Question 1

The Securities and Exchange Commission (SEC)is concerned with

Accepted Answer

A) companies that issue securities to the general public. 
B) all companies in the U.S.regardless of size. 
C) accounting reports issued by government entities. 
D) all domestic and international companies that issue accounting reports. 
A) companies that issue securities to the general public. 
B) all companies in the U.S.regardless of size. 
C) accounting reports issued by government entities. 
D) all domestic and international companies that issue accounting reports.

Question 2

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Accepted Answer

A) Financial Accounting Standards Board (FAS
B)  
B) Securities and Exchange Commission (SE
C)  
C) Public Company Accounting Oversight Board (PCAO
B)  
D) International Accounting Standards Board (IAS
B)  
A) Financial Accounting Standards Board (FAS
B)  
B) Securities and Exchange Commission (SE
C)  
C) Public Company Accounting Oversight Board (PCAO
B)  
D) International Accounting Standards Board (IAS
B)

Question 3

Stockholders' equity is owners' equity in a corporation.

Accepted Answer

A) True 
 B)False

Question 4

Marcos Company reported the following items on its financial statements for the year ending December 31,2017:  
 
$$\begin{array} { l r l r } 
\text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 410,000 \
\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \
\text { Dividends } & 20,000 & \text { Income tax expense } & 25,000
\end{array}$$ How much will be reported as net income on Marcos' balance sheet at December 31,2017,if this is the first year of operations?

Accepted Answer

A) $55,000 
B) $65,000 
C) $85,000 
D) Not enough information is provided. 
A) $55,000 
B) $65,000 
C) $85,000 
D) Not enough information is provided.

Question 5

The concept that assumes that an entity is not in the process of liquidation is _________________________.

Accepted Answer

The answer of The concept that assumes that an entity...

Question 6

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

Accepted Answer

The answer of The concept that assumes that assets are...

Question 7

According to the accounting profession,the purpose of financial reporting is to provide information about a company that investors,lenders,and other creditors can use when deciding whether to provide resources to the entity.

Accepted Answer

A) True 
 B)False

Question 8

A grocery store is an example of a wholesaler.

Accepted Answer

A) True 
 B)False

Question 9

The three types of business activities in which all corporations engage are _______________________,______________________,and _____________________.

Accepted Answer

financing,

Question 10

Which statement summarizes the income earned and the dividends paid?

Accepted Answer

A) Statement of cash flows 
B) Statement of retained earnings 
C) Balance sheet 
D) Income statement 
A) Statement of cash flows 
B) Statement of retained earnings 
C) Balance sheet 
D) Income statement

Question 11

Native Dave's Consultants had the following balance sheet amounts at the beginning of the year: 
$\begin{array}{lr}
\text { Total assets } & \$ 400,000 \
\text { Total owners' equity } & 150,000
\end{array}$ During the year,total assets increased by $100,000 and total liabilities increased by $40,000.The company also paid $30,000 in dividends.No other transactions occurred except revenues and expenses.How much is net income for the year?

Accepted Answer

A) $30,000 
B) $60,000 
C) $70,000 
D) $90,000 
A) $30,000 
B) $60,000 
C) $70,000 
D) $90,000

Question 12

What is meant by generally accepted accounting principles?

Accepted Answer

Generally accepted accounting principles

Question 13

The time period assumption assumes a company prepares financial statements every month.

Accepted Answer

A) True 
 B)False

Question 14

When selecting between the best alternatives regarding an ethical dilemma in accounting,all of the following should be considered except

Accepted Answer

A) which alternative provides the most relevant information. 
B) which alternative provides the most accurate information. 
C) which alternative provides the most neutral information. 
D) which alternative provides the most profitable information. 
A) which alternative provides the most relevant information. 
B) which alternative provides the most accurate information. 
C) which alternative provides the most neutral information. 
D) which alternative provides the most profitable information.

Question 15

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

Accepted Answer

A) The amount of total profits earned by a business since it began operations 
B) The amount of interest or claim that the owners have in the business 
C) The economic resources of a business entity 
D) The cumulative profits earned by a business less any dividends distributed 
A) The amount of total profits earned by a business since it began operations 
B) The amount of interest or claim that the owners have in the business 
C) The economic resources of a business entity 
D) The cumulative profits earned by a business less any dividends distributed

Question 16

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

Accepted Answer

A) The National Bank is reviewing the loan application from Petra's Restaurant. 
B) Petra's Restaurant is attempting to sell its stock to the public. 
C) The labor union representing Winn's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D) All of these choices 
A) The National Bank is reviewing the loan application from Petra's Restaurant. 
B) Petra's Restaurant is attempting to sell its stock to the public. 
C) The labor union representing Winn's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D) All of these choices

Question 17

The following information comes from the records of Morton Corporation.Assume no additional investment by owners when answering the following questions:
​
 $\begin{array}{llll} 
& \text { Assets } & \text { Liabilities } & \text { Owners' Equity } \
\text { January } 1,2017 & \$ 98,000 & \$ 54,000 & \$ \
\text { December } 31,2017 & 131,000 & & 84,000
\end{array}$ A) What is the amount of owners' equity at January 1,2017 ?________

B) What is the amount of liabilities at December 31,2017 ?_____________

C) Assume that the company declared and paid dividends of $ \$ 22,000 $ during the year. How much net income did it earn during the year?

D) Assume that the company paid no dividends during the year. Without looking at the income statement, how can you tell if the company is profitable or not?

Accepted Answer

The answer of The following information comes from the records...

Question 18

What is the purpose of an income statement?

Accepted Answer

An income statement reports the company'

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

Accepted Answer

A) A creditor 
B) A stockholder 
C) An owner 
D) A partner 
A) A creditor 
B) A stockholder 
C) An owner 
D) A partner

The Securities and Exchange Commission (SEC)is concerned with

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Stockholders' equity is owners' equity in a corporation.

The concept that assumes that an entity is not in the process of liquidation is _________________________.

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

According to the accounting profession,the purpose of financial reporting is to provide information about a company that investors,lenders,and other creditors can use when deciding whether to provide resources to the entity.

A grocery store is an example of a wholesaler.

The three types of business activities in which all corporations engage are _,,and _.

Which statement summarizes the income earned and the dividends paid?

What is meant by generally accepted accounting principles?

The time period assumption assumes a company prepares financial statements every month.

When selecting between the best alternatives regarding an ethical dilemma in accounting,all of the following should be considered except

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

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

What is the purpose of an income statement?

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

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 1: Accounting As a Form of Communication

The Securities and Exchange Commission (SEC)is concerned with

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Stockholders' equity is owners' equity in a corporation.

The concept that assumes that an entity is not in the process of liquidation is _________________________.

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

According to the accounting profession,the purpose of financial reporting is to provide information about a company that investors,lenders,and other creditors can use when deciding whether to provide resources to the entity.

A grocery store is an example of a wholesaler.

The three types of business activities in which all corporations engage are _______________________,______________________,and _____________________.

Which statement summarizes the income earned and the dividends paid?

What is meant by generally accepted accounting principles?

The time period assumption assumes a company prepares financial statements every month.

When selecting between the best alternatives regarding an ethical dilemma in accounting,all of the following should be considered except

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

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

What is the purpose of an income statement?

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

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

The three types of business activities in which all corporations engage are _,,and _.