Exam 1: Business Decisions and Financial Accounting

During the first year of operations,a company sold $80,000 of goods to customers and received $72,000 in cash from customers.The remainder is owed to the company at the end of the year.The company incurred $56,000 in expenses for the year and paid $52,000 in cash for these expenses.The remainder is owed by the company at the end of the year.Based on this information,what is the amount of net income for the year?

The owner(s)of a business are not taxed on the profits of the business if the business is a:

Each of the following independent companies is missing numerical data. Required: Use your knowledge of the financial statement equations and their interrelationships to fill in the missing amounts.

Relevance is an objective of external financial reporting that means:

At the end of last year,the company's assets totaled $430,000 and its liabilities totaled $370,000.During the current year,the company's total assets increased by $29,000 and its total liabilities increased by $12,000.At the end of the current year,stockholders' equity was:

A creditor might look at a company's financial statements to determine if the:

Which of the following statements about financial statement information is correct?

Which of the following would appear in the cash flows from operating activities section of the statement of cash flows?

Which of these appears on both the income statement and the statement of retained earnings?

If total liabilities decreased by $50,000 and stockholders' equity increased by $10,000 during a period of time,then total assets must change by what amount and direction during that same time period?

If a company reports net income on the income statement,then the statement of cash flows will report the same amount as cash flows from operating activities for the period.

Net income is the amount:

Match the term to the appropriate definition.(There are more definitions than terms. ) -Balance Sheet

Cash flows from (used in)investing activities include amounts:

Every financial statement should have "who,what,and when" in its heading.These include the:

Golden Enterprises started the year with the following: Assets $50,000;Liabilities $15,000;Common Stock $30,000;Retained Earnings $5,000.During the year,the company earned revenue of $2,500,all of which was received in cash,and incurred expenses of $1,500,all of which were unpaid as of the end of the year.In addition,the company paid dividends of $500 to owners.Assume no other activities occurred during the year. The amount of Golden's assets at the end of the year is:

A company's financial records at the end of the year included the following amounts: Cash \ 70,000 Accounts Receivable 28,000 Supplies 4,000 Accounts Payable 10,000 Notes Payable 5,000 Retained Earnings, beginning of year 17,000 Common Stock 40,000 Service Revenue 53,000 Wages Expense 8,000 Advertising Expense 5,000 Rent Expense 10,000 What is the amount of net income on the income statement for the year?

Match the term to the appropriate definition.(There are more definitions than terms. ) -Unit of Measure Assumption

Blue Fin started the current year with assets of $840,000,liabilities of $420,000 and common stock of $240,000.During the current year,assets increased by $480,000,liabilities decreased by $60,000 and common stock increased by $330,000.There was no payment of dividends to owners during the year. What was the amount of Blue Fin's change in total stockholders' equity during the year?

Match the term to the appropriate definition.(There are more definitions than terms. ) -Operating Activities