Question 1

Which of the following would not be considered an external user of accounting data for the Julian Company?

Accepted Answer

A)  Internal Revenue Service agent 
B)  Management 
C)  Creditors 
D)  Customers 
A)  Internal Revenue Service agent 
B)  Management 
C)  Creditors 
D)  Customers

Question 2

Stockholders' equity can be described as claims of

Accepted Answer

A)  creditors on total assets. 
B)  owners on total assets. 
C)  customers on total assets. 
D)  debtors on total assets. 
A)  creditors on total assets. 
B)  owners on total assets. 
C)  customers on total assets. 
D)  debtors on total assets.

Question 3

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.

Accepted Answer

A) True 
 B)False

Question 4

If the assets owned by a business total $150,000 and liabilities total $105,000, stockholders' equity totals $45,000.

Accepted Answer

A) True 
 B)False

Question 5

Owners of business firms are the only people who need accounting information.

Accepted Answer

A) True 
 B)False

Question 6

An income 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 7

Marvin Services Corporation had the following accounts and balances:   If the balance of the Buildings account was $24,000 and $6,000 of Accounts Payable were paid in cash, what would be the total liabilities and stockholders' equity?

Accepted Answer

A)  $54,000 
B)  $78,000 
C)  $48,000 
D)  $72,000 
A)  $54,000 
B)  $78,000 
C)  $48,000 
D)  $72,000

Question 8

A business organized as a corporation

Accepted Answer

A)  is not a separate legal entity in most states. 
B)  requires that stockholders be personally liable for the debts of the business. 
C)  is owned by its stockholders. 
D)  has tax advantages over a proprietorship or partnership. 
A)  is not a separate legal entity in most states. 
B)  requires that stockholders be personally liable for the debts of the business. 
C)  is owned by its stockholders. 
D)  has tax advantages over a proprietorship or partnership.

Question 9

Which of the following is not a principal type of business activity?

Accepted Answer

A)  Operating 
B)  Investing 
C)  Financing 
D)  Delivering 
A)  Operating 
B)  Investing 
C)  Financing 
D)  Delivering

Question 10

Which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase?

Accepted Answer

A)  Investors in common stock 
B)  Marketing managers 
C)  Creditors 
D)  Chief Financial Officer 
A)  Investors in common stock 
B)  Marketing managers 
C)  Creditors 
D)  Chief Financial Officer

Question 11

All of the following are advantages for choosing a proprietorship for a business except

Accepted Answer

A)  a proprietorship is a simple form of business to set up. 
B)  a proprietorship gives the owner control of the business. 
C)  proprietorship receive more favorable tax treatment. 
D)  transfer of ownership is easily achieved through stock sales. 
A)  a proprietorship is a simple form of business to set up. 
B)  a proprietorship gives the owner control of the business. 
C)  proprietorship receive more favorable tax treatment. 
D)  transfer of ownership is easily achieved through stock sales.

Question 12

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Accepted Answer

A)  $100,000 increase 
B)  $50,000 decrease 
C)  $50,000 increase 
D)  $75,000 decrease 
A)  $100,000 increase 
B)  $50,000 decrease 
C)  $50,000 increase 
D)  $75,000 decrease

Question 13

Which of the following is not a reason one set of international accounting standards are needed?

Accepted Answer

A)  Multinational corporation. 
B)  Financial markets. 
C)  Information technology. 
D)  All of these answer choices are reasons one set of international accounting standards are needed. 
A)  Multinational corporation. 
B)  Financial markets. 
C)  Information technology. 
D)  All of these answer choices are reasons one set of international accounting standards are needed.

Question 14

The economic resources that are owned by a business are called stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Net income for the period is determined by subtracting total expenses and dividends from revenues.

Accepted Answer

A) True 
 B)False

Question 17

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Accepted Answer

The answer of For the items listed below, fill in...

Question 18

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 19

A business is usually involved in two types of activity-financing and investing.

Accepted Answer

A) True 
 B)False

Question 20

A balance sheet shows

Accepted Answer

A)  revenues, liabilities, and stockholders' equity. 
B)  expenses, dividends, and stockholders' equity. 
C)  revenues, expenses, and dividends. 
D)  assets, liabilities, and stockholders' equity. 
A)  revenues, liabilities, and stockholders' equity. 
B)  expenses, dividends, and stockholders' equity. 
C)  revenues, expenses, and dividends. 
D)  assets, liabilities, and stockholders' equity.

Which of the following would not be considered an external user of accounting data for the Julian Company?

Stockholders' equity can be described as claims of

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.

If the assets owned by a business total $150,000 and liabilities total $105,000, stockholders' equity totals $45,000.

Owners of business firms are the only people who need accounting information.

An income statement

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $24,000 and $6,000 of Accounts Payable were paid in cash, what would be the total liabilities and stockholders' equity?

A business organized as a corporation

Which of the following is not a principal type of business activity?

Which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase?

All of the following are advantages for choosing a proprietorship for a business except

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Which of the following is not a reason one set of international accounting standards are needed?

The economic resources that are owned by a business are called stockholders' equity.

The accounting equation may be expressed as

Net income for the period is determined by subtracting total expenses and dividends from revenues.

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Which of the following is not a liability?

A business is usually involved in two types of activity-financing and investing.

A balance sheet shows

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

Which of the following would not be considered an external user of accounting data for the Julian Company?

Stockholders' equity can be described as claims of

The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.

If the assets owned by a business total $150,000 and liabilities total $105,000, stockholders' equity totals $45,000.

Owners of business firms are the only people who need accounting information.

An income statement

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $24,000 and $6,000 of Accounts Payable were paid in cash, what would be the total liabilities and stockholders' equity?

A business organized as a corporation

Which of the following is not a principal type of business activity?

Which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase?

All of the following are advantages for choosing a proprietorship for a business except

If total liabilities decreased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Which of the following is not a reason one set of international accounting standards are needed?

The economic resources that are owned by a business are called stockholders' equity.

The accounting equation may be expressed as

Net income for the period is determined by subtracting total expenses and dividends from revenues.

For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item.

Which of the following is not a liability?

A business is usually involved in two types of activity-financing and investing.

A balance sheet shows

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