Exam 1: Accounting and the Financial Statements

Property, plant and equipment is classified as ____________________ assets on the balance sheet.

When an entity's stock issuances exceed its expenses for a period of time, the entity will report net income.

Businesses engage in which of the following three main activity categories?

The names of the four basic financial statements are ____________________, ____________________, ____________________, and ____________________

-Refer to Bargain Spot Fabrics. What is the retained earnings balance at the end of the current year?

Dunn, Inc., started the year with total assets of $1,400,000 and total liabilities of $240,000. Net income for the year is $1,000,000 and dividends declared and paid during the year are $450,000.

Using good form, prepare an income statement for Ben & Terry's Ice Cream.

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

A company increased its dollar amount of working capital over the past several years. Which one of the following measures should be used to further evaluate the company's short-run liquidity?

A question frequently asked by investors is, "How much debt does this company have?" Which financial statement answers this question?

What is the name for a person who lends funds to a business entity and expects repayment with interest?

Which one of the following is a correct fundamental accounting equation?

If a company has $10,500,000 of revenues, declares and pays $550,000 in dividends, and has net income of $1,600,000, how much were expenses for the year?

The current ratio is found by dividing current assets by ____________________.

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) a.Assets b.Liabilities c.Revenues d.Expenses e.Stockholders' Equity -Net sales

Which of the following is the correct date format for the financial statement heading?

____________________ have claims to an entity's economic resources.

Which financial statement would you refer to in order to determine how much resources (assets)the company owned?

-Refer to Baloon-E-Tunes. Prepare the current liabilities section of the balance sheet at December 31, 2013. You may omit the heading. If the amount of current liabilities were larger, what effect would this have on the current ratio?

Net Income appears on which financial statement(s)?