Exam 1: Accounting As a Form of Communication

The statement of retained earnings accomplishes which of the following?

Which of the following best describes the term "expenses"?

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described. -Prepares and grades the Uniform CPA Examination.

What is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

Which one of the following business decisions will most likely require financial information?

Which concept is the reason the dollar is used in the preparation of financial statements?

Which the following organizations is primarily responsible for establishing GAAP today?

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

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. -Accounts receivable

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. -The assumption that an entity is not in the process of liquidation and that it will continue indefinitely.

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. -The sale of goods or the performance of services.

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. -A future benefit.

Which of the following best describes the term "equity"?

Bullseye, 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 Bullseye's total stockholders' equity at the end of the year? B) Could Bullseye have paid additional dividends during the year? Explain your answer.

The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

Which one of the following is an economic obligation for a business entity?

Presented below are selected data from the balance sheet of Farmer Company for 2016.The figures are expressed in millions. Total Current assets \ 5,572 Property, plant, and equipment 16,325 Other assets ? Total Current liabilities 3,274 Total Long-term debt 5,632 Total Stockholders' equity 19,639 ​ A) Determine the amount of "Other assets" for Farmer's 2016 balance sheet. (HINT: you must use the accounting equation concept to determine your answer.) B) How much of Farmer Company is financed by creditors? How much is financed by the owners?

Another name for net income of a business is _________________________.

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. -Retained earnings

The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31, 2016: ​ Sales revenue \ 165,000 Cash \ 30,000 Accounts receivable 14,000 Selling expenses 44,000 Equipment 42,000 Common stock 41,000 Accounts payable 12,000 Interest income 3,000 Salaries and wages expense 40,000 Cost of sales 51,000 Inventories 22,000 Prepaid expenses 2,000 Income taxes payable 5,000 Income taxes expense 18,000 Notes payable 20,000 Retained earnings ? ​ ​ -Read the information for Taryn Corporation.Prepare a balance sheet for Taryn Corporation in good form.