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.