Accounting 101 Quiz

In: Business and Management

Submitted By wakaflocka1990
Words 3069
Pages 13
2 BASIS FINANCIAL STATEMENTS

Chapter Summary

Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash flows. Chapter 1 set forth the objectives of the financial reporting process, and offered the observation that these objectives are met in large part by a set of financial statements. In this chapter, we take up the task of introducing the balance sheet, income statement, and the statement of cash flows. The presentation is organized around the accounting equation. The equation serves as the basis for elementary transaction analysis. A continuing illustration examines the impact of a number of simple transactions upon the balance sheet of a simple service business. Revenue and expense transactions have been included so that we might introduce the income statement and statement of cash flows at an elementary level. This in turn has provided the opportunity to discuss and illustrate statement articulation. Before closing, the chapter emphasizes the importance of adequate disclosure regarding both financial and nonfinancial information, thereby reinforcing the Chapter 1 theme that the financial reporting process is broader than the financial statements. The chapter also covers accounting principles dealing with asset valuation, as well as an introduction to forms of business organization.

Learning Objectives

1. Explain the nature and general purpose of financial statements.

2. Explain certain accounting principles that are important for an understanding of…...

Similar Documents

Accounting 409 Quiz

...1. (Points: 0.5)   |   | According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly responsible fora. hiring and firing the external auditors.b. performing tests of the company's internal control structure.c. certifying the accuracy of the company's financial reporting process.d. overseeing day-to-day operations of the internal audit department. |   | Save Answer |   | 2. (Points: 0.5)   |   | Which of the following duties could be performed by the same individual without violating segregation of duties controls?a. Programming new code for accounting software and testing accounting software upgradesb. Approving accounting software change requests and testing production scheduling software changesc. Approving software changes and implementing the upgraded softwared. Managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices |   | Save Answer |   | 3. (Points: 0.5)   |   | Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities.a. eventb. activityc. processd. system |   | Save Answer |   | 4. (Points: 0.5)   |   | Which of the following is accomplished by corrective controls?a. Identify the cause of the problem.b. Correct the resulting errors.c. Modify the system to prevent future occurrences of the problem.d. All......

Words: 502 - Pages: 3

Accounting Quiz

...considering dropping product S85U. Data from the company's accounting system appear below: | | | | [pic] | | | |All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed | |that $55,000 of the fixed manufacturing expenses and $71,000 of the fixed selling and administrative expenses are avoidable if product S85U | |is discontinued. | | | |Required: | | | |i. According to the company's accounting system, what is the net operating income earned......

Words: 588 - Pages: 3

Quiz 1 Egee 101

...Lesson 01 Quiz Your response has been submitted successfully. [pic] We will record the highest score from these lesson quizzes so feel free to take it again (max 10 access attempts) to score 100%. |Points Awarded | 11 | |Points Missed | 3 | |Percentage | 79% | |1. |In the United States, which is the most popular method for heating homes? | | |A. | | |Electricity | | | | | |B. | | |Fuel Oil | | | | | |C. | | |Natural Gas | | | | | |D. | | |Coal ...

Words: 3715 - Pages: 15

Accounting 101

...\Acct310 Week 1 Process of Fundamental Analysis • Understand the business • Analyse the information • Forecasting payoffs • Convert forecasts to valuations • Make an investment decision 6 Step Process Issues: • Careful analysis of qualitative and quantitative info needed. • Accounting policies affect the numbers. STEP 1: Identify the Industry Economic Characteristics • Economic characteristics and competitive dynamics influences the strategies firms will employ. Value chain analysis For pharmaceutical companies • Research to discover drugs • Approval of drugs by government regulators • Manufacture of drugs • Creation of demand for drugs • Distribution to consumers Porter’s 5 forces classification framework Horizontal Competition • Rivalry among existing firms o Industries characterised by concentrated rivalry and diffuse rivalry o Greater the industry concentration, the lower the competition between rivals, thus the more profitable the firms will be • Threat of new entrants o How easily can new firms enter market? o Are there entry barriers? o Do existing rivals have competitive advantage making it difficult for other firms to enter and compete? • If so, firms in industry will likely generate higher profits than if new entrants can enter easily. • Threat of substitutes o How easily can customers switch to substitutes? o How likely to switch? o With close substitutes, competition increases and profitability decreases o Unique......

Words: 827 - Pages: 4

Accounting Quiz

...Name _______ _________ (Please include your name in the file.) I. Classifications (30 points total) Part A: Classifications (2 points each – 22 points total) Determine the classification for each cost item based on 2 different schemes. First, determine cost behavior: whether the cost is variable or fixed (relative to the number of units produced); check the appropriate space. Then, determine whether the cost is a product or a period cost; check the appropriate space. Be sure your final answers are lined up under the right column before submitting your quiz. Behavior Functional Area Cost Item Variable Fixed Product Period Paper towels used in the office building restrooms _____ _ √ _ _____ _ √ _ Cost of natural gas to run the manufacturing equipment _ √ _ _____ _ √ _ _____ Salaries of the sales managers _____ _ √ _ _____ _ √ _ Insurance paid on the headquarters building _____ _ √ _ _____ _ √ _ Hourly wages of the assembly workers _ √ _ _____ _ √ _ _____ Cost of fabric to make polo shirts _ √ _ _____ _ √ _ _____ Commissions paid to salespeople at $4 per unit _ √ _ _____ _____ _ √ _ Production supervisors’ salaries _____ _ √ _ _ √ _ _____ Cost of newspaper advertising _____ _ √ _ ...

Words: 1717 - Pages: 7

Art 101 Week 1 Quiz

...This file includes ART 101 Week 1 Quiz Anthropology - General Anthropology Week 1 Complete Acculturation. The textbook discusses the process of acculturation. After viewing the film, Indian School: Stories of Survival, answer the following questions: What is the definition of acculturation? What happened to the Native American children in the film? Why did the American government decide to acculturate them into Western culture? How did this affect them long term? Is acculturating others into another culture ever justified?  Cultural Relativism. Cultural relativism asserts that every culture has its own set of customs and beliefs, and that culture must be understood by the standards and values of the people within that culture. Anthropologists think that things that might seem cruel or irrational in our own culture must be seen through the lens of cultural relativity, and that all cultures have practices or beliefs that can be seen by others as repugnant or incomprehensible. After reading the U.N. Declaration of Human Rights, explain whether you think that cultural relativism can coexist with the idea of universal human rights. Is it possible for anthropologists to promote human rights without imposing, for example, their own Western values and ideas of human rights?  Week 2 Complete Race and Identity. Historian Robin Kelley stated, “Race was never just a matter of how you look, it’s about how people assign meaning to......

Words: 360 - Pages: 2

Ant 101 Week 2 Quiz

...The pack contains ANT 101 Week 2 Quiz Anthropology - General Anthropology Week 1 Complete Acculturation. The textbook discusses the process of acculturation. After viewing the film, Indian School: Stories of Survival, answer the following questions: What is the definition of acculturation? What happened to the Native American children in the film? Why did the American government decide to acculturate them into Western culture? How did this affect them long term? Is acculturating others into another culture ever justified?  Cultural Relativism. Cultural relativism asserts that every culture has its own set of customs and beliefs, and that culture must be understood by the standards and values of the people within that culture. Anthropologists think that things that might seem cruel or irrational in our own culture must be seen through the lens of cultural relativity, and that all cultures have practices or beliefs that can be seen by others as repugnant or incomprehensible. After reading the U.N. Declaration of Human Rights, explain whether you think that cultural relativism can coexist with the idea of universal human rights. Is it possible for anthropologists to promote human rights without imposing, for example, their own Western values and ideas of human rights?  Week 2 Complete Race and Identity. Historian Robin Kelley stated, “Race was never just a matter of how you look, it’s about how people assign meaning to how...

Words: 362 - Pages: 2

Accounting 101

... The Role of Accounting on Business and Our Society Adrian Smith Accounting 100 Prof. Eric Osei A Financial statement is a record of financial activities of a business entity. Main objective of financial statements is to provide information about financial position, performance and changes in financial position, and flows of cash in the business organization which in turn is essential in making decisions. In order for financial statements to provide the necessary information, they have to abide by the principles of understandability, relevance, reliability and comparability (Alexander et al, 2005). The first financial statement under consideration is statement of financial position. It is used to report on assets, liabilities, and capital of an entity. Assets are resources which have economic value attached to them, for example cash, debtors and inventory. Liabilities on the other side include creditors, deferred tax and accruals. Finally, capital is the owner’s equity. Statement of financial position is used to ensure that assets balance with combination of liabilities and capital. Second is the statement of comprehensive income. It provides information on revenues, expenses and profits incurred in a particular period of time. Its major purpose is to help in determining whether the business entity is operating at a profit or loss in a particular trading period. It also serves to reveal the rate of earning per share that is the amount of to be given to each stakeholder....

Words: 966 - Pages: 4

Psychology 101 Quiz

...Spring 2014 Quiz One: General Psychology Instructor Charlotte Nolan-Reyes, PhD Write your name on the BACK MULTIPLE CHOICE Choose the ONE BEST answer and circle it clearly. 1. The scientific study of behavior and mental processes is called ____. a. | introspection | c. | behaviorism | b. | psychology | d. | functionalism | 2. A hypothesis is best defined as: | a. | an if-then type statement that predicts a specific relationship among variables that can then be tested. | b. | the precise meaning of a term which specifies the operations for observing and measuring the phenomenon being investigated. | c. | an organized system of assumptions that attempts to explain a data set (specified phenomena and their interrelationships). | d. | the principle that a scientific theory must allow for hypotheses that are specific enough to all for the possibility tht they theory may be disconfirmed. | | 3. Participants in an experiment on stress management are given a set of stress reduction techniques and then measured for the effect. What is the role of the control group in this experiment? a. | They receive no stress reduction techniques and they are not measured. | b. | They receive a random stress reduction technique. | c. | They receive no stress management techniques, but they are measured. | d. | They receive the same techniques as the experimental group, and they are measured. | 4. The early approach...

Words: 2065 - Pages: 9

Accounting 101 Chapter 2 Homework

... Rank them from first (1) to last (6) by choosing the appropriate numbers in the dropdown box.     a.  Post the transaction to the T­accounts in the general ledger.   b.  Assess whether the impact of the transaction results in a debit or credit to the account balance.   c.  Use source documents to identify accounts affected by external transactions.   d.  Analyze the impact of the transaction on the accounting equation.   e.  Prepare a trial balance.   f.   Record transactions using debits and credits. Learning Objective: 02­01 Identify the basic steps in measuring external transactions.   5  3  1  2  6  4                    Worksheet     Below are the steps in the measurement process of external transactions. Rank them from first (1) to last (6) by choosing the appropriate numbers in the dropdown box.     a.  Post the transaction to the T­accounts in the general ledger.   b.  Assess whether the impact of the transaction results in a debit or credit to the account balance.   c.  Use source documents to identify accounts affected by external transactions.   d.  Analyze the impact of the transaction on the accounting equation.   e.  Prepare a trial balance.   f.   Record transactions using debits and credits.   5   3   1   2   6   4   http://ezto.mheducation.com/hm_accounting.tpx?todo=printview 1/8 9/4/2014 Assignment Print View award:  2. 1.42 out of 1.42 points......

Words: 1731 - Pages: 7

Accounting Quiz Week 7

...Acct Quiz week 7 1. Which of the following might cause a materials variance? Failing to take purchase discounts. Using a better grade of raw material. Changes in the market supply for the raw materials. All of the above. 2. What is the term that describes the rate companies frequently use to apply fixed overhead costs to units produced? Predetermined overhead rate. 3. Activity-based costing is commonly used with standard costing. Using more activity drivers increases the potential for managers to get much more information from activity-based costing than from the traditional approach. 4. What is the result of substituting computerized equipment for direct labor? Less direct labor and more manufacturing overhead. 5. Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds of roasted gourmet coffee beans were actually produced (note: standard costs do not allow for any wastage), Actual: Direct Materials: Quantity of coffee beans: 210,000 pounds Cost per pound: $0.55 per pound Direct Labor: Direct labor rate: $19.00 per hour Labor hours used: 11,000 hours Variable Overhead: Actual costs: $21,000 
Standard: Direct Materials: Quantity of coffee beans: 200,000 pounds Cost per pound: $0.50 per pound Direct Labor: Direct labor rate: $20.00 per hour Labor hours to be used: 0.05 hours per pound Variable overhead: $.10 per pound ...

Words: 976 - Pages: 4

Accounting 101

...Exercise 7-6 (Part level Submission) | | Gomes Company uses special journals and a general journal. The following transactions occurred during September 2014. Sept. 2 | | Sold merchandise on account to H. Drew, invoice no. 101, $620, terms n/30. The cost of the merchandise sold was $420. | 10 | | Purchased merchandise on account from A. Pagan $650, terms 2/10, n/30. | 12 | | Purchased office equipment on account from R. Cairo $6,500. | 21 | | Sold merchandise on account to G. Holliday, invoice no. 102 for $800, terms 2/10, n/30. The cost of the merchandise sold was $480. | 25 | | Purchased merchandise on account from D. Downs $860, terms n/30. | 27 | | Sold merchandise to S. Miller for $700 cash. The cost of the merchandise sold was $400. | Exercise 7-6 (Part level Submission) Prepare a sales journal and record the transactions for September that should be journalized. (Record entries in the order presented in the problem statement.) GOMES COMPANY Sales Journal | | | | | S1 | Date | Account Debited | Invoice No. | Ref | Accounts Receivable Dr. Sales Revenue Cr. | Cost of Goods Sold Dr. Inventory Cr. | 2014 | | | | | | res_EAT_1354683923723_0_07795340332621592_002 | res_EAT_1354683923723_0_07795340332621592_009 | res_EAT_1354683923723_0_07795340332621592_015 | | 620 | 420 | res_EAT_1354683923723_0_07795340332621592_025 | res_EAT_1354683923723_0_07795340332621592_030 | res_EAT_1354683923723_0_07795340332621592_036 | |......

Words: 1404 - Pages: 6

Fp 101 Quiz Week 2

...University of Phoenix FP/101 Quiz Week 2 Week 2 Objectives 1. Identify social and economic influences on personal financial goals and decisions.(Chapter 1, Pg. 2-11) 2. Develop personal financial goals. (Chapter 1, Pg. 16-20) 2.3 Calculate time value of money situations associated with personal financial decisions. (Appendix 40-44) 1. Concept: Influences on financial goals and decisions 1. The Rule of 72 is a. A tool to determine the number of years until retirement for an employee b. Used to estimate how long it takes for prices to double using a given annual inflation rate c. The legal code for requiring companies to provide a match on retirement savings d. Used to calculate interest rates for savings 2. Which is NOT an identifiable financial goal? a. Retirement and estate planning b. Risk management c. Living on a fixed income d. Saving 2.2 Concept: Develop personal financial goals 3. SMART Goals contain all of the following EXCEPT a. Specific – knowing exactly what the goals are and how to attain them b. Action-oriented – the bases for the goals c. Resourceful – to be able to rely on information used to understand the written goals d. Time-based – the time frame needed to reach the goal 4. Short-term goals are: a. Goals to be attained within a year or so b. Contain college plans for children c. Creating an estate plan d. Making a big purchase 5. Long-term goals are: a. Goals to be......

Words: 536 - Pages: 3

Accounting 101

...ACCT 101 Accounting Equation Assets = Liabilities + Stockholders Equity  Balance Sheet An entity's assets, liabilities, and stockholders equity as of a specific date  Charter Document that gives the states permission to form a corporation  Accounting The information system that measures business activities, processes that information into reports, and communicates the results to decision makers.  Audit An examination of a company's financial situation  Contributed Capital The amount invested in the corporation by its owners, the stockholders.  Entity An organization or a section of an organization that, for accounting purposes, stands apart from other organization and individuals as a separate economic unit.  Managerial Accounting The branch of accounting that focuses on information for internal decision makers of a business.  Net Loss Excess of total expenses over total revenues  Expenses Decrease in equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customers.  Going-Concern Concept This concept assumes that the entity will remain in operation for the foreseeable future  Creditor Those to whom a business owes money  Asset An economic resource that is expected to be of benefit in the future  Corporation A business owned by stockholders. Begins when the state approves its articles of incorporation and the first share of stock is issued. It's a legal entity, an artificial person...

Words: 468 - Pages: 2

Accounting 575 Week 2 Quiz

...Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us at: help@mindblows.us Accounting 575 Week 2 Quiz Accounting 575 Week 2 Quiz To purchase this tutorial visit here: http://mindsblow.us/question_des/Accounting575Week2Quiz/2806 contact us......

Words: 891 - Pages: 4