ACING MBA 510 ACCOUNTING 1 EXAM WITH THE LATEST A+
QUESTIONS AND ANSWERS STUDY COMPANION.
All of the following are part of the FASB conceptual framework: (Select all that
apply).
- Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Which of the following statements describes the effect of expenses on equity?
Expenses cause equity to decrease
An employee that is having trouble paying his personal bills might exhibit the
following fraud factor:
Pressure
What are Generally Accepted Accounting Principles?
The concepts and rules that govern financial accounting practice.
The ______ recognition principle states that revenue is recognized when goods
or services are provided to customers and at an amount expected to be received.
revenue
Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use
the accounting equation to record the transaction by completing the following
sentence. Jackson would decrease _____ and increase ________ in the
accounting equation
cash, expenses
Given the accounts, choose all of the ones that would affect equity
- common stock
- dividends
- revenues
- expenses
, Jackson's Catering Company provided cookies worth $3,000 to the local college.
The college paid immediately. Record this transaction in Jackson's accounting
equation by:
increasing Cash; increasing Revenues
Identify the correct definition of an asset:
An asset is a resource that a business owns or controls
Equity is composed of contributed capital and ______
retained earnings
Which list of accounts below, identifies only accounts that would appear on a
balance sheet.
Common stock, equipment, accounts payable
The FASB conceptual framework consists of all of the following except:
concepts
Sally Smith decided to start a sea shell business organized as a corporation. Her
initial investment in the business consisted of $10,000 in cash in exchange for
common stock. Record this transaction in the accounting equation of the new
business by:
increasing Cash; increasing Common Stock
On 8/1, supplies costing $500 were purchased on credit. Record this transaction
in the accounting equation by:
increasing Supplies, and increasing Accounts Payable
Describe the order in which a company prepares financial statements.
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement of Cash Flows
Boaz Company had beginning of year assets of $100 million and end of year
assets of $120 million. Boaz's net income is $5 million. Calculate Boaz Company's
return on assets. Round your answer to 1 decimal place.
Reason:
$5 million/[($100 million + $120 million/)2] = 4.5%
QUESTIONS AND ANSWERS STUDY COMPANION.
All of the following are part of the FASB conceptual framework: (Select all that
apply).
- Objectives
- Recognition and measurement
- Elements
- Qualitative characteristics
Which of the following statements describes the effect of expenses on equity?
Expenses cause equity to decrease
An employee that is having trouble paying his personal bills might exhibit the
following fraud factor:
Pressure
What are Generally Accepted Accounting Principles?
The concepts and rules that govern financial accounting practice.
The ______ recognition principle states that revenue is recognized when goods
or services are provided to customers and at an amount expected to be received.
revenue
Jackson's Programming paid its June rent of $500 cash. Demonstrate how to use
the accounting equation to record the transaction by completing the following
sentence. Jackson would decrease _____ and increase ________ in the
accounting equation
cash, expenses
Given the accounts, choose all of the ones that would affect equity
- common stock
- dividends
- revenues
- expenses
, Jackson's Catering Company provided cookies worth $3,000 to the local college.
The college paid immediately. Record this transaction in Jackson's accounting
equation by:
increasing Cash; increasing Revenues
Identify the correct definition of an asset:
An asset is a resource that a business owns or controls
Equity is composed of contributed capital and ______
retained earnings
Which list of accounts below, identifies only accounts that would appear on a
balance sheet.
Common stock, equipment, accounts payable
The FASB conceptual framework consists of all of the following except:
concepts
Sally Smith decided to start a sea shell business organized as a corporation. Her
initial investment in the business consisted of $10,000 in cash in exchange for
common stock. Record this transaction in the accounting equation of the new
business by:
increasing Cash; increasing Common Stock
On 8/1, supplies costing $500 were purchased on credit. Record this transaction
in the accounting equation by:
increasing Supplies, and increasing Accounts Payable
Describe the order in which a company prepares financial statements.
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement of Cash Flows
Boaz Company had beginning of year assets of $100 million and end of year
assets of $120 million. Boaz's net income is $5 million. Calculate Boaz Company's
return on assets. Round your answer to 1 decimal place.
Reason:
$5 million/[($100 million + $120 million/)2] = 4.5%
