Question 1

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Accepted Answer

A) True 
 B)False

Question 2

Identify and describe the four basic financial statements.

Accepted Answer

The four basic financial statements are ...

Question 3

Accounting is an information and measurement system that does all of the following except:

Accepted Answer

A)  Identifies business activities.
B)  Records business activities.
C)  Communicates business activities.
D)  Eliminates the need for interpreting financial data.
E)  Helps people make better decisions.F) All of the above
G) A) and D)

Question 4

U.S. Government Treasury bonds provide low return and low risk to investors.

Accepted Answer

A) True 
 B)False

Question 5

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Accepted Answer

A) True 
 B)False

Question 6

The income statement reports on operating activities at a point in time.

Accepted Answer

A) True 
 B)False

Question 7

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Accepted Answer

A)  Accounts payable decreases $10,000.
B)  Accounts payable increases $10,000.
C)  Cash increases $10,000.
D)  Revenue increases $10,000.
E)  Revenue decreases $10,000.F) A) and B)
G) B) and E)

Exam 1: Accounting in Business

Accounting is an information and measurement system that does all of the following except:

Correct Answer
verified

The income statement reports on operating activities at a point in time.

Correct Answer
verified

U.S. Government Treasury bonds provide low return and low risk to investors.

Correct Answer
verified

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Correct Answer
verified

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Correct Answer
verified

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Correct Answer
verified

Identify and describe the four basic financial statements.

Correct Answer
verified
The four basic financial statements are ...
View Answer

Exam 1: Accounting in Business

Accounting is an information and measurement system that does all of the following except:

Correct AnswerverifiedShow Answer

The income statement reports on operating activities at a point in time.

Correct AnswerverifiedShow Answer

U.S. Government Treasury bonds provide low return and low risk to investors.

Correct AnswerverifiedShow Answer

If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:

Correct AnswerverifiedShow Answer

Investing activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.

Correct AnswerverifiedShow Answer

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Correct AnswerverifiedShow Answer

Identify and describe the four basic financial statements.

Correct AnswerverifiedThe four basic financial statements are ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The four basic financial statements are ...
View Answer