Chapter 1 - Introduction to Accounting and
Business + ASP UPDATED ACTUAL
Questions and CORRECT Answers
sell products purchased Merchandising businesses
from other businesses to
make their objective of
maximizing their profits
Which of the following A Manager
users is not considered an
external user of
accounting information?
Which of the following is Provides economic data reports on the operations
not accurate when it and condition of the business that are useful for banks
pertains to managerial and other creditors in deciding whether to lend
accounting? money to the business
Which of the following Corporations
forms of business entities
generates 90% of business
revenues in the U.S.?
Which of the following Unit of measure concept
concepts requires that
economic data be
recorded in dollars in the
U.S.?
, Which of the following GAAP allows a company's management to record and
statements about GAAP is report data as it sees fit.
not true?
Emily owns three None of these choices are correct.
businesses: a dry cleaner,
a market, and a candy
store. The dry cleaner has
revenue of $5,000; the
market has revenue of
$10,000; and the candy
store has revenue of
$7,000. Under the business
entity concept, Emily
should record
Which of the following Assets + Owners's Equity = Liabilities
does not represent the
accounting equation?
Which of the following Assets = Liabilities + Owner's Equity
best represents the
accounting equation?
Assets are resources owned by the business
Assets and liabilities of a $120,000
company are $150,000
and $30,000, respectively.
Determine owner's equity
using the accounting
equation.
Money earned by a revenues.
business for selling goods
or services to its
customers represents
The paying of an expense owner's equity
reduces
Business + ASP UPDATED ACTUAL
Questions and CORRECT Answers
sell products purchased Merchandising businesses
from other businesses to
make their objective of
maximizing their profits
Which of the following A Manager
users is not considered an
external user of
accounting information?
Which of the following is Provides economic data reports on the operations
not accurate when it and condition of the business that are useful for banks
pertains to managerial and other creditors in deciding whether to lend
accounting? money to the business
Which of the following Corporations
forms of business entities
generates 90% of business
revenues in the U.S.?
Which of the following Unit of measure concept
concepts requires that
economic data be
recorded in dollars in the
U.S.?
, Which of the following GAAP allows a company's management to record and
statements about GAAP is report data as it sees fit.
not true?
Emily owns three None of these choices are correct.
businesses: a dry cleaner,
a market, and a candy
store. The dry cleaner has
revenue of $5,000; the
market has revenue of
$10,000; and the candy
store has revenue of
$7,000. Under the business
entity concept, Emily
should record
Which of the following Assets + Owners's Equity = Liabilities
does not represent the
accounting equation?
Which of the following Assets = Liabilities + Owner's Equity
best represents the
accounting equation?
Assets are resources owned by the business
Assets and liabilities of a $120,000
company are $150,000
and $30,000, respectively.
Determine owner's equity
using the accounting
equation.
Money earned by a revenues.
business for selling goods
or services to its
customers represents
The paying of an expense owner's equity
reduces
