Exam 1: The Role of Accounting in Business

Which of the following accounting concepts requires that the financial statements, including related notes, contain all relevant data a stakeholder would need to understand the financial condition and performance of the company?

The "rules" of accounting are called:

All merchandising businesses are organized as corporations.

The economic performance of a business is of importance to the government because:

Stockholders of a corporation are its internal stakeholders.

A list of assets, liabilities, and owners' equity as of a specific date is a(n):

Which of the following businesses use a premium-price emphasis?

The portion of a corporation's net income retained in the business is called:

Due to various fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:

Define accounting and its role in business.

John Deere is a leading manufacturer of agricultural machinery in the world producing products that serve unique market needs.Therefore, John Deere is an example of a company that uses a premium-price emphasis to attract customers.

Which of the following is a business stakeholder?

A note payable requires payment of the amount borrowed plus:

Shares of ownership are evidenced by issuing:

Indicate whether each of the following activities would be reported on the statement of cash flows as an operating activity, an investing activity, a financing activity, or does not appear on the statement of cash flows. (a)Cash paid for building (b)Cash paid to suppliers (c)Cash paid for dividends (d)Cash received from customers (e)Cash received from the sale of capital stock. (f)Cash received from the sale of a building (g)Borrowed cash from a bank

Three different companies--A, B, and C--have the same balance sheet at the beginning and the end of a year.These are summarized below: Total Assets Total Liabilities Beginning of the year \ 500,000 \ 250,000 End of the year \ 1,200,000 \ 350,000 Given the data above and the additional information for each company below, determine the net income (loss) for each company. Company A......No additional investment was made by stockholders, and no dividends were paid. Company B........Stockholders invested an additional $200,000, and no dividends were paid. Company C ....... Stockholders invested $450,000, and dividends of $50,000 were paid.

How do businesses make money? What strategies can they use to gain a competitive advantage?

Name the three different types of businesses that operate for profit and their respective characteristics.

The portion of a corporation's net income that is paid out to the stockholders, instead of being retained in the business, is referred to as:

Which of the following businesses buys products from other businesses to sell them to customers?