Accounting 100.

1 . According to the FASB , the primary objective of financial reporting is to provide information _______ (Points : 5

regarding the assets and liabilities of a business

to the Securities and Exchange Commission

useful for making investing and lending decisions

regarding the revenues and expenses of a business

2 . The principle that states that assets acquired by the business should be recorded at their exchange price is the _______ (Points : 5

objectivity principle

matching principle

revenue recognition principle

cost principle

3 . The financial statement that presents a summary of

the assets liabilities , and owners equity as of a specific date is the _______ (Points : 5

statement of assets

balance sheet

statement of owner 's equity

statement of cash flows

4 . The statement that presents a summary of the revenues and expenses of an entity is called the _______ (Points : 5

statement of cash flows

statement of financial position

balance sheet

income statement

5 . GAAP stands for _______ (Points : 5

generally accepted auditing practices

generally accrued auditing procedures

generally accrued accounting principles

generally accepted accounting principles

6 . The amount owed by an entity when it makes a purchase on account is termed a (n ) _______ (Points : 5

expense

accounts payable

note receivable

accounts receivable

7 . The payment of an account payable would _______ (Points : 5

have no effect on decrease assets and increase owners equity

decrease assets and decrease liabilities

decrease assets and increase liabilities

8 . Borrowing money from a bank would _______ (Points : 5

increase expenses

decrease assets

decrease liabilities

increase liabilities

9 . The payment of utilities each month would _______ (Points : 5

increase increase owners equity

decrease liabilities

increase expenses

10 . A cash investment into the business by the owner would _______ (Points : 5

increase assets and increase owners equity

increase assets and decrease owner 's equity

decrease assets and increase liabilities

increase assets and decrease liabilities

11 . The accounting equation can be stated as _______ (Points : 5

Expenses Liabilities - Owner 's Equity

Assets - Liabilities Owner 's Equity

Liabilities Revenue Owner 's Equity

Owner 's Equity Assets Liabilities

12 . Liabilities are _______ (Points : 5

expenses incurred by the business

increases in owners equity earned by delivering goods or services

economic resources of a business

outsider claims to the businesss assets

13 . Determine net income for the period if beginning owner 's equity is 20 ,000 , cash withdrawals by the owner amount to 7 ,000 , and ending owner 's equity is 37 ,000 (Points : 10 10 ,000 27 ,000 24 ,000 13 ,000

14 . Refer to Table 1 . The net income or loss for the year was _______ (Points : 10 12 ,800 15 ,100 5 ,900 7 ,700

15 . Refer to Table 1 16 . Refer to Table 1 . Owners equity at December 31 , 20X5 was _______ (Points : 10 32 ,700 23 ,900 22 ,600 18 ,700

Reference

AccountingCoach , LLC (2008 . Free Online Accounting Course . Retrieved October 12 , 2008 , from http /www .accountingcoach .com...