Exam 1: Business Decisions and Financial Accounting

A company began the year with assets of $100,000 and liabilities of $75,000.During the year assets increased by $12,000 and liabilities decreased by $9,000. -Use the information above to answer the following question.What is the amount of the change in stockholders' equity during the year?

In the United States,generally accepted accounting principles (GAAP)are established by the PCAOB (Public Company Accounting Oversight Board).

Which of the following items appear on more than one financial statement?

Which of the following statements about a fiscal year is correct?

The statement of cash flows shows the following information: -Cash provided by operating activities of $16,500 -Cash used by investing activities of $8,400 -Cash used by financing activities of $2,900 The beginning cash was $14,000.What is the amount of cash at the end of the period?

Assets:

A company owes $200,000 on a bank loan.It will be reported by the company as Notes Payable.

Which of the following is the set of laws enacted by the government to strengthen corporate reporting in response to the Enron,WorldCom and other frauds?

Investing activities on the statement of cash flows arise from transactions:

Which of the following financial statements shows how net income (loss)and dividends impacted a stockholders' equity account?

The statement of cash flows for a company contained the following: -Cash flows from operating activities in the amount of $29,000 -Cash flows from investing activities in the amount of$30,000 -Cash flows from (used by)financing activities in the amount of ($45,000) What was the change in cash for the period?

If XYZ Company had $12 million in revenue and net income of $3 million,then its:

All corporations acquire financing by issuing stock for sale on public stock exchanges.

A list of Year 3 revenues and expenses for Green Thumb,Inc.is provided below. Required: Part a.Calculate the net income for the Green Thumb,Inc.for Year 3. Part 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.

Expenses are:

Which of the following statements about a company's fiscal year is correct?

The separate entity assumption means:

Liabilities reported on the balance sheet include:

Which of the following descriptions about a note payable is correct?

The obligations and debts of a business are referred to as: