Exam 1: Accounting As a Form of Communication

Which of the following is a five-member body that has the authority from Congress to set standards for conducting audits?

Match the following business forms with their characteristics below. -Must file articles of incorporation with the state

To which of the following entities must a company report if it sells its stock on the organized stock market?

The balance sheet is linked to the retained earnings statement by the ending retained earnings balance.

The three forms of business entities are:

Someone to whom a company has a debt is known as a creditor.

Vick Corporation has been in the business of delivering small packages for local companies within the city of Atlanta, Georgia, since 1960.The following information concerning financial activities during 2016 is available at December 31, 2016: ​ Delivery revenue \ 380,000 Salary and wage expense \ 82,000 Dividends declared and paid 85,000 Rent expense 43,000 Buildings 140,000 Land 60,000 Accounts payable 30,000 Accounts payable 30,000 Capital stock 105,000 Retained earnings, Water, gas, and January 1, 2016 42,000 electricity 28,000 Notes payable 34,000 Cash 56,000 Income tax expense 18,000 ​ A. Prepare an income statement for the year ended December 31, 2016. B. If you were a bank loan officer and Vick Corporation wanted to borrow $100,000 from your bank, would you lend the money? Explain. C. Calculate retained earnings at December 31, 2016.

The federal government agency with the ultimate authority to determine the rules in preparing statements for companies whose stock is sold to the public is the __________________________________________________.

A company in the process of liquidation meets the requirements under the going concern assumption.

Which of the following terms best describes a distribution of the net income of a business to its owners?

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described. -Has the ultimate authority to set accounting standards, but has allowed the profession to do so.

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

An asset is a future economic benefit to a business.

The costs of doing business through the sale of goods and services are called

Match the following business forms with their characteristics below. -Single owner

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $1,000,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?

Owners of corporations are called ____________________.

Which one of the following is least likely to be a user of financial information of a grocery store?

The private sector group with authority to set accounting standards is the _______________________________________________.

The independent auditor's report conveys whether or not the business followed GAAP.