Question 1

Which of the following best describes a company's financing activities?

Accepted Answer

A)  Financing activities focus on the sale of products and services. 
B)  Financing activities include selling products. 
C)  Financing activities enable a company to acquire assets needed to run a business. 
D)  Financing activities are represented by the revenues and expenses on the income statement. 
A)  Financing activities focus on the sale of products and services. 
B)  Financing activities include selling products. 
C)  Financing activities enable a company to acquire assets needed to run a business. 
D)  Financing activities are represented by the revenues and expenses on the income statement.

Question 2

Which of the following is a current asset?

Accepted Answer

A)  Land 
B)  Buildings 
C)  Store fixtures 
D)  Prepaid insurance 
A)  Land 
B)  Buildings 
C)  Store fixtures 
D)  Prepaid insurance

Question 3

Which one of the following is not an external user of financial information?

Accepted Answer

A)  Company management 
B)  Internal Revenue Service 
C)  Creditors 
D)  Stockholders 
A)  Company management 
B)  Internal Revenue Service 
C)  Creditors 
D)  Stockholders

Question 4

Read the information about Eagle Corporation.
Required:
Compare the profit margins for 2014 and 2013. Is the company becoming more or less profitable or staying the same? What could be contributing to this?

Accepted Answer

Profit Margin for 2014 = 12.61%
$290,000

Question 5

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

Accepted Answer

The answer of is a liquidity measure that is calculated...

Question 6

Marvel Shoes
Marvel Shoes reported the following items on its statement of cash flows for the current year:  
-Read the information about Marvel Shoes. What was the cash balance for Marvel Shoes at the end of the current year?

Accepted Answer

A)  $ 10,000 
B)  $ 30,000 
C)  $ 40,000 
D)  $ 70,000 
A)  $ 10,000 
B)  $ 30,000 
C)  $ 40,000 
D)  $ 70,000

Question 7

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

Accepted Answer

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

Question 8

Read the information for Canyon Corporation. Determine the following amounts for Canyon Corporation:
A Stockholders' equity at the end of 2014.
   B Retained earnings at the end of 2014.
   C Name two events that might cause stockholders' equity to decrease.

Accepted Answer

A $87,000
$122,000 Total Assets - $35,00

Question 9

External users of accounting information include present and potential stockholders, bankers and other creditors, and management.

Accepted Answer

A) True 
 B)False

Question 10

Match the following characteristics with the statements about each qualitative characteristic's importance.
-The accounting information must be information that could affect a decision.

Accepted Answer

A) Consistency 
B) Materiality 
C) Conservatism 
D) Comparability 
E) Reliability
F)Relevance
G)Understandability 
A) Consistency 
B) Materiality 
C) Conservatism 
D) Comparability 
E) Reliability
F)Relevance
G)Understandability

Question 11

How is a classified balance sheet useful to decision makers?

Accepted Answer

A classified balance sheet helps evaluat

Question 12

The amount of earnings distributed to stockholders can be found in the income statement.

Accepted Answer

A) True 
 B)False

Question 13

Presented below are condensed data from the financial statements of Unique Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
   Required: Based on the information provided, is Unique Factory considered a business or non-business entity? How do you know by examining the financial statements?

Accepted Answer

Unique Factory is a business entity, bec

Question 14

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 exact amount of profit on each product 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 15

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs.

Accepted Answer

A) True 
 B)False

Question 16

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

Accepted Answer

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

Question 17

A is a certificate that represents a corporation's promise to repay a certain amount of money and
interest in the future.

Accepted Answer

The answer of A is a certificate that represents a...

Question 18

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

Accepted Answer

A) True 
 B)False

Question 19

The qualitative characteristics of accounting data include:

Accepted Answer

A)  assets reported on the balance sheet. 
B)  all accounting information. 
C)  cash flows. 
D)  reliability. 
A)  assets reported on the balance sheet. 
B)  all accounting information. 
C)  cash flows. 
D)  reliability.

Question 20

Native Mike's Consultants had the following balance sheet amounts at the beginning of the year:   During the year, total assets increased by $100,000 and total liabilities increased by $40,000. The company also paid $30,000 in dividends. No other transactions occurred except revenues and expenses. How much is net income for the year?

Accepted Answer

A)  $30,000 
B)  $60,000 
C)  $70,000 
D)  $90,000 
A)  $30,000 
B)  $60,000 
C)  $70,000 
D)  $90,000

Which of the following best describes a company's financing activities?

Which of the following is a current asset?

Which one of the following is not an external user of financial information?

Read the information about Eagle Corporation. Required: Compare the profit margins for 2014 and 2013. Is the company becoming more or less profitable or staying the same? What could be contributing to this?

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: -Read the information about Marvel Shoes. What was the cash balance for Marvel Shoes at the end of the current year?

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

Read the information for Canyon Corporation. Determine the following amounts for Canyon Corporation: A Stockholders' equity at the end of 2014. B Retained earnings at the end of 2014. C Name two events that might cause stockholders' equity to decrease.

External users of accounting information include present and potential stockholders, bankers and other creditors, and management.

Match the following characteristics with the statements about each qualitative characteristic's importance. -The accounting information must be information that could affect a decision.

How is a classified balance sheet useful to decision makers?

The amount of earnings distributed to stockholders can be found in the income statement.

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs.

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

A is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future.

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

The qualitative characteristics of accounting data include:

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

Which of the following best describes a company's financing activities?

Which of the following is a current asset?

Which one of the following is not an external user of financial information?

Read the information about Eagle Corporation. Required: Compare the profit margins for 2014 and 2013. Is the company becoming more or less profitable or staying the same? What could be contributing to this?

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: -Read the information about Marvel Shoes. What was the cash balance for Marvel Shoes at the end of the current year?

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

Read the information for Canyon Corporation. Determine the following amounts for Canyon Corporation: A Stockholders' equity at the end of 2014. B Retained earnings at the end of 2014. C Name two events that might cause stockholders' equity to decrease.

External users of accounting information include present and potential stockholders, bankers and other creditors, and management.

Match the following characteristics with the statements about each qualitative characteristic's importance. -The accounting information must be information that could affect a decision.

How is a classified balance sheet useful to decision makers?

The amount of earnings distributed to stockholders can be found in the income statement.

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs.

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

A is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future.

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

The qualitative characteristics of accounting data include:

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