Question 1

Which of the following are internal reports that accounting provides to internal users?

Accepted Answer

A) Forecasts of cash needs for next year 
B) Financial comparisons of operating activity alternatives 
C) Both forecasts of cash needs and financial comparisons 
D) Neither forecasts of cash needs nor financial comparisons 
A) Forecasts of cash needs for next year 
B) Financial comparisons of operating activity alternatives 
C) Both forecasts of cash needs and financial comparisons 
D) Neither forecasts of cash needs nor financial comparisons

Question 2

Which activities involve acquiring the resources to run the business?

Accepted Answer

A) Delivering 
B) Financing 
C) Investing 
D) Operating 
A) Delivering 
B) Financing 
C) Investing 
D) Operating

Question 3

Elston Company compiled the following financial information as of December 31, 2022:   Elston's assets on December 31, 2022 are

Accepted Answer

A) $1,410,000. 
B) $1,020,000. 
C) $480,000. 
D) $570,000. 
A) $1,410,000. 
B) $1,020,000. 
C) $480,000. 
D) $570,000.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Based on the following data, what are total liabilities?

Accepted Answer

A) $618,000 
B) $562,000 
C) $556,000 
D) $118,000 
A) $618,000 
B) $562,000 
C) $556,000 
D) $118,000

Question 6

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Accepted Answer

A) joint venture. 
B) partnership. 
C) corporation. 
D) proprietorship. 
A) joint venture. 
B) partnership. 
C) corporation. 
D) proprietorship.

Question 7

The accounting information needs and questions of external users vary considerably.

Accepted Answer

A) True 
 B)False

Question 8

The management discussion and analysis (MD&A) section of an annual report covers various financial aspects of a company.

Accepted Answer

A) True 
 B)False

Question 9

Why should the income statement be prepared first?

Accepted Answer

A) The statement of cash flows should be prepared first because it determines the sources of cash.That information is then used in preparing the income statement. 
B) Net income from the income statement flows into the retained earnings statement.The ending retained earnings balance then flows into the balance sheet. 
C) The income statement does not have to be prepared first.Financial statements can be prepared in any order. 
D) None of these answer choices are correct. 
A) The statement of cash flows should be prepared first because it determines the sources of cash.That information is then used in preparing the income statement. 
B) Net income from the income statement flows into the retained earnings statement.The ending retained earnings balance then flows into the balance sheet. 
C) The income statement does not have to be prepared first.Financial statements can be prepared in any order. 
D) None of these answer choices are correct.

Question 10

Notes to the financial statements

Accepted Answer

A) are optional. 
B) help clarify information presented in the financial statements. 
C) are generally brief and few in number. 
D) need not be read in detail if an unqualified opinion accompanies the financial statements. 
A) are optional. 
B) help clarify information presented in the financial statements. 
C) are generally brief and few in number. 
D) need not be read in detail if an unqualified opinion accompanies the financial statements.

Question 11

Which of the following is not a principal type of business activity?

Accepted Answer

A) Operating 
B) Investing 
C) Financing 
D) Delivering 
A) Operating 
B) Investing 
C) Financing 
D) Delivering

Question 12

Curry Corporation had the following accounts and balances:   If total stockholder's equity is $95,000, what is the balance of the Buildings account?

Accepted Answer

A) $35,000 
B) $135,000 
C) $145,000 
D) $45,000 
A) $35,000 
B) $135,000 
C) $145,000 
D) $45,000

Question 13

Marvin Services Corporation had the following accounts and balances:   If the balance of the Buildings account was $85,000, what would be the total of liabilities and stockholders' equity?

Accepted Answer

A) $170,000 
B) $175,000 
C) $135,000 
D) $125,000 
A) $170,000 
B) $175,000 
C) $135,000 
D) $125,000

Question 14

Payments by the business to owners are operating activities.

Accepted Answer

A) True 
 B)False

Question 15

Most business enterprises in the United States are

Accepted Answer

A) proprietorships and partnerships. 
B) partnerships. 
C) corporations. 
D) government units. 
A) proprietorships and partnerships. 
B) partnerships. 
C) corporations. 
D) government units.

Question 16

The common characteristic possessed by all assets is

Accepted Answer

A) long life. 
B) great monetary value. 
C) tangible nature. 
D) future economic benefit. 
A) long life. 
B) great monetary value. 
C) tangible nature. 
D) future economic benefit.

Question 17

Moon Corporation had the following accounts and balances:   If the equipment was sold for $35,000, what would be the total of stockholders' equity?

Accepted Answer

A) $65,000 
B) $90,000 
C) $115,000 
D) $125,000 
A) $65,000 
B) $90,000 
C) $115,000 
D) $125,000

Question 18

Ashley's Accessory Shop started the month of June 2022 with total assets of $210,000 and total liabilities of $120,000.During June, the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000.The net income reported by Ashley's Accessory Shop for the month of June was

Accepted Answer

A) $120,000. 
B) $150,000. 
C) $195,000. 
D) $165,000. 
A) $120,000. 
B) $150,000. 
C) $195,000. 
D) $165,000.

Question 19

An auditor is an accounting professional who conducts an independent examination of the accounting data presented by a company.

Accepted Answer

A) True 
 B)False

Question 20

Stockholders' equity is comprised of

Accepted Answer

A) common stock and dividends. 
B) common stock and retained earnings. 
C) dividends and retained earnings. 
D) net income and retained earnings. 
A) common stock and dividends. 
B) common stock and retained earnings. 
C) dividends and retained earnings. 
D) net income and retained earnings.

Which of the following are internal reports that accounting provides to internal users?

Which activities involve acquiring the resources to run the business?

Elston Company compiled the following financial information as of December 31, 2022: Elston's assets on December 31, 2022 are

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

Based on the following data, what are total liabilities?

A small neighborhood barber shop that is operated by its owner would likely be organized as a

The accounting information needs and questions of external users vary considerably.

The management discussion and analysis (MD&A) section of an annual report covers various financial aspects of a company.

Why should the income statement be prepared first?

Notes to the financial statements

Which of the following is not a principal type of business activity?

Curry Corporation had the following accounts and balances: If total stockholder's equity is $95,000, what is the balance of the Buildings account?

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $85,000, what would be the total of liabilities and stockholders' equity?

Payments by the business to owners are operating activities.

Most business enterprises in the United States are

The common characteristic possessed by all assets is

Moon Corporation had the following accounts and balances: If the equipment was sold for $35,000, what would be the total of stockholders' equity?

Ashley's Accessory Shop started the month of June 2022 with total assets of $210,000 and total liabilities of $120,000.During June, the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000.The net income reported by Ashley's Accessory Shop for the month of June was

An auditor is an accounting professional who conducts an independent examination of the accounting data presented by a company.

Stockholders' equity is comprised of

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 1: Introduction to Financial Statements

Which of the following are internal reports that accounting provides to internal users?

Which activities involve acquiring the resources to run the business?

Elston Company compiled the following financial information as of December 31, 2022: Elston's assets on December 31, 2022 are

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

Based on the following data, what are total liabilities?

A small neighborhood barber shop that is operated by its owner would likely be organized as a

The accounting information needs and questions of external users vary considerably.

The management discussion and analysis (MD&A) section of an annual report covers various financial aspects of a company.

Why should the income statement be prepared first?

Notes to the financial statements

Which of the following is not a principal type of business activity?

Curry Corporation had the following accounts and balances: If total stockholder's equity is $95,000, what is the balance of the Buildings account?

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $85,000, what would be the total of liabilities and stockholders' equity?

Payments by the business to owners are operating activities.

Most business enterprises in the United States are

The common characteristic possessed by all assets is

Moon Corporation had the following accounts and balances: If the equipment was sold for $35,000, what would be the total of stockholders' equity?

Ashley's Accessory Shop started the month of June 2022 with total assets of $210,000 and total liabilities of $120,000.During June, the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000.The net income reported by Ashley's Accessory Shop for the month of June was

An auditor is an accounting professional who conducts an independent examination of the accounting data presented by a company.

Stockholders' equity is comprised of

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters