Question 1

Why are liabilities separated into current and long-term?

Accepted Answer

A) Users want to know which amounts will be paid using current assets. 
B) Because current and long-term classifications are just common sense. 
C) This format helps a company determine how much profit was made. 
D) The SEC requires companies to do so. 
A) Users want to know which amounts will be paid using current assets. 
B) Because current and long-term classifications are just common sense. 
C) This format helps a company determine how much profit was made. 
D) The SEC requires companies to do so.

Question 2

The information below was taken from the 2018 annual report of Jena Corporation.
$\begin{array}{|l|c|c|c|} 
\hline& \mathbf{2 0 1 8} & \mathbf{2 0 1 7} & \mathbf{2 0 1 6} \
\hline \text { Beginning cash balance } & \$ 12,000 & ? & \$ 5,000 \
\hline \text { Net cash flow from operating activities } & 7,987 & ? & 9,100 \\hline \text { Net cash flow from investing activities } & 2,450 & 4,330 & ? \
\hline \text { Net cash flow from financing activities } & ? & (9,612) & (7,500) \
\hline \text { Ending cash balance } & \$ 11,000 & ? & \$ 12,500\
\hline
\end{array}$
Which of the following is the missing amount for the net cash flow from investing activities for 2016?

Accepted Answer

A) $5,900 
B) $10,900 
C) $15,000 
D) $4,450 
A) $5,900 
B) $10,900 
C) $15,000 
D) $4,450

Question 3

Describe operating activities.

Accepted Answer

Operating activities involve the sale of

Question 4

Hsu Company has eight major section headings in its balance sheet, which include Current Assets, Long-Term Investments, Property, Plant, and Equipment, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Shareholders' Equity. Below are some of the balance sheet accounts for Hsu:
1.
$\begin{array}{llll}
\text { 1. Dividends Payable } & \text { 7. } \text { Wages Payable } \
\text { 2. } \text { Prepaid Rent } & 8 .  \text { Deferred Revenues } \
\text { 3. }  \text { Trademarks } & 9 .  \text { Accumulated Depreciation - } \
\text { 4. }  \text { Bonds Payable } &  \text { Building } \
\text { 5. Investment Funds for Plant } & 10 .  \text { Accounts Receivable } \
\text { Expansion } & 11 .  \text { Accounts Payable } \
\text { 6. Inventories } & &
\end{array}$
Which of these would be found under the heading "Current Assets"?

Accepted Answer

A) 2,10 
B) 2,6,8,10 
C) 2,6,10 
D) 2,5,10 
A) 2,10 
B) 2,6,8,10 
C) 2,6,10 
D) 2,5,10

Question 5

Which one of the following equations represents retained earnings activity for a year?

Accepted Answer

A) Beginning balance + expenses - dividends = ending balance. 
B) Beginning balance + cash receipts - cash payments = ending balance. 
C) Beginning balance + dividends - net income = ending balance. 
D) Beginning balance + net income - dividends = ending balance. 
A) Beginning balance + expenses - dividends = ending balance. 
B) Beginning balance + cash receipts - cash payments = ending balance. 
C) Beginning balance + dividends - net income = ending balance. 
D) Beginning balance + net income - dividends = ending balance.

Question 6

Which account is associated with the sale of inventory?

Accepted Answer

A) Cost of goods sold. 
B) Depreciation. 
C) Inventory expense. 
D) Equipment. 
A) Cost of goods sold. 
B) Depreciation. 
C) Inventory expense. 
D) Equipment.

Question 7

Describe how the equity sections of balance sheets differ for each of the three types of business entities.

Accepted Answer

The shareholders' equity section of the

Why are liabilities separated into current and long-term?

Describe operating activities.

Which one of the following equations represents retained earnings activity for a year?

Which account is associated with the sale of inventory?

Describe how the equity sections of balance sheets differ for each of the three types of business entities.

Financial Accounting and Its Economic Context

The Measurement Fundamentals of Financial Accounting

The Mechanics of Financial Accounting

Using Financial Statement Information

The Current Asset Classification, Cash, and Accounts Receivable

Merchandise Inventory

Investments in Equity Securities

Long-Lived Assets

Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies

Long-Term Liabilities: Notes, Bonds, and Leases

Stockholders Equity

The Complete Income Statement

The Statement of Cash Flows

The Time Value of Money

Filters

Exam 2: A Closer Look at the Financial Statements

Why are liabilities separated into current and long-term?

Describe operating activities.

Which one of the following equations represents retained earnings activity for a year?

Which account is associated with the sale of inventory?

Describe how the equity sections of balance sheets differ for each of the three types of business entities.

Financial Accounting and Its Economic Context

The Measurement Fundamentals of Financial Accounting

The Mechanics of Financial Accounting

Using Financial Statement Information

The Current Asset Classification, Cash, and Accounts Receivable

Merchandise Inventory

Investments in Equity Securities

Long-Lived Assets

Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies

Long-Term Liabilities: Notes, Bonds, and Leases

Stockholders Equity

The Complete Income Statement

The Statement of Cash Flows

The Time Value of Money

Filters