Accounting: Qualitative Characteristics & Financials

To be useful, accounting information must have the fundamental qualitative characteristics of:

Which below describes relevance?

Which of the following reports assets, liabilities, and stockholders' equity at a specific date?

The claims of the owners of a company are:

The assets of BANDIT Companies decreased by $200,000 during the year, and its liabilities increased by $70,000 during the same year. The change in stockholder's equity of the company during the year must have been:

The accounting equation can be expressed as:

The entity assumption states that:

Bingo's assets on December 31, 2024, are:

Bingo's net income or (loss) for the year ending December 31, 2024, is:

Which of the following statements about expenses is correct?

Which of the following is an example of a liability?

Which of the following is an example of revenue?

Which financial statement reports a company's financial position at a specific point in time?

What type of account is "Retained Earnings"?

Which principle states that revenue should be recognized when it is earned, regardless of when cash is received?

The Matching Principle requires:

Under cash-basis accounting:

Under accrual-basis accounting:

JOHNSON Enterprises began operating its consumer goods business on January 1, 2025. During 2025, JOHNSON sold merchandise totaling $5,670,000, of which $3,622,500 was collected in cash immediately and $2,047,500 was sold on account. Of the $2,047,500 sold on account, 65% was collected in cash after the sales date but before the end of the period. The company incurred expenses of $2,677,500 and made related cash payments of $2,735,000 in 2025. Compute net income (loss) under cash basis accounting.

JOHNSON Enterprises began operating its consumer goods business on January 1, 2025. During 2025, JOHNSON sold merchandise totaling $5,670,000, of which $3,622,500 was collected in cash immediately and $2,047,500 was sold on account. Of the $2,047,500 sold on account, 65% was collected in cash after the sales date but before the end of the period. The company incurred expenses of $2,677,500 and made related cash payments of $2,735,000 in 2025. Compute net income (loss) under accrual basis accounting.

SPEEDY Pipe Company receives a phone call from a customer needing a new water heater on July 16 and schedules a consultation for a free estimate on July 22. Faucet installs the new water heater on July 24. The customer pays for service on August 4. According to the revenue recognition principle, on which date should Faucet record service revenue?

On August 1, 2024, FEDEX Delivery Company purchased a two-year insurance policy covering their vehicles for $8,450,000 with coverage beginning immediately. What is the balance of Prepaid Insurance on December 31, 2025 (rounded)?

BLIZZARD Industries collected $780,500 in cash from customers for subscriptions that would allow them to access BLIZZARD's popular video games online from October 1, 2024, through April 30, 2025. What adjusting entry would be made on December 31, 2024?

Adjusting entries are part of accrual-basis accounting.

LEGOS Crafts determined it had $283,750 of supplies at the beginning of the year. During the year, the company purchased an additional $295,300 of supplies. There was $197,750 of supplies on hand at the end of the year. How much Supplies Expense did the company report that year?

An investment of cash by stockholders into the business will:

Walgreens Pharmacies pays salaries of $14,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on a Tuesday is:

The Retained Earnings account will have the same balance as at the beginning of the period.

How are the assets and liabilities ordered on the Balance Sheet?

A single-step income statement would include the subtotal 'Gross Profit'.

For a new business, the beginning balance of retained earnings equals:

The requirement to report accounting information at regular intervals is known as the:

What is LUNA Inc.'s current ratio based on the facts below (rounded)? Current assets: $70,000 Long-term assets: $400,000 Current liabilities: $35,000 Long-term liabilities: $120,000 Total stockholder's equity: $315,000

When analyzing a company's debt ratio, a high debt ratio is better than a low debt ratio.

PEARSON Financial Services reported retained earnings of $860,000 on its December 31, 2023, balance sheet. Net income for 2024 totaled $330,000, and dividends declared for 2024 were $280,000. How much retained earnings should PEARSON report on its December 31, 2024, balance sheet?

The science that studies ways to build programs and machines that can creatively solve problems in a human-like manner is:

Which one of the following is not an objective of a system of internal controls?

What is the best example of a separation of duties control?

Which of the following is an example of a monitoring (detective) control?

Which of the following factors is not part of the fraud triangle?

Cash and cash equivalents include accounts receivable.

A report that explains the differences between a firm's cash balance as shown on its bank statement and the balance shown in its general ledger cash account is a:

In June of 2025, HERSH Ltd deposited a check from a customer that was determined to have non-sufficient funds (NSF). The NSF check was reported on HERSH's June bank reconciliation. The entry recorded in July related to this item includes:

BLIX Grocers Co. deposited a check from a customer for $3,226. However, that check was mistakenly credited by the bank in the amount of $2,326. When preparing that month's bank reconciliation, the company should:

On a bank reconciliation, which of the following would decrease the balance per book?

HARRIS Enterprises is in the process of reconciling its bank account for the month of November. The following information is available: Cash balance per books (general ledger): $4,708 Cash balance per bank statement: $5,822 Outstanding checks: $1,590 A deposit placed in the bank's night depository on November 30 does not appear on the November 30 bank statement: $680 Bank service charge: $20 Customer's note receivable collected by the bank: $200 Interest earned on bank balance: $24 What would be the adjusted cash balance at the end of November?

Relevance (Accounting)

Balance Sheet

Stockholders' Equity

Accounting Equation

Entity Assumption

Expenses

Liabilities

Revenue

Balance Sheet

Retained Earnings

Revenue Recognition Principle

Matching Principle

Cash-Basis Accounting

Accrual-Basis Accounting

Revenue Recognition (Service)

Adjusting Entries

Stock Investment

Closing Entries

Balance Sheet Order

Single-Step Income Statement

Beginning Retained Earnings

Time-Period Concept

Current Ratio

Artificial Intelligence

Internal Controls

Separation of Duties

Monitoring (Detective) Control

Fraud Triangle

Cash Equivalents

Bank Reconciliation