Exam 13: Business Organization and Financial Data

The balance sheet equation or accounting identity can be written as: assets equal liabilities plus owners' equity.

All of the following accounts are considered to be fixed assets on the balance sheet except:

Implicit agency costs do not have a direct expense associated with them,but they harm shareholders anyway.

All of the following forms of organization are taxed at the owners' personal tax rate EXCEPT:

One of the important reasons corporations can accumulate large sums of capital is that they are allowed to sell capital stock.

All of the following accounts are considered to be current liabilities on the balance sheet except:

The _______________ established the Public Company Accounting Oversight Board (PCAOB).

Agency costs are the tangible and intangible revenues generated by shareholders because of the actual or potential selfless actions of managers;and agency costs include explicit,out-of-pocket expenses.

Generally accepted accounting principles are formulated by the:

The 2002 Sarbanes-Oxley Act was designed to:

Financial statements that must be included in the annual report include all of the following EXCEPT:

On the income statement,gross profit is defined as:

Accounting practices and procedures used to prepare financial statements are called:

The actual disbursement of cash is recorded in which of the following financial statements?

Which one of the following balance sheet accounts would not be considered to be a current liability?

Accounting is primarily concerned with matching revenues and expenses while finance focuses on identifying cash inflows and outflows.

Most of the limited liability company shareholders must take active roles in managing the company.

Which of the following would not be considered an asset?

The success of a business in raising funds for operations depends upon the extent that profits can be produced from operations.

The goal of any firm should be the maximization of sales.