Question 1

Which of the following is/are true regarding the financing of a charitable organization?

Accepted Answer

A) may obtain some or all of its financing from donations (contributions) 
B) does not issue common stock or other forms of shareholders' equity 
C) does not have retained earnings 
D) all of the above are true 
E) none of the above are true 
A) may obtain some or all of its financing from donations (contributions) 
B) does not issue common stock or other forms of shareholders' equity 
C) does not have retained earnings 
D) all of the above are true 
E) none of the above are true

Question 2

_____ must be used by U.S.Securities and Exchange Commission (SEC) registrants.

Accepted Answer

A) U.S.GAAP 
B) International Financial Reporting Standards (IFRS) 
C) U.S.GAAS 
D) International GAAP 
E) International GAAS 
A) U.S.GAAP 
B) International Financial Reporting Standards (IFRS) 
C) U.S.GAAS 
D) International GAAP 
E) International GAAS

Question 3

Describe some of the factors that would affect a firm's goals and strategies.

Accepted Answer

1.Goals and strategies of competitors.
2

Question 4

The statement of cash flows for Lights-On, a leading electric utility for the year ended December 31, 20x2, showed a net cash inflow from operations of $427,000 million and a net cash outflow for financing of $21,800 million.The comparative balance sheets showed a balance in cash of $32,700 at December 31, 20x1, and $101,200 at December 31, 20x2.Compute the net amount of cash provided or used by Lights-On's investing activities for 20x2.

Accepted Answer

A) $68,500 million provided 
B) $271,300 million used 
C) $372,500 million provided 
D) $336,700 million used 
E) $236,700 million used 
A) $68,500 million provided 
B) $271,300 million used 
C) $372,500 million provided 
D) $336,700 million used 
E) $236,700 million used

Question 5

To reduce the lag on collection of accounts receivable, a company might

Accepted Answer

A) offer a discount if customers pay quickly. 
B) charge interest if customers delay payment. 
C) use the accounts receivable as a basis for external financing. 
D) sell only for cash. 
E) all of the above 
A) offer a discount if customers pay quickly. 
B) charge interest if customers delay payment. 
C) use the accounts receivable as a basis for external financing. 
D) sell only for cash. 
E) all of the above

Question 6

Concerns over the quality of financial reporting have led, and continue to lead, to government
initiatives in the United States including, the Sarbanes-Oxley Act of 2002. Briefly describe the Sarbanes-Oxley Act of 2002.

Accepted Answer

Concerns over the quality of financial r

Question 7

The _____ is the private-sector financial accounting standard setter in the U.S., but has no enforcement powers.

Accepted Answer

A) Financial Accounting Standards Board (FAS
B)  
B) Government Accountability Office (GAO) 
C) International Accounting Standards Board (IAS
B)  
D) Public Company Accounting Oversight Board (PCAO
B)  
E) Accounting Standards Board 
A) Financial Accounting Standards Board (FAS
B)  
B) Government Accountability Office (GAO) 
C) International Accounting Standards Board (IAS
B)  
D) Public Company Accounting Oversight Board (PCAO
B)  
E) Accounting Standards Board

Question 8

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

Accepted Answer

Internal users of accounting information

Question 9

The managers of a business prepare financial statements to present meaningful information about that business's activities to external users.

Accepted Answer

A) True 
 B)False

Question 10

_____ reports information about cash generated from (or used by) operating, investing, and financing activities during specified time periods.

Accepted Answer

A) Statement of sources and uses of cash 
B) Statement of cash flows 
C) Statement of cash receipts and disbursements 
D) Funds flow statement 
E) Balance sheet 
A) Statement of sources and uses of cash 
B) Statement of cash flows 
C) Statement of cash receipts and disbursements 
D) Funds flow statement 
E) Balance sheet

Question 11

Compute the missing amount affecting retained earnings for Year 2 in each of the five independent cases that follow.Amounts shown are in millions.
 $\begin{array}{llllllr}&\text { CASE A } & \text { CASE B } & \text { CASE C } & \text { CASE D } & \text { CASE E }\
\text { Retained earnings, Dec. 31, }  \text { Year 1 } & \$ 95 & \text { B } & \$ 75 & \$ 87 & \$ 175 \
\text { Net income }  & 30 & \$ 450 & 45 & \mathbf{D} & (50) \
\text { Dividends declared and paid } & 10 & 120 & \mathbf{C} & 35 & \text { E } \
\text { Retained earnings, Dec. 31, }  \text { Year 2 } & \mathbf{A} & 670 & 60 & 105 & 75
\end{array}$

Accepted Answer

a.$115
b.$

Question 12

Firms communicate the results of their business activities in the annual report to shareholders.

Accepted Answer

A) True 
 B)False

Question 13

Compute the missing amounts affecting the net income for Year 1 in each of the five independent cases that follow.Amounts shown are in thousands.
 $\begin{array}{llllll}&\text { CASE A }& \text { CASE B }& \text { CASE C }& \text { CASE D }& \text { CASE E}\
\text { Sales revenue } & \$ 650 & \text { B } & \$ 400 & \$ 800 & \$ 390 \
\text { Cost of goods sold } & 300 & \$ 110 & \text { C } & 400 & 200 \
\text { Selling and } & 150 & 150 & 120 & 65 & \text { E } \
\text { administrative expenses } & & & & &\
\text { Income tax expense } & 56 & 30 & 55 & \text { D } & 0 \
\text { Net income } & \text { A } & 10 & 75 & 235 & (15)\
\end{array}$

Accepted Answer

a.$144
b.$

Question 14

To increase the margin between selling price and manufacturing cost, a manufacturing company might:

Accepted Answer

A) negotiate a lower purchase price with suppliers of raw materials. 
B) substitute more efficient manufacturing equipment for work now done by employees. 
C) increase selling prices. 
D) all of the above 
E) none of the above 
A) negotiate a lower purchase price with suppliers of raw materials. 
B) substitute more efficient manufacturing equipment for work now done by employees. 
C) increase selling prices. 
D) all of the above 
E) none of the above

Question 15

To carry out their plans, firms require financing, that is, funds from owners and creditors.Owners provide funds to a firm and in return receive ownership interests.For a corporation, the ownership interests are:

Accepted Answer

A) Common Stock Shares 
B) Corporate Bonds 
C) Notes Receivable 
D) Notes Payable 
E) Certificates of Deposit 
A) Common Stock Shares 
B) Corporate Bonds 
C) Notes Receivable 
D) Notes Payable 
E) Certificates of Deposit

Question 16

_____ represent amounts owed by customers for goods and services they have already received. The customer, therefore, has the benefit of the goods and services before it pays cash.

Accepted Answer

A) Accounts Payable 
B) Accounts Receivable 
C) Notes Receivable 
D) Notes Payable 
E) Uncollected Sales 
A) Accounts Payable 
B) Accounts Receivable 
C) Notes Receivable 
D) Notes Payable 
E) Uncollected Sales

Question 17

Match between columns
                        Premises: Interest revenue
Cash on hand
Common stock issued by the corporation
Employee taxes payable
Factory
Unsettled damage suit against the corporation, probability and amount of settlement uncertain
Trucks used for deliveries
__________ prepaid insurance
Note payable, due in 7 years
Commissions earned by the sales staff

Accepted Answer

The Answer of Current liabilities and Retained earnings and Noncurrent is...

Question 18

Which of the following is not a business activity?

Accepted Answer

A) Establishing goals and strategies. 
B) Obtaining financing. 
C) Making investments. 
D) Conducting operations. 
E) All of these choices are business activities. 
A) Establishing goals and strategies. 
B) Obtaining financing. 
C) Making investments. 
D) Conducting operations. 
E) All of these choices are business activities.

Question 19

A _____ connects two successive balance sheets because it explains the change in cash from operating, financing, and investing activities.

Accepted Answer

A) statement of cash receipts and disbursements 
B) income statement 
C) funds flow statement 
D) statement of cash flows 
E) statement of retained earnings 
A) statement of cash receipts and disbursements 
B) income statement 
C) funds flow statement 
D) statement of cash flows 
E) statement of retained earnings

Question 20

The balance sheet of Parler, a European Union communications firm, shows current assets of €21,000 million, current liabilities of €16,849 million, shareholders' equity of €17,654 million, and noncurrent assets of €30,402 million.What is the amount of noncurrent liabilities on Parler's balance sheet?

Accepted Answer

Current Noncurrent Current Non

Which of the following is/are true regarding the financing of a charitable organization?

_____ must be used by U.S.Securities and Exchange Commission (SEC) registrants.

Describe some of the factors that would affect a firm's goals and strategies.

To reduce the lag on collection of accounts receivable, a company might

Concerns over the quality of financial reporting have led, and continue to lead, to government initiatives in the United States including, the Sarbanes-Oxley Act of 2002. Briefly describe the Sarbanes-Oxley Act of 2002.

The _____ is the private-sector financial accounting standard setter in the U.S., but has no enforcement powers.

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

The managers of a business prepare financial statements to present meaningful information about that business's activities to external users.

_____ reports information about cash generated from (or used by) operating, investing, and financing activities during specified time periods.

Firms communicate the results of their business activities in the annual report to shareholders.

To increase the margin between selling price and manufacturing cost, a manufacturing company might:

To carry out their plans, firms require financing, that is, funds from owners and creditors.Owners provide funds to a firm and in return receive ownership interests.For a corporation, the ownership interests are:

_____ represent amounts owed by customers for goods and services they have already received. The customer, therefore, has the benefit of the goods and services before it pays cash.

Which of the following is not a business activity?

A _____ connects two successive balance sheets because it explains the change in cash from operating, financing, and investing activities.

The Basics of Record Keeping and Financial Statement Preparation: Balance Sheet

The Basics of Record Keeping and Financial Statement Preparation: Income Statement

Balance Sheet: Presenting and Analyzing Resources and Financing

Income Statement: Reporting Results of Operating Activities

Statement of Cash Flows

Introduction to Financial Statement Analysis

Revenue Recognition, Receivables, and Advances From Customers

Working Capital

Long-Lived Tangible and Intangible Assets

Notes, Bonds, and Leases

Liabilities: Off-Balance Sheet Financing, Retirement Benefits, and Income Taxes

Marketable Securities and Derivatives

Intercorporate Investments in Common Stock

Shareholders Equity: Capital Contributions and Distributions

Statement of Cash Flows: Another Look

Synthesis and Extensions

Filters

Exam 1: Introduction to Business Activities and Overview of Financial Statements and the Reporting Process

Which of the following is/are true regarding the financing of a charitable organization?

_____ must be used by U.S.Securities and Exchange Commission (SEC) registrants.

Describe some of the factors that would affect a firm's goals and strategies.

To reduce the lag on collection of accounts receivable, a company might

Concerns over the quality of financial reporting have led, and continue to lead, to government initiatives in the United States including, the Sarbanes-Oxley Act of 2002. Briefly describe the Sarbanes-Oxley Act of 2002.

The _____ is the private-sector financial accounting standard setter in the U.S., but has no enforcement powers.

Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.

The managers of a business prepare financial statements to present meaningful information about that business's activities to external users.

_____ reports information about cash generated from (or used by) operating, investing, and financing activities during specified time periods.

Firms communicate the results of their business activities in the annual report to shareholders.

To increase the margin between selling price and manufacturing cost, a manufacturing company might:

To carry out their plans, firms require financing, that is, funds from owners and creditors.Owners provide funds to a firm and in return receive ownership interests.For a corporation, the ownership interests are:

_____ represent amounts owed by customers for goods and services they have already received. The customer, therefore, has the benefit of the goods and services before it pays cash.

Which of the following is not a business activity?

A _____ connects two successive balance sheets because it explains the change in cash from operating, financing, and investing activities.

The Basics of Record Keeping and Financial Statement Preparation: Balance Sheet

The Basics of Record Keeping and Financial Statement Preparation: Income Statement

Balance Sheet: Presenting and Analyzing Resources and Financing

Income Statement: Reporting Results of Operating Activities

Statement of Cash Flows

Introduction to Financial Statement Analysis

Revenue Recognition, Receivables, and Advances From Customers

Working Capital

Long-Lived Tangible and Intangible Assets

Notes, Bonds, and Leases

Liabilities: Off-Balance Sheet Financing, Retirement Benefits, and Income Taxes

Marketable Securities and Derivatives

Intercorporate Investments in Common Stock

Shareholders Equity: Capital Contributions and Distributions

Statement of Cash Flows: Another Look

Synthesis and Extensions

Filters