Question 1

Which accounting amount best represents value created for stockholders during the current period?

Accepted Answer

A) Retained earnings. 
B) Total assets. 
C) Net income. 
D) Stockholders' equity. 
A) Retained earnings. 
B) Total assets. 
C) Net income. 
D) Stockholders' equity.

Question 2

DW has an ending Retained Earnings balance of $51,100.If during the year DW paid dividends of $4,300 and had net income of $22,500,then what was the beginning Retained Earnings balance?

Accepted Answer

A) $24,300. 
B) $32,900. 
C) $300. 
D) $69,300. 
A) $24,300. 
B) $32,900. 
C) $300. 
D) $69,300.

Question 3

Match each business activity with its example.

Accepted Answer

The answer of Match each business activity with its example....

Question 4

The form of business organization that is legally separate from its owners is a:

Accepted Answer

A) Partnership. 
B) Sole proprietorship. 
C) Corporation. 
D) Separation entity. 
A) Partnership. 
B) Sole proprietorship. 
C) Corporation. 
D) Separation entity.

Question 5

The accounting equation shows that a company's resources equal creditors' and owners' claims to those resources.

Accepted Answer

A) True 
 B)False

Question 6

If total assets of a company equal $12,000 and total stockholders' equity equals $4,000,then total liabilities equal $8,000.

Accepted Answer

A) True 
 B)False

Question 7

The equation best describing the income statement is:

Accepted Answer

A) Revenues
Expenses = Net Income. 
B) Assets = Revenues
Expenses. 
C) Assets = Liabilities + Stockholders' Equity. 
D) Revenues + Expenses = Net Income. 
A) Revenues
Expenses = Net Income. 
B) Assets = Revenues
Expenses. 
C) Assets = Liabilities + Stockholders' Equity. 
D) Revenues + Expenses = Net Income.

Question 8

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies with publicly traded securities to prepare periodic financial statements for distribution to investors and creditors.

Accepted Answer

A) True 
 B)False

Question 9

Operating activities include transactions that relate to the primary operations of the company.

Accepted Answer

A) True 
 B)False

Question 10

The financial statement that represents activity over the entire life of the company is the:

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Statement of financial accounting. 
D) Statement of cash flows. 
A) Income statement. 
B) Balance sheet. 
C) Statement of financial accounting. 
D) Statement of cash flows.

Question 11

Which of the following is an operating activity?

Accepted Answer

A) Issuing common stock. 
B) Paying dividends. 
C) Borrowing cash from a bank to acquire a factory. 
D) Paying electricity bills for the month. 
A) Issuing common stock. 
B) Paying dividends. 
C) Borrowing cash from a bank to acquire a factory. 
D) Paying electricity bills for the month.

Question 12

Liabilities are best defined as:

Accepted Answer

A) Amounts the company expects to collect in the future from customers. 
B) Debts or obligations the company owes resulting from past transactions. 
C) The amounts that owners have invested in the business. 
D) Payments to stockholders. 
A) Amounts the company expects to collect in the future from customers. 
B) Debts or obligations the company owes resulting from past transactions. 
C) The amounts that owners have invested in the business. 
D) Payments to stockholders.

Question 13

Limited liability means:

Accepted Answer

A) Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket. 
B) Liabilities of a company cannot exceed its assets. 
C) Companies are not allowed to borrow unless they are profitable. 
D) Companies are less likely to be sued if they are formed as a corporation. 
A) Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket. 
B) Liabilities of a company cannot exceed its assets. 
C) Companies are not allowed to borrow unless they are profitable. 
D) Companies are less likely to be sued if they are formed as a corporation.

Question 14

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

Accepted Answer

A) Company activity. 
B) Financing activity. 
C) Investing activity. 
D) Operating activity. 
A) Company activity. 
B) Financing activity. 
C) Investing activity. 
D) Operating activity.

Question 15

Expenses are regular cash payments by a corporation to its stockholders.

Accepted Answer

A) True 
 B)False

Question 16

A corporation is an entity that is legally separate from its owners.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a balance sheet item?

Accepted Answer

A) Assets. 
B) Retained Earnings. 
C) Expenses. 
D) Liabilities. 
A) Assets. 
B) Retained Earnings. 
C) Expenses. 
D) Liabilities.

Question 18

The accounting equation is defined as:

Accepted Answer

A) Common Stock + Retained Earnings = Stockholders' Equity. 
B) Revenues - Expenses = Net Income. 
C) Revenues - Expenses - Dividends = Retained Earnings. 
D) Assets = Liabilities + Stockholders' Equity. 
A) Common Stock + Retained Earnings = Stockholders' Equity. 
B) Revenues - Expenses = Net Income. 
C) Revenues - Expenses - Dividends = Retained Earnings. 
D) Assets = Liabilities + Stockholders' Equity.

Question 19

The two categories of stockholders' equity usually found in the balance sheet of a corporation are:

Accepted Answer

A) Common stock and liabilities. 
B) Assets and liabilities. 
C) Common stock and retained earnings. 
D) Revenues and expenses. 
A) Common stock and liabilities. 
B) Assets and liabilities. 
C) Common stock and retained earnings. 
D) Revenues and expenses.

Question 20

The costs of providing goods and services to customers are referred to as:

Accepted Answer

A) Assets. 
B) Expenses. 
C) Liabilities. 
D) Revenues. 
A) Assets. 
B) Expenses. 
C) Liabilities. 
D) Revenues.

Which accounting amount best represents value created for stockholders during the current period?

DW has an ending Retained Earnings balance of $51,100.If during the year DW paid dividends of $4,300 and had net income of $22,500,then what was the beginning Retained Earnings balance?

Match each business activity with its example.

The form of business organization that is legally separate from its owners is a:

The accounting equation shows that a company's resources equal creditors' and owners' claims to those resources.

If total assets of a company equal $12,000 and total stockholders' equity equals $4,000,then total liabilities equal $8,000.

The equation best describing the income statement is:

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies with publicly traded securities to prepare periodic financial statements for distribution to investors and creditors.

Operating activities include transactions that relate to the primary operations of the company.

The financial statement that represents activity over the entire life of the company is the:

Which of the following is an operating activity?

Liabilities are best defined as:

Limited liability means:

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

Expenses are regular cash payments by a corporation to its stockholders.

A corporation is an entity that is legally separate from its owners.

Which of the following is not a balance sheet item?

The accounting equation is defined as:

The two categories of stockholders' equity usually found in the balance sheet of a corporation are:

The costs of providing goods and services to customers are referred to as:

The Accounting Cycle: During the Period

The Accounting Cycle: End of the Period

Cash and Internal Controls

Receivables and Sales

Inventory and Cost of Goods Sold

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Time Value of Money

Investments

International Financial Reporting Standards

Filters

Exam 1: A Framework for Financial Accounting

Which accounting amount best represents value created for stockholders during the current period?

DW has an ending Retained Earnings balance of $51,100.If during the year DW paid dividends of $4,300 and had net income of $22,500,then what was the beginning Retained Earnings balance?

Match each business activity with its example.

The form of business organization that is legally separate from its owners is a:

The accounting equation shows that a company's resources equal creditors' and owners' claims to those resources.

If total assets of a company equal $12,000 and total stockholders' equity equals $4,000,then total liabilities equal $8,000.

The equation best describing the income statement is:

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies with publicly traded securities to prepare periodic financial statements for distribution to investors and creditors.

Operating activities include transactions that relate to the primary operations of the company.

The financial statement that represents activity over the entire life of the company is the:

Which of the following is an operating activity?

Liabilities are best defined as:

Limited liability means:

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

Expenses are regular cash payments by a corporation to its stockholders.

A corporation is an entity that is legally separate from its owners.

Which of the following is not a balance sheet item?

The accounting equation is defined as:

The two categories of stockholders' equity usually found in the balance sheet of a corporation are:

The costs of providing goods and services to customers are referred to as:

The Accounting Cycle: During the Period

The Accounting Cycle: End of the Period

Cash and Internal Controls

Receivables and Sales

Inventory and Cost of Goods Sold

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Time Value of Money

Investments

International Financial Reporting Standards

Filters