FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting in Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 141

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following combinations results in a net loss reported on the income statement?

A) Total revenues of $70,000 and total expenses of $74,000.
B) Total revenues of $80,000 and total expenses of $74,000.
C) Total revenues of $40,000 and total expenses of $31,000.
D) Total revenues of $20,000 and total expenses of $16,000.
E) Total revenues of $60,000 and total expenses of $52,000.

F) B) and C)
G) A) and B)

Correct Answer

verified

Show Answer

Question 142

Multiple Choice

Review LaterAdd Note

Review Later

The conceptual framework that the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are attempting to converge and enhance includes the following broad areas to guide standard setting except:

A) Uniformity
B) Recognition and measurement
C) Objectives
D) Qualitative characteristics
E) Elements

F) A) and B)
G) A) and C)

Correct Answer

verified

Show Answer

Question 143

Short Answer

Review LaterAdd Note

The ________ principle requires that financial information is supported by independent, unbiased evidence.

Identify and describe the two main groups involved in establishing generally accepted accounting principles.

A partnership is a business owned by two or more people.

The business entity assumption means that a business is accounted for separately from other business entities, including its owner or owners.

Every business transaction leaves the accounting equation in balance.

Which of the following accounts is not included in the calculation of net income?

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.

The accounts of Odie Company with the increases or decreases that occurred during the past year are as follows: $\begin{array} { l c c } \text { Account } & \text { Increase } & \text { Decrease } \\\hline \text { Cash } & \$ 25,000 & \\\text { Accounts receivable } & & \$ ( 5,000 ) \\\text { Accounts payable } & & ( 11,000 ) \\\text { Notes payable } & 16,000 &\end{array}$ Except for net income, an investment of $3,000 by the owner, and a withdrawal of $11,000 by the owner, no other items affected owner's equity. Using the balance sheet equation, compute net income for the past year.

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence is:

The going concern assumption:

Describe the income statement and the relation between revenues, expenses, and net income or loss.

Identify the three basic forms of business organizations and their key attributes.

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

Match the following definitions with the appropriate term

An accounting system captures relevant data about transactions and then classifies, records, and reports data.

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

A resource that the owner takes from the company is called a(n) :

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.