Accounting I Practice Quiz 1

All of the following are external stakeholders except: a. Employees b. Suppliers c. Customers d. Creditors

Employees

Coca-Cola is an example of which of the following? a. Service firm b. Merchandising firm c. Manufacturing firm d. Producer firm

Manufacturing firm

In its annual report the FCX Company reported the value of its ending inventory, rather than the number of units on hand. This best describes an application of the: a. Business entity concept b. Going concern concept c. Monetary unit concept d. Periodicity concept

Monetary unit concept

Which of the following would be found in the owner's equity section of the balance sheet? a. Office equipment b. Rent expense c. Cash d. Retained earnings

Retained earnings

An amount earned from rendering services or transferring resources to customers describes a(n): a. Asset b. Liability c. Revenue d. Expense

Revenue

Zeman Dance Hall Inc. sponsors monthly dances and has generated data for the most recent year. Using this data determine Zeman's net income: Revenues from admissions to dances $1,200,000 Utilities expense $150,000 Fees incurred to hire bands $300,000 Building owned by Zeman $300,000 Notes Payable due in 2 years $300,000 Advertising expense $145,000 Office Supplies $10,000 Instrument Rental expense $50,000 Office Equipment $200,000 Salaries Expense $250,000 Accounts Payable $25,000 Salaries Payable $50,000 Cash $275,000 a. $605,00 b. $565,00 c. $305,00 d. $295,00

$305,00

Given the information in question 12 above for Zeman Dance Hall Inc., what is the company's return on sales ratio? a. 50% b. 33% c. 25% d. 20%

25%

Given the information in question 12 above for Zeman Dance Hall Inc, what is the company's current ratio? a. 2.20 b. 3.67 c. 3.80 d. 5.50

3.80

Which of the following is an example of a liability? a. An amount which must be paid to a business that sold you some supplies b. The obligation to transfer the net assets of the business to its owners c. Equipment purchased by the business d. The amount contributed to the business by your partner

An amount which must be paid to a business that sold you some supplies

Accounts Receivable is an example of a(n): a. Asset b. Liability c. Owner's equity d. Revenue

Asset

Interest Payable would be found on which financial statement? a. Income statement b. Statement of Owner's equity c. Balance sheet d. Statement of cash flows

Balance sheet

The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the: a. Business entity concept b. Going entity concept c. Monetary unit concept d. Periodicity concept

Business entity concept

Double taxation is a characteristic of which type of business entity? a. Corporation b. Sole proprietorship c. Partnership d. Merchandiser

Corporation

Which of the following is NOT true about the relationship between the financial statements? a. The net income of the firm is added to Owners' Equity b. The cash on the balance sheet is found on the cash flow statement c. The net income of the firm is reported on the Income Statement and the Statement of Shareholders' Equity d. The cash generated by operations on the Statement of Cash Flows is reported as an increase in Retained Earnings on the Statement of Shareholders'' Equity

The cash generated by operations on the Statement of Cash Flows is reported as an increase in Retained Earnings on the Statement of Shareholders'' Equity

You are reviewing the financial statements for Utica Delivery Company. Which of the following would you expect to find on the income statement? a. The amount paid to purchase a new delivery truck. b. The cost incurred to clean the uniforms of the delivery personnel. c. The amount of money owed to the bank. d. The amount of cash in the bank.

The cost incurred to clean the uniforms of the delivery personnel.