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GB 518 Week 1 Quiz To Purchase This Material Click below Link FOR MORE CLASSES VISIT

GB 518 Quiz 1 GB518 Financial Accounting Principles and Analysis Question :

If equity is $300,000 and liabilities are $192,000, then assets equal:

Question 2. Question : equity equals:

If assets are $99,000 and liabilities are $32,000, then

Question 3. Question : Reebok had income of $150 million and average assets of $1,800 million. Its return on assets is: Question 4.

Question :

Unearned revenues are:

Revenues that have been earned and received in cash Revenues that have been earned but not yet collected in cash Liabilities created when a customer pays in advance for products or services before the revenue is earned Recorded as an asset in the accounting records Increases to retained earnings

Question 5.

Question :

Technological advancement

Has replaced accounting Has not changed the work that accountants do Has freed accounting professionals to concentrate more on the analysis and interpretation of information In accounting has replaced the need for decision makers

In accounting is only available to large corporations

Question 6. Question : credit balance is:

Of the following accounts, the one that normally has a

Cash Office Equipment Sales Salaries Payable Dividends Sales Salaries Expense

Question 7.

Question :

Net Income:

Decreases equity Represents the amount of assets owners put into a business Equals assets minus liabilities Is the excess of revenues over expenses Represents the owners' claims against assets

Question 8.

Question :

Internal users of accounting information include:

Shareholders Customers Creditors Government regulators Line Supervisor

Question 9. Question : A company has twice as much owner's equity as it does liabilities. If total liabilities are $50,000, what amounts of assets are owned by the company? $50,000 $100,000 $150,000 $200,000

Question 10.

Question :

A credit is used to record:

An increase in an expense account An increase in an asset account An increase in an unearned revenue account A decrease in a revenue account A decrease to retained earnings

Question 11. Question : Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: Assets increase by $75,000 and expenses increase by $75,000 Assets increase by $75,000 and expenses decrease by $75,000 Liabilities increase by $75,000 and expenses decrease by $75,000 Assets decrease by $75,000 and expenses decrease by $75,000 Assets increase by $75,000 and liabilities increase by $75,000

Question 12. Question : The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the

cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the: Going-concern principle Cost principle Revenue recognition principle Objectivity principle Business entity principle

Question 13. accounting?

Question :

Which of the following is the primary purpose of

To establish a business To identify, record and communicate business transactions To deceive stockholders To keep from paying taxes To establish credit for a company

Question 14. are:

Question :

Assets created by selling goods and services on credit

Accounts payable Accounts receivable Liabilities Expenses

Question 15.

Question :

Double-entry accounting is an accounting system:

That records each transaction twice

That records the effects of transactions and other events in at least two accounts with equal debits and credits In which the impact of each transaction is recorded in two or more accounts but that could include two debits and no credits That may only be used if T-accounts are used That insures that errors never occur

Question 16.

Question :

An example of a financing activity is:

Buying office supplies Obtaining a long-term loan Buying office equipment Selling inventory Buying land

Question 17.

Question :

A debit is:

An increase in an account The right-hand side of a T-account A decrease in an account The left-hand side of a T-account An increase to a liability account

Question 18.

Question :

Risk is:

Net income divided by average total assets The reward for investment The uncertainty about the expected return that will be earned from an investment Unrelated to expected return

Question 19. Question : Which of the following statements best describes the relationship of U.S. GAAP and IFRS? They are identical They are entirely different conceptual frameworks They are similar but not identical Neither has anything to do with accounting They both relate only to publicly traded companies

Question 20.

Question :

Source documents include all of the following except:

Sales tickets Ledgers Checks Purchase orders Bank statements

Question 21. Question : Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio. 38.6% 13.4% 34.9% 25.9% 14.9%

Question 22.

Question :

An asset created by prepayment of an expense is:

Recorded as a debit to an unearned revenue account

Recorded as a debit to a prepaid expense account Recorded as a credit to an unearned revenue account Recorded as a credit to a prepaid expense account Not recorded in the accounting records until the earnings process is complete

Question 23. Question : earnings activities are: Assets

Increases in retained earnings from a company's

Revenues Liabilities Stockholder's Equity Expenses Question 24. Question : Which of the following accounting principles dictates when expenses are recognized? Revenue recognition principle Monetary unit principle Business entity principle Matching principle Full disclosure principle

Question 25.

Question :

Prepaid expenses are:

Payments made for products and services that do not ever expire Classified as liabilities on the balance sheet Decreases in retained earnings Assets that represent prepayments of future expenses

Promises of payments by customers

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