Exam 1: Uses of Accounting Information and the Financial Statements

At the beginning of the year,Fourman Corporation's assets were $270,000 and its stockholders' equity was $243,000.During the year,assets decreased $35,000 and liabilities increased $10,000.What was the stockholders' equity at the end of the year?

The number of authorized shares of stock may be less than the number of outstanding shares.

Barrow Corporation's stockholders' equity equals one-half of the company's total assets.The company's liabilities are $346,000.What is the amount of the company's stockholders' equity?

An accounting measurement is concerned with all except which of the following?

The purchase of equipment for cash would be disclosed on the statement of cash flows.

Financial position may be assessed by referring to a balance sheet.

The board of directors decides on major business policies of a corporation.

The correct order of the three stages of accounting is

The Sarbanes-Oxley Act orders the Financial Accounting Standards Board (FASB)to hold Chief Executive Officers (CEOs)and Chief Financial Officers (CFOs)responsible for the accuracy of their company's financial statements.

The retained earnings figure is typically divided into par value and additional paid-in capital.

The processing stage of accounting is accomplished by

The statement of cash flows would disclose the payment of a dividend

Revenues have the effect of increasing retained earnings.

Which of the following transactions does not involve an exchange of value?

Dividends of a corporation are declared by its

Generally accepted accounting principles (GAAP)

Which of the following groups uses accounting information primarily to help protect the public?

Use this information to answer the following question. Here is the balance sheet for Marron Pickle Company,Inc.: If the equipment were sold for $26,000 cash,then the Retained Earnings account would

Transfer of ownership will not affect the continuity of a

Lin Wo Corporation had a balance in Retained Earnings on December 31,2012,of $360,000.During 2013,the company reported a net income of $24,000 after taxes.During 2013,the company declared and paid cash dividends totaling $18,000.Prepare the company's statement of retained earnings for the year ended December 31,2013.