Question 1

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in ...

Question 2

The accounting equation implies that: Assets + Liabilities = Equity.

Accepted Answer

A) True 
 B)False

Question 3

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:

Accepted Answer

A)  Measurement (Cost) principle.
B)  Objectivity principle.
C)  Business entity assumption.
D)  Going-concern assumption.
E)  Revenue recognition principle.F) A) and B)
G) B) and E)

Question 4

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Accepted Answer

A) True 
 B)False

Question 5

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

Accepted Answer

A) True 
 B)False

Question 6

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 7

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

Accepted Answer

Beginning equity = $...

Exam 1: Accounting in Business

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

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

Correct Answer
verified

The accounting equation implies that: Assets + Liabilities = Equity.

Correct Answer
verified

Correct Answer
verified

What is the purpose of return on assets as an analytical tool?

Correct Answer
verified
Return on assets is useful in ...
View Answer

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

Correct Answer
verified
Beginning equity = $...
View Answer

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Correct Answer
verified

Exam 1: Accounting in Business

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

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

Correct AnswerverifiedShow Answer

The accounting equation implies that: Assets + Liabilities = Equity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the purpose of return on assets as an analytical tool?

Correct AnswerverifiedReturn on assets is useful in ...View AnswerShow Answer

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

Correct AnswerverifiedBeginning equity = $...View AnswerShow Answer

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Return on assets is useful in ...
View Answer

Correct Answer
verified
Beginning equity = $...
View Answer

Correct Answer
verified