Question 1

The claims of owners on the assets of a corporation are known as ________________.

Accepted Answer

stockholde

Question 2

Reinhardt's Carpet Cleaning has the following balance sheet items:

Accepted Answer

The answer of Reinhardt's Carpet Cleaning has the following balance...

Question 3

Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year?

Accepted Answer

A)  $930,000 
B)  $650,000 
C)  $1,030,000 
D)  $500,000 
A)  $930,000 
B)  $650,000 
C)  $1,030,000 
D)  $500,000

Question 4

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of cash flows. 
D)  retained earnings statement. 
A)  balance sheet. 
B)  income statement. 
C)  statement of cash flows. 
D)  retained earnings statement.

Question 5

Ashley's Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Accepted Answer

A)  $120,000. 
B)  $110,000. 
C)  $130,000. 
D)  $70,000. 
A)  $120,000. 
B)  $110,000. 
C)  $130,000. 
D)  $70,000.

Question 6

Common stock is reported on the

Accepted Answer

A)  statement of cash flows. 
B)  retained earnings statement. 
C)  income statement. 
D)  balance sheet. 
A)  statement of cash flows. 
B)  retained earnings statement. 
C)  income statement. 
D)  balance sheet.

Question 7

Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)?

Accepted Answer

A)  The Act calls for increased oversight responsibilities for boards of directors. 
B)  The Act has resulted in increased penalties for financial fraud by top management. 
C)  The Act calls for decreased independence of outside auditors reviewing corporate financial statements. 
D)  The Act is meant to decrease the likelihood of unethical corporate behavior. 
A)  The Act calls for increased oversight responsibilities for boards of directors. 
B)  The Act has resulted in increased penalties for financial fraud by top management. 
C)  The Act calls for decreased independence of outside auditors reviewing corporate financial statements. 
D)  The Act is meant to decrease the likelihood of unethical corporate behavior.

Question 8

The basic accounting equation is Assets = ____________ + _______________.

Accepted Answer

Liabilitie

Question 9

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Accepted Answer

A)  Taxing authority 
B)  Creditor 
C)  Regulatory agency 
D)  Labor union 
A)  Taxing authority 
B)  Creditor 
C)  Regulatory agency 
D)  Labor union

Question 10

Which type of corporate information is not available to investors?

Accepted Answer

A)  Dividend history 
B)  Forecast of cash needs for the upcoming year 
C)  Cash provided by investing activities 
D)  Beginning cash balance 
A)  Dividend history 
B)  Forecast of cash needs for the upcoming year 
C)  Cash provided by investing activities 
D)  Beginning cash balance

Question 11

Which of the following is not an advantage of the corporate form of business organization?

Accepted Answer

A)  No personal liability 
B)  Easy to transfer ownership 
C)  Favorable tax treatment 
D)  Easy to raise funds 
A)  No personal liability 
B)  Easy to transfer ownership 
C)  Favorable tax treatment 
D)  Easy to raise funds

Question 12

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

The answer of For the items listed below, fill in...

Question 13

An advantage of the corporate form of business is that

Accepted Answer

A)  it has limited life. 
B)  its owner's personal resources are at stake. 
C)  its ownership is easily transferable via the sale of shares of stock. 
D)  it is simple to establish. 
A)  it has limited life. 
B)  its owner's personal resources are at stake. 
C)  its ownership is easily transferable via the sale of shares of stock. 
D)  it is simple to establish.

Question 14

What are the advantages to a business of being formed as a corporation? What are the disadvantages?

Accepted Answer

Advantages of a corporation are limited

Question 15

The information needs and questions of external users vary considerably.

Accepted Answer

A) True 
 B)False

Question 16

Which financial statement is prepared first?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Retained earnings statement 
D)  Statement of cash flows 
A)  Balance sheet 
B)  Income statement 
C)  Retained earnings statement 
D)  Statement of cash flows

Question 17

Which of the following is a user of accounting information with an indirect financial interest in a business?

Accepted Answer

A)  A financial adviser 
B)  Management 
C)  Investor 
D)  Creditor 
A)  A financial adviser 
B)  Management 
C)  Investor 
D)  Creditor

Question 18

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 19

Listed below in alphabetical order are the balance sheet items of Nolan Company at December 31, 2014. Prepare a balance sheet and include a complete heading. $$\begin{array} { l r } 
\text { Accounts payable } & \$ 1,000 \
\text { Accounts receivable } & 15,000 \
\text { Buildings } & 65,000 \
\text { Cash } & 11,000 \
\text { Common stock } & 80,000 \
\text { Land } & 31,000 \
\text { Equipment } & 10,000 \
\text { Retained earnings } & 41,000
\end{array}$$

Accepted Answer

The answer of Listed below in alphabetical order are the...

Question 20

International standards are referred to as

Accepted Answer

A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB. 
A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.

The claims of owners on the assets of a corporation are known as ________________.

Reinhardt's Carpet Cleaning has the following balance sheet items:

Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year?

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

Ashley's Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Common stock is reported on the

Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)?

The basic accounting equation is Assets = + ___.

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Which type of corporate information is not available to investors?

Which of the following is not an advantage of the corporate form of business organization?

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

An advantage of the corporate form of business is that

What are the advantages to a business of being formed as a corporation? What are the disadvantages?

The information needs and questions of external users vary considerably.

Which financial statement is prepared first?

Which of the following is a user of accounting information with an indirect financial interest in a business?

Most business enterprises in the United States are

International standards are referred to as

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 and Acquisitions in Accounting

Filters

Exam 1: Introduction to Financial Statements

The claims of owners on the assets of a corporation are known as ________________.

Reinhardt's Carpet Cleaning has the following balance sheet items:

Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year?

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

Ashley's Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Common stock is reported on the

Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)?

The basic accounting equation is Assets = ____________ + _______________.

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Which type of corporate information is not available to investors?

Which of the following is not an advantage of the corporate form of business organization?

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

An advantage of the corporate form of business is that

What are the advantages to a business of being formed as a corporation? What are the disadvantages?

The information needs and questions of external users vary considerably.

Which financial statement is prepared first?

Which of the following is a user of accounting information with an indirect financial interest in a business?

Most business enterprises in the United States are

International standards are referred to as

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 and Acquisitions in Accounting

Filters

The basic accounting equation is Assets = + ___.