Question 1

International standards are developed by the

Accepted Answer

A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB. 
A)  IFRS. 
B)  GAAP. 
C)  IASB. 
D)  FASB.

Question 2

External users of accounting information are managers who plan, organize, and run a business.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a step for solving an ethical dilemma?

Accepted Answer

A)  Identifying the alternatives and weighing the impact of each alternative on various stakeholders. 
B)  Certifying the ethical accuracy of the financial information. 
C)  Identifying and analyzing the principal elements in the situation. 
D)  Recognizing the ethical situation and issues involved. 
A)  Identifying the alternatives and weighing the impact of each alternative on various stakeholders. 
B)  Certifying the ethical accuracy of the financial information. 
C)  Identifying and analyzing the principal elements in the situation. 
D)  Recognizing the ethical situation and issues involved.

Question 4

Dividends are reported on the

Accepted Answer

A)  income statement. 
B)  retained earnings statement. 
C)  balance sheet. 
D)  income statement and balance sheet. 
A)  income statement. 
B)  retained earnings statement. 
C)  balance sheet. 
D)  income statement and balance sheet.

Question 5

Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below.     t

Accepted Answer

The answer of Prepare an income statement and a retained...

Question 6

If the retained earnings account decreases from the beginning of the year to the end of the year, then

Accepted Answer

A)  net income is less than dividends. 
B)  there was a net income and no dividends. 
C)  additional investments are less than net losses. 
D)  net income is greater than dividends. 
A)  net income is less than dividends. 
B)  there was a net income and no dividends. 
C)  additional investments are less than net losses. 
D)  net income is greater than dividends.

Question 7

What types of information are presented in the notes to the financial statements?

Accepted Answer

Information included in the notes to the

Question 8

GAAP, compared to IFRS, tends to be more

Accepted Answer

A)  simple in accounting requirements. 
B)  rules-based. 
C)  principles-based. 
D)  simple in disclosure requirements. 
A)  simple in accounting requirements. 
B)  rules-based. 
C)  principles-based. 
D)  simple in disclosure requirements.

Question 9

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 10

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Accepted Answer

A)  $240,000. 
B)  $200,000. 
C)  $160,000. 
D)  $180,000. 
A)  $240,000. 
B)  $200,000. 
C)  $160,000. 
D)  $180,000.

Question 11

Claims of creditors and owners on the assets of a business are called liabilities.

Accepted Answer

A) True 
 B)False

Question 12

Notes to the financial statements

Accepted Answer

A)  are optional. 
B)  help clarify information presented in the financial statements. 
C)  are generally brief and few in number. 
D)  need not be read in detail if an unqualified opinion accompanies the financial statements. 
A)  are optional. 
B)  help clarify information presented in the financial statements. 
C)  are generally brief and few in number. 
D)  need not be read in detail if an unqualified opinion accompanies the financial statements.

Question 13

The balance sheet

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 14

Common stock is reported on the

Accepted Answer

A)  statement of cash flows. 
B)  retained earnings statement. 
C)  income statement. 
D)  balance sheet. 
A)  statement of cash flows. 
B)  retained earnings statement. 
C)  income statement. 
D)  balance sheet.

Question 15

Net income is another term for revenue.

Accepted Answer

A) True 
 B)False

Question 16

Here are incomplete financial statements for Brandon, Inc.     Instructions
Calculate the missing amounts.

Accepted Answer

First note that the retained earnings st

Question 17

Which one of the following questions is most likely asked by an internal human resources director for the company?

Accepted Answer

A)  Which product line is most profitable? 
B)  What price for our product will maximize the company income? 
C)  What average pay raise is affordable for employees this year? 
D)  Should any product lines be eliminated? 
A)  Which product line is most profitable? 
B)  What price for our product will maximize the company income? 
C)  What average pay raise is affordable for employees this year? 
D)  Should any product lines be eliminated?

Question 18

Determine the missing items.

Accepted Answer

a. $16,000

International standards are developed by the

External users of accounting information are managers who plan, organize, and run a business.

Which of the following is not a step for solving an ethical dilemma?

Dividends are reported on the

Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below. t

If the retained earnings account decreases from the beginning of the year to the end of the year, then

What types of information are presented in the notes to the financial statements?

GAAP, compared to IFRS, tends to be more

The retained earnings statement

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Claims of creditors and owners on the assets of a business are called liabilities.

Notes to the financial statements

The balance sheet

Common stock is reported on the

Net income is another term for revenue.

Here are incomplete financial statements for Brandon, Inc. Instructions Calculate the missing amounts.

Which one of the following questions is most likely asked by an internal human resources director for the company?

Determine the missing items.

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

Time Value of Money

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Exam 1: Introduction to Financial Statements

International standards are developed by the

External users of accounting information are managers who plan, organize, and run a business.

Which of the following is not a step for solving an ethical dilemma?

Dividends are reported on the

Prepare an income statement and a retained earnings statement, for the month of October, 2014 and a balance sheet at October 31, 2014 for the medical practice of Linda Denny, MD, from the items listed below. t

If the retained earnings account decreases from the beginning of the year to the end of the year, then

What types of information are presented in the notes to the financial statements?

GAAP, compared to IFRS, tends to be more

The retained earnings statement

Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was

Claims of creditors and owners on the assets of a business are called liabilities.

Notes to the financial statements

The balance sheet

Common stock is reported on the

Net income is another term for revenue.

Here are incomplete financial statements for Brandon, Inc. Instructions Calculate the missing amounts.

Which one of the following questions is most likely asked by an internal human resources director for the company?

Determine the missing items.

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

Time Value of Money

Filters