Page |1
Cengage Accounting Exam 1 study guide
Questions and Correct Answers/ Latest
Update / Already Graded
A corporation is a business that is legally separate and distinct from its
owners.
Ans: True
The role of accounting is to provide many different users with financial
information to make economic decisions.
Ans: True
Accounting information users need reports about the economic
activities and condition of businesses.
Ans: True
Financial accounting provides information to all users, while the main
focus for managerial accounting is to provide information to the
management.
Ans: True
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, Page |2
Proper ethical conduct implies that you only consider what's in your
best interest.
Ans: False
A business is an organization in which basic resources or inputs, like
materials and labor, are assembled and processed to provide outputs in
the form of goods or services to customers.
Ans: True
All of the following are general-purpose financial statements except
Ans: Cash budget
Which of the following is the best description of accounting's role in
business?
Ans: Accounting provides information to managers to operate
the business and to other users to make decisions regarding the
economic condition of the company.
Which of the following are guidelines for behaving ethically?
I.
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, Page |3
Identify the consequences of a decision and its effect on others.
II.
Consider your obligations and responsibilities to those affected by the
decision.
III.
Identify your decision based on personal standards of honesty and
fairness.
Ans: I, II, and III.
Which of the items below is not a business entity?
Ans: entrepreneurship
An entity that is organized according to state or federal statutes and in
which ownership is divided into shares of stock is a
Ans: corporation
On May 20, White Repair Service extended an offer of $108,000 for
land that had been priced for sale at $140,000. On May 30, White
Repair Service accepted the seller's counteroffer of $115,000. On June
All rights reserved © 2025/ 2026 |
Cengage Accounting Exam 1 study guide
Questions and Correct Answers/ Latest
Update / Already Graded
A corporation is a business that is legally separate and distinct from its
owners.
Ans: True
The role of accounting is to provide many different users with financial
information to make economic decisions.
Ans: True
Accounting information users need reports about the economic
activities and condition of businesses.
Ans: True
Financial accounting provides information to all users, while the main
focus for managerial accounting is to provide information to the
management.
Ans: True
All rights reserved © 2025/ 2026 |
, Page |2
Proper ethical conduct implies that you only consider what's in your
best interest.
Ans: False
A business is an organization in which basic resources or inputs, like
materials and labor, are assembled and processed to provide outputs in
the form of goods or services to customers.
Ans: True
All of the following are general-purpose financial statements except
Ans: Cash budget
Which of the following is the best description of accounting's role in
business?
Ans: Accounting provides information to managers to operate
the business and to other users to make decisions regarding the
economic condition of the company.
Which of the following are guidelines for behaving ethically?
I.
All rights reserved © 2025/ 2026 |
, Page |3
Identify the consequences of a decision and its effect on others.
II.
Consider your obligations and responsibilities to those affected by the
decision.
III.
Identify your decision based on personal standards of honesty and
fairness.
Ans: I, II, and III.
Which of the items below is not a business entity?
Ans: entrepreneurship
An entity that is organized according to state or federal statutes and in
which ownership is divided into shares of stock is a
Ans: corporation
On May 20, White Repair Service extended an offer of $108,000 for
land that had been priced for sale at $140,000. On May 30, White
Repair Service accepted the seller's counteroffer of $115,000. On June
All rights reserved © 2025/ 2026 |
