Question 1

Creditors' rights to assets supersede owners' rights to the assets.

Accepted Answer

A) True 
 B)False

Question 2

Indicate in the space provided by each item whether it would appear on the income statement (IS), balance sheet (BS), or retained earnings statement (RE):

Accepted Answer

The answer of Indicate in the space provided by each...

Question 3

Claims of owners are called

Accepted Answer

A)  dividends. 
B)  stockholders' equity. 
C)  liabilities. 
D)  income payable. 
A)  dividends. 
B)  stockholders' equity. 
C)  liabilities. 
D)  income payable.

Question 4

Management of a business enterprise is the major external user of information.

Accepted Answer

A) True 
 B)False

Question 5

Two primary external users of accounting information are investors and creditors.

Accepted Answer

A) True 
 B)False

Question 6

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Accepted Answer

A)  accounts payable. 
B)  notes receivable. 
C)  taxes payable. 
D)  bonds payable. 
A)  accounts payable. 
B)  notes receivable. 
C)  taxes payable. 
D)  bonds payable.

Question 7

Accounting communicates financial information about a business to both internal and external users.

Accepted Answer

A) True 
 B)False

Question 8

Notes to the financial statements include all of the following except

Accepted Answer

A)  descriptions of significant accounting policies used. 
B)  explanations of uncertainties. 
C)  quantifiable accounting information. 
D)  statistics needed to understand the statements. 
A)  descriptions of significant accounting policies used. 
B)  explanations of uncertainties. 
C)  quantifiable accounting information. 
D)  statistics needed to understand the statements.

Question 9

Financing activities for corporations include borrowing money and selling shares of their own stock.

Accepted Answer

A) True 
 B)False

Question 10

Resources owned by a business are referred to as

Accepted Answer

A)  stockholders' equity. 
B)  liabilities. 
C)  assets. 
D)  revenues. 
A)  stockholders' equity. 
B)  liabilities. 
C)  assets. 
D)  revenues.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Assets are resources owned by a business and provide future services or benefits to the business.

Accepted Answer

A) True 
 B)False

Question 14

Here are incomplete financial statements for Brandon, Inc.     Instructions
Calculate the missing amounts.

Accepted Answer

First note that the retained earnings st

Question 15

Dividends paid

Accepted Answer

A)  increase assets. 
B)  increase expenses. 
C)  decrease revenues. 
D)  decrease retained earnings. 
A)  increase assets. 
B)  increase expenses. 
C)  decrease revenues. 
D)  decrease retained earnings.

Question 16

Buying assets needed to operate a business is an example of a(n)

Accepted Answer

A)  delivering activity. 
B)  financing activity. 
C)  investing activity. 
D)  operating activity. 
A)  delivering activity. 
B)  financing activity. 
C)  investing activity. 
D)  operating activity.

Question 17

Which of the following is not a reason one set of international accounting standards are needed?

Accepted Answer

A)  Multinational corporation. 
B)  Financial markets. 
C)  Information technology. 
D)  All of these answer choices are reasons one set of international accounting standards are needed. 
A)  Multinational corporation. 
B)  Financial markets. 
C)  Information technology. 
D)  All of these answer choices are reasons one set of international accounting standards are needed.

Question 18

Which of the following statements concerning users of accounting information is incorrect?

Accepted Answer

A)  Management is considered an internal user. 
B)  Present creditors are considered external users. 
C)  Regulatory authorities are considered internal users. 
D)  Taxing authorities are considered external users. 
A)  Management is considered an internal user. 
B)  Present creditors are considered external users. 
C)  Regulatory authorities are considered internal users. 
D)  Taxing authorities are considered external users.

Question 19

Which of the following is not a liability?

Accepted Answer

A)  Unearned Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Interest Payable 
A)  Unearned Service Revenue 
B)  Accounts Payable 
C)  Accounts Receivable 
D)  Interest Payable

Question 20

Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules?

Accepted Answer

A)  Taxing authorities 
B)  Regulatory agencies 
C)  Labor Unions 
D)  Management 
A)  Taxing authorities 
B)  Regulatory agencies 
C)  Labor Unions 
D)  Management

Creditors' rights to assets supersede owners' rights to the assets.

Indicate in the space provided by each item whether it would appear on the income statement (IS), balance sheet (BS), or retained earnings statement (RE):

Claims of owners are called

Management of a business enterprise is the major external user of information.

Two primary external users of accounting information are investors and creditors.

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Accounting communicates financial information about a business to both internal and external users.

Notes to the financial statements include all of the following except

Financing activities for corporations include borrowing money and selling shares of their own stock.

Resources owned by a business are referred to as

Which activities involve acquiring the resources to run the business?

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

Assets are resources owned by a business and provide future services or benefits to the business.

Here are incomplete financial statements for Brandon, Inc. Instructions Calculate the missing amounts.

Dividends paid

Buying assets needed to operate a business is an example of a(n)

Which of the following is not a reason one set of international accounting standards are needed?

Which of the following statements concerning users of accounting information is incorrect?

Which of the following is not a liability?

Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules?

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

Creditors' rights to assets supersede owners' rights to the assets.

Indicate in the space provided by each item whether it would appear on the income statement (IS), balance sheet (BS), or retained earnings statement (RE):

Claims of owners are called

Management of a business enterprise is the major external user of information.

Two primary external users of accounting information are investors and creditors.

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Accounting communicates financial information about a business to both internal and external users.

Notes to the financial statements include all of the following except

Financing activities for corporations include borrowing money and selling shares of their own stock.

Resources owned by a business are referred to as

Which activities involve acquiring the resources to run the business?

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

Assets are resources owned by a business and provide future services or benefits to the business.

Here are incomplete financial statements for Brandon, Inc. Instructions Calculate the missing amounts.

Dividends paid

Buying assets needed to operate a business is an example of a(n)

Which of the following is not a reason one set of international accounting standards are needed?

Which of the following statements concerning users of accounting information is incorrect?

Which of the following is not a liability?

Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules?

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