15. During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance
was $1,800. What was the January 31 beginning cash balance?

A. $700

B. $1,100

C. $2,900

D. $0

E. $4,300

16. Identifying business activities requires selecting transactions and events relevant to an organization. Which of the following events would be recorded in
the accounting records of Acme Car Wash?

A. Acme washes 500 cars

B. J.B. Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be
washed

C. Clean Company, a supplier, sells 50 pounds of soap to ABC Company

D. Sudsey Company, a supplier, goes out of business

E. Acme hires Andrea as a receptionist

17. Internal users of accounting information always include: (Points : 1)

A. Shareholders

B. Managers

C. Lenders

D. Suppliers

E. Customers

18. The area of accounting aimed at serving the decision making needs of internal users is

A. Financial accounting

B. Managerial accounting

C. External auditing

D. SEC reporting

19. Which of the following statements is true of external information users?

A. They are directly involved in managing the organization

B. Their needs are met by the managerial area of accounting

C. They have limited access to an organization’s accounting information

D. They use accounting information to help improve the efficiency and effectiveness of an organization

20. Which of the following is the correct sequence for the heading for ABC Companys 2010 Balance Sheet?

A. ABC Company, For the year ended 12/31/10, Balance Sheet

B. For the year ended 12/31/10, Balance Sheet, ABC Company

C. Balance Sheet, 12/31/10, ABC Company

D. 12/31/10, ABC Company, Balance Sheet

E. ABC Company, Balance Sheet, 12/31/10

21. Social responsibility:

A. Is a concern for the impact of one’s actions on society as a whole

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

22. The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone’s belief or
opinion is the

A. Business entity principle

B. Monetary unit principle

C. Going-concern principle

D. Cost principle

E. Measurement principle

23. Businesses can take all of the following forms except

A. Sole proprietorship

B. Common stock

C. Partnership

D. Corporation

24. The organization that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and
encouraging their worldwide acceptance is the:

A. AICPA

B. FASB

C. CAP

D. SEC

E. IASB

25. Our company has three times as many assets as it does liabilities. If total liabilities are $55,000, what is the amount of owners’ equity?

A. $55,000

B. $110,000

C. $165,000

D. $220,000

E. Cannot be determined from the given information