POA

Decreases in equity that represent costs of assets or services used to earn revenues are called: Choose one answer. a. Withdrawals. b. Liabilities. c. Owner's Investment. d. Expenses. e. Equity.

d

An account is the difference between the debits and credit for an account including any beginning balance a. True b. False

a

Decrease in equity that represent costs of assets or service used to earn revenues are called: a. Expense b. Equity c. Withdrawals d. Owner's Investment e. Liabilities

a

Investing activities are the acquiring and selling of resource that an organization uses to acquire and sell it products or service a. True b. False

a

Revenue is properly recognized: Choose one answer. a. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price. b. When cash from a sale is received. c. When the customer's order is received. d. Only if the transaction creates an account receivable. e. At the end of the accounting period.

a

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: Choose one answer. a. Business entity assumption. b. Revenue recognition principle. c. Objectivity principle. d. Going-concern assumption. e. Cost principle.

a

The area of accounting aimed at serving the decision making needs of internal users is: Choose one answer. a. Managerial accounting. b. None of these c. Financial accounting. d. Bookkeeping. e. External auditing.

a

The basic financial statements include the : Choose one answer. a. All of these. b. Balance Sheet. c. Statement of Cash Flows. d. Statement of Owner's Equity.

a

The primary objective of financial accounting is: Choose one answer. a. To provide financial statements to help external users analyze an organization's activities. b. To monitor and control company activities. c. To provide information on both the costs and benefits of looking after products and d. To know what, when, and how much to produce. e. To serve the decision-making needs of internal users.

a

The right side of T account is a a. Credit b. Increase c. Debit d. Account Balance

a

Which of the following group is not consider an external user of accounting information ? a. Manager b. Creditor c. Investor d. Banker

a

An accounting balance is a. The total of debit of the account b. The difference the total debits and credit for account including the beginning a credit c. Always a credit d. The total of credit side of the account

b

Net income: Choose one answer. a. Equals resources owned or controlled by a company. b. Occurs when revenues exceed expenses. c. Is the same as revenue. d. Occurs when expenses exceed assets. e. Represents assets taken from a company for an owner's personal use.

b

Owner's equity is decreased by a. Sale of stock to Investor b. Whitdraw capital by owners c. Net Income d. Investment by Owners

b

Creditors' claims on the assets of a company are called: Choose one answer. a. Revenues. b. Expenses. c. Liabilities. d. Net losses. e. Equity.

c

Revenues are: Choose one answer. a. The excess of expenses over assets. b. The same as net income. c. The gross increase in equity from a company's earning activities. d. The costs of assets or services used. e. Resources owned or controlled by a company

c

Unearned revenues are: Choose one answer. a. Revenues that have been earned but not yet collected in cash. b. Revenues that have been earned and received in cash. c. Liabilities created when a customer pays in advance for products or services before the revenue is earned. d. Increases to owners' capital. e. Recorded as an asset in the accounting records.

c

A liability created by the receipt of cash from customer in payment for products or services that have not yet been delivered to the customer is: a. Recorded as a debit to an unearned revenue account b. Not Recorded in the accounting record until the earning process is complete c. Recorded as a credit prepaid expense account d. Recorded as a credit to unearned revenue account e. Recorded as a debit to a prepaid expense account

d

If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid off the loan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? Choose one answer. a. Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000 b. Assets increase $52,000; owner's equity increases $22,000; liabilities decrease $30,000 c. Assets decrease $55,000; owner's equity decreases $55,000; liabilities decrease $30,000 d. Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000 e. Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000

d

The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners? Choose one answer. a. $700,000. b. It is impossible to determine unless the amount of this owners' investment is known. c. $200,000. d. $500,000. e. $900,000.

d

The excess of expense over revenues of a period is: a. Net income b. A Liability c. Net Assets d. Net Loss e. Equity

d

Accounting is an information and measurement system that: Choose one answer. a. Identifies business activities. b. Helps people make better decisions. c. Communicates business activities. d. Records business activities. e. All of these.

e

Assets created by selling goods and services on credit are: Choose one answer. a. Equity. b. Accounts payable. c. Expenses. d. Liabilities. e. Accounts receivable.

e

Expenses a. Are creditor claims on assets b. Are gross increases in equity from a company's earning activity c. Occur when equity exceeds revenue. d. Are the costs of assets or services to earn revenues e. Increase equity

e

Expenses: Choose one answer. a. Increase equity. b. Are creditors claims on assets. c. Occur when equity exceeds revenue. d. Are gross increases in equity from a company's earning activity. e. Are the costs of assets or services used to earn revenues.

e

Revenues are a. The same as net income b. The excess of expense over assets c. Resource owned or controlled by a company d. The cost of assets or services used e. The gross increase in equity from a company's earning activity

e