Exam 1: Accounting As a Form of Communication

On January 1, 2015, A-Best Company's balance in retained earnings was $70,000. At the end of the year, December 31, 2015, the balance in retained earnings was $94,000. During 2015, the company earned net income of $40,000. How much were dividends?

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. -Claims of the creditors against the assets of a company.

Which one of the following is an investing activity of a business?

Gyro's Shop reported a net loss of $15,000 and total expenses of $80,000. How much are total revenues?

Which of the following is the correct date format for the financial statement heading?

Read the information about Eagle Corporation. Required: How much is net income for the year ended December 31, 2014? If Eagle Corporation had used a single-step statement, by how much would net income be different? Explain.

Good quality information should be both and present a .

During its fifth year of operations, Bright Creations Company reports a beginning cash balance of $132,000, cash inflows from investing activities of $210,000, cash outflows for financing activities of $79,000, and cash outflows for operating activities of $13,000. What was Bright Creations' cash balance at the end of the fifth year?

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. -Accounts receivable

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Accountants are the main reason financial statements are prepared.

You are a potential stockholder and are concerned that a particular company you are ready to invest in might have too much debt. Which financial statement would provide you information needed in order to evaluate your concern?

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Capital stock

The process of identifying, measuring, and communicating economic information to various users is called ____________________.

Forman, Inc. earned $600,000 profit during 2015. On which financial statements will you find the dollar amount of the profit earned by the company?

Target, Inc., started the year with total assets of $400,000 and total liabilities of $240,000. Net income for the year is $120,000 and dividends declared and paid during the year are $90,000. A What is the amount of Target's total stockholders' equity at the end of the year? B Could Target have paid additional dividends during the year? Explain your answer.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Paid suppliers cash for inventory purchased

Webb Company Selected data from the accounting records of Webb Company are listed below: -Read the information about Webb Company. What is Webb's income from operations?

Read the information about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp. What can you learn from the current ratio that you cannot learn from the amount of working capital?