Question 1

Which of the following best describes the term "retained earnings" of a company?

Accepted Answer

A) The amount of total profits earned by a company since it began operations. 
B) The amount of claim that the owners have on the assets of the company. 
C) The future economic resources of a company. 
D) The accumulated net income of a company that has not been distributed to owners in the form of dividends. 
A) The amount of total profits earned by a company since it began operations. 
B) The amount of claim that the owners have on the assets of the company. 
C) The future economic resources of a company. 
D) The accumulated net income of a company that has not been distributed to owners in the form of dividends.

Question 2

The classifications in the balance sheet are to help users determine how a company obtained its resources.

Accepted Answer

A) True 
 B)False

Question 3

Complete the following table to compare and contrast sole proprietorships and corporations.

Accepted Answer

The answer of Complete the following table to compare and...

Question 4

A company has current assets of $100,000, total assets of $250,000, current liabilities of $20,000, and long-term liabilities of $50,000. How much of its existing cash can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?

Accepted Answer

A) $ 40,000 
B) $150,000 
C) $180,000 
D) $ 60,000 
A) $ 40,000 
B) $150,000 
C) $180,000 
D) $ 60,000

Question 5

The Income Statement shows

Accepted Answer

A) how much profit the company has earned since it began operations. 
B) net Income equal to the amount of cash on the Balance Sheet. 
C) a summary of the results of operations for a period of time. 
D) the liquidity of the company on an annual basis. 
A) how much profit the company has earned since it began operations. 
B) net Income equal to the amount of cash on the Balance Sheet. 
C) a summary of the results of operations for a period of time. 
D) the liquidity of the company on an annual basis.

Question 6

There are more corporations than sole proprietorships and partnerships in the United States.

Accepted Answer

A) True 
 B)False

Question 7

The three main business activities are financing, operating, and investing.

Accepted Answer

A) True 
 B)False

Question 8

On January 1, 2013, a company reported assets of $1,000,000 and liabilities of $600,000. During 2013, assets decreased by $100,000 and Stockholders' Equity decreased $200,000. What is the amount of liabilities at December 31, 2013?

Accepted Answer

A) $200,000 
B) $500,000 
C) $600,000 
D) $700,000 
A) $200,000 
B) $500,000 
C) $600,000 
D) $700,000

Question 9

In the independent auditors' report included with the annual report, management discusses the financial statements and provides the shareholders with explanations for certain amounts reported in the statements.

Accepted Answer

A) True 
 B)False

Question 10

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
-Retained earnings

Accepted Answer

The answer of Several items from the financial statements of...

Question 11

A company had the following balance sheet amounts at the beginning of the year:   During the year, total assets increased by $350,000, total liabilities increased by $100,000, and dividends were paid in the amount of $300,000. No other transactions occurred except revenues and expenses. How much is net income for the year?

Accepted Answer

A) $750,000 
B) $650,000 
C) $500,000 
D) $550,000 
A) $750,000 
B) $650,000 
C) $500,000 
D) $550,000

Question 12

Calculate total sales for a company that reported a net loss of $1,500,000 and total expenses of $2,900,000.

Accepted Answer

A) $4,400,000 
B) $1,400,000 
C) $2,400,000 
D) $1,600,000 
A) $4,400,000 
B) $1,400,000 
C) $2,400,000 
D) $1,600,000

Question 13

Which of the following represents one of the purposes of the Auditor's Report?

Accepted Answer

A) To provide a place for management to justify questionable items in the statements. 
B) To provide comparative ratios for the company's financial data 
C) To provide the CPA's opinion of the fairness of the financial statements. 
D) To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position. 
A) To provide a place for management to justify questionable items in the statements. 
B) To provide comparative ratios for the company's financial data 
C) To provide the CPA's opinion of the fairness of the financial statements. 
D) To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

Question 14

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
-Cash

Accepted Answer

The answer of Several items from the financial statements of...

Question 15

The primary objective of internal auditors who are employees of the company is to provide assurance to the company's stockholders that the financial statements are fairly presented.

Accepted Answer

A) True 
 B)False

Question 16

Determine the following amounts for Ben & Terry's Ice Cream.

Accepted Answer

The answer of Determine the following amounts for Ben &...

Question 17

Match each statement to the item listed below.
a.Cash flows from financing activities
b.Cash flows from investing activities
c.Cash flows from operating activities
-Cash flows related to obtaining capital for the company

Accepted Answer

The answer of Match each statement to the item listed...

Question 18

Barnes Restaurant reports the following amounts:   Calculate Current Assets.

Accepted Answer

A) $457,000 
B) $615,000 
C) $125,000 
D) $340,000 
A) $457,000 
B) $615,000 
C) $125,000 
D) $340,000

Question 19

The following balances were taken from the company's records:
  
-Refer to Bass Tours. Calculate the current ratio.

Accepted Answer

A) 3.00 to 1 
B) 2.75 to 1 
C) 2.52 to 1 
D) 2.10 to 1 
A) 3.00 to 1 
B) 2.75 to 1 
C) 2.52 to 1 
D) 2.10 to 1

Question 20

How does the definition of a current liability relate to that of a current asset?

Accepted Answer

Current liabilities are obligations that

Which of the following best describes the term "retained earnings" of a company?

The classifications in the balance sheet are to help users determine how a company obtained its resources.

Complete the following table to compare and contrast sole proprietorships and corporations.

A company has current assets of $100,000, total assets of $250,000, current liabilities of $20,000, and long-term liabilities of $50,000. How much of its existing cash can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?

The Income Statement shows

There are more corporations than sole proprietorships and partnerships in the United States.

The three main business activities are financing, operating, and investing.

On January 1, 2013, a company reported assets of $1,000,000 and liabilities of $600,000. During 2013, assets decreased by $100,000 and Stockholders' Equity decreased $200,000. What is the amount of liabilities at December 31, 2013?

In the independent auditors' report included with the annual report, management discusses the financial statements and provides the shareholders with explanations for certain amounts reported in the statements.

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 -Retained earnings

Calculate total sales for a company that reported a net loss of $1,500,000 and total expenses of $2,900,000.

Which of the following represents one of the purposes of the Auditor's Report?

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 -Cash

The primary objective of internal auditors who are employees of the company is to provide assurance to the company's stockholders that the financial statements are fairly presented.

Determine the following amounts for Ben & Terry's Ice Cream.

Match each statement to the item listed below. a.Cash flows from financing activities b.Cash flows from investing activities c.Cash flows from operating activities -Cash flows related to obtaining capital for the company

Barnes Restaurant reports the following amounts: Calculate Current Assets.

The following balances were taken from the company's records: -Refer to Bass Tours. Calculate the current ratio.

How does the definition of a current liability relate to that of a current asset?

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 1: Accounting and the Financial Statements

Which of the following best describes the term "retained earnings" of a company?

The classifications in the balance sheet are to help users determine how a company obtained its resources.

Complete the following table to compare and contrast sole proprietorships and corporations.

A company has current assets of $100,000, total assets of $250,000, current liabilities of $20,000, and long-term liabilities of $50,000. How much of its existing cash can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?

The Income Statement shows

There are more corporations than sole proprietorships and partnerships in the United States.

The three main business activities are financing, operating, and investing.

On January 1, 2013, a company reported assets of $1,000,000 and liabilities of $600,000. During 2013, assets decreased by $100,000 and Stockholders' Equity decreased $200,000. What is the amount of liabilities at December 31, 2013?

In the independent auditors' report included with the annual report, management discusses the financial statements and provides the shareholders with explanations for certain amounts reported in the statements.

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 -Retained earnings

Calculate total sales for a company that reported a net loss of $1,500,000 and total expenses of $2,900,000.

Which of the following represents one of the purposes of the Auditor's Report?

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 -Cash

The primary objective of internal auditors who are employees of the company is to provide assurance to the company's stockholders that the financial statements are fairly presented.

Determine the following amounts for Ben & Terry's Ice Cream.

Match each statement to the item listed below. a.Cash flows from financing activities b.Cash flows from investing activities c.Cash flows from operating activities -Cash flows related to obtaining capital for the company

Barnes Restaurant reports the following amounts: Calculate Current Assets.

The following balances were taken from the company's records: -Refer to Bass Tours. Calculate the current ratio.

How does the definition of a current liability relate to that of a current asset?

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Cost of Goods Sold and Inventory

Operating Assets

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters