FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting in Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Social responsibility:

A) Is a concern for the impact of our actions on society.
B) Is a code that helps in dealing with confidential information.
C) Is required by the SEC.
D) Requires that all businesses conduct social audits.
E) Is limited to large companies.

F) D) and E)
G) B) and D)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

An example of an operating activity is:

A) Paying wages.
B) Purchasing office equipment.
C) Borrowing money from a bank.
D) Selling stock.
E) Paying off a loan.

F) A) and B)
G) A) and C)

Correct Answer

verified

Show Answer

Question 33

Essay

Review LaterAdd Note

Describe the three types of activities reported on the statement of cash flows.

Risk is the _________________ about the return an investor expects to earn.

A partnership:

Which of the following accounting principles would require that all goods and services purchased be recorded at cost?

Generally the lower the risk, the lower the return that can be expected.

Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.

Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?

Owner's investments are increases in equity from a company's earnings activities.

Opportunities in accounting include auditing, consulting, market research, and tax planning.

Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?

Internal operating activities include research and development, distribution, and human resources.

Della's Donuts owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.

If equity is $300,000 and liabilities are $192,000, then assets equal:

The business entity principle means that a business will continue operating for an indefinite period of time.

The Sarbanes-Oxley Act (SOX) requires each issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code.

The accounting equation can be restated as: Assets - Equity = Liabilities.

The statement of cash flows identifies cash flows separated into operating, investing, and financing activities over a period of time.