Question 1

Long-term debt is a liability that is payable beyond one year from the date of the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

The net income shown on the income statement also appears on the:

Accepted Answer

A) balance sheet and statement of operations. 
B) statement of retained earnings. 
C) statement of cash flows,if the indirect method is used. 
D) B and C. 
A) balance sheet and statement of operations. 
B) statement of retained earnings. 
C) statement of cash flows,if the indirect method is used. 
D) B and C.

Question 3

An important factor to consider when determining how to organize a business is that:

Accepted Answer

A) members of an LLC have unlimited liability and are taxed like members of a partnership. 
B) for accounting purposes,a proprietorship is a distinct entity,separate from the proprietor. 
C) partnerships are subject to double taxation. 
D) a corporation is not legally distinct from its owners. 
A) members of an LLC have unlimited liability and are taxed like members of a partnership. 
B) for accounting purposes,a proprietorship is a distinct entity,separate from the proprietor. 
C) partnerships are subject to double taxation. 
D) a corporation is not legally distinct from its owners.

Question 4

Regarding the decision framework for making ethical accounting judgments,state the guidelines for each of the following decisions.
1.What is the issue?
2.Who are the stakeholders,and what are the consequences of the decision to each?

Accepted Answer

1.What is the issue?
The issue will usua

Question 5

The Income Statement is used to prepare the:

Accepted Answer

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

Question 6

Accounting is an information system that measures business activities.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is TRUE?

Accepted Answer

A) Dividends are expenses of a business. 
B) Dividends reduce retained earnings. 
C) Dividends increase retained earnings. 
D) Dividends reduce net income. 
A) Dividends are expenses of a business. 
B) Dividends reduce retained earnings. 
C) Dividends increase retained earnings. 
D) Dividends reduce net income.

Question 8

Which financial statement answers the following question: How well did the company perform during the year?

Accepted Answer

A) statement of cash flows 
B) income statement 
C) statement of retained earnings 
D) balance sheet 
A) statement of cash flows 
B) income statement 
C) statement of retained earnings 
D) balance sheet

Question 9

Since Habitat for Humanity is not concerned about making a profit,the entity does not need to use accounting information.

Accepted Answer

A) True 
 B)False

Question 10

The ending balance of Retained Earnings is reported on the:

Accepted Answer

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

Question 11

Wetzel Company has the following accounts and balances at the end of the fiscal year:
   Prepare the Income Statement,Statement of Retained Earnings,and Balance Sheet.
Income Statement
   Statement of Retained Earnings
   Balance Sheet

Accepted Answer

Income Statement
 @#IMG-DLM& S

Question 12

The basic component of paid-in capital is common stock.

Accepted Answer

A) True 
 B)False

Question 13

If an investor wants to know a company's cash balance at the end of the year,this balance is reported on the:

Accepted Answer

A) balance sheet. 
B) statement of cash flows. 
C) income statement. 
D) A and B. 
A) balance sheet. 
B) statement of cash flows. 
C) income statement. 
D) A and B.

Question 14

Which of the following statements is TRUE for a limited liability company?

Accepted Answer

A) Members have unlimited liability for the debts of the business. 
B) Members have limited liability for debts only up to the extent of their investment in the LLC. 
C) Only the limited partners have limited liability for the debts of the business. 
D) Members are not taxed like members of a partnership. 
A) Members have unlimited liability for the debts of the business. 
B) Members have limited liability for debts only up to the extent of their investment in the LLC. 
C) Only the limited partners have limited liability for the debts of the business. 
D) Members are not taxed like members of a partnership.

Question 15

At the end of the current accounting period,account balances were as follows: Cash,$29,000;Accounts Receivable,$44,000;Common Stock,$18,000;Retained Earnings,$14,000.Liabilities for the period were:

Accepted Answer

A) $73,000. 
B) $55,000. 
C) $59,000. 
D) $41,000. 
A) $73,000. 
B) $55,000. 
C) $59,000. 
D) $41,000.

Question 16

Equipment would appear on the:

Accepted Answer

A) balance sheet with long-term assets. 
B) income statement with revenues. 
C) income statement with operating expenses. 
D) balance sheet with current assets. 
A) balance sheet with long-term assets. 
B) income statement with revenues. 
C) income statement with operating expenses. 
D) balance sheet with current assets.

Question 17

A company's main source of cash should be:

Accepted Answer

A) operating activities. 
B) financing activities. 
C) investing activities. 
D) all of the above. 
A) operating activities. 
B) financing activities. 
C) investing activities. 
D) all of the above.

Question 18

Which of the following increases retained earnings?

Accepted Answer

A) net loss 
B) net income 
C) expenses 
D) dividends 
A) net loss 
B) net income 
C) expenses 
D) dividends

Question 19

The Statement of Retained Earnings is used to prepare the:

Accepted Answer

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

Question 20

The income statement:

Accepted Answer

A) is not dated. 
B) must cover only a month in time. 
C) covers a defined period of time. 
D) reports the results of operations since the inception of the business. 
A) is not dated. 
B) must cover only a month in time. 
C) covers a defined period of time. 
D) reports the results of operations since the inception of the business.

Long-term debt is a liability that is payable beyond one year from the date of the financial statements.

The net income shown on the income statement also appears on the:

An important factor to consider when determining how to organize a business is that:

Regarding the decision framework for making ethical accounting judgments,state the guidelines for each of the following decisions. 1.What is the issue? 2.Who are the stakeholders,and what are the consequences of the decision to each?

The Income Statement is used to prepare the:

Accounting is an information system that measures business activities.

Which of the following statements is TRUE?

Which financial statement answers the following question: How well did the company perform during the year?

Since Habitat for Humanity is not concerned about making a profit,the entity does not need to use accounting information.

The ending balance of Retained Earnings is reported on the:

Wetzel Company has the following accounts and balances at the end of the fiscal year: Prepare the Income Statement,Statement of Retained Earnings,and Balance Sheet. Income Statement Statement of Retained Earnings Balance Sheet

The basic component of paid-in capital is common stock.

If an investor wants to know a company's cash balance at the end of the year,this balance is reported on the:

Which of the following statements is TRUE for a limited liability company?

At the end of the current accounting period,account balances were as follows: Cash,$29,000;Accounts Receivable,$44,000;Common Stock,$18,000;Retained Earnings,$14,000.Liabilities for the period were:

Equipment would appear on the:

A company's main source of cash should be:

Which of the following increases retained earnings?

The Statement of Retained Earnings is used to prepare the:

The income statement:

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

Long-term debt is a liability that is payable beyond one year from the date of the financial statements.

The net income shown on the income statement also appears on the:

An important factor to consider when determining how to organize a business is that:

Regarding the decision framework for making ethical accounting judgments,state the guidelines for each of the following decisions. 1.What is the issue? 2.Who are the stakeholders,and what are the consequences of the decision to each?

The Income Statement is used to prepare the:

Accounting is an information system that measures business activities.

Which of the following statements is TRUE?

Which financial statement answers the following question: How well did the company perform during the year?

Since Habitat for Humanity is not concerned about making a profit,the entity does not need to use accounting information.

The ending balance of Retained Earnings is reported on the:

Wetzel Company has the following accounts and balances at the end of the fiscal year: Prepare the Income Statement,Statement of Retained Earnings,and Balance Sheet. Income Statement Statement of Retained Earnings Balance Sheet

The basic component of paid-in capital is common stock.

If an investor wants to know a company's cash balance at the end of the year,this balance is reported on the:

Which of the following statements is TRUE for a limited liability company?

At the end of the current accounting period,account balances were as follows: Cash,$29,000;Accounts Receivable,$44,000;Common Stock,$18,000;Retained Earnings,$14,000.Liabilities for the period were:

Equipment would appear on the:

A company's main source of cash should be:

Which of the following increases retained earnings?

The Statement of Retained Earnings is used to prepare the:

The income statement:

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