Question 1

The historical cost principle is not used widely in the United States to value assets.

Accepted Answer

A) True 
 B)False

Question 2

A construction company paid $82,000 cash for land used in the business.At the time of purchase,the land had a list price of $90,000.When the balance sheet was prepared,the fair value of the land was $85,000.At what amount should the land be reported on the balance sheet of the company?

Accepted Answer

A) $82,000 
B) $85,000 
C) $86,000 
D) $90,000 
A) $82,000 
B) $85,000 
C) $86,000 
D) $90,000

Question 3

Cash dividends declared:

Accepted Answer

A) decrease revenue on the income statement. 
B) decrease retained earnings on the statement of retained earnings. 
C) increase expenses on the income statement. 
D) decrease operating activities on the statement of cash flows. 
A) decrease revenue on the income statement. 
B) decrease retained earnings on the statement of retained earnings. 
C) increase expenses on the income statement. 
D) decrease operating activities on the statement of cash flows.

Question 4

Expenses are decreases in retained earnings that result from operations.

Accepted Answer

A) True 
 B)False

Question 5

The three factors that influence business and accounting decisions are:

Accepted Answer

A) judgment,cost/benefit analysis,and cultural backgrounds. 
B) minimizing costs,maximizing profits and cost/benefit tradeoff. 
C) economic,legal,and ethical. 
D) legal implications,socioeconomic backgrounds,profit maximization. 
A) judgment,cost/benefit analysis,and cultural backgrounds. 
B) minimizing costs,maximizing profits and cost/benefit tradeoff. 
C) economic,legal,and ethical. 
D) legal implications,socioeconomic backgrounds,profit maximization.

Question 6

Examples of liabilities include:

Accepted Answer

A) accounts payable and dividends. 
B) accounts payable and common stock. 
C) investments and note payable. 
D) accounts payable and long-term debt. 
A) accounts payable and dividends. 
B) accounts payable and common stock. 
C) investments and note payable. 
D) accounts payable and long-term debt.

Question 7

The Statement of Retained Earnings is used to prepare the:

Accepted Answer

A) Income Statement. 
B) Statement of Assets. 
C) Statement of Cash Flows. 
D) Balance Sheet. 
A) Income Statement. 
B) Statement of Assets. 
C) Statement of Cash Flows. 
D) Balance Sheet.

Question 8

The balance sheet is organized in terms of the organization's operating,investing,and financing activities.

Accepted Answer

A) True 
 B)False

Question 9

The portion of net income that the company has kept over a period of years and not used for dividends is called:

Accepted Answer

A) common stock. 
B) retained earnings. 
C) revenue. 
D) gross profit. 
A) common stock. 
B) retained earnings. 
C) revenue. 
D) gross profit.

Question 10

Which financial statement is dated at the moment in time when the accounting period ends?

Accepted Answer

A) Balance Sheet 
B) Income Statement 
C) Statement of Retained Earnings and Income Statement 
D) Statement of Cash Flows 
A) Balance Sheet 
B) Income Statement 
C) Statement of Retained Earnings and Income Statement 
D) Statement of Cash Flows

Question 11

Accounting information is used by investors and creditors,but not by regulatory bodies.

Accepted Answer

A) True 
 B)False

The historical cost principle is not used widely in the United States to value assets.

A construction company paid $82,000 cash for land used in the business.At the time of purchase,the land had a list price of $90,000.When the balance sheet was prepared,the fair value of the land was $85,000.At what amount should the land be reported on the balance sheet of the company?

Cash dividends declared:

Expenses are decreases in retained earnings that result from operations.

The three factors that influence business and accounting decisions are:

Examples of liabilities include:

The Statement of Retained Earnings is used to prepare the:

The balance sheet is organized in terms of the organization's operating,investing,and financing activities.

The portion of net income that the company has kept over a period of years and not used for dividends is called:

Which financial statement is dated at the moment in time when the accounting period ends?

Accounting information is used by investors and creditors,but not by regulatory bodies.

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

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: The Financial Statements

The historical cost principle is not used widely in the United States to value assets.

A construction company paid $82,000 cash for land used in the business.At the time of purchase,the land had a list price of $90,000.When the balance sheet was prepared,the fair value of the land was $85,000.At what amount should the land be reported on the balance sheet of the company?

Cash dividends declared:

Expenses are decreases in retained earnings that result from operations.

The three factors that influence business and accounting decisions are:

Examples of liabilities include:

The Statement of Retained Earnings is used to prepare the:

The balance sheet is organized in terms of the organization's operating,investing,and financing activities.

The portion of net income that the company has kept over a period of years and not used for dividends is called:

Which financial statement is dated at the moment in time when the accounting period ends?

Accounting information is used by investors and creditors,but not by regulatory bodies.

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters