Exam 1: Uses of Accounting Information and the Financial Statements

The Securities and Exchange Commission is an accounting information user with a direct financial interest.

Dougan Corporation's stockholders' equity equals one-half of the company's total assets.The company's liabilities are $173,000.What is the amount of the company's stockholders' equity?

Corporations represent the largest number of businesses in the United States.

Which of the following is an agency of the U.S.government?

The statement of cash flows discloses significant events related to the operating,investing,and financing activities of a business.

Net income is another term for revenues.

Standards for state and local governments are established by the

A primary user of accounting information with a direct financial interest in the business is a

Use the following accounts and balances to prepare a balance sheet for Havrilla Company at December 31,2010. Accounts Payable \ 10,000 Common Stock 12,000 Cash 4,800 Retained Earnings 2,400 Equipment 13,200 Accounts Receivable 6,400

In general,any partner can obligate the partnership to another party.

The title "wages payable" would appear on the income statement.

Transfer of ownership will not affect the continuity of a

A partnership is dissolved when any partner leaves the business or dies.

The purchase of land is an example of a(n)

The modern definition of accounting focuses on the role of accounting in making economic decisions rather than on how to do accounting.

What is the responsibility of the auditing firm? Who is responsible for the content of the financial statements?

Par value is the minimum amount that can be reported as retained earnings.

The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting.

Use this information to answer the following question. Here is the balance sheet for Abbot Box Company,Inc.: If the equipment were sold for $13,000,then the Retained Earnings account would