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ACC 290 Week 1 Apply: Connect® Exercise
Review the Knowledge Check in preparation for this assignment.
Complete the Week 1 Exercise in Connect®.
Note: You have only one attempt available to complete this assignment.
Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the
Multiple Choice
corporation.
sole proprietorship.
nonprofit organization.
partnership.
When the owner invests equipment in a business,
Multiple Choice
assets increase and owner’s equity decreases.
assets and owner’s equity increase.
assets and revenue increase.
liabilities decrease and owner’s equity increases.
The Statement of Owner’s Equity is calculated as follows:
Multiple Choice
beginning capital + net income + withdrawals + additional investments = ending capital
beginning capital + net loss − withdrawals + additional investments = ending capital
beginning capital + net income − withdrawals + additional investments = ending capital
beginning capital + net loss + withdrawals + additional investments = ending capital
The Financial Accounting Standards Board is responsible for
Multiple Choice
auditing financial statements.
developing generally accepted accounting principles.
establishing accounting systems for businesses.
making recommendations to the Securities and Exchange Commission.
The Balance Sheet heading includes each of the following except:
Multiple Choice
firm’s name.
title of the report.
date of the report.
firm’s address.
Tax planning includes
Multiple Choice
auditing tax returns.
correcting tax returns.
preparing tax returns.
suggesting actions to reduce tax liability.
Which of the following equations is the Fundamental Accounting Equation?
Multiple Choice
Assets – Liabilities = Owner’s Equity
Assets – Owner’s Equity = Liabilities
Assets + Liabilities = Owner’s Equity
Assets = Liabilities + Owner’s Equity
Tax accounting involves tax compliance and
Multiple Choice
tax configuration.
tax planning.
tax obfuscation.
tax evaluation.
Amounts that a business must pay in the future are known as:
Multiple Choice
capital.
liabilities.
assets.
expenses.
Identify the form of business that is considered a separate legal entity.
Multiple Choice
a limited liability partnership
a sole proprietorship
a partnership
a corporation
Which of the following is NOT a service of public accounting firms?
Multiple Choice
management advisory services
auditing
investment services
tax accounting
Which financial statement is reported as of a specific date?
Multiple Choice
Income Statement
Statement of Changes in Financial Position
Balance Sheet
Statement of Owner’s Equity
Identify the type of accounts that would appear on a firm’s income statement
Multiple Choice
revenues and expenses.
liabilities and expenses.
assets and liabilities.
assets and revenues.
A company issues periodic reports called
Multiple Choice
summaries.
financial statements.
tax returns.
audits.
Managerial accounting is
Multiple Choice
private accounting.
government accounting.
tax accounting.
public accounting.
Which of the following is NOT an area in which accountants usually practice?
Multiple Choice
Public Accounting
Governmental Accounting
Industrial Accounting
Managerial (Private) Accounting
All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by
Multiple Choice
an independent certified public accountant.
anyone in the accounting department.
the firm’s managerial accountant.
an internal auditor.
The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is
Multiple Choice
the FCC.
the AICPA.
the SEC.
the AAA.
If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:
Multiple Choice
Month Ended November 30, 2019.
November 30, 2019.
Six-month Period Ended November 30, 2019.
Month of November, 2019.
Which of the following is an example of an expense:
Multiple Choice
an owner withdrawal for personal use.
the receipt of cash from a credit customer.
the payment of a creditor on account.
the payment of the monthly utility bill.
Which financial statement is a representation of the accounting equation?
Multiple Choice
Balance Sheet
Income Statement
Statement of Owner’s Equity
Profit and Loss Statement
Which of the following is NOT a type of information communicated by the financial statements?
Multiple Choice
how much the business owes others
what types of assets business owns
how long the business has been in operation
whether or not the business is profitable
When the owner writes a company check to pay the company’s electric bill,
Multiple Choice
expenses increase and owner’s equity increases.
assets and owner’s equity decrease.
assets and liabilities decrease.
assets and owner’s equity increase.
The rent paid for future months is a(n):
Multiple Choice
liability.
expense.
revenue.
asset.
When the owner withdraws cash for personal use,
Multiple Choice
assets decrease and owner’s equity increases.
owner’s equity decreases and revenue decreases.
assets decrease and owner’s equity decreases.
assets decrease and expenses increase.
Choose the option below that reflects the correct order in which to prepare the three financial statements
Multiple Choice
Income Statement; Statement of Owner’s Equity; Balance Sheet.
Balance Sheet; Income Statement; Statement of Owner’s Equity.
Income Statement; Balance Sheet; Statement of Owner’s Equity.
Statement of Owner’s Equity; Balance Sheet; Income Statement.
Revenue by definition is:
Multiple Choice
an amount a business must pay in the future.
the payment of amounts owed to creditors.
amounts earned from the sale of goods or services.
the collection of amounts owed by customers.
Owners are not personally responsible for the debts of the business if the form of business organization is a
Multiple Choice
partnership.
sole proprietorship.
corporation.
nonprofit organization.
The financial activities of a business and the financial activities of the owners should be
Multiple Choice
combined in the firm’s accounting records.
combined only if the owner wants them to be.
reported in different parts of the firm’s accounting records.
kept totally and completely separate.
Managerial accountants usually do which of the following?
Multiple Choice
audit financial statements
prepare and audit tax returns
investigate companies for possible violations of law
prepare internal reports for management
The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known as
Multiple Choice
financial accounting.
managerial accounting.
auditing.
cost accounting.
Which of the following is a true statement in regards to the International Accounting Standards Board?
Multiple Choice
The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries
The IASB was created by the American Accounting Association
The IASB develops all accounting principles to be used in the United States
The IASB has the authority to audit financial statements of all US corporations
Which of the following equations is the Fundamental Accounting Equation?
Multiple Choice
Assets + Liabilities = Owner’s Equity
Assets – Owner’s Equity = Liabilities
Assets = Liabilities + Owner’s Equity
Assets – Liabilities = Owner’s Equity
Examples of assets are:
Multiple Choice
cash and accounts receivable.
equipment and revenue.
accounts receivable and rent expense.
investments by the owner and revenue.
The statement of financial position is another term for which financial statement?
Multiple Choice
Income Statement
Statement of Owner’s Equity
Balance Sheet
Trial Balance
An Income Statement is all of the following except:
Multiple Choice
a formal report of business operations.
a profit and loss statement.
a statement of revenues less withdrawals and expenses.
a statement of income and expenses.