Question 1

Arrow's net income of $112 million and average assets of $1,400 million results in a return on assets of 8%.

Accepted Answer

A) True 
 B)False

Question 2

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

Accepted Answer

A) True 
 B)False

Question 3

The ________ assumption states that transactions and events are expressed in money units.

Accepted Answer

The answer of The ________ assumption states that transactions and...

Question 4

The three major types of business activities are operating,financing,and investing.

Accepted Answer

A) True 
 B)False

Question 5

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000,and dividends of $12,000.There were no stockholder investments during the year.Calculate the ending equity.

Accepted Answer

A) $(5,000). 
B) $29,000. 
C) $5,000. 
D) $99,000. 
E) $75,000. 
A) $(5,000). 
B) $29,000. 
C) $5,000. 
D) $99,000. 
E) $75,000.

Question 6

Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Accepted Answer

A) $61,000 increase. 
B) $37,000 increase. 
C) $7,000 decrease. 
D) $7,000 increase. 
E) $34,000 decrease. 
A) $61,000 increase. 
B) $37,000 increase. 
C) $7,000 decrease. 
D) $7,000 increase. 
E) $34,000 decrease.

Question 7

Distributions of cash or other assets by a business to its stockholders are called:

Accepted Answer

A) Dividends. 
B) Expenses. 
C) Assets. 
D) Retained earnings. 
E) Net Income. 
A) Dividends. 
B) Expenses. 
C) Assets. 
D) Retained earnings. 
E) Net Income.

Question 8

Use the following information as of December 31 to determine equity.

Accepted Answer

A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000. 
A) $57,000. 
B) $141,000. 
C) $297,000. 
D) $438,000. 
E) $579,000.

Question 9

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Accepted Answer

A) Liabilities. 
B) Equity. 
C) Dividends. 
D) Expenses. 
E) Common Stock. 
A) Liabilities. 
B) Equity. 
C) Dividends. 
D) Expenses. 
E) Common Stock.

Question 10

You are reviewing the accounting records of Buddy's Foreign Automotive,owned by Bruce Jones,its sole stockholder.You have uncovered the following situations.List the appropriate accounting principle related to each independent scenario and suggest a correct action for each.
1.In August,a check for $500 was written to Community Sports.This amount represents soccer camp for his daughter Cassie.
2.Bruce plans a Going Out of Business Sale for June,since he will be closing the business for a month-long vacation in July.He plans to reopen August 1 and will continue operating Buddy's Foreign Automotive indefinitely.
3.Buddy received a shipment of tools from Ontario,Canada.The invoice was stated in Canadian dollars.
4.Sandy Lane paid $1,500 for a major repair services.The amount was recorded as revenue.The parts for the repair must be ordered from overseas and the service won't be complete until the following month.

Accepted Answer

1.Business entity assumption.Buddy shoul

Question 11

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

Accepted Answer

A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%. 
A) 7.7%. 
B) 8.5%. 
C) 9.5%. 
D) 11.8%. 
E) 13.0%.

Question 12

Net Income:

Accepted Answer

A) Decreases equity. 
B) Represents the amount of assets stockholders put into a business. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents stockholders' claims against assets. 
A) Decreases equity. 
B) Represents the amount of assets stockholders put into a business. 
C) Equals assets minus liabilities. 
D) Is the excess of revenues over expenses. 
E) Represents stockholders' claims against assets.

Question 13

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

Accepted Answer

A) 7.1%. 
B) 7.5%. 
C) 6.7%. 
D) 20.0%. 
E) 18.8% 
A) 7.1%. 
B) 7.5%. 
C) 6.7%. 
D) 20.0%. 
E) 18.8%

Question 14

Another name for equity is:

Accepted Answer

A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss. 
A) Net income. 
B) Expenses. 
C) Net assets. 
D) Revenue. 
E) Net loss.

Question 15

What is the purpose of return on assets as an analytical tool?

Accepted Answer

Return on assets is useful in

Question 16

An example of an operating activity is:

Accepted Answer

A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan. 
A) Paying wages. 
B) Purchasing office equipment. 
C) Borrowing money from a bank. 
D) Selling stock. 
E) Paying off a loan.

Question 17

A company's balance sheet shows: cash $24,000,accounts receivable $30,000,equipment $50,000,and equity $72,000.What is the amount of liabilities?

Accepted Answer

A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000. 
A) $104,000. 
B) $76,000. 
C) $32,000. 
D) $68,000. 
E) $176,000.

Question 18

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

Accepted Answer

A) True 
 B)False

Question 19

The International Accounting Standards board (IASB)has the authority to impose its standards on companies around the world.

Accepted Answer

A) True 
 B)False

Question 20

There are at least three types of partnerships that limit the partners' liability.They are 1)________,2)________,and 3)________.

Accepted Answer

limited partnership,

Arrow's net income of $112 million and average assets of $1,400 million results in a return on assets of 8%.

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

The ________ assumption states that transactions and events are expressed in money units.

The three major types of business activities are operating,financing,and investing.

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000,and dividends of $12,000.There were no stockholder investments during the year.Calculate the ending equity.

Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Distributions of cash or other assets by a business to its stockholders are called:

Use the following information as of December 31 to determine equity.

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

Net Income:

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

Another name for equity is:

What is the purpose of return on assets as an analytical tool?

An example of an operating activity is:

A company's balance sheet shows: cash $24,000,accounts receivable $30,000,equipment $50,000,and equity $72,000.What is the amount of liabilities?

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

The International Accounting Standards board (IASB)has the authority to impose its standards on companies around the world.

There are at least three types of partnerships that limit the partners' liability.They are 1),2),and 3).

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 1: Introducing Financial Statements

Arrow's net income of $112 million and average assets of $1,400 million results in a return on assets of 8%.

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

The ________ assumption states that transactions and events are expressed in money units.

The three major types of business activities are operating,financing,and investing.

Doc's Ribhouse had beginning equity of $52,000; net income of $35,000,and dividends of $12,000.There were no stockholder investments during the year.Calculate the ending equity.

Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

Distributions of cash or other assets by a business to its stockholders are called:

Use the following information as of December 31 to determine equity.

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

Net Income:

Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.

Another name for equity is:

What is the purpose of return on assets as an analytical tool?

An example of an operating activity is:

A company's balance sheet shows: cash $24,000,accounts receivable $30,000,equipment $50,000,and equity $72,000.What is the amount of liabilities?

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

The International Accounting Standards board (IASB)has the authority to impose its standards on companies around the world.

There are at least three types of partnerships that limit the partners' liability.They are 1)________,2)________,and 3)________.

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

There are at least three types of partnerships that limit the partners' liability.They are 1),2),and 3).