Accounting Midterm WileyPLus Verified Exam Questions and Answers
Latest update 2026/2027
Question:
Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii.
During the time Jill is away from the business, Jack increases the debts of the business by $20,000.
Which of the following statements is true regarding this debt?
Answer:
Both Jack and Jill are personally liable for the business debt. An advantage of the corporate form of
business is that
-it is simple to establish
-it has limited life.
-its owner's personal resources are at stake.
Question:
its ownership is easily transferable via the sale of shares of stock.
Answer:
its ownership is easily transferable via the sale of shares of stock.
Question:
Which type of corporate information is not available to investors?
Answer:
Forecast of cash needs for the upcoming year.
Question:
The right to receive money in the future is called a(n)
Answer:
account receivable.
Question:
Borrowing money is an example of a(n)
Answer:
financing activity
Question:
Which activities involve putting the resources of the business into action to generate a profit?
Answer:
Operating
, Question:
Resources owned by a business are referred to as
Answer:
assets
Question:
When expenses exceed revenues, which of the following is true?
Answer:
A net loss
Question:
Which of the following is not a liability?
-Interest Payable
-Unearned Service Revenue
-Accounts Payable
Accounts Receivable
Answer:
Accounts Receivable Ending retained earnings for a period is equal to beginning
-Retained earnings - Net income + Dividends.
-Retained earnings + Net income + Dividends.
-Retained earnings - Net income - Dividends.
Question:
Retained earnings + Net income - Dividends
Answer:
Retained earnings + Net income - Dividends.
Question:
Which of the following financial statements is concerned with the company at a point in time?
-Balance sheet
-Retained Earnings statement
-Statement of cash flows
Income statement
Answer:
Balance Sheet
Latest update 2026/2027
Question:
Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii.
During the time Jill is away from the business, Jack increases the debts of the business by $20,000.
Which of the following statements is true regarding this debt?
Answer:
Both Jack and Jill are personally liable for the business debt. An advantage of the corporate form of
business is that
-it is simple to establish
-it has limited life.
-its owner's personal resources are at stake.
Question:
its ownership is easily transferable via the sale of shares of stock.
Answer:
its ownership is easily transferable via the sale of shares of stock.
Question:
Which type of corporate information is not available to investors?
Answer:
Forecast of cash needs for the upcoming year.
Question:
The right to receive money in the future is called a(n)
Answer:
account receivable.
Question:
Borrowing money is an example of a(n)
Answer:
financing activity
Question:
Which activities involve putting the resources of the business into action to generate a profit?
Answer:
Operating
, Question:
Resources owned by a business are referred to as
Answer:
assets
Question:
When expenses exceed revenues, which of the following is true?
Answer:
A net loss
Question:
Which of the following is not a liability?
-Interest Payable
-Unearned Service Revenue
-Accounts Payable
Accounts Receivable
Answer:
Accounts Receivable Ending retained earnings for a period is equal to beginning
-Retained earnings - Net income + Dividends.
-Retained earnings + Net income + Dividends.
-Retained earnings - Net income - Dividends.
Question:
Retained earnings + Net income - Dividends
Answer:
Retained earnings + Net income - Dividends.
Question:
Which of the following financial statements is concerned with the company at a point in time?
-Balance sheet
-Retained Earnings statement
-Statement of cash flows
Income statement
Answer:
Balance Sheet
