Question 1

Operating activities include:

Accepted Answer

A)  interest paid on a bank loan 
B)  the buying or selling of land, buildings, equipment, and other long-term investments. 
C)  the repayment of loan proceeds to the bank. 
D)  obtaining a bank loan to cover the payment of wages, rent and other operating costs. 
A)  interest paid on a bank loan 
B)  the buying or selling of land, buildings, equipment, and other long-term investments. 
C)  the repayment of loan proceeds to the bank. 
D)  obtaining a bank loan to cover the payment of wages, rent and other operating costs.

Question 2

Amounts reported on financial statements are sometimes rounded to the nearest million.

Accepted Answer

A) True 
 B)False

Question 3

A company's balance sheet contained the following information:
 
Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

Accepted Answer

A)  $200,000. 
B)  $8,000. 
C)  $72,000. 
D)  $344,000. 
A)  $200,000. 
B)  $8,000. 
C)  $72,000. 
D)  $344,000.

Question 4

The primary goal of most companies is to:

Accepted Answer

A)  raise capital. 
B)  make a profit. 
C)  reduce liabilities. 
D)  pay taxes. 
A)  raise capital. 
B)  make a profit. 
C)  reduce liabilities. 
D)  pay taxes.

Question 5

Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Accepted Answer

A)  dividends. 
B)  equities. 
C)  revenues. 
D)  Retained Earnings. 
A)  dividends. 
B)  equities. 
C)  revenues. 
D)  Retained Earnings.

Question 6

Revenue is reported on the income statement only if cash was received at the point of sale.

Accepted Answer

A) True 
 B)False

Question 7

The owner(s)of a business are taxed on the profits of the business if the business is a:

Accepted Answer

A)  sole proprietorship. 
B)  partnership. 
C)  corporation. 
D)  public partnership. 
A)  sole proprietorship. 
B)  partnership. 
C)  corporation. 
D)  public partnership.

Question 8

Which of the following actions would be considered unethical?

Accepted Answer

A)  A company does not distribute any of its profits to stockholders. 
B)  A company rounds the revenues and expenses that it reports on the income statement. 
C)  An unintentional mistake made by a new accountant. 
D)  Receiving a paycheck for double the amount due to you and not reporting it to your employer. 
A)  A company does not distribute any of its profits to stockholders. 
B)  A company rounds the revenues and expenses that it reports on the income statement. 
C)  An unintentional mistake made by a new accountant. 
D)  Receiving a paycheck for double the amount due to you and not reporting it to your employer.

Question 9

The Don't Bite Me Pest Control Company has 10,000 gallons of insecticide supplies on hand that cost $300,000; a bill from the vendor for $100,000 of these supplies has not yet been paid.The company expects to earn $800,000 for its services when it uses the insecticide supplies.The company's balance sheet would include an asset,Supplies,in the amount of:

Accepted Answer

A)  $10,000. 
B)  $200,000. 
C)  $300,000. 
D)  $800,000. 
A)  $10,000. 
B)  $200,000. 
C)  $300,000. 
D)  $800,000.

Question 10

Financing that individuals or institutions have provided to a corporation is:

Accepted Answer

A)  always classified as a liability. 
B)  classified as a liability when provided by creditors and as stockholders' equity when provided by owners. 
C)  always classified as equity. 
D)  classified as a stockholders' equity when provided by creditors and a liability when provided by owners. 
A)  always classified as a liability. 
B)  classified as a liability when provided by creditors and as stockholders' equity when provided by owners. 
C)  always classified as equity. 
D)  classified as a stockholders' equity when provided by creditors and a liability when provided by owners.

Question 11

-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Accepted Answer

A)  Retained Earnings is misclassified; it should be reported in the Assets section of the balance sheet. 
B)  The $207,100 shown as Retained Earnings on the balance sheet represents the cumulative amount of dividends distributed. 
C)  Anonymous, Inc. is owed $310,500 from customers who have purchased goods or services from the company, but have not yet paid for them. 
D)  The amount of retained earnings reported on this balance sheet represents the retained earnings at the beginning of the year. 
A)  Retained Earnings is misclassified; it should be reported in the Assets section of the balance sheet. 
B)  The $207,100 shown as Retained Earnings on the balance sheet represents the cumulative amount of dividends distributed. 
C)  Anonymous, Inc. is owed $310,500 from customers who have purchased goods or services from the company, but have not yet paid for them. 
D)  The amount of retained earnings reported on this balance sheet represents the retained earnings at the beginning of the year.

Operating activities include:

Amounts reported on financial statements are sometimes rounded to the nearest million.

A company's balance sheet contained the following information: Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

The primary goal of most companies is to:

Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Revenue is reported on the income statement only if cash was received at the point of sale.

The owner(s)of a business are taxed on the profits of the business if the business is a:

Which of the following actions would be considered unethical?

Financing that individuals or institutions have provided to a corporation is:

-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 1: Business Decisions and Financial Accounting

Operating activities include:

Amounts reported on financial statements are sometimes rounded to the nearest million.

A company's balance sheet contained the following information: Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

The primary goal of most companies is to:

Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Revenue is reported on the income statement only if cash was received at the point of sale.

The owner(s)of a business are taxed on the profits of the business if the business is a:

Which of the following actions would be considered unethical?

Financing that individuals or institutions have provided to a corporation is:

-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters