Question 1

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company during a period.

Accepted Answer

A) True 
 B)False

Question 2

Accountants record both internal and external transactions.

Accepted Answer

A) True 
 B)False

Question 3

Stockholders' equity is decreased by all of the following except

Accepted Answer

A)  sales of stock. 
B)  net losses. 
C)  expenses. 
D)  dividends. 
A)  sales of stock. 
B)  net losses. 
C)  expenses. 
D)  dividends.

Question 4

Accounting consists of three basic activities which are related to economic events of an organization. These include

Accepted Answer

A)  identifying, recording, and communicating 
B)  identifying, calculating, and responding 
C)  classifying, numbering, and reporting 
D)  issuing, reporting, and classifying 
A)  identifying, recording, and communicating 
B)  identifying, calculating, and responding 
C)  classifying, numbering, and reporting 
D)  issuing, reporting, and classifying

Question 5

A partnership must have more than one owner.

Accepted Answer

A) True 
 B)False

Question 6

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

Accepted Answer

A)  $105,000. 
B)  $135,000. 
C)  $165,000. 
D)  $180,000. 
A)  $105,000. 
B)  $135,000. 
C)  $165,000. 
D)  $180,000.

Question 7

The United States and the international standard-setting environment are primarily driven by meeting the needs of

Accepted Answer

A)  investors and creditors. 
B)  tax authorities. 
C)  central government planners. 
D)  academic researchers.
IFRS. 
A)  investors and creditors. 
B)  tax authorities. 
C)  central government planners. 
D)  academic researchers.
IFRS.

Question 8

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Accepted Answer

1. SE 6. A
2. A 7. A

Question 9

Liabilities

Accepted Answer

A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation. 
A)  are future economic benefits. 
B)  are existing debts and obligations. 
C)  possess service potential. 
D)  are things of value used by the business in its operation.

Question 10

The primary purpose of the statement of cash flows is to report

Accepted Answer

A)  a company's investing transactions. 
B)  a company's financing transactions. 
C)  information about cash receipts and cash payments of a company. 
D)  the net increase or decrease in cash. 
A)  a company's investing transactions. 
B)  a company's financing transactions. 
C)  information about cash receipts and cash payments of a company. 
D)  the net increase or decrease in cash.

Question 11

All of the following are steps in analyzing ethics cases in financial reporting except

Accepted Answer

A)  identify and analyze the principle elements in the situation. 
B)  contact law enforcement regarding any violations of corporate ethics codes 
C)  identify the alternatives and weigh the impact of each alternative on various stakeholders. 
D)  recognize an ethical situation and the ethical issues involved. 
A)  identify and analyze the principle elements in the situation. 
B)  contact law enforcement regarding any violations of corporate ethics codes 
C)  identify the alternatives and weigh the impact of each alternative on various stakeholders. 
D)  recognize an ethical situation and the ethical issues involved.

Question 12

At October 1, Arcade Fire Enterprises reported stockholders' equity of $72,000. During October, no stock was issued and the company posted a net loss of $8,000. If stockholders' equity at October 31 totals $64,000, what amount of dividends were paid during the month?

Accepted Answer

A)  $0 
B)  $4,000 
C)  $8,000 
D)  $16,000 
A)  $0 
B)  $4,000 
C)  $8,000 
D)  $16,000

Question 13

The primary accounting standard-setting body in the United States is the International Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 14

Liabilities of a company are owed to

Accepted Answer

A)  debtors. 
B)  benefactors. 
C)  creditors. 
D)  underwriters. 
A)  debtors. 
B)  benefactors. 
C)  creditors. 
D)  underwriters.

Question 15

The purchase of store equipment for cash reduces assets and stockholders' equity by an equal amount.

Accepted Answer

A) True 
 B)False

Question 16

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

As of June 30, 2018, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2018?

Accepted Answer

A)  $40,000 
B)  $60,000 
C)  $100,000 
D)  $140,000 
A)  $40,000 
B)  $60,000 
C)  $100,000 
D)  $140,000

Question 18

Stockholders' equity is often referred to as

Accepted Answer

A)  residual equity. 
B)  leftovers. 
C)  spoils. 
D)  second equity. 
A)  residual equity. 
B)  leftovers. 
C)  spoils. 
D)  second equity.

Question 19

A common set of standards that provides guidelines to accountants and indicates how to report economic events is called _________________.

Accepted Answer

generally

Question 20

A problem with the monetary unit assumption is that

Accepted Answer

A)  the dollar has not been stable over time. 
B)  the dollar has been stable over time. 
C)  the dollar is a common medium of exchange. 
D)  it is impossible to account for international transactions. 
A)  the dollar has not been stable over time. 
B)  the dollar has been stable over time. 
C)  the dollar is a common medium of exchange. 
D)  it is impossible to account for international transactions.

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company during a period.

Accountants record both internal and external transactions.

Stockholders' equity is decreased by all of the following except

Accounting consists of three basic activities which are related to economic events of an organization. These include

A partnership must have more than one owner.

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

The United States and the international standard-setting environment are primarily driven by meeting the needs of

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Liabilities

The primary purpose of the statement of cash flows is to report

All of the following are steps in analyzing ethics cases in financial reporting except

At October 1, Arcade Fire Enterprises reported stockholders' equity of $72,000. During October, no stock was issued and the company posted a net loss of $8,000. If stockholders' equity at October 31 totals $64,000, what amount of dividends were paid during the month?

The primary accounting standard-setting body in the United States is the International Accounting Standards Board.

Liabilities of a company are owed to

The purchase of store equipment for cash reduces assets and stockholders' equity by an equal amount.

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

As of June 30, 2018, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2018?

Stockholders' equity is often referred to as

A common set of standards that provides guidelines to accountants and indicates how to report economic events is called _________________.

A problem with the monetary unit assumption is that

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

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Exam 1: Accounting in Action

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company during a period.

Accountants record both internal and external transactions.

Stockholders' equity is decreased by all of the following except

Accounting consists of three basic activities which are related to economic events of an organization. These include

A partnership must have more than one owner.

Kennedy Company issued stock to Ed Kennedy in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Kennedy's net income for the year?

The United States and the international standard-setting environment are primarily driven by meeting the needs of

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Liabilities

The primary purpose of the statement of cash flows is to report

All of the following are steps in analyzing ethics cases in financial reporting except

At October 1, Arcade Fire Enterprises reported stockholders' equity of $72,000. During October, no stock was issued and the company posted a net loss of $8,000. If stockholders' equity at October 31 totals $64,000, what amount of dividends were paid during the month?

The primary accounting standard-setting body in the United States is the International Accounting Standards Board.

Liabilities of a company are owed to

The purchase of store equipment for cash reduces assets and stockholders' equity by an equal amount.

The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet.

As of June 30, 2018, Actual Tigers Company has assets of $100,000 and stockholders' equity of $40,000. What are the liabilities for Actual Tigers Company as of June 30, 2018?

Stockholders' equity is often referred to as

A common set of standards that provides guidelines to accountants and indicates how to report economic events is called _________________.

A problem with the monetary unit assumption is that

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters