Question Details

Question 1 of 20
5.0/ 5.0 Points
When a business borrows money, it incurs a(n):
A. tax.
B. liability.
C. receivable.
D. additional equity.
Question 2 of 20
5.0/ 5.0 Points
Paying expenses affects which financial statement elements?
A. Assets only
B. Stockholders’ equity only
C. Assets and stockholders’ equity
D. Assets and liabilities
Question 3 of 20
0.0/ 5.0 Points
Anthony, Inc. buys land for $50,000 cash. The net effect on assets is:
A.$50,000 increase.
B.$0.
C.$50,000 decrease.
D.$25,000 increase.
Question 4 of 20
5.0/ 5.0 Points
The basic financial statements do not include the:
A. income statement.
B. tax return.
C. balance sheet.
D. statement of cash flows.
Question 5 of 20
5.0/ 5.0 Points
The branch of accounting related to the management's financial decisions is known as financial accounting.
A. True
B. False
Question 6 of 20
5.0/ 5.0 Points
The role of accounting in business is best defined as:
A. an information system that provides reports to stakeholders about the economic activities and condition of a business.
B.a method of forecasting the future profitability of a company.
C.the policies, procedures, and strategies used in a business.
D.transaction analysis.
Question 7 of 20
5.0/ 5.0 Points
The basic type of stock issued to owners is called common stock.
A. True
B. False
Question 8 of 20
0.0/ 5.0 Points
Any given transaction must affect at least two different parts of the accounting equation.
A. True
B. False
Question 9 of 20
5.0/ 5.0 Points
A to Z Corporation issued a $30,000 note payable to borrow cash from the bank. On the Statement of Cash Flows, the transaction would be classified as:
A. Cash Flows from Operating Activities.
B. Cash Flows from Investing Activities.
C. Cash Flows from Financing Activities.
D. Noncash transaction.
Question 10 of 20
5.0/ 5.0 Points
Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of:
A. tax accounting.
B. union contracts.
C. managerial accounting.
D. financial accounting.
Question 11 of 20
5.0/ 5.0 Points
Assets are acquired through investing activities when resources are purchased.
A. True
B. False
Question 12 of 20
5.0/ 5.0 Points
Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?
A. Adequate disclosure concept
B. Going concern concept
C. Objectivity concept
D. Business entity concept
Question 13 of 20
5.0/ 5.0 Points
The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.
A. True
B. False
Question 14 of 20
0.0/ 5.0 Points
When an account receivable is collected in cash, the total assets of the business increase.
A. True
B. False
Question 15 of 20
5.0/ 5.0 Points
The balance sheet represents the accounting equation.
A. True
B. False
Question 16 of 20
5.0/ 5.0 Points
Buying equipment for cash affects which account/accounts?
A. Cash only
B. Retained earnings only
C. Equipment and retained earnings
D. Cash and equipment
Question 17 of 20
5.0/ 5.0 Points
Which of the following is an appropriate representation of the accounting equation?
A. Assets + Liabilities = Stockholders’ equity
B. Assets = Liabilities + Stockholders’ equity
C. Assets = Liabilities
D. Assets = Liabilities + Retained earnings
Question 18 of 20
5.0/ 5.0 Points
Which of the following is not considered to be a liability?
A. Note payable
B. Accounts receivable
C. Unearned revenues
D. Accounts payable
Question 19 of 20
0.0/ 5.0 Points
The first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415), and the ending cash balance to be $3,425. The net cash from financing activities must be:
A.$1,770.
B.$5,080.
C.$5,750.
D.$12,600.
Question 20 of 20
0.0/ 5.0 Points
Which principle determines the amount initially entered into the records for purchases?
A. Cost principle
B. Going concern concept
C. Business entity concept
D. Objectivity concept