Question 1

In general,one partner acting alone cannot obligate the partnership to another party.

Accepted Answer

A) True 
 B)False

Question 2

When a corporate stockholder sells his or her shares of stock,the corporation is technically dissolved.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following items has no effect on stockholders' equity?

Accepted Answer

A) Receipt of cash owed to the business (accounts receivable) 
B) Sale of a service 
C) Payment of an expense 
D) Dividend distributions 
A) Receipt of cash owed to the business (accounts receivable) 
B) Sale of a service 
C) Payment of an expense 
D) Dividend distributions

Question 4

Use the following information to calculate at or for the year ended December 31,2014:
(a)net income, (b)retained earnings, (c)total liabilities and stockholders' equity,and (d)accounts receivable.

Accepted Answer

The answer of Use the following information to calculate at...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

All of the following statements are true about the Sarbanes-Oxley Act except

Accepted Answer

A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession. 
A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession.

Question 7

Accounts Receivable is an asset that is considered nonmonetary in nature.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following physically prepare and audit financial reports?

Accepted Answer

A) Accountants 
B) Managers 
C) Chief executives 
D) Board of directors 
A) Accountants 
B) Managers 
C) Chief executives 
D) Board of directors

Question 9

The balance sheet is also known as the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following represents the proper order of financial statement preparation?

Accepted Answer

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

Question 11

All of the following statements about partnerships are true except

Accepted Answer

A) partners must share profits and losses equally. 
B) a change in ownership will dissolve the partnership. 
C) any partner can enter into a binding agreement with a third party. 
D) all partners have unlimited liability. 
A) partners must share profits and losses equally. 
B) a change in ownership will dissolve the partnership. 
C) any partner can enter into a binding agreement with a third party. 
D) all partners have unlimited liability.

Question 12

The communication stage of accounting is accomplished by

Accepted Answer

A) storing data. 
B) reporting to decision makers. 
C) processing data. 
D) recording data. 
A) storing data. 
B) reporting to decision makers. 
C) processing data. 
D) recording data.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Corporate governance is the oversight of a company's management performance and ethics by its board of directors.

Accepted Answer

A) True 
 B)False

Question 15

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 balance of the Retained Earnings account?

Accepted Answer

A) $8,000 
B) $28,000 
C) $30,000 
D) $36,000 
A) $8,000 
B) $28,000 
C) $30,000 
D) $36,000

Question 16

Which of the following is the correct accounting equation?

Accepted Answer

A) Assets = Liabilities + Stockholders' Equity 
B) Assets + Stockholders' Equity = Liabilities 
C) Assets = Liabilities - Stockholders' Equity 
D) Assets + Liabilities = Stockholders' Equity 
A) Assets = Liabilities + Stockholders' Equity 
B) Assets + Stockholders' Equity = Liabilities 
C) Assets = Liabilities - Stockholders' Equity 
D) Assets + Liabilities = Stockholders' Equity

Question 17

The purpose of an audit is to

Accepted Answer

A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP. 
A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP.

Question 18

Upshaw Company had a balance of $160,000 in Retained Earnings on December 31,2013.During 2014,the company reported a net income of $84,000 after taxes,and dividends of $32,000 were paid.Prepare the company's statement of retained earnings for the year ended December 31,2014.

Accepted Answer

The answer of Upshaw Company had a balance of $160,000...

Question 19

The expenses incurred by an accounting firm would appear on its balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

At the beginning of the year,Shannon Company's assets were $150,000 and its stockholders' equity was $100,000.During the year,assets decreased $30,000 and liabilities increased $15,000.What was the stockholders' equity at the end of the year?

Accepted Answer

[($150,000 - $30,000

Exam 1: Uses of Accounting Information and the Financial Statements

In general,one partner acting alone cannot obligate the partnership to another party.

When a corporate stockholder sells his or her shares of stock,the corporation is technically dissolved.

Which of the following items has no effect on stockholders' equity?

Use the following information to calculate at or for the year ended December 31,2014: (a)net income, (b)retained earnings, (c)total liabilities and stockholders' equity,and (d)accounts receivable.

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

All of the following statements are true about the Sarbanes-Oxley Act except

Accounts Receivable is an asset that is considered nonmonetary in nature.

Which of the following physically prepare and audit financial reports?

The balance sheet is also known as the statement of financial position.

Which of the following represents the proper order of financial statement preparation?

All of the following statements about partnerships are true except

The communication stage of accounting is accomplished by

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

Corporate governance is the oversight of a company's management performance and ethics by its board of directors.

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 balance of the Retained Earnings account?

Which of the following is the correct accounting equation?

The purpose of an audit is to

Upshaw Company had a balance of $160,000 in Retained Earnings on December 31,2013.During 2014,the company reported a net income of $84,000 after taxes,and dividends of $32,000 were paid.Prepare the company's statement of retained earnings for the year ended December 31,2014.

The expenses incurred by an accounting firm would appear on its balance sheet.

At the beginning of the year,Shannon Company's assets were $150,000 and its stockholders' equity was $100,000.During the year,assets decreased $30,000 and liabilities increased $15,000.What was the stockholders' equity at the end of the year?

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

Filters