Question 1

Profits from operating activities distributed to business owners are called dividends.

Accepted Answer

A) True 
 B)False

Question 2

The Financial Accounting Standards Board defined the objectives of financial reporting.

Accepted Answer

A) True 
 B)False

Question 3

is the quality of accounting information that allows a user to compare two or more accounting periods for a single company.

Accepted Answer

The answer of is the quality of accounting information that...

Question 4

The balance sheet is linked to the retained earnings statement by the ending retained earnings balance.

Accepted Answer

A) True 
 B)False

Question 5

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

Accepted Answer

A)  Income before taxes and income taxes 
B)  Total operating revenues and total operating expenses 
C)  Income from operations and income before taxes 
D)  Total revenues and total expenses 
A)  Income before taxes and income taxes 
B)  Total operating revenues and total operating expenses 
C)  Income from operations and income before taxes 
D)  Total revenues and total expenses

Question 6

A balance sheet shows cash, $75,000; marketable securities, $115,000; accounts receivable, $150,000 and $222,500 of inventories. Current liabilities are $225,000. The current ratio is 2.5 to 1.

Accepted Answer

A) True 
 B)False

Question 7

A company in the process of liquidation meets the requirements under the going concern assumption.

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

From the following list, select the proper section from the statement of cash flows in which it would be classified.
-Received cash from the sale of a building

Accepted Answer

A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
A) Operating Activities 
B) Investing Activities 
C) Financing Activities

Question 10

Which of the following statements is true regarding a bond?

Accepted Answer

A)  A bond is a certificate that acts as evidence of ownership in a corporation. 
B)  A bond is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future. 
C)  If you buy a bond from a company, you are borrowing money from the company. 
D)  Bondholders receive dividends semiannually. 
A)  A bond is a certificate that acts as evidence of ownership in a corporation. 
B)  A bond is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future. 
C)  If you buy a bond from a company, you are borrowing money from the company. 
D)  Bondholders receive dividends semiannually.

Question 11

For each item listed, select the section of the balance sheet in which the item would be reported.
-Computer available for resale

Accepted Answer

A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity 
A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity

Question 12

Which of the following statements best describes the term "revenues"?

Accepted Answer

A)  Revenues represent an outflow of assets resulting from the sale of goods or services. 
B)  Revenues represent assets received from the sale of products or services. 
C)  Revenues represent assets used or consumed in the sale of products or services. 
D)  Revenues represent the dollar amount of bonds sold to the public. 
A)  Revenues represent an outflow of assets resulting from the sale of goods or services. 
B)  Revenues represent assets received from the sale of products or services. 
C)  Revenues represent assets used or consumed in the sale of products or services. 
D)  Revenues represent the dollar amount of bonds sold to the public.

Question 13

is the type of accounting used by nonbusiness entities.

Accepted Answer

The answer of is the type of accounting used by...

Question 14

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement.
-Buildings

Accepted Answer

A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement 
A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement

Question 15

Skyline, Inc.
The balance sheet of Skyline Inc. includes the following items:
  
-Read the information about Skyline, Inc. What is Skyline's working capital?

Accepted Answer

A)  $58,440 
B)  $89,740 
C)  $84,040 
D)  $9,740 
A)  $58,440 
B)  $89,740 
C)  $84,040 
D)  $9,740

Question 16

The International Accounting Standards Board IASB was created in order to develop worldwide accounting standards that must be used for all financial statements prepared regardless of country.

Accepted Answer

A) True 
 B)False

Question 17

Read the information about Cargo Corporation.
Required:
Prepare the current assets section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. How does the concept of liquidity apply?

Accepted Answer

@#IMG-DLM& Liquidity is an indicator of how close

Question 18

Bartlett Industries
Bartlett Industries began operations on January 2, 2015, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Bartlett Industries paid a total of $100,000 in dividends to its stockholders during the year.
-Read the information about Bartlett Industries. The company's dividends for the year:

Accepted Answer

A)  reduce the amount of capital stock reported by the company. 
B)  are part of Bartlett Industries' operating costs. 
C)  are reported on the statement of retained earnings. 
D)  are an expense of Bartlett Industries. 
A)  reduce the amount of capital stock reported by the company. 
B)  are part of Bartlett Industries' operating costs. 
C)  are reported on the statement of retained earnings. 
D)  are an expense of Bartlett Industries.

Question 19

Which of the following include only current assets?

Accepted Answer

A)  Accounts receivable, cash, inventory, office supplies 
B)  Cash, accounts payable, inventory, office supplies 
C)  Cash, land, accounts receivable, inventory 
D)  Accounts receivable, cash, furniture, office supplies 
A)  Accounts receivable, cash, inventory, office supplies 
B)  Cash, accounts payable, inventory, office supplies 
C)  Cash, land, accounts receivable, inventory 
D)  Accounts receivable, cash, furniture, office supplies

Question 20

A liability is a future economic benefit to a business.

Accepted Answer

A) True 
 B)False

Profits from operating activities distributed to business owners are called dividends.

The Financial Accounting Standards Board defined the objectives of financial reporting.

is the quality of accounting information that allows a user to compare two or more accounting periods for a single company.

The balance sheet is linked to the retained earnings statement by the ending retained earnings balance.

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

A balance sheet shows cash, $75,000; marketable securities, $115,000; accounts receivable, $150,000 and $222,500 of inventories. Current liabilities are $225,000. The current ratio is 2.5 to 1.

A company in the process of liquidation meets the requirements under the going concern assumption.

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.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Received cash from the sale of a building

Which of the following statements is true regarding a bond?

For each item listed, select the section of the balance sheet in which the item would be reported. -Computer available for resale

Which of the following statements best describes the term "revenues"?

is the type of accounting used by nonbusiness entities.

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Buildings

Skyline, Inc. The balance sheet of Skyline Inc. includes the following items: -Read the information about Skyline, Inc. What is Skyline's working capital?

The International Accounting Standards Board IASB was created in order to develop worldwide accounting standards that must be used for all financial statements prepared regardless of country.

Read the information about Cargo Corporation. Required: Prepare the current assets section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. How does the concept of liquidity apply?

Which of the following include only current assets?

A liability is a future economic benefit to a business.

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

Profits from operating activities distributed to business owners are called dividends.

The Financial Accounting Standards Board defined the objectives of financial reporting.

is the quality of accounting information that allows a user to compare two or more accounting periods for a single company.

The balance sheet is linked to the retained earnings statement by the ending retained earnings balance.

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

A balance sheet shows cash, $75,000; marketable securities, $115,000; accounts receivable, $150,000 and $222,500 of inventories. Current liabilities are $225,000. The current ratio is 2.5 to 1.

A company in the process of liquidation meets the requirements under the going concern assumption.

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.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Received cash from the sale of a building

Which of the following statements is true regarding a bond?

For each item listed, select the section of the balance sheet in which the item would be reported. -Computer available for resale

Which of the following statements best describes the term "revenues"?

is the type of accounting used by nonbusiness entities.

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Buildings

Skyline, Inc. The balance sheet of Skyline Inc. includes the following items: -Read the information about Skyline, Inc. What is Skyline's working capital?

The International Accounting Standards Board IASB was created in order to develop worldwide accounting standards that must be used for all financial statements prepared regardless of country.

Read the information about Cargo Corporation. Required: Prepare the current assets section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. How does the concept of liquidity apply?

Which of the following include only current assets?

A liability is a future economic benefit to a business.

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

Filters