Question 1

All of the following would be considered investing activities on the statement of cash flows EXCEPT for:

Accepted Answer

A) purchase of land for cash. 
B) the sale of equipment for cash. 
C) the payment of cash dividends. 
D) the purchase of equipment for cash. 
A) purchase of land for cash. 
B) the sale of equipment for cash. 
C) the payment of cash dividends. 
D) the purchase of equipment for cash.

Question 2

What is the proper order for the different categories of cash flows reported on the statement of cash flows?

Accepted Answer

A) financing activities,investing activities,and operating activities 
B) operating activities,investing activities,and financing activities 
C) operating activities,financing activities,and investing activities 
D) investing activities,financing activities,and operating activities 
A) financing activities,investing activities,and operating activities 
B) operating activities,investing activities,and financing activities 
C) operating activities,financing activities,and investing activities 
D) investing activities,financing activities,and operating activities

Question 3

Four ways a business can be organized include:

Accepted Answer

Proprietorship,Partn

Question 4

The accounting equation must always be in balance.

Accepted Answer

A) True 
 B)False

Question 5

All of the following line items are found on the income statement EXCEPT for:

Accepted Answer

A) cost of product sold. 
B) interest expense. 
C) operating expense. 
D) dividends declared. 
A) cost of product sold. 
B) interest expense. 
C) operating expense. 
D) dividends declared.

Question 6

The assets of a company:

Accepted Answer

A) must equal the liabilities of the company. 
B) include property,plant,and equipment and accounts payable. 
C) represent economic resources that are expected to produce a future benefit. 
D) include short-term investments and notes payable. 
A) must equal the liabilities of the company. 
B) include property,plant,and equipment and accounts payable. 
C) represent economic resources that are expected to produce a future benefit. 
D) include short-term investments and notes payable.

Question 7

Revenues and expenses are reported on both the income statement and the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 8

Accounting produces financial statements,which report information about a business.

Accepted Answer

A) True 
 B)False

Question 9

The balance sheet reports information about:

Accepted Answer

A) revenues,expenses,and equity. 
B) liabilities,equity,and expenses. 
C) assets,revenues,and liabilities. 
D) assets,liabilities,and equity. 
A) revenues,expenses,and equity. 
B) liabilities,equity,and expenses. 
C) assets,revenues,and liabilities. 
D) assets,liabilities,and equity.

Question 10

Bookkeeping is a mechanical part of accounting.

Accepted Answer

A) True 
 B)False

Question 11

With regard to cash dividends:

Accepted Answer

A) they must be paid on a yearly basis. 
B) the Board of Directors of the corporation determines if a dividend will be paid. 
C) developmental-stage companies will pay large dividends to their shareholders. 
D) a corporation must have enough additional paid-in capital and cash to pay dividends. 
A) they must be paid on a yearly basis. 
B) the Board of Directors of the corporation determines if a dividend will be paid. 
C) developmental-stage companies will pay large dividends to their shareholders. 
D) a corporation must have enough additional paid-in capital and cash to pay dividends.

Question 12

Accounting is often called the language of business.

Accepted Answer

A) True 
 B)False

Question 13

Receivables are classified as:

Accepted Answer

A) increases in earnings. 
B) decreases in earnings. 
C) liabilities. 
D) assets. 
A) increases in earnings. 
B) decreases in earnings. 
C) liabilities. 
D) assets.

Question 14

Net income:

Accepted Answer

A) is calculated by subtracting total expenses and total dividends from total revenues. 
B) occurs when total revenues are less than total expenses. 
C) is often referred to as the "bottom line" on an income statement. 
D) decreases total stockholders' equity. 
A) is calculated by subtracting total expenses and total dividends from total revenues. 
B) occurs when total revenues are less than total expenses. 
C) is often referred to as the "bottom line" on an income statement. 
D) decreases total stockholders' equity.

Question 15

The current portion of a long-term note payable is classified on the balance sheet as a:

Accepted Answer

A) current asset. 
B) current liability. 
C) long-term asset. 
D) long-term liability. 
A) current asset. 
B) current liability. 
C) long-term asset. 
D) long-term liability.

Question 16

The Balance Sheet is used to prepare the:

Accepted Answer

A) Income Statement. 
B) Statement of Retained Earnings. 
C) Statement of Cash Flows. 
D) Statement of Stockholders' Equity. 
A) Income Statement. 
B) Statement of Retained Earnings. 
C) Statement of Cash Flows. 
D) Statement of Stockholders' Equity.

Question 17

Which of the following is a CORRECT statement about long-term assets?

Accepted Answer

A) Accumulated depreciation increases the cost of fixed assets on the balance sheet. 
B) Intangible assets are long-term assets with no physical substance. 
C) Long-term investments can never be sold by the company. 
D) Other long-term assets include supplies. 
A) Accumulated depreciation increases the cost of fixed assets on the balance sheet. 
B) Intangible assets are long-term assets with no physical substance. 
C) Long-term investments can never be sold by the company. 
D) Other long-term assets include supplies.

Question 18

All of the following line items are found on the balance sheet EXCEPT for:

Accepted Answer

A) current portion of long-term borrowings. 
B) accounts payable. 
C) treasury stock. 
D) dividends declared. 
A) current portion of long-term borrowings. 
B) accounts payable. 
C) treasury stock. 
D) dividends declared.

Question 19

Which of the following is a TRUE statement about the characteristics of partnerships?

Accepted Answer

A) In a limited liability partnership,all partners have limited liability for the partnership's debts. 
B) General partners in a general partnership have mutual agency and limited liability for the partnership's debts. 
C) Income and losses of the partnership "flow through" to the partners. 
D) The partnership agreement must be in writing. 
A) In a limited liability partnership,all partners have limited liability for the partnership's debts. 
B) General partners in a general partnership have mutual agency and limited liability for the partnership's debts. 
C) Income and losses of the partnership "flow through" to the partners. 
D) The partnership agreement must be in writing.

Question 20

A potential investor,interested in predicting the earnings of a company in the future,should examine the:

Accepted Answer

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

All of the following would be considered investing activities on the statement of cash flows EXCEPT for:

What is the proper order for the different categories of cash flows reported on the statement of cash flows?

Four ways a business can be organized include:

The accounting equation must always be in balance.

All of the following line items are found on the income statement EXCEPT for:

The assets of a company:

Revenues and expenses are reported on both the income statement and the statement of retained earnings.

Accounting produces financial statements,which report information about a business.

The balance sheet reports information about:

Bookkeeping is a mechanical part of accounting.

With regard to cash dividends:

Accounting is often called the language of business.

Receivables are classified as:

Net income:

The current portion of a long-term note payable is classified on the balance sheet as a:

The Balance Sheet is used to prepare the:

Which of the following is a CORRECT statement about long-term assets?

All of the following line items are found on the balance sheet EXCEPT for:

Which of the following is a TRUE statement about the characteristics of partnerships?

A potential investor,interested in predicting the earnings of a company in the future,should examine the:

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

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Exam 1: The Financial Statements

All of the following would be considered investing activities on the statement of cash flows EXCEPT for:

What is the proper order for the different categories of cash flows reported on the statement of cash flows?

Four ways a business can be organized include:

The accounting equation must always be in balance.

All of the following line items are found on the income statement EXCEPT for:

The assets of a company:

Revenues and expenses are reported on both the income statement and the statement of retained earnings.

Accounting produces financial statements,which report information about a business.

The balance sheet reports information about:

Bookkeeping is a mechanical part of accounting.

With regard to cash dividends:

Accounting is often called the language of business.

Receivables are classified as:

Net income:

The current portion of a long-term note payable is classified on the balance sheet as a:

The Balance Sheet is used to prepare the:

Which of the following is a CORRECT statement about long-term assets?

All of the following line items are found on the balance sheet EXCEPT for:

Which of the following is a TRUE statement about the characteristics of partnerships?

A potential investor,interested in predicting the earnings of a company in the future,should examine the:

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