Question 1

The accuracy of the information contained in the financial statements is the responsibility of the

Accepted Answer

A)  Stockholders 
B)  Certified Public Accountant 
C)  Management 
D)  Securities and Exchange Commission 
A)  Stockholders 
B)  Certified Public Accountant 
C)  Management 
D)  Securities and Exchange Commission

Question 2

Exhibit 2-1 The following data were taken from the records of Moss Corporation for the year ending December 31, 2012:
 
- Refer to Exhibit 2-1. Given the above information, assets on December 31, 2012, were

Accepted Answer

A)  $16,830 
B)  $5,025 
C)  $18,060 
D)  $11,250 
A)  $16,830 
B)  $5,025 
C)  $18,060 
D)  $11,250

Question 3

Exhibit 2-3 During the month, Meridian Company had the following cash transactions:
 
- Refer to Exhibit 2-3. Given the above information, compute cash flow from financing activities.

Accepted Answer

A)  $6,900 
B)  $3,900 
C)  $12,100 
D)  $9,100 
A)  $6,900 
B)  $3,900 
C)  $12,100 
D)  $9,100

Question 4

Which of the following types of accounts show how resources came into a firm?

Accepted Answer

A)  Liabilities 
B)  Owners' equity 
C)  Assets 
D)  Both liabilities and owners' equity 
A)  Liabilities 
B)  Owners' equity 
C)  Assets 
D)  Both liabilities and owners' equity

Question 5

The transactions carried out by Blue Waters Corporation during the year caused an increase in total assets of $25,650 and a decrease in total liabilities of $12,250. If no additional stock was issued during the year and dividends of $7,850 were paid, what was the net income for the year?

Accepted Answer

A)  $53,600 
B)  $45,750 
C)  $29,100 
D)  $13,400 
A)  $53,600 
B)  $45,750 
C)  $29,100 
D)  $13,400

Question 6

Which of the following is an example of a nonoperating expense?

Accepted Answer

A)  Salary expense 
B)  Interest expense 
C)  Cost of goods sold 
D)  Advertising expense 
A)  Salary expense 
B)  Interest expense 
C)  Cost of goods sold 
D)  Advertising expense

Question 7

During the year, Roger Company earned revenues of $114,000, incurred $98,000 for various operating expenses, and distributed $5,600 in dividends. If retained earnings for the previous year was $34,600, what is retained earnings for the current year?

Accepted Answer

A)  $45,000 
B)  $24,200 
C)  $16,000 
D)  $34,600 
A)  $45,000 
B)  $24,200 
C)  $16,000 
D)  $34,600

Question 8

Which of the following generally is NOT considered to be a liability?

Accepted Answer

A)  Notes payable 
B)  Taxes payable 
C)  Inventory 
D)  Accounts payable 
A)  Notes payable 
B)  Taxes payable 
C)  Inventory 
D)  Accounts payable

Question 9

Which of the following classifications refers to those activities that are part of the day-to-day business of a company?

Accepted Answer

A)  Investing 
B)  Operating 
C)  Borrowing 
D)  Financing 
A)  Investing 
B)  Operating 
C)  Borrowing 
D)  Financing

Question 10

Which of the following is NOT one of the four general types of financial statement notes?

Accepted Answer

A)  Summary of significant accounting policies 
B)  Additional information about the summary totals found in the financial statements 
C)  Disclosure of important information that is not recognized in the financial statements 
D)  Supplementary information required by the Internal Revenue Service 
A)  Summary of significant accounting policies 
B)  Additional information about the summary totals found in the financial statements 
C)  Disclosure of important information that is not recognized in the financial statements 
D)  Supplementary information required by the Internal Revenue Service

Question 11

On December 31, 2013, Skidmore Company had the following cash flow data:
  
Skidmore Company had a cash balance of $750,000 on January 1, 2013. Given the above information, compute the following items:

Accepted Answer

Skidmore Company had a cash ba

Question 12

During 2013, Genoa Corporation had revenues of $198,000 and expenses of $156,000. Dividends of $28,000 were paid during the year and additional stock was issued for $21,400. If total assets and total liabilities on January 1, 2013, were $130,000 and $56,000, respectively, how much is owners' equity on December 31, 2013?

Accepted Answer

A)  $137,400 
B)  $109,400 
C)  $81,400 
D)  $65,400 
A)  $137,400 
B)  $109,400 
C)  $81,400 
D)  $65,400

Question 13

If a company has $528,000 of sales revenue, pays $26,400 in dividends, and has net income of $158,400, how much were the expenses for the year?

Accepted Answer

A)  $343,200 
B)  $422,400 
C)  $396,000 
D)  $369,600 
A)  $343,200 
B)  $422,400 
C)  $396,000 
D)  $369,600

Question 14

Which of the following would be classified as a long-term asset?

Accepted Answer

A)  Accounts payable 
B)  Land 
C)  Inventory 
D)  Accounts receivable 
A)  Accounts payable 
B)  Land 
C)  Inventory 
D)  Accounts receivable

Question 15

Which of the following distinguishes between current and long-term assets?

Accepted Answer

A)  Comparative balance sheet 
B)  Income statement 
C)  Classified balance sheet 
D)  Liquidity balance sheet 
A)  Comparative balance sheet 
B)  Income statement 
C)  Classified balance sheet 
D)  Liquidity balance sheet

Question 16

Which of the following financial statements provides a picture of the enterprise at a particular point in time?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of cash flows 
D)  Statement of retained earnings 
A)  Balance sheet 
B)  Income statement 
C)  Statement of cash flows 
D)  Statement of retained earnings

Question 17

The following information was taken from the Hall Corporation's books:
  
Prepare an income statement for the year ended December 31, 2013 (assume that 10,000 shares of stock are outstanding).

Accepted Answer

Prepare an income statement fo

Question 18

Which of the following is NOT included in the statement of retained earnings?

Accepted Answer

A)  Dividends 
B)  Net income 
C)  Beginning of year retained earnings 
D)  Owner investment 
A)  Dividends 
B)  Net income 
C)  Beginning of year retained earnings 
D)  Owner investment

Question 19

Which of the following is generally considered to be an asset?

Accepted Answer

A)  Notes payable 
B)  Mortgage payable 
C)  Accounts receivable 
D)  Unearned revenue 
A)  Notes payable 
B)  Mortgage payable 
C)  Accounts receivable 
D)  Unearned revenue

Question 20

On December 31, 2013, Halloway Company had the following financial information on its books:
  
Additional information for Halloway's 2013 operations revealed that the company had beginning retained earnings of $120,000 for the year, a beginning cash balance of $35,000, and dividends paid of $45,000. Based on this information, compute the following items at December 31, 2013:

Accepted Answer

Additional information for Halloway's 20

Exam 2: Financial Statements: An Overview

The accuracy of the information contained in the financial statements is the responsibility of the

Exhibit 2-1 The following data were taken from the records of Moss Corporation for the year ending December 31, 2012: - Refer to Exhibit 2-1. Given the above information, assets on December 31, 2012, were

Exhibit 2-3 During the month, Meridian Company had the following cash transactions: - Refer to Exhibit 2-3. Given the above information, compute cash flow from financing activities.

Which of the following types of accounts show how resources came into a firm?

The transactions carried out by Blue Waters Corporation during the year caused an increase in total assets of $25,650 and a decrease in total liabilities of $12,250. If no additional stock was issued during the year and dividends of $7,850 were paid, what was the net income for the year?

Which of the following is an example of a nonoperating expense?

During the year, Roger Company earned revenues of $114,000, incurred $98,000 for various operating expenses, and distributed $5,600 in dividends. If retained earnings for the previous year was $34,600, what is retained earnings for the current year?

Which of the following generally is NOT considered to be a liability?

Which of the following classifications refers to those activities that are part of the day-to-day business of a company?

Which of the following is NOT one of the four general types of financial statement notes?

On December 31, 2013, Skidmore Company had the following cash flow data: Skidmore Company had a cash balance of $750,000 on January 1, 2013. Given the above information, compute the following items:

If a company has $528,000 of sales revenue, pays $26,400 in dividends, and has net income of $158,400, how much were the expenses for the year?

Which of the following would be classified as a long-term asset?

Which of the following distinguishes between current and long-term assets?

Which of the following financial statements provides a picture of the enterprise at a particular point in time?

The following information was taken from the Hall Corporation's books: Prepare an income statement for the year ended December 31, 2013 (assume that 10,000 shares of stock are outstanding).

Which of the following is NOT included in the statement of retained earnings?

Which of the following is generally considered to be an asset?

Accounting Information: Users and Uses

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

New Measures of Performance

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