Question 1

Which of the following groups uses accounting information primarily to insure that the entity is operating within prescribed rules?

Accepted Answer

A) Taxing authorities 
B) Regulatory agencies 
C) Labor Unions 
D) Management 
A) Taxing authorities 
B) Regulatory agencies 
C) Labor Unions 
D) Management

Question 2

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Accepted Answer

A) accounts payable. 
B) notes receivable. 
C) taxes payable. 
D) bonds payable. 
A) accounts payable. 
B) notes receivable. 
C) taxes payable. 
D) bonds payable.

Question 3

The liability of corporate stockholders is limited to the amount of their investment.

Accepted Answer

A) True 
 B)False

Question 4

The management discussion and analysis (MD&A) section of the annual report covers all of the following aspects except the

Accepted Answer

A) ability of the company to pay near-term obligations. 
B) certification criteria of the company's auditors. 
C) company's ability to fund operations and expansion. 
D) results of the company operations. 
A) ability of the company to pay near-term obligations. 
B) certification criteria of the company's auditors. 
C) company's ability to fund operations and expansion. 
D) results of the company operations.

Question 5

Which type of corporate information is readily available to investors?

Accepted Answer

A) Financial comparison of operating alternatives 
B) Marketing strategies for a product that will be introduced in eighteen months 
C) Forecasts of cash needs for the upcoming year 
D) Amount of net income retained in the business 
A) Financial comparison of operating alternatives 
B) Marketing strategies for a product that will be introduced in eighteen months 
C) Forecasts of cash needs for the upcoming year 
D) Amount of net income retained in the business

Question 6

The accounting equation may be expressed as

Accepted Answer

A) Assets = Stockholders' Equity - Liabilities. 
B) Assets = Liabilities + Stockholders' Equity. 
C) Assets + Liabilities = Stockholders' Equity. 
D) Assets + Stockholders' Equity = Liabilities. 
A) Assets = Stockholders' Equity - Liabilities. 
B) Assets = Liabilities + Stockholders' Equity. 
C) Assets + Liabilities = Stockholders' Equity. 
D) Assets + Stockholders' Equity = Liabilities.

Question 7

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Accepted Answer

A) True 
 B)False

Question 8

Jack and Jill form a partnership.Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?

Accepted Answer

A) Only Jack is personally liable for the debt, since he has been the managing partner during that time. 
B) Only Jill is personally liable for the debt of the business, since Jack has been working and she has not. 
C) Both Jack and Jill are personally liable for the business debt. 
D) Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity. 
A) Only Jack is personally liable for the debt, since he has been the managing partner during that time. 
B) Only Jill is personally liable for the debt of the business, since Jack has been working and she has not. 
C) Both Jack and Jill are personally liable for the business debt. 
D) Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity.

Question 9

The accounting equation can be expressed as Assets - Stockholders' Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 10

Net income results when

Accepted Answer

A) Assets > Liabilities. B) Revenues = Expenses. C) Revenues > Expenses. D) Revenues < Expenses. A) Assets > Liabilities. B) Revenues = Expenses. C) Revenues > Expenses. D) Revenues < Expenses.

Question 11

The retained earnings statement

Accepted Answer

A) summarizes the changes in retained earnings for a specific period of time. 
B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. 
C) reports the assets, liabilities, and stockholders' equity at a specific date. 
D) presents the revenues and expenses for a specific period of time. 
A) summarizes the changes in retained earnings for a specific period of time. 
B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. 
C) reports the assets, liabilities, and stockholders' equity at a specific date. 
D) presents the revenues and expenses for a specific period of time.

Question 12

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Accepted Answer

A) Taxing authority 
B) Creditor 
C) Regulatory agency 
D) Labor union 
A) Taxing authority 
B) Creditor 
C) Regulatory agency 
D) Labor union

Question 13

Which of the following is not a liability?

Accepted Answer

A) Unearned Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Interest Payable 
A) Unearned Service Revenue 
B) Accounts Payable 
C) Accounts Receivable 
D) Interest Payable

Question 14

Liabilities

Accepted Answer

A) are future economic benefits. 
B) are debts and obligations. 
C) possess service potential. 
D) are things of value owned by a business. 
A) are future economic benefits. 
B) are debts and obligations. 
C) possess service potential. 
D) are things of value owned by a business.

Which of the following groups uses accounting information primarily to insure that the entity is operating within prescribed rules?

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

The liability of corporate stockholders is limited to the amount of their investment.

The management discussion and analysis (MD&A) section of the annual report covers all of the following aspects except the

Which type of corporate information is readily available to investors?

The accounting equation may be expressed as

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Jack and Jill form a partnership.Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?

The accounting equation can be expressed as Assets - Stockholders' Equity = Liabilities.

Net income results when

The retained earnings statement

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Which of the following is not a liability?

Liabilities

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

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Exam 1: Introduction to Financial Statements

Which of the following groups uses accounting information primarily to insure that the entity is operating within prescribed rules?

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

The liability of corporate stockholders is limited to the amount of their investment.

The management discussion and analysis (MD&A) section of the annual report covers all of the following aspects except the

Which type of corporate information is readily available to investors?

The accounting equation may be expressed as

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Jack and Jill form a partnership.Jack runs the business in New York, while Jill vacations in Hawaii.During the time Jill is away from the business, Jack increases the debts of the business by $20,000.Which of the following statements is true regarding this debt?

The accounting equation can be expressed as Assets - Stockholders' Equity = Liabilities.

Net income results when

The retained earnings statement

Which of the following is a primary user of accounting information with a direct financial interest in the business?

Which of the following is not a liability?

Liabilities

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters