Question : 111.In a business decision where there ethical concerns, the preferred : 1258288

 

 

111.In a business decision where there are ethical concerns, the preferred course of action should be one that:   

A.Is agreed upon by the most managers.

 

B.Maximizes the company’s profits.

 

C.Results in maintaining operations at the current level.

 

D.Costs the least to implement.

 

E.Avoids casting doubt on the decision maker and upholds trust.

 

 

 

 

112.If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:    

A.Assets increase $1,300 and liabilities decrease $1,300.

 

B.One asset increases $1,300 and another asset decreases $1,300, causing no effect.

 

C.Assets decrease $1,300 and equity decreases $1,300.

 

D.Assets decrease $1,300 and equity increases $1,300.

 

E.Assets increase $1,300 and liabilities increase $1,300

 

 

 

 

113.If a company receives $12,000 from the stockholders to establish a corporation, the effect on the accounting equation would be:   

A.Assets decrease $12,000 and equity decreases $12,000.

 

B.Assets increase $12,000 and liabilities decrease $12,000.

 

C.Assets increase $12,000 and liabilities increase $12,000.

 

D.Liabilities increase $12,000 and equity decreases $12,000.

 

E.Assets increase $12,000 and equity increases $12,000.

 

 

 

 

114.If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:   

A.Assets increase $4,500 and liabilities decrease $4,500.

 

B.Equity decreases $4,500 and liabilities increase $4,500.

 

C.Liabilities decrease $4,500 and assets increase $4,500.

 

D.Assets increase $4,500 and liabilities increase $4,500.

 

E.Equity increases $4,500 and liabilities decrease $4,500.

 

 

 

 

115.An example of a financing activity is:   

A.Buying office supplies.

 

B.Obtaining a long-term loan.

 

C.Buying office equipment.

 

D.Selling inventory.

 

E.Buying land.

 

 

 

 

116.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.

 

 

 

 

117.Operating activities:   

A.Are the means organizations use to pay for resources like land, buildings and equipment.

 

B.Involve using resources to research, develop, purchase, produce, distribute and market products and services.

 

C.Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.

 

D.Are also called asset management.

 

E.Are also called strategic management.

 

 

 

 

118.An example of an investing activity is:    

A.Paying wages of employees.

 

B.Dividends paid by the company.

 

C.Purchase of land.

 

D.Selling inventory.

 

E.Contributions from stockholders.

 

 

 

 

119.Net Income:   

A.Decreases equity.

 

B.Represents the amount of assets stockholders put into a business.

 

C.Equals assets minus liabilities.

 

D.Is the excess of revenues over expenses.

 

E.Represents stockholders’ claims against assets.

 

 

 

 

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

A.$108,000.

 

B.$192,000.

 

C.$300,000.

 

D.$492,000.

 

E.$792,000.

Assets = Liabilities + Stockholders’ EquityAssets = $192,000 + $300,000 = $492,000