Question 1

List five possible users of these statements and state what each would be interested in learning from its review.

Accepted Answer

Possible users and their reasons for int

Question 2

The best definition of assets is the

Accepted Answer

A)  cash owned by the company. 
B)  resources belonging to a company having future benefit to the company. 
C)  collection of resources belonging to the company and the claims on these resources. 
D)  owners' investment in the business. 
A)  cash owned by the company. 
B)  resources belonging to a company having future benefit to the company. 
C)  collection of resources belonging to the company and the claims on these resources. 
D)  owners' investment in the business.

Question 3

Which of the following financial statements is concerned with the enterprise at a point in time?

Accepted Answer

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

Question 4

Match between columns
                        Premises:  Separate economic unit
 Life limited by death of owner(s)
 Separate legal entity
 Unlimited liability of owner(s)
 Separation of ownership and control
 Transfer of ownership does not affect the continuity of business.
 Ownership evidenced by stock certificates

Accepted Answer

The Answer of sole proprietorship and partnership and corporation is...

Question 5

Partnerships in the United States generate more revenue than sole proprietorships and corporations put together.

Accepted Answer

A) True 
 B)False

Question 6

Paying taxes to the government is an example of an operating activity.

Accepted Answer

A) True 
 B)False

Question 7

Creditors' equities is another term for liabilities.

Accepted Answer

A) True 
 B)False

Question 8

The articles of incorporation may be found in the corporate charter.

Accepted Answer

A) True 
 B)False

Question 9

The correct order of the three stages of accounting is

Accepted Answer

A)  communication, processing, and measurement. 
B)  measurement, communication, and processing. 
C)  processing, measurement, and communication. 
D)  measurement, processing, and communication. 
A)  communication, processing, and measurement. 
B)  measurement, communication, and processing. 
C)  processing, measurement, and communication. 
D)  measurement, processing, and communication.

Question 10

The Public Company Accounting Oversight Board was created by the

Accepted Answer

A)  Sarbanes-Oxley Act. 
B)  GASB. 
C)  IRS. 
D)  IASB. 
A)  Sarbanes-Oxley Act. 
B)  GASB. 
C)  IRS. 
D)  IASB.

Question 11

Barrett Company's stockholders' equity equals one-fourth of the company's total assets.The company's liabilities are $360,000.What is the amount of the company's stockholders' equity?

Accepted Answer

Assets = Liabilities + Stockho

Question 12

The processing stage of accounting is accomplished by the recording of data.

Accepted Answer

A) True 
 B)False

Question 13

All of the following items would appear on the balance sheet except

Accepted Answer

A)  Dividends 
B)  Common Stock 
C)  Accounts Receivable 
D)  Retained Earnings 
A)  Dividends 
B)  Common Stock 
C)  Accounts Receivable 
D)  Retained Earnings

Question 14

The number of authorized shares of stock may be less than the number of outstanding shares.

Accepted Answer

A) True 
 B)False

Question 15

The processing stage of accounting is accomplished by

Accepted Answer

A)  reporting to decision makers. 
B)  recording transactions. 
C)  controlling and evaluating data. 
D)  bookkeeping, computers, and information systems. 
A)  reporting to decision makers. 
B)  recording transactions. 
C)  controlling and evaluating data. 
D)  bookkeeping, computers, and information systems.

Question 16

The statement of retained earnings relates the income statement to the balance sheet by showing how the Retained Earnings account changed during the accounting period.

Accepted Answer

A) True 
 B)False

Question 17

Following is the balance sheet for Abbot Box Company,Inc.:  
 If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and stockholders' equity would

Accepted Answer

A)  decrease by $8,000. 
B)  increase by $8,000. 
C)  increase by $16,000. 
D)  decrease by $16,000. 
A)  decrease by $8,000. 
B)  increase by $8,000. 
C)  increase by $16,000. 
D)  decrease by $16,000.

Question 18

Flores Realty Corporation had the following balance sheet accounts and balances: $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 6,000 & \text { Common Stock } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equipment } & \$ 7,000 \
\text { Building } & ? & \text { Land } & 7,000 \
\text { Cash } & 3,000 & \text { Retained Earnings } & 2,000
\end{array}$ If the balance of the Building account were $26,500,what would be the total of liabilities and stockholders' equity?

Accepted Answer

A)  $26,500 
B)  $44,500 
C)  $41,500 
D)  $36,500 
A)  $26,500 
B)  $44,500 
C)  $41,500 
D)  $36,500

Question 19

The liability of corporate stockholders is limited to the amount of their investment.

Accepted Answer

A) True 
 B)False

Question 20

An example of a monetary asset is

Accepted Answer

A)  Accounts Receivable. 
B)  Copyright. 
C)  Retained Earnings. 
D)  Land. 
A)  Accounts Receivable. 
B)  Copyright. 
C)  Retained Earnings. 
D)  Land.

Exam 1: Uses of Accounting Information and the Financial Statements

List five possible users of these statements and state what each would be interested in learning from its review.

The best definition of assets is the

Which of the following financial statements is concerned with the enterprise at a point in time?

Partnerships in the United States generate more revenue than sole proprietorships and corporations put together.

Paying taxes to the government is an example of an operating activity.

Creditors' equities is another term for liabilities.

The articles of incorporation may be found in the corporate charter.

The correct order of the three stages of accounting is

The Public Company Accounting Oversight Board was created by the

Barrett Company's stockholders' equity equals one-fourth of the company's total assets.The company's liabilities are $360,000.What is the amount of the company's stockholders' equity?

The processing stage of accounting is accomplished by the recording of data.

All of the following items would appear on the balance sheet except

The number of authorized shares of stock may be less than the number of outstanding shares.

The processing stage of accounting is accomplished by

The statement of retained earnings relates the income statement to the balance sheet by showing how the Retained Earnings account changed during the accounting period.

Following is the balance sheet for Abbot Box Company,Inc.: If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and stockholders' equity would

The liability of corporate stockholders is limited to the amount of their investment.

An example of a monetary asset is

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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