Exam 1: An Introduction to the Role of Accounting in the Business World

The financial statement that summarizes the assets, liabilities, and stockholders' equity of an entity at a specific point in time is the

Which of the following is not an internal use of accounting information?

Which of the following are the most common forms of business organization in the U.S. in terms of

Respectively, ___ activities are cash flows earned by providing a product or service; ___ activities are cash flows related to the buying and selling of long-term assets; and ___ activities are cash flows related to obtaining and repaying additional funds from creditors and investors.

The ending balance of cash appears on the

Laurie Boone is forming a new business that will protect her from unlimited liability. She does not want to claim her personal and business information together on the same tax return. The best form of business organization for Boone's purposes is a

At December 31, 2009, Rob's Home Store has $100,000 of assets and $40,000 of liabilities, and $60,000 of stockholders' equity. On January 15, 2010, Rob's purchased $30,000 of assets by incurring a liability. Rob's total assets, liabilities, and stockholders' equity after the purchase are, respectively,

The primary responsibility of an external auditor is to determine whether

Which of the following is not an external use of accounting information?

A business attempts to earn a profit by

The net income shown on the income statement is equal to the ending equity total on the statement of stockholder's equity.

The most important characteristic that differentiates an internal auditor from an external auditor is independence.

For a profitable corporation, stockholders' equity is equal to the amounts contributed by investors plus the net revenues earned by the organization since its inception.

Which of the following statements about accounting certifications is false?

The accounting information used by internal decision makers

The statement that reconciles the dollar amounts of a corporation's ownership equity components from the beginning to the end of the accounting period is the

The ending cash balance per the statement of cash flows should agree with the cash balance per the balance sheet.

Respectively, ___ are resources that an organization owns; ___ is/are debts that an organization owes; and ___ is/are amounts that owners have contributed and what the entity has earned for them.

A net loss decreases a corporation's assets and stockholders' equity.

Sole proprietorship and partnership organizations do not pay taxes.