Exam 1: Uses of Accounting Information and the Financial Statements

Objectivity means carrying out one's professional responsibilities honestly and impartially.

Independence is the avoidance of all relationships that impair or appear to impair the objectivity of the accountant.

The income statement is also known as the statement of financial position.

A proper heading for the income statement could include "As of December 31,2013."

Use the following accounts and information to prepare,in good form,an income statement,statement of retained earnings,and balance sheet for Jasper Enterprises for the year ended December 31,2013. Accounts Payable \ 9,600 Land \ 78,000 Accounts Receivable 1,200 Notes Payable 12,000 Buildings 104,000 Rent Expense 7,200 Cash 52,400 Retained Earnings, 168,800 December 31, 2012 Sales Revenues 38,000 Salaries Expense 16,800 Common Stock 40,000 Inventory 800 Dividends 6,000 Utilities Expense 2,000

The Financial Accounting Standards Board (FASB)is the primary and most important determinant of generally accepted accounting principles.

All of the following statements are false about the Sarbanes-Oxley Act except

All of the following are considered nonexchange transactions except

Dividends are an example of a revenue.

Contributed capital appears in the stockholders' equity section of a corporate balance sheet.

An increase in revenue will result in an increase in stockholders' equity.

The management of a corporation is appointed by the board of directors.

Which of the following is legally a separate entity from its owner(s)?

Companies whose securities are sold to the general public must adhere to standards established by the Securities and Exchange Commission (SEC).

Which three types of transactions affect retained earnings,and how do they affect it?

Which of the following represents the proper order of financial statement preparation?

The audit committee is responsible for all of the following except

The Public Company Accounting Oversight Board (PCAOB)was created by the

For accounting purposes,a business and its owners are considered the same entity.

Palm Textile Corporation had the following balance sheet accounts and balances: Accounts Payable \ 12,000 Common Stock ? Accounts Receivable 2,000 Equipment \ 14,000 Building ? Land 14,000 Cash 6,000 Retained Earnings 4,000 If the balance of the Building account were $16,000 and $6,000 of Accounts Payable were paid in cash,what would be the total liabilities and stockholders' equity?