Question 1

The three forms of business organizations are ____________________, ____________________, and ____________________.

Accepted Answer

sole proprietorships, partners

Question 2

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

Accepted Answer

The groups and their decisions are:
Stoc

Question 3

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 prospects for future dividend payments.

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 4

The following balances are provided:
  
-Refer to Benchmark Surveyors. Calculate Current Liabilities.

Accepted Answer

A) $ 97,000 
B) $211,000 
C) $354,000 
D) $143,000 
A) $ 97,000 
B) $211,000 
C) $354,000 
D) $143,000

Question 5

Which of the following items will be found in a corporate annual report?

Accepted Answer

A) industry standards 
B) notes to the financial statements 
C) selected financial data from non-competitor companies 
D) management's statement that the auditors are responsible for the financial statements. 
A) industry standards 
B) notes to the financial statements 
C) selected financial data from non-competitor companies 
D) management's statement that the auditors are responsible for the financial statements.

Question 6

Best Deal Auto Parts began 2019 with $400,000 in assets, $140,000 in liabilities, and $160,000 of retained earnings. Net income for the year was $100,000, and dividends of $80,000 were paid.
A)Prepare a Statement of Retained Earnings for 2019.
B)What is the nature or purpose of the statement of retained earnings?
C)What was the amount of Capital Stock at the beginning of 2019?
D)What events would cause the two stockholders' equity items to increase?
E)How do you identify whether the company was profitable during 2019 by examining the statement of retained earnings?

Accepted Answer

The answer of Best Deal Auto Parts began 2019 with...

Question 7

The current ratio is found by dividing current assets by ____________________.

Accepted Answer

The answer of The current ratio is found by dividing...

Question 8

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

Accepted Answer

A) $ 800,000 
B) $2,000,000 
C) $3,800,000 
D) $1,800,000 
A) $ 800,000 
B) $2,000,000 
C) $3,800,000 
D) $1,800,000

Question 9

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.)
-Cash

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 10

Which of the following are Noncurrent assets?

Accepted Answer

A) machinery and equipment 
B) accounts receivable 
C) inventories 
D) unearned revenues 
A) machinery and equipment 
B) accounts receivable 
C) inventories 
D) unearned revenues

Question 11

Which set of items below are current assets?

Accepted Answer

A) Accounts Receivable, Net Income, Inventory, and Dividends 
B) Cash, Accounts Receivable, Capital Stock, and Sales 
C) Net Income, Cash, Office Supplies, and Inventory 
D) Cash, Accounts Receivable, Inventory, and Office Supplies 
A) Accounts Receivable, Net Income, Inventory, and Dividends 
B) Cash, Accounts Receivable, Capital Stock, and Sales 
C) Net Income, Cash, Office Supplies, and Inventory 
D) Cash, Accounts Receivable, Inventory, and Office Supplies

Question 12

Working capital is calculated by which of the following?

Accepted Answer

A) Current assets divided by current liabilities. 
B) Total assets minus total liabilities. 
C) Current assets minus current liabilities. 
D) Current assets plus current liabilities. 
A) Current assets divided by current liabilities. 
B) Total assets minus total liabilities. 
C) Current assets minus current liabilities. 
D) Current assets plus current liabilities.

Question 13

Which of the following terms best describes a distribution of the net income of a corporation to its owners?

Accepted Answer

A) retained earnings 
B) dividends 
C) liquidation of assets 
D) monetary unit 
A) retained earnings 
B) dividends 
C) liquidation of assets 
D) monetary unit

Question 14

The following amounts were taken from the accounting records at December 31, 2019:   ?
A)Calculate net income for 2019.
B)Calculate retained earnings at the end of 2019.

Accepted Answer

A)$185,000
($600,000 Service Revenue ? $

Question 15

This company's end-of-year balance sheet consisted of the following amounts:
  
-Refer to Bargain Spot Fabrics. What amount should the company report on its Balance Sheet for Total Assets?

Accepted Answer

A) $550,000 
B) $775,000 
C) $850,000 
D) $950,000 
A) $550,000 
B) $775,000 
C) $850,000 
D) $950,000

Question 16

Another term for Short-Term Investments is

Accepted Answer

A) inventories. 
B) accounts receivable. 
C) contributed capital. 
D) marketable securities. 
A) inventories. 
B) accounts receivable. 
C) contributed capital. 
D) marketable securities.

Question 17

An income statement provides information at one specific point in time, while the other basic financial statements provide information on activities that occur over a period of time.

Accepted Answer

A) True 
 B)False

Question 18

If the current ratio is 2 to 1 and current assets equal $200,000, how much is working capital?

Accepted Answer

A) $0 
B) $100,000 
C) $200,000 
D) $300,000 
A) $0 
B) $100,000 
C) $200,000 
D) $300,000

Question 19

Which of the following is the correct date format for the financial statement heading?

Accepted Answer

A) Balance Sheet for the Year Ended June 30, 2019 
B) Income Statement at December 31, 2019 
C) Income Statement for the Year Ended December 31, 2019 
D) Statement of Retained Earnings at December 31, 2019 
A) Balance Sheet for the Year Ended June 30, 2019 
B) Income Statement at December 31, 2019 
C) Income Statement for the Year Ended December 31, 2019 
D) Statement of Retained Earnings at December 31, 2019

Question 20

The accountant prepared the following list of account balances from the company's records for the year ended December 31, 2019.Sales Revenue
  
-Determine the following amounts for Backus Tractor Sales:
A)The balance of Retained Earnings at the end of 2019.
B)The total stockholders' equity at the end of 2019.
C)Name the two events that might cause stockholders' equity to increase.

Accepted Answer

A)$560,000
($1,100,000 Total Assets − $3

The three forms of business organizations are , , and .

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

The following balances are provided: -Refer to Benchmark Surveyors. Calculate Current Liabilities.

Which of the following items will be found in a corporate annual report?

The current ratio is found by dividing current assets by ____________________.

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

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.) -Cash

Which of the following are Noncurrent assets?

Which set of items below are current assets?

Working capital is calculated by which of the following?

Which of the following terms best describes a distribution of the net income of a corporation to its owners?

The following amounts were taken from the accounting records at December 31, 2019: ? A)Calculate net income for 2019. B)Calculate retained earnings at the end of 2019.

This company's end-of-year balance sheet consisted of the following amounts: -Refer to Bargain Spot Fabrics. What amount should the company report on its Balance Sheet for Total Assets?

Another term for Short-Term Investments is

An income statement provides information at one specific point in time, while the other basic financial statements provide information on activities that occur over a period of time.

If the current ratio is 2 to 1 and current assets equal $200,000, how much is working capital?

Which of the following is the correct date format for the financial statement heading?

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

The three forms of business organizations are ____________________, ____________________, and ____________________.

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

The following balances are provided: -Refer to Benchmark Surveyors. Calculate Current Liabilities.

Which of the following items will be found in a corporate annual report?

The current ratio is found by dividing current assets by ____________________.

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

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.) -Cash

Which of the following are Noncurrent assets?

Which set of items below are current assets?

Working capital is calculated by which of the following?

Which of the following terms best describes a distribution of the net income of a corporation to its owners?

The following amounts were taken from the accounting records at December 31, 2019: ? A)Calculate net income for 2019. B)Calculate retained earnings at the end of 2019.

This company's end-of-year balance sheet consisted of the following amounts: -Refer to Bargain Spot Fabrics. What amount should the company report on its Balance Sheet for Total Assets?

Another term for Short-Term Investments is

An income statement provides information at one specific point in time, while the other basic financial statements provide information on activities that occur over a period of time.

If the current ratio is 2 to 1 and current assets equal $200,000, how much is working capital?

Which of the following is the correct date format for the financial statement heading?

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 three forms of business organizations are , , and .