Question 1

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Accepted Answer

A)   Choice A
B)   Choice B
C)   Choice C
D)   Choice DE) All of the above
F) A) and D)

Question 2

An asset source transaction

Accepted Answer

A)   increases one asset and decreases another.
B)   increases an asset and increases a liability or equity.
C)   increases an asset and decreases a liability or equity.
D)   decreases an asset and increases a liability.E) A) and B)
F) None of the above

Question 3

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Accepted Answer

Operating activities...

Question 4

Hale Company issued a note payable to purchase a truck.

Accepted Answer

(I)(I)(N)(...

Question 5

The broad categories of information reported on a business's financial statements are referred to as

Accepted Answer

A)   accounts.
B)   elements of the financial statements.
C)   components.
D)   assets.E) C) and D)
F) B) and D)

Question 6

An asset use transaction

Accepted Answer

A)   increases one asset and decreases another.
B)   decreases an asset and decreases a liability or equity.
C)   increases an asset and decreases a liability or equity.
D)   increases an asset and increases a liability or equity.E) A) and B)
F) B) and C)

Question 7

The accounting equation may be written,

Accepted Answer

A)   Revenues - Expenses = Net Income
B)   Assets = Liabilities
C)   Liabilities = Equity
D)   Assets = ClaimsE) C) and D)
F) B) and C)

Question 8

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

Accepted Answer

GAAP stands for Generally Acce...

Question 9

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Accepted Answer

A)   $45,000 cash outflow from financing activities.
B)   $45,000 cash inflow from financing activities.
C)   $45,000 cash outflow from investing activities.
D)   $45,000 cash outflow from operating activities.E) C) and D)
F) None of the above

Question 10

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

Accepted Answer

A) True 
 B)False

Question 11

Gomez Corporation paid its monthly utility bill of $850.

Accepted Answer

(D)(N)(D)(...

Question 12

Which of the following is NOT an asset use transaction?

Accepted Answer

A)   paying cash dividends
B)   paying cash to purchase land
C)   paying off the principal on a loan
D)   paying salaries to employeesE) A) and B)
F) A) and C)

Question 13

Who are the stakeholders for a business?

Accepted Answer

The parties that are intereste...

Question 14

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Accepted Answer

A) True 
 B)False

Question 15

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

Accepted Answer

Statement ...

Question 16

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

Accepted Answer

A) True 
 B)False

Question 17

An asset exchange transaction does not affect the total amount of assets of an entity.

Accepted Answer

A) True 
 B)False

Question 18

The MBR Company began operations on January 1,2012,and on that date,$15,000 of common stock was issued for cash.In addition,MBR borrowed $10,000 from the bank.The company provided services to its customers during 2012 and received $18,000 cash.During the year,it paid $20,000 cash for land,$5,000 for salaries,and $3,000 for cash dividends to the owners.
Required:
a)Draw an accounting equation and record the effects of each transaction under the appropriate heading.(Use specific accounting titles below the major headlines)
b)Prepare an income statement and a balance sheet for the 2012 accounting period.

Accepted Answer

The answer of The MBR Company began operations on January...

Question 19

Liabilities are shown on the

Accepted Answer

A)   income statement.
B)   statement of changes in stockholders' equity.
C)   statement of cash flows.
D)   balance sheet.E) B) and C)
F) A) and D)

Question 20

The difference between asset increases and asset decreases from operating a business is called income or earnings.

Accepted Answer

A) True 
 B)False

Exam 1: An Introduction to Accounting

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Correct Answer
verified
Operating activities...
View Answer

Correct Answer
verified

An asset exchange transaction does not affect the total amount of assets of an entity.

Correct Answer
verified

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Correct Answer
verified

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Correct Answer
verified

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

Correct Answer
verified
Statement ...
View Answer

An asset use transaction

Correct Answer
verified

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

Correct Answer
verified
GAAP stands for Generally Acce...
View Answer

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Correct Answer
verified

Which of the following is NOT an asset use transaction?

Correct Answer
verified

An asset source transaction

Correct Answer
verified

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

Correct Answer
verified

Liabilities are shown on the

Correct Answer
verified

Gomez Corporation paid its monthly utility bill of $850.

Correct Answer
verified
(D)(N)(D)(...
View Answer

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

Correct Answer
verified

The accounting equation may be written,

Correct Answer
verified

Hale Company issued a note payable to purchase a truck.

Correct Answer
verified
(I)(I)(N)(...
View Answer

The broad categories of information reported on a business's financial statements are referred to as

Correct Answer
verified

Who are the stakeholders for a business?

Correct Answer
verified
The parties that are intereste...
View Answer

The difference between asset increases and asset decreases from operating a business is called income or earnings.

Correct Answer
verified

Exam 1: An Introduction to Accounting

List the three categories of cash receipts and cash payments that are reported on the statement of cash flows.

Correct AnswerverifiedOperating activities...View AnswerShow Answer

Correct AnswerverifiedShow Answer

An asset exchange transaction does not affect the total amount of assets of an entity.

Correct AnswerverifiedShow Answer

Parrot Company paid a $300 cash dividend.Which of the following choices accurately reflects how this event would affect the company's financial statements?

Correct AnswerverifiedShow Answer

Investors and creditors use accounting information to identify the businesses they wish to provide resources to.

Correct AnswerverifiedShow Answer

Which financial statement provides information about how a business obtained and spent cash during an accounting period?

Correct AnswerverifiedStatement ...View AnswerShow Answer

An asset use transaction

Correct AnswerverifiedShow Answer

What does the acronym "GAAP" stand for? Name the group that has the primary responsibility for establishing US GAAP.

Correct AnswerverifiedGAAP stands for Generally Acce...View AnswerShow Answer

Wayne Company purchased equipment for $45,000 cash.As a result of this event,Wayne had a

Correct AnswerverifiedShow Answer

Which of the following is NOT an asset use transaction?

Correct AnswerverifiedShow Answer

An asset source transaction

Correct AnswerverifiedShow Answer

The Financial Accounting Standards Board is the primary authority for establishing accounting standards for businesses in the United States.

Correct AnswerverifiedShow Answer

Liabilities are shown on the

Correct AnswerverifiedShow Answer

Gomez Corporation paid its monthly utility bill of $850.

Correct Answerverified(D)(N)(D)(...View AnswerShow Answer

The account,"Land," is a subclassification of the "Liabilities" element of the financial statements.

Correct AnswerverifiedShow Answer

The accounting equation may be written,

Correct AnswerverifiedShow Answer

Hale Company issued a note payable to purchase a truck.

Correct Answerverified(I)(I)(N)(...View AnswerShow Answer

The broad categories of information reported on a business's financial statements are referred to as

Correct AnswerverifiedShow Answer

Who are the stakeholders for a business?

Correct AnswerverifiedThe parties that are intereste...View AnswerShow Answer

The difference between asset increases and asset decreases from operating a business is called income or earnings.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Operating activities...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Statement ...
View Answer

Correct Answer
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Correct Answer
verified
GAAP stands for Generally Acce...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(D)(N)(D)(...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(I)(I)(N)(...
View Answer

Correct Answer
verified

Correct Answer
verified
The parties that are intereste...
View Answer

Correct Answer
verified