Exam 1: Introduction to Financial Statements

Management's views on the company's short-term debt paying ability expansion financing and results of operations are found in the

A business is usually involved in two types of activity-financing and investing.

Which of the following would not be considered an external user of accounting data for the Julian Company?

Two primary external users of accounting information are investors and creditors.

Dr.Mark Veterinary Services recorded the following cash transactions for the year: Paid $154000 for salaries. Paid $85000 to purchase equipment. Paid $49000 for utilities supplies insurance and advertising. Paid $36000 for rent. Issued shares of stock for $60000 Paid $28000 in dividends. Collected $650000 from customers. Paid $3600 to purchase investments. What was the company's net cash provided (used) by financing activities?

Stockholders' equity

Which of the following external groups uses accounting information to determine whether the company can pay its obligations?

Which of the following is not one of the three forms of business organization?

Most business enterprises in the United States are

Cash is another term for stockholders' equity.

Which of the following is not a liability?

The management discussion and analysis (MD&A) section of an annual report covers various financial aspects of a company.

Barrow Company recorded the following cash transactions for the year: Paid $115000 for salaries. Paid $40000 to purchase office equipment. Paid $9000 for utilities. Sold investments for cash of $5000. Paid $11000 in dividends. Collected $295000 from customers. Issued shares for cash of $120000. What was Barrow's net cash provided (used) by investing activities?

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n)

Which of the following is not an advantage of the corporate form of business organization?

Net income for the period is determined by subtracting total expenses and dividends from revenues.

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 financing activities?

If the retained earnings account increases from the beginning of the year to the end of the year then

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 stockholders' equity on December 31 2022 is

Which activities involve putting the resources of the business into action to generate a profit?