Question 1

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

Accepted Answer

A statement of stockholders' equity summ

Question 2

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all.
-A distribution of the net income of a business to its owners.

Accepted Answer

A) Capital stock 
B) Asset 
C) Owners' equity 
D) Time period 
E) Dividends
F)Economic entity concept
G)Expense
H)Retained earnings
I)Cost principle
J)Creditor
K)Liability
L)Revenue
M)Going concern
N)Monetary unit
O)Corporation 
A) Capital stock 
B) Asset 
C) Owners' equity 
D) Time period 
E) Dividends
F)Economic entity concept
G)Expense
H)Retained earnings
I)Cost principle
J)Creditor
K)Liability
L)Revenue
M)Going concern
N)Monetary unit
O)Corporation

Question 3

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives.
-Based on the financial information, should I buy shares of Apple?

Accepted Answer

A) primary financial reporting objective 
B) secondary financial reporting objective 
A) primary financial reporting objective 
B) secondary financial reporting objective

Question 4

The reliability of the information in a company's financial statements is the responsibility of which of the following?

Accepted Answer

A)  The Securities and Exchange Commission SEC 
B)  The Certified Public Accountant in charge of the audit of the company's financial statements 
C)  The company's management 
D)  The stockholders of the company 
A)  The Securities and Exchange Commission SEC 
B)  The Certified Public Accountant in charge of the audit of the company's financial statements 
C)  The company's management 
D)  The stockholders of the company

Question 5

Stockholders' equity is owners' equity in a corporation.

Accepted Answer

A) True 
 B)False

Question 6

From the following choices, select the answer that describes the effect on working capital as a result of the transaction.
-Purchased inventory on account

Accepted Answer

A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change 
A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change

Question 7

For each item listed, select the section of the balance sheet in which the item would be reported.
-Notes payable--due within one year

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 8

Is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Accepted Answer

A)  Management accounting 
B)  Auditing 
C)  Financial accounting 
D)  Bookkeeping 
A)  Management accounting 
B)  Auditing 
C)  Financial accounting 
D)  Bookkeeping

Question 9

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. What is the company's retained earnings balance at December 31, 2015?

Accepted Answer

A)  $140,000 
B)  $190,000 
C)  $240,000 
D)  $340,000 
A)  $140,000 
B)  $190,000 
C)  $240,000 
D)  $340,000

Question 10

Which of the following would not be considered to be an intangible asset?

Accepted Answer

A)  Franchises 
B)  Copyrights 
C)  Investments 
D)  Goodwill 
A)  Franchises 
B)  Copyrights 
C)  Investments 
D)  Goodwill

Question 11

Tentco reported the following amounts in various statements included in its 2014 annual report. All amounts are stated in millions of dollars.
   1 Prepare a Statement of retained earnings for the year ended December 31, 2014.
2 Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report. Explain how the information differs between the two statements.

Accepted Answer

1
Tentco
Statement of Retained Earnings

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

The following items are available from the records of Ramos Corporation at the end of its fiscal year, June 30, 2014:
   Required
1 Prepare a balance sheet.
2 For each non-balance-sheet item, indicate where it should appear.

Accepted Answer

1
RAMOS CORPORATION BALANCE SHEET
JUNE 3

Question 14

A grocery store is an example of a wholesaler.

Accepted Answer

A) True 
 B)False

Question 15

Classify the following items according to the financial statement on which each belongs, either the income statement IS or the balance sheet BS. Also indicate whether each is a revenue R, expense E, asset A, liability L, or owners' equity OE item.

Accepted Answer

The answer of Classify the following items according to the...

Question 16

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives.
-How much has Apple invested in research and development projects?

Accepted Answer

A) primary financial reporting objective 
B) secondary financial reporting objective 
A) primary financial reporting objective 
B) secondary financial reporting objective

Question 17

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 18

Owners of corporations are called ____________________.

Accepted Answer

The answer of Owners of corporations are called ____________________....

Question 19

Provided below is a list of important users of accounting information. Below the list are descriptions of a major need of each of the various users. Fill in the blank with the one user group that is most likely to have the need described to the right of the blank. Some user groups may be used more than once or not at all.
-The profitability of each division of the company.

Accepted Answer

A) Stockholder 
B) Company management 
C) Supplier 
D) Banker 
E) Internal Revenue Service
F)Securities and Exchange Commission
G)Labor union 
A) Stockholder 
B) Company management 
C) Supplier 
D) Banker 
E) Internal Revenue Service
F)Securities and Exchange Commission
G)Labor union

Question 20

Which one of the following is an assumption made in the preparation of financial statements?

Accepted Answer

A)  Financial statements are prepared for a specific entity that is distinct from the entity owners. 
B)  Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit. 
C)  Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time. 
D)  Market values are always assumed to be irrelevant when preparing financial statements. 
A)  Financial statements are prepared for a specific entity that is distinct from the entity owners. 
B)  Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit. 
C)  Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time. 
D)  Market values are always assumed to be irrelevant when preparing financial statements.

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all. -A distribution of the net income of a business to its owners.

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -Based on the financial information, should I buy shares of Apple?

The reliability of the information in a company's financial statements is the responsibility of which of the following?

Stockholders' equity is owners' equity in a corporation.

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Purchased inventory on account

For each item listed, select the section of the balance sheet in which the item would be reported. -Notes payable--due within one year

Is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Which of the following would not be considered to be an intangible asset?

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

The following items are available from the records of Ramos Corporation at the end of its fiscal year, June 30, 2014: Required 1 Prepare a balance sheet. 2 For each non-balance-sheet item, indicate where it should appear.

A grocery store is an example of a wholesaler.

Classify the following items according to the financial statement on which each belongs, either the income statement IS or the balance sheet BS. Also indicate whether each is a revenue R, expense E, asset A, liability L, or owners' equity OE item.

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much has Apple invested in research and development projects?

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

Owners of corporations are called ____________________.

Which one of the following is an assumption made in the preparation of financial statements?

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

Exam 1: Accounting As a Form of Communication

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all. -A distribution of the net income of a business to its owners.

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -Based on the financial information, should I buy shares of Apple?

The reliability of the information in a company's financial statements is the responsibility of which of the following?

Stockholders' equity is owners' equity in a corporation.

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Purchased inventory on account

For each item listed, select the section of the balance sheet in which the item would be reported. -Notes payable--due within one year

Is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Which of the following would not be considered to be an intangible asset?

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

The following items are available from the records of Ramos Corporation at the end of its fiscal year, June 30, 2014: Required 1 Prepare a balance sheet. 2 For each non-balance-sheet item, indicate where it should appear.

A grocery store is an example of a wholesaler.

Classify the following items according to the financial statement on which each belongs, either the income statement IS or the balance sheet BS. Also indicate whether each is a revenue R, expense E, asset A, liability L, or owners' equity OE item.

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much has Apple invested in research and development projects?

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

Owners of corporations are called ____________________.

Which one of the following is an assumption made in the preparation of financial statements?

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