase $2,000. correct MC Qu. 197 Grandmark Printing pays... AACSB: Analytical Thinking Accessibility: Keyboard Navigation AlCPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 01-P1 Analyze business transactions using the accounting equation. Topic: Transaction Analysis 4 out of 4 points 7 The measurement principle, also called the cost principle: Selected Answer: Answers: -, Prescribes that accounting information is based on actual cost. i Prescribes that accounting information is based on actual cost. «a- Provides guidance on when a company must recognize revenue. Prescribes that a company report the details behind financial statements that would impact users' decisions. Prescribes that a company record the expenses it incurred to generate the revenue reported. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Review Test Submission: Chapter 1 Objective Test — Page 14 of 15 Response correct Feedback: MC Cu. 202 The measurement principle-.. AACSB: Communication Accessibility: Keyboard Navigation AICPA: BB Industry AICPA: BB Legal AICPA: F N Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 01—04 Explain generally accepted accounting principles and define and apply several accounting principles. Topic: Generally Accepted Accounting Principles Question 24 4 out of 4 points Marsha Bogswell is the owner of Bogswell Legal Services. Which accounting principle fl requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services? Selected Answer: i, 7, Business entity assumption. Answers: Monetary unit assumption. Going-concem assumption. Measurement (Cost) principle. Business entity assumption. Expense recognition (Matching) principle. Response correct Feedback: MC Qu. 110 Marsha Bogswell is the owner of... AACSB: Communication Accessibility: Keyboard Navigation AlCPA: BB Legal AlCPA: FN Reporting Blooms: Apply Difficulty: 2 Medium Learning Objective: 01—C4 Explain generally accepted accounting principles and define and apply several accounting principles. Topic: Generally Accepted Accounting Principles Question 25 4 out of 4 points Alpha Company has assets of $600,000, liabilities of $250,000, and equity of a $350,000. lt buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? Selected Answer: Assets increase by $75,000 and liabilities increase by $75,000. Answers: Assets increase by $75,000 and expenses increase by $75,000. Review Test Submission: Chapter 1 Objective Test — Page 15 of 15 Assets increase by $75,000 and expenses decrease by $75,000. Liabilities increase by $75,000 and expenses decrease by $75,000. Assets decrease by $75,000 and expenses decrease by $75,000. Assets increase by $75,000 and liabilities increase by $75,000. Response correct Feedback: MC du. 147 Alpha Company has... AACSB: Analytical Thinking Accessibility: Keyboard Navigation AICPA: BB Industry AICPA: FN Measurement Blooms: Apply Difficuity: 2 Medium Learning Objective: 01-P1 Analyze business transactions using the accounting equation. ‘ Topic: Transaction Analysis Wednesday, June 14, 2017 11:52:17 PM EDT ...
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