logo image

ACCT – CH 1

What is the primary objective of most businesses?
To maximize profits
Which of the following would NOT be an example of a merchandising business?
For Motor Company
Which of the items below is NOT a business organization form?
Venture entrepreneurship
More that 70% of businesses are organized as what type of business?
Sole proprietorship
Which of the following is TRUE in regards to a limited liability company?
-It is organized as a corporation
-It can elect to be taxed as a partnership
-It provides tax and liability advantages to the owners
Under a premium-price emphasis, a business designs products that posses _____ for which customers are willing to pay a premium price.
unique attributes
Which of the following is NOT a characteristic of a corporation?
Corporations make up 20% of all businesses.
An entity that is organized according to state or federal statues and in which ownership is divided into shares of stock is a
corporation
A low-cost emphasis strives to proved
no-frills, standardizes products and services
Which of the following businesses use a premium-price emphasis?
Abercrombie & Fitch
Motel 6 is an example of a business using which of the following?
Low-cost emphasis
Which of the following are business stakeholders?
-Stockholders
-Suppliers
-Customers
The following are examples of internal stakeholders EXCEPT:
creditors
Which of the following is NOT an example of a capital market stakeholder?
Suppliers
Due to carious fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxlet Act of 2002. The act was responsible for establishing a new oversight board for public accountants called the
Public Company Accounting Oversight Board
Capital market stakeholders have an interest in the company because
the provide major financing for the business
Who has first preference to assets in case a business fails?
Long-tem creditors
Governments have an interest in the economic performance of business because of
tax collections
Managers are evaluated primarily on the business’s
economic performance
Financing activities involve obtaining _____ to operate a business
funds
When a business borrows money, it incurs a(n)
liability
When a product is sold, this cost is often called
cost of goods sold
A note payable requires payment of the amount borrowed plus
interest
Shares of ownership are evidenced by issuing
shares of stock
The resources a business owns are called
assets
The purchase of factory equipment would be an example of which type of business activity?
investing
Which of the following is an example of an intangible asset?
Patent
Rights to payments from customers are
Accounts receivable
Which of the following is considered an asset until consumed?
Prepaid expense
______ is the increase in assets from selling products and services.
Revenue
Cash collected from sales during the normal course of business would be an example of which type of business activity
Operating
Costs incurred in operating a business are also known as
expenses
The role of accounting in business is best defines as
an information system that provides reports to stakeholders about the economic activities and condition of a business
Debts owned by a business are referred to as
liabilities
Reporting the financial condition of a business at a point in time and the changes in the financial condition of a business over a period of time are the two major objectives of
financial accounting
Which statement is normally prepared first?
Income Statement
A summary of revenue and expenses for a specific period of time is a(n)
income statement
Gilbert, Inc. had the following account balances at September 30, 2010. What is Gilbert’s net income for the month of September?
18,150
Browning, Inc. had revenues of $234,000, expenses of $175,000, and dividends of $30,000 during 2010. Which of the following statements is correct?
Net income for 2010 totaled $59,000.
A summary of changes in the earnings retained in the corporations for a specific period of time is a(n)
retained earnings statement
Heedy Company had the following account balances in 2010 and 2011, respectively. Assuming dividends of $20,000 were paid in 2011, how much was net income?
$82,000
A list of assets, liabilities, and owners; equity as of a specific date is a(n)
balance sheet
Given the following list of accounts, calculate Total Assets:
$39,700
Which of the following is an appropriate representation of the accounting equation?
Assets = Liabilities + stockholders’ equity
Using the following information to determine Total Stockholders’ Equity:
$35,000
A summary of the cast receipts and cast payments for a specific periods of time is a(n)
statement of cash flows
The portion of a corporation’s net income retained in the business is called
retained earnings
The debt created by a business when it makes a purchase on account if referred to as an
account payable
If there was no beginning retained earnings, net income of $20,000, and ending retained earnings of $6,000, how much were dividends?
$14,000
During 2010, Smith Corporation had an increase in total assets of $70,000 and an increase in total liabilities of $90,000. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Smith’s net income of net loss for 2010.
Net loss of $25,000
The “rules” of accounting are called
Generally Accepted Accounting Principles
Which principle determines the amount initially entered into the records for purchases?
cost principle
Recording revenue when a sale is made most directly relates to which concept?
Matching concept
Expressing financial data as if a business will continue operating for an indefinite periods time refers to which concept?
Going concern concept
The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)
Income statement
Including all relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?
Adequate disclosure concept
Cash investments made by the stockholders of the business are reported on the statement of cash flows in the
financing activities section

Need essay sample on "ACCT – CH 1"? We will write a custom essay sample specifically for you for only .90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy