Question 1

As used in accounting, the "Notes to the Financial Statements" should be

Accepted Answer

A) shown at the bottom of the Income Statement. 
B) excluded, as they are not an integral part of the financial statements. 
C) included as an integral part of the financial statements. 
D) considered an optional part of the financial statements. 
A) shown at the bottom of the Income Statement. 
B) excluded, as they are not an integral part of the financial statements. 
C) included as an integral part of the financial statements. 
D) considered an optional part of the financial statements.

Question 2

Which one of the following items is a classification on the Classified Balance Sheet?

Accepted Answer

A) operating accounts 
B) stockholders' equity 
C) revenues and expenses 
D) net income and dividends 
A) operating accounts 
B) stockholders' equity 
C) revenues and expenses 
D) net income and dividends

Question 3

Which of the following would appear on an income statement?

Accepted Answer

A) unearned revenue 
B) cost of sales 
C) retained earnings 
D) dividends 
A) unearned revenue 
B) cost of sales 
C) retained earnings 
D) dividends

Question 4

-Refer to Bellweather Times. What is the company's Net Income?

Accepted Answer

A) $280,000 
B) $220,000 
C) $100,000 
D) $40,000 
A) $280,000 
B) $220,000 
C) $100,000 
D) $40,000

Question 5

-Refer to Beaver Tree Service. The company's expenses are:

Accepted Answer

A) $100,000 
B) $150,000 
C) $450,000 
D) $275,000 
A) $100,000 
B) $150,000 
C) $450,000 
D) $275,000

Question 6

The Statement of Cash Flows shows cash inflows and cash outflows for a period of time.

Accepted Answer

A) True 
 B)False

Question 7

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.)
-The company's labor rate agree to the last contract.

Accepted Answer

A) Investors 
B) Management 
C) Supplier 
D) Banker 
E) Government
F)Employees
G)Labor Union
H)Investors and Banker
I)Supplier and Banker 
A) Investors 
B) Management 
C) Supplier 
D) Banker 
E) Government
F)Employees
G)Labor Union
H)Investors and Banker
I)Supplier and Banker

Question 8

Baloon-E-Tunes  
-Refer to Baloon-E-Tunes. Calculate the current ratio. What does this ratio tell you about the "composition" of the current assets?

Accepted Answer

Current Assets = $850,000
($110,000 Cash

Question 9

Match each statement to the item listed below.
-Investment in the debt and stock of other companies that is expected to be held for more than a year

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Gross margin 
D) Income from operations 
E) Intangible assets
F)Long-term investments
G)Long-term liabilities
H)Net profit margin 
A) Current assets 
B) Current liabilities 
C) Gross margin 
D) Income from operations 
E) Intangible assets
F)Long-term investments
G)Long-term liabilities
H)Net profit margin

Question 10

Been There Used Furniture began operation on January 1, 2019, with an initial investment of $100,000 from each of its five stockholders. During the year, the company had net income of $200,000 and paid dividends of $50,000.
-Refer to Been There Used Furniture. Calculate the retained earnings balance at December 31, 2019.

Accepted Answer

A) $150,000 
B) $200,000 
C) $500,000 
D) $650,000 
A) $150,000 
B) $200,000 
C) $500,000 
D) $650,000

Question 11

There are more corporations than sole proprietorships and partnerships in the United States.

Accepted Answer

A) True 
 B)False

Question 12

A non-classified balance sheet typically does not have a distinction between which of the following items?

Accepted Answer

A) assets and liabilities 
B) current and noncurrent items 
C) liabilities and stockholders' equity 
D) Resources invested by the owners and amounts borrowed from creditors. 
A) assets and liabilities 
B) current and noncurrent items 
C) liabilities and stockholders' equity 
D) Resources invested by the owners and amounts borrowed from creditors.

Question 13

Both net income and dividends can be found on this financial statement: ____________________.

Accepted Answer

Statement

Question 14

Income from operations includes interest revenue and interest expense because these items are considered to be operating in nature.

Accepted Answer

A) True 
 B)False

Question 15

If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

Accepted Answer

A) $2,100,000 
B) $2,600,000 
C) $1,600,000 
D) $ 500,000 
A) $2,100,000 
B) $2,600,000 
C) $1,600,000 
D) $ 500,000

Question 16

The following accounts were taken from a company's accounting records. Answer the questions that follow.   A)How much is the balance of Retained Earnings at the end of the year?
B)Show the company's accounting equation at the end of the year with the respective dollar amounts.
C)If stockholders' equity increases during the year, does that mean that the company is profitable? Explain your answer.

Accepted Answer

A)$350,000
($150,000 Retained earnings,

Question 17

What is the name for a person who lends funds to a business entity and expects repayment with interest?

Accepted Answer

A) creditor 
B) owner 
C) proprietor 
D) stockholder 
A) creditor 
B) owner 
C) proprietor 
D) stockholder

Question 18

Liquidity

Accepted Answer

A) measures the ability of the firm to pay financial obligations as they become due. 
B) can be measured in terms of working capital. 
C) can be assessed by the current ratio. 
D) All of the above. 
A) measures the ability of the firm to pay financial obligations as they become due. 
B) can be measured in terms of working capital. 
C) can be assessed by the current ratio. 
D) All of the above.

Question 19

The names of the four basic financial statements are ____________________, ____________________, ____________________, and ____________________

Accepted Answer

Income Statement, Balance Sheet, Stateme

Question 20

The three main business activities are financing, operating, and investing.

Accepted Answer

A) True 
 B)False

As used in accounting, the "Notes to the Financial Statements" should be

Which one of the following items is a classification on the Classified Balance Sheet?

Which of the following would appear on an income statement?

-Refer to Bellweather Times. What is the company's Net Income?

-Refer to Beaver Tree Service. The company's expenses are:

The Statement of Cash Flows shows cash inflows and cash outflows for a period of time.

Baloon-E-Tunes -Refer to Baloon-E-Tunes. Calculate the current ratio. What does this ratio tell you about the "composition" of the current assets?

Match each statement to the item listed below. -Investment in the debt and stock of other companies that is expected to be held for more than a year

There are more corporations than sole proprietorships and partnerships in the United States.

A non-classified balance sheet typically does not have a distinction between which of the following items?

Both net income and dividends can be found on this financial statement: ____________________.

Income from operations includes interest revenue and interest expense because these items are considered to be operating in nature.

If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

What is the name for a person who lends funds to a business entity and expects repayment with interest?

Liquidity

The names of the four basic financial statements are , , , and

The three main business activities are financing, operating, and investing.

The Accounting Information System

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters

Exam 1: Accounting and The Financial Statements

As used in accounting, the "Notes to the Financial Statements" should be

Which one of the following items is a classification on the Classified Balance Sheet?

Which of the following would appear on an income statement?

-Refer to Bellweather Times. What is the company's Net Income?

-Refer to Beaver Tree Service. The company's expenses are:

The Statement of Cash Flows shows cash inflows and cash outflows for a period of time.

Baloon-E-Tunes -Refer to Baloon-E-Tunes. Calculate the current ratio. What does this ratio tell you about the "composition" of the current assets?

Match each statement to the item listed below. -Investment in the debt and stock of other companies that is expected to be held for more than a year

There are more corporations than sole proprietorships and partnerships in the United States.

A non-classified balance sheet typically does not have a distinction between which of the following items?

Both net income and dividends can be found on this financial statement: ____________________.

Income from operations includes interest revenue and interest expense because these items are considered to be operating in nature.

If a company has current assets of $2,100,000 and current liabilities of $500,000, calculate its working capital.

What is the name for a person who lends funds to a business entity and expects repayment with interest?

Liquidity

The names of the four basic financial statements are ____________________, ____________________, ____________________, and ____________________

The three main business activities are financing, operating, and investing.

The Accounting Information System

Accrual Accounting

Internal Control And Cash

Sales And Receivables

Cost Of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long Term Liabilities

Stockholders Apos Equity

The Statement Of Cash Flows

Financial Statement Analysis

Finance and Stock Market Equilibrium

Filters

The names of the four basic financial statements are , , , and