Exam 2: Financial Statements: An Overview

Which of the following are the two economic factors that enable us to trust an independent auditor despite the fact that the auditor was hired by the company being audited?

Which of the following is a primary use of cash?

The following information was taken from the records of Merle Corporation for the period ending December 31, 2012: Assuming that 3,450 shares of stock are outstanding, earnings per share is approximately

The following financial statement was prepared by Schenck Corporation's accountant: Based on the above Balance Sheet for Schenck Corporation, what are the correct balances for the accounts listed below:

If a corporation has total assets of $350,000, total liabilities of $150,000, and retained earnings of $100,000, what is the amount of capital stock?

Which of the following is a revenue generating activity?

The following data were taken from the records of Mendez Corporation for the year ended December 31, 2013: Given the above information and assuming that no additional stock was added for the year, net income for the year ended December 31, 2013, is

Which of the following would be included on an income statement?

Which of the following is the correct way to date an income statement?

The idea that certain figures on an operating statement help to explain changes in figures on comparative balance sheets is referred to as

Vital information that CANNOT be captured solely by dollar amounts is reported in a firm's

Which of these is an economic asset that is NOT found on the balance sheet?

A major source of cash from operating activities is

Resource increases from the sale of goods or services are called

The income statement for Highline Corporation is presented below: Additional information for Highline's 2013 operations revealed that the company had beginning retained earnings of $65,000 for the year, $60,000 dividends were paid, and 10,000 shares of capital stock were outstanding. Based on this information, compute the items below.

Owners of a corporation are referred to as

The difference between sales and cost of goods sold is called

Which of the following is the reason that the accounting equation is true by definition?

Which of the following is an example of additional information about summary totals that would be explained in the notes to the financial statements?