Question 1

Which of the following activities is not a category into which cash flows are classified?

Accepted Answer

A) Marketing activities. 
B) Operating activities. 
C) Financing activities. 
D) Investing activities. 
A) Marketing activities. 
B) Operating activities. 
C) Financing activities. 
D) Investing activities.

Question 2

Articulation between the financial statements means that they relate closely to each other on the basis of the same underlying transaction information.

Accepted Answer

A) True 
 B)False

Question 3

If total assets equal $270,000 and total liabilities equal $202,500,the total owners' equity must equal:

Accepted Answer

A) $472,500. 
B) $67,500. 
C) $270,000. 
D) Cannot be determined from the information given. 
A) $472,500. 
B) $67,500. 
C) $270,000. 
D) Cannot be determined from the information given.

Question 4

If total assets of Hercules Manufacturing,Inc.are $556,000,Retained Earnings at December 31,2018,must be:

Accepted Answer

A) $811,000. 
B) $180,000. 
C) $221,000. 
D) $335,000. 
A) $811,000. 
B) $180,000. 
C) $221,000. 
D) $335,000.

Question 5

A statement of cash flows reports revenue and expense activities for a specific time period such as one month or one year.

Accepted Answer

A) True 
 B)False

Question 6

At the beginning of August,2018,owners' equity in Astoria was $160,000.Given the transactions of August,what will be the owners' equity be at the end of the month?

Accepted Answer

A) $167,500. 
B) $150,500. 
C) $193,500. 
D) $158,000. 
A) $167,500. 
B) $150,500. 
C) $193,500. 
D) $158,000.

Question 7

During the month of May,Henderson Company had the following transactions: (1)Revenues of $60,000 were earned and received in cash.
(2)Bank loans of $9,000 were paid off.
(3)Equipment of $20,000 was purchased.
(4)Expenses of $36,800 were paid.
(5)Stockholders purchased additional shares for $22,000 cash.
A statement of cash flows for May would report net cash flows from operating activities of:

Accepted Answer

A) $60,000. 
B) $16,200. 
C) $23,200. 
D) $20,000. 
A) $60,000. 
B) $16,200. 
C) $23,200. 
D) $20,000.

Question 8

If total assets of Hercules Manufacturing,Inc.are $556,000,Equipment is carried in Hercules Manufacturing accounting records at:

Accepted Answer

A) $377,000. 
B) $179,000. 
C) $150,000. 
D) $ 90,000. 
A) $377,000. 
B) $179,000. 
C) $150,000. 
D) $ 90,000.

Question 9

[The following information applies to the questions displayed below.]
During the month of August,Boyce Company had the following transactions:
(1)Revenues of $120,000 were earned and received in cash.
(2)Bank loans of $18,000 were paid off.
(3)Equipment of $40,000 was purchased with cash.
(4)Expenses of $73,600 were paid.
(5)Stockholders purchased additional shares for $44,000 cash.
-A statement of cash flows for August would report net cash flows from investing activities of:

Accepted Answer

A) ($26,000). 
B) $32,400. 
C) ($40,000). 
D) $46,400. 
A) ($26,000). 
B) $32,400. 
C) ($40,000). 
D) $46,400.

Question 10

A strong statement of cash flows indicates that significant cash is being generated by:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Effective tax planning. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Effective tax planning.

Question 11

A balance sheet is designed to show:

Accepted Answer

A) How much a business is worth. 
B) The profitability of the business during the current year. 
C) The assets,liabilities,and owners' equity of a business as of a particular date. 
D) The cost of replacing the assets and of paying off the liabilities at December 31. 
A) How much a business is worth. 
B) The profitability of the business during the current year. 
C) The assets,liabilities,and owners' equity of a business as of a particular date. 
D) The cost of replacing the assets and of paying off the liabilities at December 31.

Question 12

In a business organized as a corporation,it is not necessary to list the equity of each stockholder on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

A payment of a business debt not including interest:

Accepted Answer

A) Decreases total assets. 
B) Increases total liabilities. 
C) Increases the owners' equity in the business. 
D) Decreases the owners' equity in the business. 
A) Decreases total assets. 
B) Increases total liabilities. 
C) Increases the owners' equity in the business. 
D) Decreases the owners' equity in the business.

Question 14

Which of the following transactions would cause an increase in both assets and owners' equity?

Accepted Answer

A) Investment of cash in the business by the owner. 
B) Sale of land for a price less than its cost. 
C) Borrowing money from a bank. 
D) Sale of land for cash at a price equal to its cost. 
A) Investment of cash in the business by the owner. 
B) Sale of land for a price less than its cost. 
C) Borrowing money from a bank. 
D) Sale of land for cash at a price equal to its cost.

Question 15

According to the Sarbanes-Oxley Act,CEOs and CFOs must certify to the accuracy of their company's financial statements:

Accepted Answer

A) Monthly and Quarterly. 
B) Quarterly and Annually. 
C) Monthly and Annually. 
D) CEOs and CFOs are not required to certify to the company's financial statement;only CPAs do. 
A) Monthly and Quarterly. 
B) Quarterly and Annually. 
C) Monthly and Annually. 
D) CEOs and CFOs are not required to certify to the company's financial statement;only CPAs do.

Question 16

If Retained Earnings at December 31,2018,is $100,000,Equipment is carried in Hercules Manufacturing,Inc.accounting records at:

Accepted Answer

A) $ 42,000. 
B) $ 58,000. 
C) $ 43,500. 
D) $345,000. 
A) $ 42,000. 
B) $ 58,000. 
C) $ 43,500. 
D) $345,000.

Question 17

For the month of August,net cash flows from operating activities for Astoria were:

Accepted Answer

A) $33,500. 
B) $7,500. 
C) $20,000. 
D) $26,000. 
A) $33,500. 
B) $7,500. 
C) $20,000. 
D) $26,000.

Question 18

The total liabilities of Hogan's Company on the balance sheet are $270,000;this amount is equal to three-fourths of the total assets.What is the amount of owners' equity?

Accepted Answer

A) $202,500. 
B) $ 90,000. 
C) $360,000. 
D) $630,000. 
A) $202,500. 
B) $ 90,000. 
C) $360,000. 
D) $630,000.

Question 19

At the beginning of October,owners' equity in Waldorf was $480,000.Given the transactions in October 2018,what will be the owners' equity at the end of the month?

Accepted Answer

A) $480,000. 
B) $484,000. 
C) $502,500. 
D) $580,500. 
A) $480,000. 
B) $484,000. 
C) $502,500. 
D) $580,500.

Question 20

The collection of an account receivable will cause total assets to decrease.

Accepted Answer

A) True 
 B)False

Exam 2: Basic Financial Statements

Which of the following activities is not a category into which cash flows are classified?

Articulation between the financial statements means that they relate closely to each other on the basis of the same underlying transaction information.

If total assets equal $270,000 and total liabilities equal $202,500,the total owners' equity must equal:

If total assets of Hercules Manufacturing,Inc.are $556,000,Retained Earnings at December 31,2018,must be:

A statement of cash flows reports revenue and expense activities for a specific time period such as one month or one year.

At the beginning of August,2018,owners' equity in Astoria was $160,000.Given the transactions of August,what will be the owners' equity be at the end of the month?

If total assets of Hercules Manufacturing,Inc.are $556,000,Equipment is carried in Hercules Manufacturing accounting records at:

A strong statement of cash flows indicates that significant cash is being generated by:

A balance sheet is designed to show:

In a business organized as a corporation,it is not necessary to list the equity of each stockholder on the balance sheet.

A payment of a business debt not including interest:

Which of the following transactions would cause an increase in both assets and owners' equity?

According to the Sarbanes-Oxley Act,CEOs and CFOs must certify to the accuracy of their company's financial statements:

If Retained Earnings at December 31,2018,is $100,000,Equipment is carried in Hercules Manufacturing,Inc.accounting records at:

For the month of August,net cash flows from operating activities for Astoria were:

The total liabilities of Hogan's Company on the balance sheet are $270,000;this amount is equal to three-fourths of the total assets.What is the amount of owners' equity?

At the beginning of October,owners' equity in Waldorf was $480,000.Given the transactions in October 2018,what will be the owners' equity at the end of the month?

The collection of an account receivable will cause total assets to decrease.

Accounting: Information for Decision Making

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters