Question 1

Match each statement to the item listed below.
-Obligations that must be satisfied within 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 2

The company reported the following information for the year ended December 31, 2019:
  
-Refer to Beard Marine. What was the economic effect of the dividend payment?

Accepted Answer

A) The dividend reduced net income for 2019. 
B) The dividend should be added to net income if the company's accounting equation is in balance. 
C) The dividend reduced total retained earnings. 
D) The dividends must be paid whenever the company reports net income. 
A) The dividend reduced net income for 2019. 
B) The dividend should be added to net income if the company's accounting equation is in balance. 
C) The dividend reduced total retained earnings. 
D) The dividends must be paid whenever the company reports net income.

Question 3

In which section of the annual report would you find: "The financial statements, in our opinion, present fairly the financial position, results of operations, and cash flows, in conformity with U.S. generally accepted accounting principles"?

Accepted Answer

A) Management report 
B) Notes to the Financial Statements 
C) Management's Discussion and Analysis 
D) Report of the Independent Accountants 
A) Management report 
B) Notes to the Financial Statements 
C) Management's Discussion and Analysis 
D) Report of the Independent Accountants

Question 4

Net loss reduces a company's retained earnings balance.

Accepted Answer

A) True 
 B)False

Question 5

What is the purpose of an income statement?

Accepted Answer

An income statement reports the company'

Question 6

Baloon-E-Tunes  
-Refer to Baloon-E-Tunes. Prepare the long-term asset section of the balance sheet. You may omit the heading. Why are these amounts classified as "long-term"?

Accepted Answer

@#IMG-DLM& Long-term assets are those that are exp

Question 7

Match each statement to the item listed below.
-Contains the auditor's opinion as to whether the financial statements fairly present the company's financial position and results of operations

Accepted Answer

A) Audit report 
B) Fiscal year 
C) Financial statements 
D) Management's discussion and analysis 
E) Notes to the financial statements 
A) Audit report 
B) Fiscal year 
C) Financial statements 
D) Management's discussion and analysis 
E) Notes to the financial statements

Question 8

Match each statement to the item listed below.
-Information that clarifies and expands upon the information presented in the financial statements

Accepted Answer

A) Audit report 
B) Fiscal year 
C) Financial statements 
D) Management's discussion and analysis 
E) Notes to the financial statements 
A) Audit report 
B) Fiscal year 
C) Financial statements 
D) Management's discussion and analysis 
E) Notes to the financial statements

Question 9

Current liabilities are typically listed in the order in which they will be paid.

Accepted Answer

A) True 
 B)False

Question 10

Match each statement to the item listed below.
-Gross margin less operating expenses

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 11

The accountant prepared the following list from the company's accounting records for the year ended December 31, 2019:  
-Determine the following amounts for Ben & Terry's Ice Cream:
A)Total Revenues for 2019.
B)Total Expenses for 2019.
C)Net Income for 2019.

Accepted Answer

A)$1,005,000
($955,000 Sales Revenue + $

Question 12

Which of the following is not a form of a business entity?

Accepted Answer

A) sole proprietorship 
B) partnership 
C) cooperative 
D) corporation 
A) sole proprietorship 
B) partnership 
C) cooperative 
D) corporation

Question 13

Which one of the following financial statements show the end of the year cash balance for a business entity?

Accepted Answer

A) Income Statement and Statement of Retained Earnings 
B) Balance Sheet and Statement of Cash Flows 
C) Statement of Retained Earnings and Statement of Cash Flows 
D) Balance Sheet and Statement of Retained Earnings 
A) Income Statement and Statement of Retained Earnings 
B) Balance Sheet and Statement of Cash Flows 
C) Statement of Retained Earnings and Statement of Cash Flows 
D) Balance Sheet and Statement of Retained Earnings

Question 14

A company increased its dollar amount of working capital over the past several years. Which one of the following measures should be used to further evaluate the company's short-run liquidity?

Accepted Answer

A) The Asset Ratio 
B) An analysis of the company's long-term debt 
C) An analysis of the return on stockholders' equity 
D) The Current Ratio 
A) The Asset Ratio 
B) An analysis of the company's long-term debt 
C) An analysis of the return on stockholders' equity 
D) The Current Ratio

Question 15

The type of business activity that relates to obtaining funds from either issuing stock or borrowing money is called ____________________.

Accepted Answer

The answer of The type of business activity that relates...

Question 16

Because the four financial statements are interrelated (i.e., there is a natural progression from one financial statement to another), the balance sheet should be prepared first.

Accepted Answer

A) True 
 B)False

Question 17

Stockholders' equity is composed of two main sources: liabilities and contributed capital.

Accepted Answer

A) True 
 B)False

Question 18

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.)
-Patents

Accepted Answer

A) Assets 
B) Liabilities 
C) Revenues 
D) Expenses 
E) Stockholders' Equity 
A) Assets 
B) Liabilities 
C) Revenues 
D) Expenses 
E) Stockholders' Equity

Question 19

In a(n) ____________________-step income statement, total expenses are added together, then deducted from total revenues.

Accepted Answer

The answer of In a(n) ____________________-step income statement, total expenses...

Question 20

Listed below are several amounts from the accounting records of Big Tom's Pawn Shops, for the year ended December 31, 2019. Prepare a single-step income statement in good form.

Accepted Answer

The answer of Listed below are several amounts from the...

Match each statement to the item listed below. -Obligations that must be satisfied within a year

The company reported the following information for the year ended December 31, 2019: -Refer to Beard Marine. What was the economic effect of the dividend payment?

In which section of the annual report would you find: "The financial statements, in our opinion, present fairly the financial position, results of operations, and cash flows, in conformity with U.S. generally accepted accounting principles"?

Net loss reduces a company's retained earnings balance.

What is the purpose of an income statement?

Baloon-E-Tunes -Refer to Baloon-E-Tunes. Prepare the long-term asset section of the balance sheet. You may omit the heading. Why are these amounts classified as "long-term"?

Match each statement to the item listed below. -Contains the auditor's opinion as to whether the financial statements fairly present the company's financial position and results of operations

Match each statement to the item listed below. -Information that clarifies and expands upon the information presented in the financial statements

Current liabilities are typically listed in the order in which they will be paid.

Match each statement to the item listed below. -Gross margin less operating expenses

The accountant prepared the following list from the company's accounting records for the year ended December 31, 2019: -Determine the following amounts for Ben & Terry's Ice Cream: A)Total Revenues for 2019. B)Total Expenses for 2019. C)Net Income for 2019.

Which of the following is not a form of a business entity?

Which one of the following financial statements show the end of the year cash balance for a business entity?

A company increased its dollar amount of working capital over the past several years. Which one of the following measures should be used to further evaluate the company's short-run liquidity?

The type of business activity that relates to obtaining funds from either issuing stock or borrowing money is called ____________________.

Because the four financial statements are interrelated (i.e., there is a natural progression from one financial statement to another), the balance sheet should be prepared first.

Stockholders' equity is composed of two main sources: liabilities and contributed capital.

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) -Patents

In a(n) ____________________-step income statement, total expenses are added together, then deducted from total revenues.

Listed below are several amounts from the accounting records of Big Tom's Pawn Shops, for the year ended December 31, 2019. Prepare a single-step income statement in good form.

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

Match each statement to the item listed below. -Obligations that must be satisfied within a year

The company reported the following information for the year ended December 31, 2019: -Refer to Beard Marine. What was the economic effect of the dividend payment?

In which section of the annual report would you find: "The financial statements, in our opinion, present fairly the financial position, results of operations, and cash flows, in conformity with U.S. generally accepted accounting principles"?

Net loss reduces a company's retained earnings balance.

What is the purpose of an income statement?

Baloon-E-Tunes -Refer to Baloon-E-Tunes. Prepare the long-term asset section of the balance sheet. You may omit the heading. Why are these amounts classified as "long-term"?

Match each statement to the item listed below. -Contains the auditor's opinion as to whether the financial statements fairly present the company's financial position and results of operations

Match each statement to the item listed below. -Information that clarifies and expands upon the information presented in the financial statements

Current liabilities are typically listed in the order in which they will be paid.

Match each statement to the item listed below. -Gross margin less operating expenses

The accountant prepared the following list from the company's accounting records for the year ended December 31, 2019: -Determine the following amounts for Ben & Terry's Ice Cream: A)Total Revenues for 2019. B)Total Expenses for 2019. C)Net Income for 2019.

Which of the following is not a form of a business entity?

Which one of the following financial statements show the end of the year cash balance for a business entity?

A company increased its dollar amount of working capital over the past several years. Which one of the following measures should be used to further evaluate the company's short-run liquidity?

The type of business activity that relates to obtaining funds from either issuing stock or borrowing money is called ____________________.

Because the four financial statements are interrelated (i.e., there is a natural progression from one financial statement to another), the balance sheet should be prepared first.

Stockholders' equity is composed of two main sources: liabilities and contributed capital.

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) -Patents

In a(n) ____________________-step income statement, total expenses are added together, then deducted from total revenues.

Listed below are several amounts from the accounting records of Big Tom's Pawn Shops, for the year ended December 31, 2019. Prepare a single-step income statement in good form.

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