Question 1

The CORRECT data flow from one financial statement to the next is:

Accepted Answer

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

Question 2

In 1990,Johnson Company purchased a building for $170,000.In 2020,a real estate professional says the building has a fair value of $1,000,000.In 2020,a similar building down the street recently sold for $900,000.What value,before consideration of accumulated depreciation,is reported for the building on the balance sheet at December 31,2020?

Accepted Answer

A) $170,000 
B) $585,000 
C) $900,000 
D) $1,000,000 
A) $170,000 
B) $585,000 
C) $900,000 
D) $1,000,000

Question 3

A company issues common stock for $100,000.On a statement of cash flows,this will be reported as a(n):

Accepted Answer

A) financing cash flow. 
B) investing cash flow. 
C) operating cash flow. 
D) noncash activity. 
A) financing cash flow. 
B) investing cash flow. 
C) operating cash flow. 
D) noncash activity.

Question 4

Census Company had the following accounts and balances at the end of the year.What are total liabilities at the end of the year?

Accepted Answer

A) $13,000 
B) $48,000 
C) $40,000 
D) $75,000 
A) $13,000 
B) $48,000 
C) $40,000 
D) $75,000

Question 5

Stockholders have no personal obligation for the corporation's debts.

Accepted Answer

A) True 
 B)False

Question 6

On January 1,2019,total assets for Wininger Technologies were $136,000;on December 31,2019,total assets were $157,000.On January 1,2019,total liabilities were $110,000;on December 31,2019,total liabilities were $118,000.What is the amount of the change and the direction of the change in Wininger Technologies' stockholders' equity for 2019?

Accepted Answer

A) decrease of $13,000 
B) increase of $13,000 
C) increase of $29,000 
D) decrease of $29,000 
A) decrease of $13,000 
B) increase of $13,000 
C) increase of $29,000 
D) decrease of $29,000

Question 7

List the required financial statements and state what each measures.

Accepted Answer

Income Statement measures operating perf

Question 8

Examples of financing activities on the statement of cash flows do NOT include:

Accepted Answer

A) payment of note payable. 
B) payment of dividends. 
C) repurchase of company's own stock. 
D) sale of a piece of equipment for cash. 
A) payment of note payable. 
B) payment of dividends. 
C) repurchase of company's own stock. 
D) sale of a piece of equipment for cash.

Question 9

Information must be sufficiently transparent so that it makes sense to reasonably informed users of the financial statements,such as creditors.This qualitative characteristic of information is called:

Accepted Answer

A) verifiability. 
B) faithful representative. 
C) relevant. 
D) understandability. 
A) verifiability. 
B) faithful representative. 
C) relevant. 
D) understandability.

Question 10

An investor,wishing to assess the reasons for a change in retained earnings over a period of a year,would probably examine the:

Accepted Answer

A) statement of cash flows and the income statement. 
B) income statement only. 
C) balance sheet. 
D) statement of retained earnings. 
A) statement of cash flows and the income statement. 
B) income statement only. 
C) balance sheet. 
D) statement of retained earnings.

Question 11

Current assets are assets expected to be converted to cash,sold,or consumed during the next:

Accepted Answer

A) 12 months or within the business's operating cycle if longer than a year. 
B) 12 months or within the business's operating cycle if less than a year. 
C) 6 months. 
D) 24 months. 
A) 12 months or within the business's operating cycle if longer than a year. 
B) 12 months or within the business's operating cycle if less than a year. 
C) 6 months. 
D) 24 months.

Question 12

Which statement about the statement of cash flows is FALSE?

Accepted Answer

A) Operating activities should be the company's main source of cash. 
B) Purchases and sales of long-term assets are financing cash flows. 
C) The payment of a dividend is a financing cash flow. 
D) The payment of a note payable is a financing activity. 
A) Operating activities should be the company's main source of cash. 
B) Purchases and sales of long-term assets are financing cash flows. 
C) The payment of a dividend is a financing cash flow. 
D) The payment of a note payable is a financing activity.

Question 13

Lorna Company is a new company with a beginning retained earnings balance of zero.It has the following account balances at the end of the first year of operations:   What is the ending balance in Retained Earnings?

Accepted Answer

A) $22,000 
B) $32,000 
C) $30,000 
D) $40,000 
A) $22,000 
B) $32,000 
C) $30,000 
D) $40,000

Question 14

The accounting process begins and ends with people making decisions.

Accepted Answer

A) True 
 B)False

Question 15

Which statement below is FALSE?

Accepted Answer

A) Income taxes payable is an accrued liability. 
B) Accrued liabilities can include liabilities for salaries. 
C) Assets are divided into current and long-term categories. 
D) Prepaid expenses include accrued interest payable. 
A) Income taxes payable is an accrued liability. 
B) Accrued liabilities can include liabilities for salaries. 
C) Assets are divided into current and long-term categories. 
D) Prepaid expenses include accrued interest payable.

Question 16

Which of the following entities pay federal income taxes?

Accepted Answer

A) limited liability partnership 
B) general partnership 
C) limited liability company 
D) corporation 
A) limited liability partnership 
B) general partnership 
C) limited liability company 
D) corporation

Question 17

What is an account payable?

Accepted Answer

A) It is a liability for goods or services purchased on credit and supported by a written agreement. 
B) It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser. 
C) It is an amount of money to be received from a supplier. 
D) It is an asset arising from the sale of goods or services on credit. 
A) It is a liability for goods or services purchased on credit and supported by a written agreement. 
B) It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser. 
C) It is an amount of money to be received from a supplier. 
D) It is an asset arising from the sale of goods or services on credit.

Question 18

Enhancing qualitative characteristics of accounting information do NOT include:

Accepted Answer

A) comparability. 
B) verifiability. 
C) timeliness. 
D) materiality. 
A) comparability. 
B) verifiability. 
C) timeliness. 
D) materiality.

Question 19

Another name for the continuity assumption is the going-concern assumption.

Accepted Answer

A) True 
 B)False

Question 20

A company's interest expense for the period is reported on the:

Accepted Answer

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

The CORRECT data flow from one financial statement to the next is:

A company issues common stock for $100,000.On a statement of cash flows,this will be reported as a(n):

Census Company had the following accounts and balances at the end of the year.What are total liabilities at the end of the year?

Stockholders have no personal obligation for the corporation's debts.

List the required financial statements and state what each measures.

Examples of financing activities on the statement of cash flows do NOT include:

Information must be sufficiently transparent so that it makes sense to reasonably informed users of the financial statements,such as creditors.This qualitative characteristic of information is called:

An investor,wishing to assess the reasons for a change in retained earnings over a period of a year,would probably examine the:

Current assets are assets expected to be converted to cash,sold,or consumed during the next:

Which statement about the statement of cash flows is FALSE?

Lorna Company is a new company with a beginning retained earnings balance of zero.It has the following account balances at the end of the first year of operations: What is the ending balance in Retained Earnings?

The accounting process begins and ends with people making decisions.

Which statement below is FALSE?

Which of the following entities pay federal income taxes?

What is an account payable?

Enhancing qualitative characteristics of accounting information do NOT include:

Another name for the continuity assumption is the going-concern assumption.

A company's interest expense for the period is reported on 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

Exam 1: The Financial Statements

The CORRECT data flow from one financial statement to the next is:

A company issues common stock for $100,000.On a statement of cash flows,this will be reported as a(n):

Census Company had the following accounts and balances at the end of the year.What are total liabilities at the end of the year?

Stockholders have no personal obligation for the corporation's debts.

List the required financial statements and state what each measures.

Examples of financing activities on the statement of cash flows do NOT include:

Information must be sufficiently transparent so that it makes sense to reasonably informed users of the financial statements,such as creditors.This qualitative characteristic of information is called:

An investor,wishing to assess the reasons for a change in retained earnings over a period of a year,would probably examine the:

Current assets are assets expected to be converted to cash,sold,or consumed during the next:

Which statement about the statement of cash flows is FALSE?

Lorna Company is a new company with a beginning retained earnings balance of zero.It has the following account balances at the end of the first year of operations: What is the ending balance in Retained Earnings?

The accounting process begins and ends with people making decisions.

Which statement below is FALSE?

Which of the following entities pay federal income taxes?

What is an account payable?

Enhancing qualitative characteristics of accounting information do NOT include:

Another name for the continuity assumption is the going-concern assumption.

A company's interest expense for the period is reported on 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