1.

According to the video accounting is

1. Language of business
2. A common title for an accountant pursuing a career in public account would
be
1. Senior
3. A common title for an accountant pursuing a career in industry would be
1. Controller
4. According to the video accounting can be useful for
1. Managing your personal financial goals.
5. According to the video accounting is be described as necessary.
1. Beautiful
6. Which of the following groups uses accounting information to determine
whether the companys net income will result in a stock price increase?
1. Investors in Common Stock
7. A business organized as a separate legal entity is a
1. Corporation
8. Most business enterprises in the United States are
1. Proprietorships and partnerships
9. The group of users of accounting information charged with achieving the
goals of the business is the
1. Managers
10. Which of the following is not one of the three forms of business organization?
1. Investors
11. Liabilities
1. Are debts and obligations.
12. The liability created by a business when it purchases coffee beans and coffee
cups on credit from supplies is termed an
1. Account Payable
13. The accounting equations is properly stated as
1. Liabilities Assets + Owners Equity
14. The right to receive money in the future is called a(n)
1. Account Receivable
15. All of the following are considered assets except
1. Accounts Receivable
16. To show how successfully your business performed during a period of time,
you would report its revenues and expenses in the
1. Income Statement
17. All Income Statement shows
1. Revenues, Expenses, and Net Income
18. The Retained Earnings statement would not show
1. Revenues and Expenses
19. The financial statement that summarizes the changes in retained earnings for
a specific period of time is the
1. Retained Earnings Statement
20. Net income results when
1. Revenues > Expenses
21. A balance sheet shows
1. Assets, liabilities, and stockholder equity.
22. Which of the following financial statements is concerned with the company
at a point of time?
1. Balance Sheet
23. The best definition of assets is the
1. Resources belonging to a company that have future benefit to the
company.
24. The balance sheet
1. Reports the assets, liabilities, and stockholder equity at a specific date.
25. Pinson Company began the year with retained earnings of $570,000. During
the year, the company recorded revenues of $600,000, expenses of $380,000,
and paid dividends of $140,000. What was Pinsons retained earnings at the
end of the year?
1. $650,000
26. Green Realty Company received a check for $30,000 on July 1 which
represents a 6 month advance payment of rent on a building it rents to a
client. Unearned Rent Revenue was credited for the full $30,000.. Financial
statements will be prepared on July 31. Green Realty should make the
following adjusting entry on July 31.
1. Debit Unearned Rent Revenue $5000, credit Rent Revenue $5000
27. Which of the following clarifies information presented in the financial
statements, as well as expanding upon it where additional detail is needed?
1. Notes to the financial Statements
28. Which of the following financial statement is divided into major categories of
operating, investing, and financing activities?
1. The Statement of Cash Flows1
29. The statement of cash flows would disclose the payment of a dividend.
1. In the financing activities section
30. An annual report includes all of the following except
1. Salary information for all the executives
31. A business organized as a corporation
1. Is owned by its stockholders.
32. Which of the following statements is not true regarding the Sarbanes-Oxley
Act (SOX)?
1. The Act calls for decreased independence of outside auditors
reviewing corporate financial statements
33. A business organized as a separate legal entity owned by stockholders is a
partnership.
1. False
34. A small neighborhood barbershop that is operated by its owner would likely
be organized as a
1. Proprietorship
35. The management discussion and analysis (MD&A) section of the annual
report covers all of the following aspects except the
1. Certification criteria of the companys auditors
36. Net income for the period is determined by subtracting total expenses and
dividends from revenues.
1. False
37. Which of the following is not a step for solving an ethical dilemma?
1. Certifying the ethical accuracy of the financial Information.
38. Common stock is reported on the
1. Balance Sheet
39. Marvin Services Corporation had the following accounts and balances. If the
balance of the Buildings account was $51,000, what would be the total of
liabilities and stockholders equity?
1. $105,000
40. Issuing shares of stock in exchange for cash is an example of a(n)
1. Financing Activity
41. Elston Company compiled the following financial information as of December
31, 2014. Elstons stockholders equity on December 31, 2014 is?
1. $550,000
42. Which of the following statements is true?
1. Amounts paid out a s dividends are not expenses
43. Management of a business enterprise is the major external user of
information.
1. False
44. It is not true that current assets are resources that expected to be
1. Acquired within one year.
45. Which of the following is not considered an asset?
1. Dividends
46. Liabilities are generally classified on a balance sheet as
1. Current Liabilities and Long Term Liabilities
47. On a classified balance sheet, short term investments are classified as
1. A current asset
48. A liability is classified as a current liability if it is to be paid within the coming
year.
1. True
49. Earnings per share is calculated by dividing the net income minus preferred
stock dividends for the period by the number of common shares outstanding
during the period.
1. True
50. A measure of profitability is the
1. Earnings per share
51. Which of the following statements is true?
1. By comparing earnings per share of a single corporation over time, a
stockholder can evaluate the corporations relative earnings
performance.
52. Use the following data to calculate the current ratio
1. 2.80 : 1
53. Ratios that measure the income or operating success of a company for a
given period of time are
 1. Profitability Ratios
54. Based on the following data, what is the amount of working capital? (AP $64)
1. $322,000
55. Use the following data to calculate the current ratio (Koonce Office )
1. 2.50: 1
56. Use the following data to determine the total working capital (Koonze Office)
1. $240,000
57. Based on the following data, what is the amount of current assets?
1. $212,000
58. What organization issues U.S. accounting standards?
1. Financial Accounting Standards Board
59. Which of the following organizations issues accounting standards for
countries outside of the United States?
1. IASB
60. Generally accepted accounting principles
1. Are accounting rules that are recognized as a general guide for
financial reporting.
61. Certified Public Accountants are issued licenses to practice by
1. State Agencies
62. GAAP stands fore generally accepted accounting principles.
1. True
63. Information that is presented in clear fashion, so that users of that
information can interpret it as an example of
1. Understandability
64. Which accounting assumption assumes that an enterprise will continue in
operation long enough to carry out its existing objectives and commitments?
1. Going concern assumption
65. If accounting information has relevance, it is useful in making predictions
about
1. The future events of a company
66. Which of the following statements is not true?
1. Comparability means using the same accounting principles from year
to year within a company.,
67. The quality of consistency enhances
1. Comparability.
68. The assumption that requires only those things that can be expressed in
money are included in the accounting records is the
1. Monetary unit assumption
69. Which of the following is a constraint in accounting?
1. Cost
70. An item is considered material if
1. Its size is likely to influence the decision of an investor or creditor
71. The TNT Company has five plants nationwide that cost $300 million. The
current fair value of the plants is $500 million. The plants will be reported as
assets at
1. $300 million
72. A company providing all information necessary for making an investing or
lending decision is an example of
1. Full disclosure.
73. For 2014 Kuhlman Corporation reported net income of $28,000, net sales of
$400,000, and average share outstanding 16,000. There were no preferred
dividends. What was the 2014 earnings per share?
1. $1.75
74. Accounting information should be neutral in order to enhance
1. Faithful representation
75. Use the follwing data to calculate the current ratio: CARNE AUTO SUPPLIES
1. 2.60: 1
76. Use the following data to determine the total dollar amount of assets to be
classified as investements (KOONCE OFFICE)
1. 170,000
77. A company can change to a new method of accounting if management can
justify that the new method results in
1. More meaningful financial information
78. For 2014 Fielder Corporation reported net income of $30,000; net sales of
$400,000; and average share outstanding 16,000. There were no preferred
dividends. What was the 2014 earnings per share?
1. $1.88
79. The primary accounting standard-setting body in the United States is the
Securities and Exchange Commision.
1. False
80. The economic entity assumption states that economic events
1. Of every entity can be separately identified and accounted for.
81. Which of the following is the least likely consideration that management uses
when deciding whether to pay a dividend?
1. Is the companys average number of common shares outstanding
decreasing.
82. Trademarks would appear in which balance sheet section?
1. Intangible Assets
83. It is not true that current assets are resources that are expected to be
1. Acquired within one year
84. Which of the following Accounting questions deals with the issue of how
much to record?
1. Valuation
85. Which of the following accounts probably would be listed after the others in
a chart of accounts?
1. Insurance Expense
86. Which of the following would require revenue recognition?
1. Ownership Transfers
87. A new account is opened for each transaction entered into by a business firm.
1. False
88. Typically the chart of accounts begins with
1. Asset Accounts
89. When recording a sale of services in the accounting equation, owners equity
is
1. Increased
90. When recording a current period withdrawal in the accounting equation
owners equity is
1. Decreased
91. When recording a current period expense in the accounting equation, owners
equity is
1. Decreased
92. When recording a current period owners contribution in the account
equation owners equity is
1. Increased
93. When recording a payment of an existing receivable in the accounting
equation owners equity is
1. Not changed
94. When recording a current period payment of a liability for cash in the
accounting equation assets are
1. Decreased
95. When recording the purchase of inventory on terms in the accounting
owners equity is
1. Not changed
96. When recording a cash payment from a client for a receivable in the
accounting equation assets are
1. Both increased and decreased
97. The accounting equation states that assets are equal to ________ plus owners
equity
1. Liabilities
98. When recording a current period owners contribution in the accounting
equation assets are
1. Increased.
99. The normal balance of any account is the
1. Side which increased that account
100. For a T account, an account balance is the difference in total dollars
between the total debits amount and total credit amounts.
1. True
101. A debit to an asset account indicated a(n)
1. Increase in the asset
102. Debits
1. Increase assets and decrease liabilities
103. A revenue account
1. Is increased by credits
104. An accountant has debited an asset account for $800 and credited a
liability account for $700. Which of the following would be an incorrect way
to complete the recording of the transaction?
1. Debit a stockholders equity account for $100.
105. Transactions are recorded in alphabetical order in a journal
 1. False
106. The recording process occurs
1. Repeatedly during the accounting period
107. A journal provides
1. A chronological record of transactions
108. An accountant has debited an asset account for $900 and credited a
liability account for $600. What can be done to complete the recording of the
transaction?
1. Credit a different asset account for $300
109. The purpose of the ledger is to
1. Keep in one place all information about changes in specific account
balances.
110. A ledger
1. Is a collection of the entire group of accounts maintained by a
company.
111. An accounting record that includes a list of accounts and their
balances at a given time is called a
1. A trial balance
112. A person who wants to determine the balance of a particular account
should refer to the
1. Ledger
113. The usual ordering of accounts in the general ledger is
1. Assets, liabilities, stockholders equity, revenues, and expenses.
114. At December 1, 2014, Orear Companys Accounts Recievable balance
was $5600. During December, Orear had credit sales of $15000 and collected
accounts receivable of $12000. At December 31, 2014 the Accounts
Receivable balance is
1. Debit 8600
115. During 2014, its first year of operations, Janes Bakery had revenues of
$65000 and expenses of $33000. The business paid cash dividends of
$18000. What is the balance of Retained Earnings at December 31, 2014?
1. $14000 Credit
116. A trial balance would only help in detecting which of the following
error?
1. A transposition error when transferring the debit side of journal entry
to the ledger.
117. Howard Company had a transaction that caused a $5000 increase in
both assets and total liabilities. This transaction could have been a(N)
1. Purchase of office equipment for 12000, paying 7000 cash and
issuing a note payable for the balance.
118. An investment by the stockholders in a business increase
1. Assets and stockholders equity
119. Are advanced receipts from customers treated as revenue at the time
of receipt? Why or Why Not.
1. No, Revenue cannot be recognized until the work is performed.
120. The recording process becomes more efficient and informative if all
transactions are recorded in one account.
1. False
121. Which statement about an account is true?
1. An account is an individual accounting record of increases and
decreases in specific asset, liability, and stockholders equity items.
122. Which of the following error, each considered individually, would
cause the trial balance to be out of balance?
1. A payment of $148 to a creditor was posted as a debit to Accounts
Payable and a Debit to Cash.
123. Crawford company started the year with 30000 in its common stock
account and a credit balance in retained earnings of 22000. During the year
the company earned net income of 24000 and declared and paid 10000 of
dividends. In addition the company sold additional common stock
amounting to 14000. As a result, the amount of its retained earnings at the
end of the year would be
1. 36000
124. An account is a part of the financial information system and is
described b y each of the following except
1. An account is a source document
125. If services are rendered on account, then
1. Liabilities will increase
126. If services are rendered for cash, then
1. Assets will increase
127. If total assets are increased, there must be a corresponding increase in
liabilities or a decrease in stockholders equity.
1. False
128. If the sum of the debit column equals the sum of the credit column in a
trial balance, it indicated
1. The mathematically equality of the accounting equation
129.