Question 1

Operating income summarizes the results of basic operating activities of a company.

Accepted Answer

A) True 
 B)False  True

Question 2

Tommy Company's income statement showed rent expense of $16,000.The beginning balance in Prepaid Rent was $5,000.The ending balance in Prepaid Rent was $3,000.The cash paid for rent was ________.

Accepted Answer

A) $14,000 
B) $16,000 
C) $19,000 
D) $24,000 
A) $14,000 
B) $16,000 
C) $19,000 
D) $24,000 A

Question 3

Beginning retained earnings was $34,000.Ending retained earnings was $61,600 and net income was $36,000.What amount of dividends was declared?

Accepted Answer

A) $1,200 
B) $8,400 
C) $30,000 
D) $36,000 
A) $1,200 
B) $8,400 
C) $30,000 
D) $36,000 B

Question 4

Which of the following is NOT a cash equivalent?

Accepted Answer

A) money market fund 
B) Treasury bill 
C) an investment in real estate property 
D) an investment that can easily be converted into cash with little delay 
A) money market fund 
B) Treasury bill 
C) an investment in real estate property 
D) an investment that can easily be converted into cash with little delay

Question 5

The liabilities of Sam Company are listed below:   Sam Company liquidated its assets,and received $140,000 cash.The subordinated debenture holders will receive ________.

Accepted Answer

A) $10,000 
B) $20,000 
C) $40,000 
D) $60,000 
A) $10,000 
B) $20,000 
C) $40,000 
D) $60,000

Question 6

Hope Company reported sales on account of $250,000,an increase in inventory of $70,000,and a decrease in accounts receivable of $40,000.How much cash was collected from customers?

Accepted Answer

A) $180,000 
B) $230,000 
C) $290,000 
D) $320,000 
A) $180,000 
B) $230,000 
C) $290,000 
D) $320,000

Question 7

In accounting terms,what is goodwill?

Accepted Answer

A) the actions a company takes to foster the development of social responsibility 
B) the charitable contributions made by a company 
C) the excess of the cost of an acquired company over the sum of the fair market values of its identifiable assets less its liabilities 
D) the excess of the cost of an acquired company over the sum of the fair market value of its identifiable assets 
A) the actions a company takes to foster the development of social responsibility 
B) the charitable contributions made by a company 
C) the excess of the cost of an acquired company over the sum of the fair market values of its identifiable assets less its liabilities 
D) the excess of the cost of an acquired company over the sum of the fair market value of its identifiable assets

Question 8

Some intangible assets are depreciated.

Accepted Answer

A) True 
 B)False

Question 9

Leasehold improvements are amortized annually.

Accepted Answer

A) True 
 B)False

Question 10

The liabilities of Becky Company are listed below:   Becky Company liquidated its assets,and received $150,000 cash.The unsubordinated debenture holders will receive ________.

Accepted Answer

A) $10,000 
B) $30,000 
C) $40,000 
D) $50,000 
A) $10,000 
B) $30,000 
C) $40,000 
D) $50,000

Question 11

Fred Company had the following data available:   What is the balance in Retained Earnings on December 31,2015?

Accepted Answer

A) $23,400 
B) $27,000 
C) $52,400 
D) $66,400 
A) $23,400 
B) $27,000 
C) $52,400 
D) $66,400

Question 12

A company does not pay cash dividends on treasury stock.

Accepted Answer

A) True 
 B)False

Question 13

Cash dividends are reported as an expense on the Income Statement.

Accepted Answer

A) True 
 B)False

Question 14

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Accepted Answer

A) True 
 B)False

Question 15

Goodwill is a tangible asset.

Accepted Answer

A) True 
 B)False

Question 16

Free cash flow equals net cash from operating activities minus capital expenditures.

Accepted Answer

A) True 
 B)False

Question 17

Convertible bonds allow a bondholder to exchange ________.

Accepted Answer

A) unsecured bonds for secured bonds 
B) unsubordinated bonds for subordinated bonds 
C) bonds for common stock 
D) bonds for mortgage bonds 
A) unsecured bonds for secured bonds 
B) unsubordinated bonds for subordinated bonds 
C) bonds for common stock 
D) bonds for mortgage bonds

Question 18

Unsecured debt holders are creditors who have ________.

Accepted Answer

A) a specific claim against particular assets 
B) a specific claim against fixed assets only 
C) a general claim against fixed assets only 
D) a general claim against total assets 
A) a specific claim against particular assets 
B) a specific claim against fixed assets only 
C) a general claim against fixed assets only 
D) a general claim against total assets

Question 19

The cash received from the sale of equipment is included in the ________ section of the statement of cash flows.

Accepted Answer

A) operating 
B) financing 
C) investing 
D) noncash 
A) operating 
B) financing 
C) investing 
D) noncash

Question 20

For the year ending December 31,2012,Magadena Company reports net income of $23,000 and depreciation expense of $17,000.The income tax expense for the year ending December 31,2012 is $20,000.The following data is available:   What is the net cash provided(used)by operating activities for the year ended December 31,2012? Assume the indirect method is used.

Accepted Answer

A) $(20,000) 
B) $23,000 
C) $40,000 
D) $69,000 
A) $(20,000) 
B) $23,000 
C) $40,000 
D) $69,000

Operating income summarizes the results of basic operating activities of a company.

Tommy Company's income statement showed rent expense of $16,000.The beginning balance in Prepaid Rent was $5,000.The ending balance in Prepaid Rent was $3,000.The cash paid for rent was ________.

Beginning retained earnings was $34,000.Ending retained earnings was $61,600 and net income was $36,000.What amount of dividends was declared?

Which of the following is NOT a cash equivalent?

The liabilities of Sam Company are listed below: Sam Company liquidated its assets,and received $140,000 cash.The subordinated debenture holders will receive ________.

Hope Company reported sales on account of $250,000,an increase in inventory of $70,000,and a decrease in accounts receivable of $40,000.How much cash was collected from customers?

In accounting terms,what is goodwill?

Some intangible assets are depreciated.

Leasehold improvements are amortized annually.

The liabilities of Becky Company are listed below: Becky Company liquidated its assets,and received $150,000 cash.The unsubordinated debenture holders will receive ________.

Fred Company had the following data available: What is the balance in Retained Earnings on December 31,2015?

A company does not pay cash dividends on treasury stock.

Cash dividends are reported as an expense on the Income Statement.

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Goodwill is a tangible asset.

Free cash flow equals net cash from operating activities minus capital expenditures.

Convertible bonds allow a bondholder to exchange ________.

Unsecured debt holders are creditors who have ________.

The cash received from the sale of equipment is included in the ________ section of the statement of cash flows.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Operating income summarizes the results of basic operating activities of a company.

Tommy Company's income statement showed rent expense of $16,000.The beginning balance in Prepaid Rent was $5,000.The ending balance in Prepaid Rent was $3,000.The cash paid for rent was ________.

Beginning retained earnings was $34,000.Ending retained earnings was $61,600 and net income was $36,000.What amount of dividends was declared?

Which of the following is NOT a cash equivalent?

The liabilities of Sam Company are listed below: Sam Company liquidated its assets,and received $140,000 cash.The subordinated debenture holders will receive ________.

Hope Company reported sales on account of $250,000,an increase in inventory of $70,000,and a decrease in accounts receivable of $40,000.How much cash was collected from customers?

In accounting terms,what is goodwill?

Some intangible assets are depreciated.

Leasehold improvements are amortized annually.

The liabilities of Becky Company are listed below: Becky Company liquidated its assets,and received $150,000 cash.The unsubordinated debenture holders will receive ________.

Fred Company had the following data available: What is the balance in Retained Earnings on December 31,2015?

A company does not pay cash dividends on treasury stock.

Cash dividends are reported as an expense on the Income Statement.

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Goodwill is a tangible asset.

Free cash flow equals net cash from operating activities minus capital expenditures.

Convertible bonds allow a bondholder to exchange ________.

Unsecured debt holders are creditors who have ________.

The cash received from the sale of equipment is included in the ________ section of the statement of cash flows.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters