Question 1

Determine the missing items.

Accepted Answer

a. $24000

Question 2

Which of the following is not a step for solving an ethical dilemma?

Accepted Answer

A)  Identifying the alternatives and weighing the impact of each alternative on various stakeholders. 
B)  Certifying the ethical accuracy of the financial information. 
C)  Identifying and analyzing the principal elements in the situation. 
D)  Recognizing the ethical situation and issues involved. 
A)  Identifying the alternatives and weighing the impact of each alternative on various stakeholders. 
B)  Certifying the ethical accuracy of the financial information. 
C)  Identifying and analyzing the principal elements in the situation. 
D)  Recognizing the ethical situation and issues involved.

Question 3

What types of information are presented in the notes to the financial statements?

Accepted Answer

Information included in the notes to the

Question 4

Which of the following would not be considered an internal user of accounting data for a company?

Accepted Answer

A)  The president of a company 
B)  The controller of a company 
C)  Creditor of a company 
D)  Salesperson of a company 
A)  The president of a company 
B)  The controller of a company 
C)  Creditor of a company 
D)  Salesperson of a company

Question 5

Broadway Corporation's stockholders' equity equals one-fourth of the company's total assets. The company's liabilities are $270,000. What is the amount of the company's stockholders' equity?

Accepted Answer

$90000: X

Question 6

Dividends are reported on the

Accepted Answer

A)  income statement. 
B)  retained earnings statement. 
C)  balance sheet. 
D)  income statement and balance sheet. 
A)  income statement. 
B)  retained earnings statement. 
C)  balance sheet. 
D)  income statement and balance sheet.

Question 7

If total liabilities decreased by $75,000 and stockholders' equity decreased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $100,000 increase 
B)  $50,000 decrease 
C)  $100,000 decrease 
D)  -$50,000 decrease 
A)  $100,000 increase 
B)  $50,000 decrease 
C)  $100,000 decrease 
D)  -$50,000 decrease

Question 8

Marvin Services Corporation had the following accounts and balances: $$\begin{array} { l r l r } 
\text { Accounts payable } & \$ 18,000 & \text { Equipment } & \$ 21,000 \
\text { Accounts receivable } & 3,000 & \text { Land } & 21,000 \
\text { Buildings } & ? & \text { Unearned service revenue } & 6,000 \
\text { Cash } & 9,000 & \text { Total stockholders' equity } & ?
\end{array}$$ If the balance of the Buildings account was $42,000 and $3,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?

Accepted Answer

A)  $81,000 
B)  $72,000 
C)  $102,000 
D)  $78,000 
A)  $81,000 
B)  $72,000 
C)  $102,000 
D)  $78,000

Question 9

Which type of corporate information is readily available to investors?

Accepted Answer

A)  Financial comparison of operating alternatives 
B)  Marketing strategies for a product that will be introduced in eighteen months 
C)  Forecasts of cash needs for the upcoming year 
D)  Amount of net income retained in the business 
A)  Financial comparison of operating alternatives 
B)  Marketing strategies for a product that will be introduced in eighteen months 
C)  Forecasts of cash needs for the upcoming year 
D)  Amount of net income retained in the business

Question 10

The statement of cash flows would disclose the payment of a dividend

Accepted Answer

A)  nowhere on the statement. 
B)  in the operating activities section. 
C)  in the investing activities section. 
D)  in the financing activities section. 
A)  nowhere on the statement. 
B)  in the operating activities section. 
C)  in the investing activities section. 
D)  in the financing activities section.

Question 11

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 12

If the retained earnings account decreases from the beginning of the year to the end of the year, then

Accepted Answer

A)  net income is less than dividends. 
B)  there was a net income and no dividends. 
C)  additional investments are less than net losses. 
D)  net income is greater than dividends. 
A)  net income is less than dividends. 
B)  there was a net income and no dividends. 
C)  additional investments are less than net losses. 
D)  net income is greater than dividends.

Question 13

Which of the following is not a common way that managers use the balance sheet?

Accepted Answer

A)  To analyze the balances of assets, liabilities, and stockholders' equity throughout the accounting period 
B)  To determine if the cash balance is sufficient for future needs 
C)  To analyze the balance between debt and common stock financing 
D)  To analyze the balance of accounts receivable on the last day of the accounting period 
A)  To analyze the balances of assets, liabilities, and stockholders' equity throughout the accounting period 
B)  To determine if the cash balance is sufficient for future needs 
C)  To analyze the balance between debt and common stock financing 
D)  To analyze the balance of accounts receivable on the last day of the accounting period

Question 14

Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

Accepted Answer

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

Question 15

Liabilities of a company are owed to

Accepted Answer

A)  debtors. 
B)  owners. 
C)  creditors. 
D)  stockholders. 
A)  debtors. 
B)  owners. 
C)  creditors. 
D)  stockholders.

Question 16

GAAP, compared to IFRS, tends to be more

Accepted Answer

A)  simple in accounting requirements. 
B)  rules-based. 
C)  principles-based. 
D)  simple in disclosure requirements. 
A)  simple in accounting requirements. 
B)  rules-based. 
C)  principles-based. 
D)  simple in disclosure requirements.

Question 17

International standards are developed by the

Accepted Answer

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

Question 18

Henson Company began the year with retained earnings of $330,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?

Accepted Answer

A)  $490,000 
B)  $410,000 
C)  $790,000 
D)  $450,000 
A)  $490,000 
B)  $410,000 
C)  $790,000 
D)  $450,000

Question 19

The accounting equation can be expressed as Assets - Liabilities = Stockholders' Equity.

Accepted Answer

A) True 
 B)False

Question 20

The economic resources that are owned by a business are called stockholders' equity.

Accepted Answer

A) True 
 B)False

Determine the missing items.

Which of the following is not a step for solving an ethical dilemma?

What types of information are presented in the notes to the financial statements?

Which of the following would not be considered an internal user of accounting data for a company?

Broadway Corporation's stockholders' equity equals one-fourth of the company's total assets. The company's liabilities are $270,000. What is the amount of the company's stockholders' equity?

Dividends are reported on the

If total liabilities decreased by $75,000 and stockholders' equity decreased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Which type of corporate information is readily available to investors?

The statement of cash flows would disclose the payment of a dividend

The common characteristic possessed by all assets is

If the retained earnings account decreases from the beginning of the year to the end of the year, then

Which of the following is not a common way that managers use the balance sheet?

Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

Liabilities of a company are owed to

GAAP, compared to IFRS, tends to be more

International standards are developed by the

Henson Company began the year with retained earnings of $330,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?

The accounting equation can be expressed as Assets - Liabilities = Stockholders' Equity.

The economic resources that are owned by a business are called stockholders' equity.

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

Determine the missing items.

Which of the following is not a step for solving an ethical dilemma?

What types of information are presented in the notes to the financial statements?

Which of the following would not be considered an internal user of accounting data for a company?

Broadway Corporation's stockholders' equity equals one-fourth of the company's total assets. The company's liabilities are $270,000. What is the amount of the company's stockholders' equity?

Dividends are reported on the

If total liabilities decreased by $75,000 and stockholders' equity decreased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Which type of corporate information is readily available to investors?

The statement of cash flows would disclose the payment of a dividend

The common characteristic possessed by all assets is

If the retained earnings account decreases from the beginning of the year to the end of the year, then

Which of the following is not a common way that managers use the balance sheet?

Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

Liabilities of a company are owed to

GAAP, compared to IFRS, tends to be more

International standards are developed by the

Henson Company began the year with retained earnings of $330,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?

The accounting equation can be expressed as Assets - Liabilities = Stockholders' Equity.

The economic resources that are owned by a business are called stockholders' equity.

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