Exam 1: An Introduction to Accounting

The information reported in financial statements is organized into ten categories known as accounts.

Liabilities are reported on which of the following financial statement(s)?

The following information applies to the questions displayed below Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $650 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. -What is Packard Company's net cash flow from financing activities for Year 2?

Reynolds Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on the elements of Reynolds' statements?

Financial accounting information is usually less detailed than managerial accounting information.

During Year 2,Chico Company earned $1,950 of cash revenue,paid $1,600 of cash expenses,and paid a $150 cash dividend to its owners.Based on this information alone,which of the following statements is not true?

The Financial Accounting Standards Board is a privately funded organization with authority for establishing accounting standards for businesses in the US.

What happened as a result of this transaction?

[The following information applies to the questions displayed below.] Northern Corporation invested $800 cash in South Company stock. -Which of the following describes the effects of this transaction on the elements of Northern Corporation's books?

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

In which section of a statement of cash flows would the payment of cash dividends be reported?

[The following information applies to the questions displayed below.] Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions) Acquired $6,000 cash from issuing common stock. Borrowed $4,400 from a bank. Earned $6,200 of revenues. Incurred $4,800 in expenses. Paid dividends of $800. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions) Acquired an additional $1,000 cash from the issue of common stock. Repaid $2,600 of its debt to the bank. Earned revenues, $9,000. Incurred expenses of $5,500. Paid dividends of $1,280. -What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?

Which of the following appears in the investing activities section of the statement of cash flows?

Which of the following could represent the effects of an asset exchange transaction on a company's financial statements?

All of a business's temporary accounts appear on the income statement.

Glavine Company repaid a bank loan with cash.How should the cash flow from this event be shown on the horizontal statements model?

On January 1,Year 2,Chavez Company had beginning balances as follows: total assets of $12,500,total liabilities of $4,500,and common stock of $3,000.During Year 2,Chavez paid dividends to its stockholders of $2,000.Given that retained earnings amounted to $6,000 at the end of Year 2,what was Chavez's net income for Year 2?

Borrowing cash from the bank is an example of which type of transaction?

Liabilities are not a source of assets for a business.

Yi Company provided services to a customer for $5,500 cash.Based on this information alone,which of the following statements is true?