Questions from Financial Accounting

Q: Accounting definitions are precise, and you must understand the vocabulary to

Accounting definitions are precise, and you must understand the vocabulary to properly use accounting. Sharpen your understanding of key terms by answering the following questions: 1. How do the asset...

Q: An investment of cash by stockholders into the business will a

An investment of cash by stockholders into the business will a. increase stockholders’ equity. b. decrease total liabilities. c. have no effect on total assets. d. decrease total assets.

Q: Purchasing a laptop computer on account will a. increase total

Purchasing a laptop computer on account will a. increase total assets. b. have no effect on stockholders’ equity. c. increase total liabilities. d. All of the listed choices are correct.

Q: Performing a service on account will a. increase total assets

Performing a service on account will a. increase total assets. b. increase stockholders’ equity. c. increase total liabilities. d. accomplish both a and b.

Q: The primary objective of financial reporting is to provide information a

The primary objective of financial reporting is to provide information a. on the cash flows of the company. b. to the federal government. c. useful for making investment and credit decisions. d. abo...

Q: Which type of business organization provides the least amount of protection for

Which type of business organization provides the least amount of protection for bankers and other creditors of the company? a. Proprietorship b. Corporation c. Partnership d. Both a and c

Q: Assets are usually reported at their a. current market value

Assets are usually reported at their a. current market value. b. historical cost. c. appraised value. d. none of the above (fill in the blank) .

Q: During February, assets increased by $87,000 and liabilities

During February, assets increased by $87,000 and liabilities increased by $31,000. Stockholders’ equity must have a. increased by $56,000. b. decreased by $56,000. c. increased by $118,000. d. dec...

Q: The amount a company expects to collect from customers appears on the

The amount a company expects to collect from customers appears on the a. balance sheet in the stockholders’ equity section. b. income statement in the expenses section. c. balance sheet in the curr...

Q: All of the following are current assets except a. accounts

All of the following are current assets except a. accounts payable. b. inventory. c. accounts receivable. d. prepaid expenses.