accounting Chptr 1 MC

Which of the following is not included in the definition of accounting? a. identifying economic info b. measuring economic info c. developing economic info d. communicating economic info

C. Developing economic information

makers company had the following account totals: cash $25,000; inventory $15,000; accounts payable $15,000; retained earnings $25,000; equipment $80,000; investments $10,000; and other assets $40,000. what is makers total assets? a. $170,000 b. $190,000 c. $85,000 d. $210,000

a. $170,000

which of the following is not a qualitative characteristic of accounting? a. understandability b. relevance c. pertinence d. consistency

c. pertinence

the statement of retained earnings links which two financial statements? a the income statement and the balance sheet b. the balance sheet and the statement of cash flows c. the income statement and the statement of cash flows d. the statement of retained earnings does not link any statements

a. the income statement and the balance sheet

as of dec. 31st, lure company has assets of $18,400 and equity of $6,500. what are the liabilities for lure company as of dec. 31st? a. $24,900 b. $11,900 c. $14,200 d. $8,600

b. $11,900

the basic accounting equation states: a. assets and liabilities equal equity b. assets equal liabilities plus equity c. liabilities equal equity plus assets d. revenues minus expenses equals net income

b. assets equal liabilities plus equity

which financial statement reports assets, liabilities, and equity? a. statement of cash flows b. balance sheet c. income statement d. statement of retained earnings

b. balance sheet

retained earnings is defined as: a. the difference between assets and liabilities b. equity generated from profitable operations and retained in the business c. a decrease in assets resulting from selling a good or providing a service d. equity resulting from contributions from owners

b. equity generated from profitable operations and retained in the business

the revenue recognition principle states that: a. assets are recorded and maintained at their historical cost b. revenues are recorded when they are earned c. the dollar, unadjusted for inflation, is the best means of accounting in the US d. revenues are recorded when cash is received

b. revenues are recorded when they are earnedq

net income is created in a time period when: a. assets exceed liability b. revenues exceed expenses c. revenues are less than expenses d. liabilities are greater than assets

b. revenues exceed expences

during the year, calls bagel shop had revenues of $125,000. rent expense was $12,000. salaries expense was $25,000. short term investments were $35,000. other expenses totaled $40,000. what was allies net income? a. $85,000 b. $13,000 c. $48,000 d. $60,000

c. $48,000

a company begins a period with a $5,000 retained earnings balance. the company generates $12,000 of revenues and $10,000 of expenses during the period and pays $1,000 of dividends. what is the retained earnings balance at the end of the period? a. $7,000 b. $5,000 c. $6,000 d. $1,000

c. $6,000

Which assumption states that an economic entity will continue its operations indefinitely? a. monetary unit b. time period c. going concern. d. economic entity

c. going concern

which of the following is not one of the sections of the statement of cash flows? a. investing activities b. financing activities c. operating activities d. income activities

d. income activities

which financial statement reports revenues and expenses? a. statement of retained earnings b. balance sheet c. statement of cash flows d. income statement

d. income statement

which of the following accurately describes the matching principle? a. matches assets and liabilities b. matches income and dividends c. matches retained earnings and income d. matches revenue and expense

d. matches revenue and expense