Exam 1: Business Decisions and Financial Accounting

Universal Corp.has beginning Retained Earnings of $80,000,cash flows from operating activities during the current year of $35,000,dividends paid during the year of $5,000,net income for the current year of $50,000,and Common Stock at the end of the year of $15,000.What is the amount of its Retained Earnings at the end of the year?

The Statement of Cash Flows for the current year contained the following: The change in cash for the current year was an increase of $14,000. What was the amount of cash flows from (used in)operating activities?

Which of the following statements about organizational forms of a business is not correct?

A list of Year 3 revenues and expenses for Green Thumb,Inc.is provided below. Advertising and Promotion Expenses 262,500 Income Tax Expense 56,500 Interest Expense 43,900 Other Expenses 122,400 Other Selling \& Administrative Expenses 350,800 Sales Revenue 1,865,300 Salaries and Wages Expense 724,800 Required: a.Calculate the net income for the Green Thumb,Inc.for Year 3. b.Prepare a statement of retained earnings for Green Thumb,Inc.for Year 3.Assume the company had retained earnings of $162,000 as of January 1,Year 3,and paid out $46,000 in dividends during Year 3.

Match the business activity to the appropriate category. -Company repayment of a bank loan

Stockholders are owners of a corporation.

Which of the following is typically considered a disadvantage of sole proprietorships?

Dividends are reported on the:

Alpha sold $2,000 of services to Beta on credit.Beta promised to pay for it next month.Beta will report a $2,000:

What is the missing amount for Total Liabilities?

The following accounts are taken from the December 31,Year 4 financial statements of a company. What is the amount of total assets at the end of Year 4?

Dividends paid to stockholders:

The WeBuild Construction Company sold $16.5 million of buildings in its first year of operations.The company received payments of $11.25 million for these buildings.The company's income statement would report:

Borrowing from a bank is a(n):

Which of the following requires that its members adhere to a Code of Professional Conduct?

Which of the following statements about financial accounting is correct?

Profit is equal to:

Managerial accounting reports prepared for internal use are used by the company's:

What would a user of financial statements learn from reading the auditors' report?

The Publish or Perish Printing Company paid a dividend to stockholders.This will be reported on the: