Exam 1: Accounting As a Form of Communication

Which of the following best describes the term "retained earnings"?

Ramos Corp.started business at the beginning of the year, with assets of $600,000 and stockholders' equity of $240,000.By the end of the year, assets increased by $80,000 and liabilities increased by $60,000.Other than net income or loss, the only change in stockholders' equity was dividends declared and paid of $55,000. A) What was the amount of Ramos Corp.stockholders' equity at the end of the year? B) What was the amount of Ramos Corp.net income or net loss for the year?

Assets may be used to satisfy business obligations and to carry on business operations.

Barton Building Company is ready to sell its bonds.Which one of the following financial questions is most relevant to the issue of the bonds and that investors will most likely want answered before they purchase the bonds?

Lewis Corporation reported the following information for the year ended December 31, 2015: What was the economic effect of the payment of Lewis' dividends?

Which one of the following is least likely to be a user of financial information of a grocery store?

Which one of the following groups is considered an internal user of financial statements?

Which one of the following correctly represents one of the basic financial statement models?

You are a potential stockholder and are concerned that a particular company you are ready to invest in might have too much debt.Which financial statement would provide you information needed in order to evaluate your concern?

Owners of corporations are called ____________________.

Which financial statement would you refer to in order to determine whether a company owed funds to creditors?

Carroll Corporation began the year with total assets of $800,000 and total liabilities of $620,000.Use the accounting equation to answer the following questions.Assume no additional investment by owners when answering these questions. A) What was the amount of Carroll's total assets at the end of the year if liabilities decreased by $60,000 and owners' equity increased by $90,000? B) Was the company profitable? Explain your answer.

Which of the following is the correct date format for the financial statement heading?

The process of identifying, measuring, and communicating economic information to various users is called ____________________.

All of the following are different expressions for net income except:

Here is a list of accounts and their balances that appear on the Thomas Company's income statement and balance sheet. REQUIRED: Identify which of these are: a) Assets b) Liabilities c) Expenses d) Revenues

The costs of doing business through the sale of goods and services are called

Which organization, in addition to the Financial Accounting Standards Board FASB), occasionally issues authoritative rules for financial statements?

Financial accounting is the branch of accounting concerned with communication with internal management.

A balance sheet provides information at one specific point in time, while the other basic financial statements provide information on activities that occur over a period of time.