Exam 1: Uses of Accounting Information and the Financial Statements

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Use the following information to calculate at or for the year ended December 31,2014: (a)net income, (b)retained earnings, (c)total assets,and (d)cash.

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Question 1

Correct Answer:

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a.$20,000 - $4,000 - $2,000 = $\underline{\$14,000}$
b.$16,000 + $14,000 - $6,000 = $\underline{\$24,000}$
c.Total Assets = Total Liabilities and Stockholders' Equity
= $7,000 + $1,000 + $10,000 + $24,000 = $\underline{\$42,000}$
d.$42,000 - $8,000 - $22,000 = $\underline{\$12,000}$

One way of stating the accounting equation is: Assets - Liabilities = Stockholders' Equity.

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(True/False)

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Question 2

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True

The board of directors appoints the audit committee,which in turn performs an independent audit of the company's records.

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(True/False)

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Question 3

Correct Answer:

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False

Accountants consider money the common unit of measure for all business transactions.

(True/False)

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Question 4

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

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Question 5

The management of a corporation is responsible for electing the board of directors.

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Question 6

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

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Question 7

Financial accounting information is used primarily by management.

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Question 8

Which of the following is legally a separate entity from its owner(s)?

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Question 9

Chin Company's stockholders' equity equals one-third of the company's total assets.The company's liabilities are $120,000.What is the amount of the company's stockholders' equity?

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Question 10

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

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Question 11

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

(Multiple Choice)

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Question 12

Sinoyianis Realty Company had the following balance sheet accounts and balances: -If $6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and stockholders' equity?

(Multiple Choice)

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Question 13

The terms "bookkeeping" and "accounting" are not synonymous.

(True/False)

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Question 14

Due care means carrying out one's professional responsibilities with competence and diligence.

(True/False)

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Question 15

The best definition of assets is the

(Multiple Choice)

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Question 16

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

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Question 17

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: -If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and stockholders' equity would

(Multiple Choice)

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Question 18

The board of directors carries out the day-to-day operations of a corporation.

(True/False)

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Question 19

Creditors' equities is another term for liabilities.

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Question 20

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Exam 1: Uses of Accounting Information and the Financial Statements

Use the following information to calculate at or for the year ended December 31,2014: (a)net income, (b)retained earnings, (c)total assets,and (d)cash.

One way of stating the accounting equation is: Assets - Liabilities = Stockholders' Equity.

The board of directors appoints the audit committee,which in turn performs an independent audit of the company's records.

Accountants consider money the common unit of measure for all business transactions.

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

The management of a corporation is responsible for electing the board of directors.

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

Financial accounting information is used primarily by management.

Which of the following is legally a separate entity from its owner(s)?

Chin Company's stockholders' equity equals one-third of the company's total assets.The company's liabilities are $120,000.What is the amount of the company's stockholders' equity?

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

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

Sinoyianis Realty Company had the following balance sheet accounts and balances: -If $6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and stockholders' equity?

The terms "bookkeeping" and "accounting" are not synonymous.

Due care means carrying out one's professional responsibilities with competence and diligence.

The best definition of assets is the

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

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: -If the balance in the Cash account were used to pay part of Accounts Payable,then total liabilities and stockholders' equity would

The board of directors carries out the day-to-day operations of a corporation.

Creditors' equities is another term for liabilities.

Measurement Concepts: Recording Business Transactions

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Unincorporated Businesses

Accounting for Investments

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