Question

1. Which type of accountant typically practices as an individual or as a member of a public accounting firm?

Group of answer choices

Certified Public Accountant

Certified Payroll Professional

Certified Internal Auditor

Certified Management Accountant

2. Which of the following is a manufacturing business?

Group of answer choices

General Motors

Facebook

American Airlines

Target

3. Which of the following is a service business?

Group of answer choices

Microsoft

Dell Computers

Facebook

Walmart

4. Which of the following groups of companies are all examples of a retail business?

Group of answer choices

Delta Air Lines, Marriott, Gap

Gap, Amazon.com, Delta Air Lines

GameStop, Sony, Dell

GameStop, Best Buy, Gap

5. Which of the following groups are considered to be internal users of accounting information?

Group of answer choices

employees and customers

customers and vendors

employees and managers

government entities and banks

6. The following are examples of external users of accounting information except

Group of answer choices

government entities

customers

creditors

managers

7. Which of the following is not a role of accounting in business?

Group of answer choices

to provide reports to users about the economic activities and conditions of a business

to personally guarantee loans of the business

to provide information to external users to determine the economic performance and condition of the business

to assess the various informational needs of users and design its accounting system to meet those needs

8. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Group of answer choices

proprietorship

corporation

partnership

governmental unit

9. Select the type of business that is most likely to obtain large amounts of resources by issuing stock.

Group of answer choices

partnership

corporation

proprietorship

government entity

10. For accounting purposes, the business entity should be considered separate from its owners if the entity is

Group of answer choices

a corporation

a proprietorship

a partnership

any of these

11. Karen Meyer owns and operates Crystal Cleaning Company.  Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contributed $6,000, in her name, to the American Red Cross.  The contribution of the $6,000 should be recorded on the accounting records of which of the following entities?

Group of answer choices

Crystal Cleaning and the American Red Cross

Karen Meyer's personal records and the American Red Cross

Karen Meyer's personal records and Crystal Cleaning

Karen Meyer's personal records, Crystal Cleaning, and the American Red Cross

12. Which of the following items relates to separating the reporting of business and personal economic transactions?

Group of answer choices

cost principle

monetary unit assumption

business entity assumption

measurement principle

13. Assets are

Group of answer choices

always lower than liabilities

equal to liabilities less stockholders' equity

the same as expenses because they are acquired with cash

financed by the stockholders and/or creditors

14. The accounting equation may be expressed as

Group of answer choices

Assets = Expenses − Liabilities

Assets + Liabilities = Stockholders' Equity

Assets = Revenues − Liabilities

Assets − Liabilities = Stockholders' Equity

15. If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a

Group of answer choices

$106,000 increase

$14,000 increase

$14,000 decrease

$106,000 decrease

16. The asset created by a business when it makes a sale on account is termed

Group of answer choices

accounts payable

prepaid expense

interest revenue

accounts receivable

17. If total assets decreased by $88,000 during a period of time and stockholders' equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

Group of answer choices

a $17,000 increase

an $88,000 decrease

a $159,000 increase

a $159,000 decrease

18. How does paying a liability in cash affect the accounting equation?

Group of answer choices

assets increase; liabilities decrease

assets increase; liabilities increase

assets decrease; liabilities decrease

liabilities decrease; stockholders' equity increases

19. Which of the following accounts is a liability?

Group of answer choices

Accounts Payable

Accounts Receivable

Wages Expense

Service Revenue

Answer 1

Q.1 - Certified Public Accountant

Explaination -

Certified Public accountant is the individual with certification to typically practices as an individual or as a member of a public accounting firm. Like other options in the catagory do not such right.

Q.2 - General Motors

Explaination -

Other options in this catagory are not manufacturing they are service providers.

Q.3 Facebook

Explaination -

Facebook is service provider amoungs the options available. Dell deals into computer products, Walmart is retailer and Microsoft is computer developer.

Q.4 - GameStop, Best Buy, Gap

Explaination -

Amoung the options available GameStop, Best Buy, Gap are examples of retail business. Others are into service industry, Computer developer.

Q.5 - Employees and Managers

Explaination -

Employees and managers are the internal users of the financial statement and other options available are external to the company.

Q.6 - Managers

Explaination -

Managers are internal users of the organisation other are external to the company.

Q.7 - To personally guarantee loans of the business

Explaination -

There are many roles of the accouting in the business. Providing reports to the users, Information to the external users,

But do not include personally guarantee loans of the business

Q.8 - Corporation

Explaination -

Share are issued only by corporations, Partnership and Properitory and Govt unit dont have the rights to issue shares.

Q.9 - Corporation

Explaination -

Share are issued only by corporations, Partnership and Properitory and Govt unit dont have the rights to issue shares.

Q.10 - Corporation

Explaination -

Generally when we register company it becomes serprate legal entity all together. Proprietorship Partnership businesses are managed by their owners and partners hence the liabilities are remain in the hand of the owners they are not consder as seperate legal entity.

Q.11 - Karen Meyer's personal records and the American Red Cross

Explaination -

Since the entity owned and managed by Karen Meyer and withdrawing money from the company for personal use will be considered in his personal account and since investing in American Red Cross will be contribution for the same.

Q.12 - Business entity assumption

Explaination -

Reporting of business and personal economic transactions indicate Business entity assumptions and other options stated there are Cost and principals of accounting.

Q.13 - Financed by the stockholders and/or creditors

Explaination -

Assets are financed by the stockholders and/or creditors other options does not form the assets.

Q.14 - Assets − Liabilities = Stockholders' Equity

Q.15 - $14,000 increase

Explaination -

As per accounting equation when we deduct liabilities by $46,000 and increase equity by $60,000 to match the equation we have to increase assets by $14,000.

Q.16 - Accounts Receivable

Explaination -

Whenever there is sale transaction on account Accounts receivable account needs to be make by the company.

Q.17 - a $159,000 decrease

Explaination -

To match the acounting equation we have to decrease liabilities by $159,000.

Q.18 - Assets decrease; liabilities decrease

Explaination -

Cash paid to liabilities always decrease cash which is asset balance and decrease liabilities by certain amount.

Q.19 - Accounts Payable

Explaination -

Other options are Assets expenses and Revenue items only account payable is liability.