Question 1

How is the balance sheet linked to the other financial statements?

Accepted Answer

A) The amount of retained earnings reported on the balance sheet is equal to net income. 
B) Retained earnings is added to total assets and reported on the balance sheet. 
C) Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet. 
D) There is no link between the balance sheet and other statements, as each contains different accounts and provides different information. 
A) The amount of retained earnings reported on the balance sheet is equal to net income. 
B) Retained earnings is added to total assets and reported on the balance sheet. 
C) Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet. 
D) There is no link between the balance sheet and other statements, as each contains different accounts and provides different information.

Question 2

South Corporation has been in the business of delivering small packages for local companies within the city of Atlanta, Georgia, since 1960.The following information concerning financial activities during 2015 is available at December 31, 2015:   
A.Prepare an income statement for the year ended December 31, 2015.
B.If you were a bank loan officer and South Corporation wanted to borrow
$100,000 from your bank, would you lend the money? Explain.
C.Calculate retained earnings at December 31, 2015.

Accepted Answer

A. @#IMG-DLM& B.The company appears profitable.Bas

Question 3

Under Armour is an example of a service provider.

Accepted Answer

A) True 
 B)False

Question 4

When selecting between the best alternatives regarding an ethical dilemma in accounting all of the following should be considered except:

Accepted Answer

A) which alternative provides the most relevant information. 
B) which alternative provides the most accurate information. 
C) which alternative provides the most neutral information. 
D) which alternative provides the most profitable information. 
A) which alternative provides the most relevant information. 
B) which alternative provides the most accurate information. 
C) which alternative provides the most neutral information. 
D) which alternative provides the most profitable information.

Question 5

Someone to whom a company has a debt is known as an investor.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would be internal users of accounting information?

Accepted Answer

A) Customers and vendors 
B) Employees and managers 
C) Government and banks 
D) Employees and customers 
A) Customers and vendors 
B) Employees and managers 
C) Government and banks 
D) Employees and customers

Question 7

Which of the following best describes the term "expenses"?

Accepted Answer

A) The amount of total profits earned by a business since it began operations. 
B) The amount of interest or claim that the owners have in the business. 
C) The future economic resources of a business entity. 
D) The outflow of assets resulting from the sale of goods and services. 
A) The amount of total profits earned by a business since it began operations. 
B) The amount of interest or claim that the owners have in the business. 
C) The future economic resources of a business entity. 
D) The outflow of assets resulting from the sale of goods and services.

Question 8

Which one of the following business decisions will least likely require financial information?

Accepted Answer

A) The Gulf Coast Bank is reviewing the loan application from Tuo's Restaurant. 
B) Tuo's Restaurant is attempting to sell its stock to the public. 
C) The labor union representing Flaggler's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D) Tuo's Restaurant management is deciding whether to wash its catering vans today or tomorrow. 
A) The Gulf Coast Bank is reviewing the loan application from Tuo's Restaurant. 
B) Tuo's Restaurant is attempting to sell its stock to the public. 
C) The labor union representing Flaggler's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D) Tuo's Restaurant management is deciding whether to wash its catering vans today or tomorrow.

Question 9

Which of the following best describes the term "assets"?

Accepted Answer

A) The amount of total profits earned by a business since it began operations. 
B) The amount of interest or claim that the owners have in the business. 
C) The economic resources of a business entity. 
D) The cumulative profits earned by a business less any dividends distributed. 
A) The amount of total profits earned by a business since it began operations. 
B) The amount of interest or claim that the owners have in the business. 
C) The economic resources of a business entity. 
D) The cumulative profits earned by a business less any dividends distributed.

Question 10

Mobile Power Corp.reported the following information for the year ended December 31, 2015.   What was the retained earnings balance for Mobile Power at December 31, 2014?

Accepted Answer

A) $ 165,000 
B) $ 168,000 
C) $ 182,000 
D) $ 192,000 
A) $ 165,000 
B) $ 168,000 
C) $ 182,000 
D) $ 192,000

Question 11

The concept that assumes that an entity is not in the process of liquidation is .

Accepted Answer

The answer of The concept that assumes that an entity...

Question 12

Which one of the following is an economic obligation for a business entity?

Accepted Answer

A) Salaries paid to employees for services rendered 
B) Amounts owed to creditors 
C) Materials used in manufacturing products 
D) Payment of rent for the next year 
A) Salaries paid to employees for services rendered 
B) Amounts owed to creditors 
C) Materials used in manufacturing products 
D) Payment of rent for the next year

Question 13

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Accepted Answer

A) Financial Accounting Standards Board FAS
B)  
B) Securities and Exchange Commission SE
C)  
C) Public Company Accounting Oversight Board PCAO
B)  
D) International Accounting Standards Board IAS
B)  
A) Financial Accounting Standards Board FAS
B)  
B) Securities and Exchange Commission SE
C)  
C) Public Company Accounting Oversight Board PCAO
B)  
D) International Accounting Standards Board IAS
B)

Question 14

Which one of the following events involves a liability for a business?

Accepted Answer

A) Loans to be repaid to banks 
B) Inventories purchased for cash 
C) Amounts invested by the owners 
D) Stock sold to the general public 
A) Loans to be repaid to banks 
B) Inventories purchased for cash 
C) Amounts invested by the owners 
D) Stock sold to the general public

Question 15

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation.
A) Total assets at the end of 2014.
   
B) Total liabilities at the end of 2014.
   
C) Total equity at the end of 2014.

Accepted Answer

A) $122,000
$3,000 Prepaid Expenses + $7

Question 16

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation:

Accepted Answer

A) $168,000
$165,000 Sales Revenue + $3,

Question 17

Which one of the following statements is true concerning assets?

Accepted Answer

A) They are recorded at market value and then adjusted for inflation. 
B) They are recorded at market value for financial reporting purposes as historical cost may be arbitrary. 
C) Accountants use the term historical cost to refer to the original cost of an asset. 
D) Assets are measured using the time-period approach. 
A) They are recorded at market value and then adjusted for inflation. 
B) They are recorded at market value for financial reporting purposes as historical cost may be arbitrary. 
C) Accountants use the term historical cost to refer to the original cost of an asset. 
D) Assets are measured using the time-period approach.

Question 18

consists of all activities necessary to provide the members of an economic system with goods and services.

Accepted Answer

The answer of consists of all activities necessary to provide...

Question 19

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation:
A) Total revenues for 2014.
   
B) Total expenses for 2014.
   
C) Net income for 2014.

Accepted Answer

A) $125,500
$125,000 Sales Revenue + $50

Question 20

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation.

Accepted Answer

A) $32,000
$110,000 Total Assets - $37,0

How is the balance sheet linked to the other financial statements?

Under Armour is an example of a service provider.

When selecting between the best alternatives regarding an ethical dilemma in accounting all of the following should be considered except:

Someone to whom a company has a debt is known as an investor.

Which of the following would be internal users of accounting information?

Which of the following best describes the term "expenses"?

Which one of the following business decisions will least likely require financial information?

Which of the following best describes the term "assets"?

Mobile Power Corp.reported the following information for the year ended December 31, 2015. What was the retained earnings balance for Mobile Power at December 31, 2014?

The concept that assumes that an entity is not in the process of liquidation is .

Which one of the following is an economic obligation for a business entity?

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Which one of the following events involves a liability for a business?

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation. A) Total assets at the end of 2014. B) Total liabilities at the end of 2014. C) Total equity at the end of 2014.

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation:

Which one of the following statements is true concerning assets?

consists of all activities necessary to provide the members of an economic system with goods and services.

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation: A) Total revenues for 2014. B) Total expenses for 2014. C) Net income for 2014.

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation.

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 1: Accounting As a Form of Communication

How is the balance sheet linked to the other financial statements?

Under Armour is an example of a service provider.

When selecting between the best alternatives regarding an ethical dilemma in accounting all of the following should be considered except:

Someone to whom a company has a debt is known as an investor.

Which of the following would be internal users of accounting information?

Which of the following best describes the term "expenses"?

Which one of the following business decisions will least likely require financial information?

Which of the following best describes the term "assets"?

Mobile Power Corp.reported the following information for the year ended December 31, 2015. What was the retained earnings balance for Mobile Power at December 31, 2014?

The concept that assumes that an entity is not in the process of liquidation is .

Which one of the following is an economic obligation for a business entity?

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Which one of the following events involves a liability for a business?

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation. A) Total assets at the end of 2014. B) Total liabilities at the end of 2014. C) Total equity at the end of 2014.

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation:

Which one of the following statements is true concerning assets?

consists of all activities necessary to provide the members of an economic system with goods and services.

Read the information for Canyon Corporation.Determine the following amounts for Canyon Corporation: A) Total revenues for 2014. B) Total expenses for 2014. C) Net income for 2014.

Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation.

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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