Exam 1: Introduction to Financial Statements

Which of the following is an asset?

Gilkey Corporation began the year with retained earnings of $310000.During the year the company issued $420000 of common stock recorded expenses of $1200000 and paid dividends of $80000.If Gilkey's ending retained earnings was $330000 what was the company's revenue for the year?

Accounting communicates financial information about a business to both internal and external users.

The information needs and questions of external users vary considerably.

Which of the following is not a common way that managers use the balance sheet?

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Which of the following groups uses accounting information to determine whether an advertising proposal will be cost effective?

Benedict Company compiled the following financial information as of December 31 2022: Service revenue \ 1,120,000 Common stock 240,000 Equipment 320,000 Operating expenses 1,000,000 Cash 280,000 Dividends 80,000 Supplies 40,000 Accounts payable 160,000 Accounts receivable 400,000 Retained earnings, 1/1/22 600,000 Benedict's retained earnings on December 31 2022 are

Which of the following financial statements is concerned with the company at a point in time?

Which of the following is not a satisfactory statement of the accounting equation?

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

Jimmy's Repair Shop started the year with total assets of $300000 and total liabilities of $240000.During the year the business recorded $630000 in revenues $330000 in expenses and dividends of $60000.The net income reported by Jimmy's Repair Shop for the year was

Pacifica Company recorded the following cash transactions for the year: Paid $255000 for salaries. Paid $60000 to purchase equipment. Collected $7200 from the sale of investments Repaid $48000 of loan principle Paid $220000 for other operating expenses. Paid $112000 in dividends. Collected $652000 from customers. What was Pacifica's net cash provided (used) by operating activities?

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

To show how successfully your business performed during a period of time you would report its revenues and expenses in the

Tucker Tutoring Service Company recorded the following cash transactions for the year: Paid $55000 for salaries. Paid $7000 to purchase office equipment. Paid $6000 for utilities advertising and supplies. Paid $12000 for rent. Paid $18000 in dividends. Collected $125000 from customers. Borrowed $20000 from the bank. What was the company's net cash provided (used) by financing activities?

Which of the following is a user of accounting information with an indirect financial interest in a business?

Financing activities for corporations include borrowing money and selling shares of their own stock.

Explanatory notes and supporting schedules are an optional part of an annual report.

The partnership form of business organization