chapter 1 test college accounting. question: an organization in which basic resources (inputs), such...
TRANSCRIPT
![Page 1: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/1.jpg)
Chapter 1 TestCollege Accounting
![Page 2: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/2.jpg)
Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers is a(n)__?
Answer: Business
![Page 3: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/3.jpg)
Question: A business organized under state or federal statutes as a separate legal entity is a(n)____?
Answer: Corporation
![Page 4: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/4.jpg)
Question: A person or entity that has an interest in the economic performance of a business is called a(n) _________?
Answer: Business Stakeholder
![Page 5: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/5.jpg)
Question: An information system that provides reports to stakeholders about the economic activities and condition of a business is _______?
Answer: Accounting
![Page 6: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/6.jpg)
Question: Moral principles that guide the conduct of individuals are called _______?
Answer: Ethics
![Page 7: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/7.jpg)
Question: A specialized field of accounting that uses estimated data to aid management in running day-to-day operations and in planning future operations is called _______ accounting.
Answer: Managerial
![Page 8: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/8.jpg)
Question: A concept of accounting that requires that economic data be recorded in dollars is the___ __ ____ concept.
Answer: Unit of Measure
![Page 9: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/9.jpg)
Question: The resources owned by a business are called_______.
Answer: Assets
![Page 10: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/10.jpg)
Question: The rights of the owner are called _______ _______.
Answer: Owner’s Equity
![Page 11: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/11.jpg)
Question: Assets = liabilities + owners equity is the ________
________.
Answer: Accounting Equation
![Page 12: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/12.jpg)
Question: Carson offered for sale at $75,000 land that had been purchased for $45,000. If Zimmer paid Carson $70,000 for the land – the amount Zimmer would record in the accounting records is ______.
Answer: $70,000
![Page 13: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/13.jpg)
Question: The liability created by a purchase on account is referred to as a(n) ________ _________.
Answer: Account Payable
![Page 14: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/14.jpg)
Question: If liabilities are $85,000 and owner’s equity is $45,000, the amount of the assets is _______.
Answer: $130,000
![Page 15: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/15.jpg)
Question: If assets are $375,000 and owner’s equity is $295,000, the amount of the liabilities is ________.
Answer: $80,000
![Page 16: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/16.jpg)
Question: The amount a business earns by selling goods or services to its customers is called _______.
Answer: Revenue
![Page 17: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/17.jpg)
Question: If operations for an accounting period resulted in cash sales of $60,000, sales on account of $150,000, and expenses paid in cash of $195,000, the net income or (net loss) for the period is ________.
Answer: $15,000 Net Income
![Page 18: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/18.jpg)
Question: A summary of the changes in the owner’s equity that have occurred during a specific period of time, such as a month or a year, is the _____
Answer: Statement of Owner’s Equity
![Page 19: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/19.jpg)
Question: The owner’s equity at the beginning of the period was $19,000; at the end of the period, assets were $98,000 and liabilities were $41,000. The owner made no additional investments or withdrawals during the period. The net income or (net loss) for the period is ___________.
Answer: $38,000 Net Income
![Page 20: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/20.jpg)
Question: The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and the liabilities and owner’s equity sections on the right side, is called the ________ form.
Answer: Account
![Page 21: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/21.jpg)
Question: If total assets increased by $85,000 and liabilities decreased by $9,000 during the period, the amount and direction (increase or decrease) of the period’s change in owner’s equity was _______.
Answer: $94,000 Increase
![Page 22: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/22.jpg)
Question: A type of business that changes basic inputs into products that are sold to individual customers is a(n) __________ business.
Answer: Manufacturing
![Page 23: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/23.jpg)
Question: A type of business that purchases products from other businesses and sells them to a customer is a(n) _________ business
Answer: Merchandising
![Page 24: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/24.jpg)
Question: A business owned by one individual is called a(n)
Answer: Sole Proprietorship
![Page 25: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/25.jpg)
Question: Individuals whom the owners have authorized to operate the business are called
Answer: Managers
![Page 26: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/26.jpg)
Question: Authoritative body that has the primary responsibility for developing accounting principles is the
Answer: FASB
![Page 27: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/27.jpg)
Question: FASB stands for what??
Answer: Financial Accounting Standards Board
![Page 28: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/28.jpg)
Question: The rights of creditors that represent debts of the business are called?
Answer: Liabilities
![Page 29: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/29.jpg)
Question: Items such as supplies that will be used in the business in the future are called
Answer: Prepaid Expenses
![Page 30: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/30.jpg)
Question: A claim against the customer is called an
Answer: Accounts Receivable
![Page 31: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/31.jpg)
Question: If owner’s equity is $46,000 and liabilities are $34,000, the amount of assets is
Answer: $80,000
![Page 32: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/32.jpg)
Question: A summary of the revenue and expenses for a specific period of time (month, year) is called a
Answer: Income Statement
![Page 33: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/33.jpg)
Question: If operations for an accounting period resulted in cash sales of $90,000, sales on account of $40,000, and expenses paid in cash of $135,000, the net income or loss for the period is ?
Answer: Net loss of $5,000
![Page 34: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/34.jpg)
Question: A list of assets, liabilities and owner’s equity as of a specific date is called
Answer: Balance Sheet
![Page 35: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/35.jpg)
Question: The owner’s equity at the beginning of the period was $46,000; at the end of the period, assets were $99,000 and liabilities were $22,000. If the owner made an additional investment of $10,000, and withdrew $8,000 during the period , the net income or net loss would be
Answer: $29,000 Net Income
![Page 36: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/36.jpg)
Question: The accounting concept that requires economic data be recorded in dollars is
A. Cost concept
B. Objectivity concept
C. Business entity concept
D. Unit of measure concept
![Page 37: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/37.jpg)
True or False
Question:Accounting is often characterized as the “language of business.”
![Page 38: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/38.jpg)
True or False
Question: Accountants who render accounting services on a fee basis and staff accountants employed by them are said to be engaged in private accounting
![Page 39: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/39.jpg)
True or False
Question: Managerial accounting uses estimated data instead of financial accounting data to run day-to-day operations
![Page 40: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/40.jpg)
True or False
Question: The concept that expenses incurred in generating revenue should be matched against the revenue in determining net income or net loss is called the cost concept.
![Page 41: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/41.jpg)
True or False
Question:The financing activities section of the statement of cash flows includes cash transactions that enter into the determination of net income.
![Page 42: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/42.jpg)
True or False
Question:The debts of a business are called its accounts receivable.
![Page 43: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/43.jpg)
True or False
Question:A partnership is owned by not less then four individuals.
![Page 44: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/44.jpg)
True or False
Question:A business transaction is the occurrence of an event or of a condition that must be recorded.
![Page 45: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/45.jpg)
True or False
Question:A summary of the changes in the owner’s equity of a business entity that have occurred during a specific period of time, such as a month or a year, is called a statement of cash flows.
![Page 46: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/46.jpg)
True or False
Question:A claim against a customer for sales made on credit is an account payable.
![Page 47: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/47.jpg)
True or False
Question: An account payable is a claim against a customer arising from a sale that allows the customer to pay later.
![Page 48: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/48.jpg)
True or False
Question: If total assets increased by $75,000 during a specific period and liabilities decreased by $10,000 during the same period, the period’s change in total owner’s equity was an $85,000 increase.
![Page 49: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/49.jpg)
Earning Revenue
• Increases assets, increases liabilities
• Increases one asset, decreases another asset
• Decreases assets, increases liabilities
• Increases assets, increases owner’s equity
![Page 50: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/50.jpg)
Debts owed by a business are referred to as
• Assets
• Liabilities
• Equities
• revenue
![Page 51: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/51.jpg)
Earning Revenue
• Increases assets, increases liabilities
• Increases one asset, decreases another asset
• Decreases assets, increases liabilities
• Increases assets, increases owner’s equity
![Page 52: Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed](https://reader035.vdocuments.net/reader035/viewer/2022070400/56649e3a5503460f94b2ba4f/html5/thumbnails/52.jpg)
How does the purchase of supplies on account affect the accounting
equation?• Assets increase; liabilities decrease
• Assets increase; owner’s equity increases
• Assets increase; liabilities increase
• Liabilities increase; owner’s equity decreases