Question 1

On January 1, 2015, A-Best Company's balance in retained earnings was $70,000. At the end of the year, December 31, 2015, the balance in retained earnings was $94,000. During 2015, the company earned net income of $40,000. How much were dividends?

Accepted Answer

A)  $16,000 
B) $24000 
C)  $40,000 
D)  $64,000

Question 2

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all.
-Claims of the creditors against the assets of a company.

Accepted Answer

A) Capital stock 
B) Asset 
C) Owners' equity 
D) Time period 
E) Dividends
F)Economic entity concept
G)Expense
H)Retained earnings
I)Cost principle
J)Creditor
K)Liability
L)Revenue
M)Going concern
N)Monetary unit
O)Corporation

Question 3

Which one of the following is an investing activity of a business?

Accepted Answer

A)  Paying for purchases of inventory 
B)  Issuing stock for cash 
C)  Borrowing money from a bank. 
D)  Purchasing a manufacturing plant for cash

Question 4

Gyro's Shop reported a net loss of $15,000 and total expenses of $80,000. How much are total revenues?

Accepted Answer

A)  $ 15,000 
B)  $ 65,000 
C)  $ 95,000 
D)  The answer cannot be determined from the information given.

Question 5

Which of the following is the correct date format for the financial statement heading?

Accepted Answer

A)  Balance sheet for the year ended June 30, 2015 
B)  Income statement at December 31, 2015 
C)  Balance sheet at December 31, 2015 
D)  Statement of retained earnings at December 31, 2015

Question 6

Read the information about Eagle Corporation.
Required:
How much is net income for the year ended December 31, 2014? If Eagle Corporation had used a single-step statement, by how much would net income be different? Explain.

Accepted Answer

The answer of Read the information about Eagle Corporation.
Required:
How much...

Question 7

Good quality information should be both and present a .

Accepted Answer

The answer of Good quality information should be both and...

Question 8

During its fifth year of operations, Bright Creations Company reports a beginning cash balance of $132,000, cash inflows from investing activities of $210,000, cash outflows for financing activities of $79,000, and cash outflows for operating activities of $13,000. What was Bright Creations' cash balance at the end of the fifth year?

Accepted Answer

A)  $ 250,000 
B)  $ 434,000 
C)  $ 276,000 
D)  $ 132,000

Question 9

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement.
-Accounts receivable

Accepted Answer

A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement

Question 10

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Accepted Answer

A)  Net income 
B)  Total expenses 
C)  Total revenues 
D)  Income before income taxes

Question 11

Accountants are the main reason financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 12

You are a potential stockholder and are concerned that a particular company you are ready to invest in might have too much debt. Which financial statement would provide you information needed in order to evaluate your concern?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of retained earnings 
D)  Statement of public accounting

Question 13

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Accepted Answer

A) True 
 B)False

Question 14

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided.
-Capital stock

Accepted Answer

A) Assets 
B) Liabilities 
C) Revenues 
D) Expenses 
E) Owners' equity

Question 15

The process of identifying, measuring, and communicating economic information to various users is called
____________________.

Accepted Answer

The answer of The process of identifying, measuring, and communicating...

Question 16

Forman, Inc. earned $600,000 profit during 2015. On which financial statements will you find the dollar amount of the profit earned by the company?

Accepted Answer

A)  Balance sheet and income statement 
B)  Income statement only 
C)  Statement of retained earnings only 
D)  Income statement and statement of retained earnings

Question 17

Target, Inc., started the year with total assets of $400,000 and total liabilities of $240,000. Net income for the year is $120,000 and dividends declared and paid during the year are $90,000.
A What is the amount of Target's total stockholders' equity at the end of the year?
B Could Target have paid additional dividends during the year? Explain your answer.

Accepted Answer

The answer of Target, Inc., started the year with total...

Question 18

From the following list, select the proper section from the statement of cash flows in which it would be classified.
-Paid suppliers cash for inventory purchased

Accepted Answer

A) Operating Activities 
B) Investing Activities 
C) Financing Activities

Question 19

Webb Company
Selected data from the accounting records of Webb Company are listed below:
 
-Read the information about Webb Company. What is Webb's income from operations?

Accepted Answer

A)  $ 1,600 
B)  $ 2,000 
C)  $ 2,200 
D)  $ 2,800

Question 20

Read the information about Cargo Corporation.
Required:
Calculate the amount of working capital at December 31, 2015 for Cargo Corp. What can you learn from the current ratio that you cannot learn from the amount of working capital?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Calculate the...

Exam 1: Accounting As a Form of Communication

On January 1, 2015, A-Best Company's balance in retained earnings was $70,000. At the end of the year, December 31, 2015, the balance in retained earnings was $94,000. During 2015, the company earned net income of $40,000. How much were dividends?

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all. -Claims of the creditors against the assets of a company.

Which one of the following is an investing activity of a business?

Gyro's Shop reported a net loss of $15,000 and total expenses of $80,000. How much are total revenues?

Which of the following is the correct date format for the financial statement heading?

Read the information about Eagle Corporation. Required: How much is net income for the year ended December 31, 2014? If Eagle Corporation had used a single-step statement, by how much would net income be different? Explain.

Good quality information should be both and present a .

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Accounts receivable

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Accountants are the main reason financial statements are prepared.

You are a potential stockholder and are concerned that a particular company you are ready to invest in might have too much debt. Which financial statement would provide you information needed in order to evaluate your concern?

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Capital stock

The process of identifying, measuring, and communicating economic information to various users is called ____________________.

Forman, Inc. earned $600,000 profit during 2015. On which financial statements will you find the dollar amount of the profit earned by the company?

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Paid suppliers cash for inventory purchased

Webb Company Selected data from the accounting records of Webb Company are listed below: -Read the information about Webb Company. What is Webb's income from operations?

Read the information about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp. What can you learn from the current ratio that you cannot learn from the amount of working capital?