Exam 1: Uses of Accounting Information and the Financial Statements

Which of the following transactions does not involve an exchange of value?

The Public Company Accounting Oversight Board (PCOAB)was created to determine the standards that auditors must follow.

Those who lend money or deliver goods and services before being paid are called

Which of the following is considered by accountants to be a separate entity from its owner(s)?

The Sarbanes-Oxley Act orders the FASB to hold chief executives and CFOs responsible for the accuracy of their company's financial statements.

Both public accountants and management accountants are required to adhere to a code of professional conduct.

Which of the following is an example of a financing activity?

Net assets equal assets plus liabilities.

Companies listed on the stock exchanges must file financial statements with the

The statement of retained earnings discloses the dividends declared during the period.

At the beginning of the year,Fourman Corporation's assets were $270,000 and its stockholders' equity was $243,000.During the year,assets decreased $35,000 and liabilities increased $10,000.What was the stockholders' equity at the end of the year?

If a corporation has suffered only net losses since its inception,the Retained Earnings account will have a negative balance.

Liquidity means having enough funds on hand to pay debts when they fall due.

The group of users of accounting information charged with achieving the goals of the business is its

Contributed capital appears in the stockholders' equity section of a corporate balance sheet.

The measurement stage of accounting is accomplished by

For accounting purposes,a business and its owners are considered separate entities.

A company's management information system is a subsystem of its accounting information system.

The topic of foreign exchange rates relates most closely to the concept of

A liability would not include an obligation to