Exam 1: Introduction to Financial Statements

Which of the following would not be considered an internal user of accounting data for a company?

The primary purpose of the statement of cash flows is to report

Net income is another term for revenue.

The basic accounting equation states that Assets = Liabilities.

Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

Marvin Services Corporation had the following accounts and balances: Accounts payable \ 30,000 Equipment \ 35,000 Accounts receivable 5,000 Land 35,000 Buildings ? Unearned service revenue 10,000 Cash 15,000 Total stockholders' equity ? If the balance of the Buildings account was $70,000 and $5,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?

Information in the notes to the financial statements has to be quantifiable (numeric).

Which of the following is the best definition of an internal user of accounting information?

Which of the following is the most appropriate and modern definition of accounting?

Which type of corporate information is not available to investors?

International standards are developed by the

Cash is another term for stockholders' equity.

The accounting equation may be expressed as

Stockholders' equity can be described as claims of

Which of the following are internal reports that accounting provides to internal users?

Finney Company began the year by issuing $80,000 of common stock for cash. The company recorded revenues of $740,000, expenses of $640,000, and paid dividends of $40,000. What was Finney's net income for the year?

An advantage of the corporate form of business is that

Kilmer Corporation began the year with retained earnings of $930,000. During the year, the company issued $1,260,000 of common stock, recorded expenses of $3,600,000, and paid dividends of $240,000. If Kilmer's ending retained earnings was $990,000, what was the company's revenue for the year?

Jimmy's Repair Shop started the year with total assets of $300,000 and total liabilities of $240,000. During the year the business recorded $630,000 in revenues, $330,000 in expenses, and dividends of $60,000. The net income reported by Jimmy's Repair Shop for the year was

If total liabilities decreased by $105,000 and stockholders' equity decreased by $35,000 during a period of time, then total assets must change by what amount and direction during that same period?