Question 1

The statement of retained earnings accomplishes which of the following?

Accepted Answer

A)  It summarizes income earned and dividends paid over a single period of the business. 
B)  It accumulates all revenues for the year. 
C)  It summarizes the balance sheet accounts. 
D)  It summarizes the capital stock accounts over the life of the business.

Question 2

Which of the following best describes the term "expenses"?

Accepted Answer

A)  The amount of total profits earned by a business since it began operations. 
B)  The amount of interest or claim that the owners have in the business. 
C)  The future economic resources of a business entity. 
D)  The outflow of assets resulting from the sale of goods and services.

Question 3

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described.
-Prepares and grades the Uniform CPA Examination.

Accepted Answer

A) American Institute of Certified Public Accountants (AICP
A)  
B) Financial Accounting Standards Board (FAS
B)  
C) Securities and Exchange Commission (SE
C)

Question 4

What is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Accepted Answer

A)  Financial Accounting 
B)  Auditing 
C)  Management Accounting 
D)  Bookkeeping

Question 5

Which one of the following business decisions will most likely require financial information?

Accepted Answer

A)  The National Bank is reviewing the loan application from Petra's Restaurant. 
B)  Petra's Restaurant is attempting to sell its stock to the public. 
C)  The labor union representing Winn's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D)  All of these choices.

Question 6

Which concept is the reason the dollar is used in the preparation of financial statements?

Accepted Answer

A)  Going concern 
B)  Legal entity 
C)  Consistency 
D)  None of these choices.

Question 7

Which the following organizations is primarily responsible for establishing GAAP today?

Accepted Answer

A)  IRS 
B)  Securities and Exchange Commission (SE
C)  
C)  SEC 
D)  None of these choices.

Question 8

Which one of the following is not  an external user of financial statements?

Accepted Answer

A)  Suppliers 
B)  Creditors 
C)  The company's controller 
D)  None of these choices.

Question 9

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.
-Accounts receivable

Accepted Answer

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

Question 10

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.
-The assumption that an entity is not in the process of liquidation and that it will continue indefinitely.

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 11

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.
-The sale of goods or the performance of services.

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 12

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.
-A future benefit.

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 13

Which of the following best describes the term "equity"?

Accepted Answer

A)  The amount of total profits earned by a business since it began operations. 
B)  The amount of interest or claim that the owners have in the business. 
C)  The economic resources of a business entity. 
D)  The cumulative profits earned by a business less any dividends distributed.

Question 14

Bullseye, 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 Bullseye's total stockholders' equity at the end of the year?
B) Could Bullseye have paid additional dividends during the year? Explain your answer.

Accepted Answer

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

Question 15

The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

Accepted Answer

The answer of The various methods, rules, practices, and other...

Question 16

Which one of the following is an economic obligation for a business entity?

Accepted Answer

A)  Salaries paid to employees for services rendered 
B)  Materials used in manufacturing products 
C)  Amount owed to creditors 
D)  Payment of rent for the next year

Question 17

Presented below are selected data from the balance sheet of Farmer Company for 2016.The figures are expressed in millions. $\begin{array}{lr}
\text { Total Current assets } & \$ 5,572 \
\text { Property, plant, and equipment } & 16,325 \
\text { Other assets } & ? \
\text { Total Current liabilities } & 3,274 \
\text { Total Long-term debt } & 5,632 \
\text { Total Stockholders' equity } & 19,639
\end{array}$ ​ A) Determine the amount of "Other assets" for Farmer's 2016 balance sheet. (HINT: you must use the accounting equation concept to determine your answer.)

B) How much of Farmer Company is financed by creditors? How much is financed by the owners?

Accepted Answer

The answer of Presented below are selected data from the...

Question 18

Another name for net income of a business is _________________________.

Accepted Answer

The answer of Another name for net income of a...

Question 19

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.
-Retained earnings

Accepted Answer

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

Question 20

The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31, 2016:
​ $$\begin{array} { l r l r } 
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Salaries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$$ ​
​
-Read the information for Taryn Corporation.Prepare a balance sheet for Taryn Corporation in good form.

Accepted Answer

The answer of The accountant for Taryn Corporation prepared the...

Exam 1: Accounting As a Form of Communication

The statement of retained earnings accomplishes which of the following?

Which of the following best describes the term "expenses"?

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described. -Prepares and grades the Uniform CPA Examination.

What is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Which one of the following business decisions will most likely require financial information?

Which concept is the reason the dollar is used in the preparation of financial statements?

Which the following organizations is primarily responsible for establishing GAAP today?

Which one of the following is not an external user of financial statements?

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. -Accounts receivable

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. -The sale of goods or the performance of services.

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. -A future benefit.

Which of the following best describes the term "equity"?

The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

Which one of the following is an economic obligation for a business entity?

Another name for net income of a business is _________________________.

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. -Retained earnings