Question 1

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Accepted Answer

A) True 
 B)False

Question 2

What is the primary objective of most businesses?

Accepted Answer

A)   To maximize profits
B)   To pay dividends to stockholders
C)   To provide a benefit to society
D)   To manufacture a quality productE) All of the above
F) None of the above

Question 3

Which of the following would not be an example of a merchandising business?

Accepted Answer

A)   The Walt Disney Company
B)   JCPenney
C)   Amazon.com
D)   Wal-MartE) A) and B)
F) A) and C)

Question 4

Which of the following is considered an asset until consumed?

Accepted Answer

A)   Accounts payable
B)   Prepaid expense
C)   Accounts receivable
D)   Stockholders' equityE) All of the above
F) A) and C)

Question 5

Which of the following isnot a characteristic of a corporation?

Accepted Answer

A)   Corporations are organized as a separate legal taxable entity.
B)   Ownership is divided into shares of stock.
C)   Corporations experience an ease in obtaining large amounts of resources by issuing stock.
D)   A corporation can elect to be taxed as a partnership.E) A) and B)
F) B) and C)

Question 6

Shares of ownership are evidenced by issuing:

Accepted Answer

A)   shares payable.
B)   commercial paper.
C)   shares of stock.
D)   notes payable.E) A) and B)
F) All of the above

Question 7

Which statement is normally prepared first?

Accepted Answer

A)   Income statement
B)   Balance sheet
C)   Statement of cash flows
D)   Retained earnings statementE) None of the above
F) A) and B)

Question 8

A note payable requires payment of the amount borrowed plus:

Accepted Answer

A)   interest.
B)   tax.
C)   overhead.
D)   dividend.E) A) and B)
F) A) and C)

Question 9

The objective of most businesses is to maximize profits.

Accepted Answer

A) True 
 B)False

Question 10

What is the basic accounting equation, and which financial statement is prepared from this equation?

Accepted Answer

Assets = Liabilities...

Question 11

Motel 6, a company that helps customers find budget motels across the nation, is an example of a business using which of the following?

Accepted Answer

A)   Low-cost emphasis
B)   Outreach emphasis
C)   Customer emphasis
D)   Premium-price emphasisE) B) and D)
F) B) and C)

Question 12

Three different companies--A, B, and C--have the same balance sheet at the beginning and the end of a year. These are summarized below:
 $\begin{array}{lll}
 \text {Total Libilities}&
\text {Total Assets}\
\$ 250,000 & \$ 500,000 & \text { Begiming of the year } \
\$ 350,000 & \$ 1,200,000 & \text { End of the year }
\end{array}$ Given the data above and the additional information for each company below, determine the net income (loss) for each company.

Accepted Answer

None...

Question 13

Which of the following is an appropriate representation of the accounting equation?

Accepted Answer

A)   Assets + Liabilities = Stockholders' equity
B)   Assets = Liabilities + Stockholders' equity
C)   Assets = Liabilities
D)   Assets = Liabilities + Retained earningsE) C) and D)
F) None of the above

Question 14

The stockholders' equity of a company should equal the sum of its total assets and total liabilities.

Accepted Answer

A) True 
 B)False

Question 15

Which of the items below is nota business organization form?

Accepted Answer

A)   Venture entrepreneurship
B)   Proprietorship
C)   Partnership
D)   CorporationE) A) and B)
F) All of the above

Question 16

Indicate whether each of the following activities would be reported on the statement of cash flows as an operating activity, an investing activity, a financing activity, or does not appear on the statement of cash flows.
 (a) Cash paid for building
( b) Cash paid to suppliers
(c) Casin paid for dividends
(d) Cashreceived from customers
(e) Cash received from the sale of capital stock.
(f) Cashreceive d from the sale of a building
(g) Borrowed cash from a bank

Accepted Answer

(a) investing activity
(b) Op...

Exam 1: The Role of Accounting in Business

The objective of most businesses is to maximize profits.

Correct Answer
verified

Correct Answer
verified
None...
View Answer

Which statement is normally prepared first?

Correct Answer
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Which of the following isnot a characteristic of a corporation?

Correct Answer
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Which of the items below is nota business organization form?

Correct Answer
verified

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Correct Answer
verified

Which of the following is considered an asset until consumed?

Correct Answer
verified

Which of the following is an appropriate representation of the accounting equation?

Correct Answer
verified

A note payable requires payment of the amount borrowed plus:

Correct Answer
verified

Shares of ownership are evidenced by issuing:

Correct Answer
verified

Motel 6, a company that helps customers find budget motels across the nation, is an example of a business using which of the following?

Correct Answer
verified

What is the basic accounting equation, and which financial statement is prepared from this equation?

Correct Answer
verified
Assets = Liabilities...
View Answer

The stockholders' equity of a company should equal the sum of its total assets and total liabilities.

Correct Answer
verified

Correct Answer
verified
(a) investing activity
(b) Op...
View Answer

What is the primary objective of most businesses?

Correct Answer
verified

Which of the following would not be an example of a merchandising business?

Correct Answer
verified

Exam 1: The Role of Accounting in Business

The objective of most businesses is to maximize profits.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNone...View AnswerShow Answer

Which statement is normally prepared first?

Correct AnswerverifiedShow Answer

Which of the following isnot a characteristic of a corporation?

Correct AnswerverifiedShow Answer

Which of the items below is nota business organization form?

Correct AnswerverifiedShow Answer

Companies using a low-cost emphasis provide products and services that compete on features other than price.

Correct AnswerverifiedShow Answer

Which of the following is considered an asset until consumed?

Correct AnswerverifiedShow Answer

Which of the following is an appropriate representation of the accounting equation?

Correct AnswerverifiedShow Answer

A note payable requires payment of the amount borrowed plus:

Correct AnswerverifiedShow Answer

Shares of ownership are evidenced by issuing:

Correct AnswerverifiedShow Answer

Motel 6, a company that helps customers find budget motels across the nation, is an example of a business using which of the following?

Correct AnswerverifiedShow Answer

What is the basic accounting equation, and which financial statement is prepared from this equation?

Correct AnswerverifiedAssets = Liabilities...View AnswerShow Answer

The stockholders' equity of a company should equal the sum of its total assets and total liabilities.

Correct AnswerverifiedShow Answer

Correct Answerverified(a) investing activity(b) Op...View AnswerShow Answer

What is the primary objective of most businesses?

Correct AnswerverifiedShow Answer

Which of the following would not be an example of a merchandising business?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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None...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Assets = Liabilities...
View Answer

Correct Answer
verified

Correct Answer
verified
(a) investing activity
(b) Op...
View Answer

Correct Answer
verified

Correct Answer
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