Question 1

The primary purpose of the statement of cash flows is to report

Accepted Answer

A) a company's investing transactions. 
B) a company's financing transactions. 
C) information about cash receipts and cash payments of a company. 
D) the net increase or decrease in cash. 
A) a company's investing transactions. 
B) a company's financing transactions. 
C) information about cash receipts and cash payments of a company. 
D) the net increase or decrease in cash.

Question 2

If the assets owned by a business total $100000 and liabilities total $65000 stockholders' equity totals $25000.

Accepted Answer

A) True 
 B)False

Question 3

Lankston Company began the year by issuing $120000 of common stock for cash.The company recorded revenues of $1100000 expenses of $960000 and paid dividends of $60000.What was Lankston's net income for the year?

Accepted Answer

A) $80000 
B) $200000 
C) $140000 
D) $260000 
A) $80000 
B) $200000 
C) $140000 
D) $260000

Question 4

Debts and obligations of a business are referred to as

Accepted Answer

A) assets. 
B) equities. 
C) liabilities. 
D) expenses. 
A) assets. 
B) equities. 
C) liabilities. 
D) expenses.

Question 5

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 6

The basic accounting equation states that Assets = Liabilities.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

Liabilities

Accepted Answer

A) are future economic benefits. 
B) are debts and obligations. 
C) possess service potential. 
D) are things of value owned by a business. 
A) are future economic benefits. 
B) are debts and obligations. 
C) possess service potential. 
D) are things of value owned by a business.

Question 11

Marvin Services Corporation had the following accounts and balances: $$\begin{array} { l r l r } 
\text { Accounts payable } & \$ 30,000 & \text { Equipment } & \$ 35,000 \
\text { Accounts receivable } & 5,000 & \text { Land } & 35,000 \
\text { Buil dings } & ? & \text { Unearned service revenue } & 10,000 \
\text { Cash } & 15,000 & \text { Total stockholders' equity } & ?
\end{array}$$ If the balance of the Buildings account was $75000 and the equipment was sold for $35000 what would be the total of stockholders' equity?

Accepted Answer

A) $65000 
B) $90000 
C) $115000 
D) $125000 
A) $65000 
B) $90000 
C) $115000 
D) $125000

Question 12

Barrow Company recorded the following cash transactions for the year: Paid $115000 for salaries.
Paid $40000 to purchase office equipment.
Paid $9000 for utilities.
Sold investments for cash of $5000.
Paid $11000 in dividends.
Collected $295000 from customers.
Issued shares for cash of $120000.
What was Barrow's net cash provided (used) by operating activities?

Accepted Answer

A) ($40000) 
B) $160000 
C) $131000 
D) $180000 
A) ($40000) 
B) $160000 
C) $131000 
D) $180000

Question 13

Which of the following activities involves obtaining the necessary funds to support the business?

Accepted Answer

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

Question 14

The retained earnings statement shows all of the following except

Accepted Answer

A) the amounts of changes in retained earnings during the period. 
B) the causes of changes in retained earnings during the period. 
C) the time period following the one shown for the income statement. 
D) beginning retained earnings on the first line of the statement. 
A) the amounts of changes in retained earnings during the period. 
B) the causes of changes in retained earnings during the period. 
C) the time period following the one shown for the income statement. 
D) beginning retained earnings on the first line of the statement.

Question 15

Net income will result during a time period when

Accepted Answer

A) assets exceed liabilities. 
B) assets exceed revenues. 
C) expenses exceed revenues. 
D) revenues exceed expenses. 
A) assets exceed liabilities. 
B) assets exceed revenues. 
C) expenses exceed revenues. 
D) revenues exceed expenses.

Question 16

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 17

Which of the following would not be considered an internal user of accounting data for the Xanadu Company?

Accepted Answer

A) President of the company 
B) Production manager 
C) Merchandise inventory clerk 
D) President of the employees' labor union 
A) President of the company 
B) Production manager 
C) Merchandise inventory clerk 
D) President of the employees' labor union

Question 18

Ashley's Accessory Shop started the year with total assets of $210000 and total liabilities of $120000.During the year the business recorded $330000 in revenues $165000 in expenses and dividends of $60000.Stockholders' equity at the end of the year was

Accepted Answer

A) $180000. 
B) $165000. 
C) $195000. 
D) $105000. 
A) $180000. 
B) $165000. 
C) $195000. 
D) $105000.

Question 19

Which activities involve acquiring the assets to run the business?

Accepted Answer

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

Question 20

Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?

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

The primary purpose of the statement of cash flows is to report

If the assets owned by a business total $100000 and liabilities total $65000 stockholders' equity totals $25000.

Lankston Company began the year by issuing $120000 of common stock for cash.The company recorded revenues of $1100000 expenses of $960000 and paid dividends of $60000.What was Lankston's net income for the year?

Debts and obligations of a business are referred to as

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

The basic accounting equation states that Assets = Liabilities.

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

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

Dividends are reported on the

Liabilities

Which of the following activities involves obtaining the necessary funds to support the business?

The retained earnings statement shows all of the following except

Net income will result during a time period when

Resources owned by a business are referred to as

Which of the following would not be considered an internal user of accounting data for the Xanadu Company?

Ashley's Accessory Shop started the year with total assets of $210000 and total liabilities of $120000.During the year the business recorded $330000 in revenues $165000 in expenses and dividends of $60000.Stockholders' equity at the end of the year was

Which activities involve acquiring the assets to run the business?

Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 1: Introduction to Financial Statements

The primary purpose of the statement of cash flows is to report

If the assets owned by a business total $100000 and liabilities total $65000 stockholders' equity totals $25000.

Lankston Company began the year by issuing $120000 of common stock for cash.The company recorded revenues of $1100000 expenses of $960000 and paid dividends of $60000.What was Lankston's net income for the year?

Debts and obligations of a business are referred to as

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

The basic accounting equation states that Assets = Liabilities.

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

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

Dividends are reported on the

Liabilities

Which of the following activities involves obtaining the necessary funds to support the business?

The retained earnings statement shows all of the following except

Net income will result during a time period when

Resources owned by a business are referred to as

Which of the following would not be considered an internal user of accounting data for the Xanadu Company?

Ashley's Accessory Shop started the year with total assets of $210000 and total liabilities of $120000.During the year the business recorded $330000 in revenues $165000 in expenses and dividends of $60000.Stockholders' equity at the end of the year was

Which activities involve acquiring the assets to run the business?

Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters