Question 1

The statement of cash flows measures operating performance.

Accepted Answer

A) True 
 B)False

Question 2

Stockholders' equity as reported on the balance sheet does NOT include:

Accepted Answer

A) short-term investments. 
B) common stock. 
C) retained earnings. 
D) additional paid-in capital. 
A) short-term investments. 
B) common stock. 
C) retained earnings. 
D) additional paid-in capital.

Question 3

On the statement of retained earnings:

Accepted Answer

A) a net loss decreases retained earnings. 
B) net income decreases retained earnings. 
C) dividends declared increase retained earnings. 
D) a deficit ending balance in retained earnings is not allowed. 
A) a net loss decreases retained earnings. 
B) net income decreases retained earnings. 
C) dividends declared increase retained earnings. 
D) a deficit ending balance in retained earnings is not allowed.

Question 4

Relevance is one of the four enhancing qualitative characteristics.

Accepted Answer

A) True 
 B)False

Question 5

Wetzel Company has the following accounts and balances at the end of the fiscal year:   What is the total amount of liabilities at the end of the year?

Accepted Answer

A) $55,500 
B) $110,500 
C) $205,500 
D) $176,000 
A) $55,500 
B) $110,500 
C) $205,500 
D) $176,000

Question 6

Revenues were $150,000,expenses were $144,000,and cash dividends declared and paid were $3,000.What were the net income and the change in retained earnings for the period?

Accepted Answer

A) Net income was $6,000;the change in retained earnings was $6,000. 
B) Net income was $150,000;the change in retained earnings was $9,000. 
C) Net income was $6,000;the change in retained earnings was $3,000. 
D) Net income was $150,000;the change in retained earnings was $147,000. 
A) Net income was $6,000;the change in retained earnings was $6,000. 
B) Net income was $150,000;the change in retained earnings was $9,000. 
C) Net income was $6,000;the change in retained earnings was $3,000. 
D) Net income was $150,000;the change in retained earnings was $147,000.

Question 7

Baker Corporation operates retail stores and has decided to expand its operations.The company must decide where to locate and how to finance the expansion.Identify the financial statement where the decision makers can find the following information about Baker.

Accepted Answer

The answer of Baker Corporation operates retail stores and has...

Question 8

Net income is the profit left over after subtracting expenses and dividends from revenues and gains.

Accepted Answer

A) True 
 B)False

Question 9

Which financial statement must be prepared before the others?

Accepted Answer

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

Question 10

Decision makers who use accounting information include:

Accepted Answer

A) creditors. 
B) the Internal Revenue Service. 
C) the Securities and Exchange Commission. 
D) all of the above. 
A) creditors. 
B) the Internal Revenue Service. 
C) the Securities and Exchange Commission. 
D) all of the above.

Question 11

Seidner Company had the following account balances at the end of the first year of operations:   What is the amount of net income or net loss for the year?

Accepted Answer

A) $22,000 
B) $31,000 
C) $63,000 
D) $72,000 
A) $22,000 
B) $31,000 
C) $63,000 
D) $72,000

Question 12

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

Accepted Answer

A) $79,000 
B) $123,000 
C) $133,000 
D) $177,000 
A) $79,000 
B) $123,000 
C) $133,000 
D) $177,000

Question 13

David Company has total assets of $500,000 and total liabilities of $180,000.David Company's stockholders' equity must therefore be $680,000.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?

Accepted Answer

A) net income 
B) expenses 
C) dividends 
D) all of the above 
A) net income 
B) expenses 
C) dividends 
D) all of the above

Question 15

Current assets as reported on the balance sheet do NOT include:

Accepted Answer

A) cash equivalents. 
B) inventory. 
C) prepaid insurance. 
D) long-term investments. 
A) cash equivalents. 
B) inventory. 
C) prepaid insurance. 
D) long-term investments.

Question 16

The accounting equation can be stated as:

Accepted Answer

A) Assets + Stockholders' Equity = Liabilities. 
B) Assets -Liabilities = Stockholders' Equity. 
C) Assets = Liabilities - Stockholders' Equity. 
D) Assets - Stockholders' Equity + Liabilities = Zero. 
A) Assets + Stockholders' Equity = Liabilities. 
B) Assets -Liabilities = Stockholders' Equity. 
C) Assets = Liabilities - Stockholders' Equity. 
D) Assets - Stockholders' Equity + Liabilities = Zero.

Question 17

Which financial statement reports cash payments and cash receipts over a period of time?

Accepted Answer

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

Question 18

All of the following will appear on the income statement EXCEPT for:

Accepted Answer

A) assets. 
B) expenses. 
C) gains. 
D) revenues. 
A) assets. 
B) expenses. 
C) gains. 
D) revenues.

Question 19

Shareholders of a corporation:

Accepted Answer

A) have limited liability for the corporation's debts. 
B) can only be individuals. 
C) have a personal obligation for the corporation's debts. 
D) receive dividends from the corporation without having to pay tax on the distribution. 
A) have limited liability for the corporation's debts. 
B) can only be individuals. 
C) have a personal obligation for the corporation's debts. 
D) receive dividends from the corporation without having to pay tax on the distribution.

Question 20

Which statement is TRUE about partnerships?

Accepted Answer

A) A partnership is a taxpaying entity. 
B) General partnerships have mutual agency and limited liability. 
C) Individuals,corporations,partnerships,or other types of entities can be partners. 
D) A written partnership contract must exist. 
A) A partnership is a taxpaying entity. 
B) General partnerships have mutual agency and limited liability. 
C) Individuals,corporations,partnerships,or other types of entities can be partners. 
D) A written partnership contract must exist.

The statement of cash flows measures operating performance.

Stockholders' equity as reported on the balance sheet does NOT include:

On the statement of retained earnings:

Relevance is one of the four enhancing qualitative characteristics.

Wetzel Company has the following accounts and balances at the end of the fiscal year: What is the total amount of liabilities at the end of the year?

Revenues were $150,000,expenses were $144,000,and cash dividends declared and paid were $3,000.What were the net income and the change in retained earnings for the period?

Baker Corporation operates retail stores and has decided to expand its operations.The company must decide where to locate and how to finance the expansion.Identify the financial statement where the decision makers can find the following information about Baker.

Net income is the profit left over after subtracting expenses and dividends from revenues and gains.

Which financial statement must be prepared before the others?

Decision makers who use accounting information include:

Seidner Company had the following account balances at the end of the first year of operations: What is the amount of net income or net loss for the year?

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

David Company has total assets of $500,000 and total liabilities of $180,000.David Company's stockholders' equity must therefore be $680,000.

Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?

Current assets as reported on the balance sheet do NOT include:

The accounting equation can be stated as:

Which financial statement reports cash payments and cash receipts over a period of time?

All of the following will appear on the income statement EXCEPT for:

Shareholders of a corporation:

Which statement is TRUE about partnerships?

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 statement of cash flows measures operating performance.

Stockholders' equity as reported on the balance sheet does NOT include:

On the statement of retained earnings:

Relevance is one of the four enhancing qualitative characteristics.

Wetzel Company has the following accounts and balances at the end of the fiscal year: What is the total amount of liabilities at the end of the year?

Revenues were $150,000,expenses were $144,000,and cash dividends declared and paid were $3,000.What were the net income and the change in retained earnings for the period?

Baker Corporation operates retail stores and has decided to expand its operations.The company must decide where to locate and how to finance the expansion.Identify the financial statement where the decision makers can find the following information about Baker.

Net income is the profit left over after subtracting expenses and dividends from revenues and gains.

Which financial statement must be prepared before the others?

Decision makers who use accounting information include:

Seidner Company had the following account balances at the end of the first year of operations: What is the amount of net income or net loss for the year?

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

David Company has total assets of $500,000 and total liabilities of $180,000.David Company's stockholders' equity must therefore be $680,000.

Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?

Current assets as reported on the balance sheet do NOT include:

The accounting equation can be stated as:

Which financial statement reports cash payments and cash receipts over a period of time?

All of the following will appear on the income statement EXCEPT for:

Shareholders of a corporation:

Which statement is TRUE about partnerships?

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