Question 1

Any transaction that affects the income statement ultimately affects the balance sheet through the balance of retained earnings.

Accepted Answer

A) True 
 B)False

Question 2

The primary functions of financial accounting are to measure business activities of a company and to communicate those measurements to internal parties for decision-making purposes.

Accepted Answer

A) True 
 B)False

Question 3

Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:

Accepted Answer

A) Investing activities. 
B) Financing activities. 
C) Expenditure activities. 
D) Operating activities. 
A) Investing activities. 
B) Financing activities. 
C) Expenditure activities. 
D) Operating activities.

Question 4

Which of the following accounts appears in the statement of stockholders' equity?

Accepted Answer

A) Accounts Payable. 
B) Accounts Receivable. 
C) Common Stock. 
D) Supplies. 
A) Accounts Payable. 
B) Accounts Receivable. 
C) Common Stock. 
D) Supplies.

Question 5

Match each qualitative characteristic with its definition.

Accepted Answer

1.c;2.a;3.

Question 6

The role of auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

Accepted Answer

A) True 
 B)False

Question 7

How does the value of an audit affect financial statements?

Accepted Answer

Outside auditors add credibility to fina

Question 8

In what order are the following financial statements prepared: (1)balance sheet, (2)income statement,and (3)statement of stockholders' equity?

Accepted Answer

A) 1,2,3. 
B) 3,2,1. 
C) 1,3,2. 
D) 2,3,1. 
A) 1,2,3. 
B) 3,2,1. 
C) 1,3,2. 
D) 2,3,1.

Question 9

Which of the following items would not appear in an income statement?

Accepted Answer

A) Delivery Expense. 
B) Accounts Payable. 
C) Service Revenue. 
D) Utilities Expense. 
A) Delivery Expense. 
B) Accounts Payable. 
C) Service Revenue. 
D) Utilities Expense.

Question 10

Financial accounting does not deal with which of the following?

Accepted Answer

A) Measuring a company's economic activity. 
B) Making business decisions. 
C) Preparing financial reports. 
D) Communicating financial results to investors. 
A) Measuring a company's economic activity. 
B) Making business decisions. 
C) Preparing financial reports. 
D) Communicating financial results to investors.

Question 11

Aikman Company has paid dividends of $2,410,$0,$1,570 and $1,060 over the first four years of the company's existence.If Retained Earnings after year four has an ending balance of $9,700,what is the average annual amount of net income (loss)over the past four years for Aikman?

Accepted Answer

A) $3,685. 
B) $14,740. 
C) $840. 
D) $1,260. 
A) $3,685. 
B) $14,740. 
C) $840. 
D) $1,260.

Question 12

The Financial Accounting Standards Board's conceptual framework does not prescribe Generally Accepted Accounting Principles.It provides an underlying foundation for the development of accounting standards and interpretation of accounting information.

Accepted Answer

A) True 
 B)False

Question 13

The difference between revenues and expenses is referred to as net income or net loss.

Accepted Answer

A) True 
 B)False

Question 14

Financial statements are periodic reports published by the company for the purpose of providing information to managers.

Accepted Answer

A) True 
 B)False

Question 15

If total liabilities of a company equal $16,000 and total stockholders' equity equals $9,000,then total assets equal $7,000.

Accepted Answer

A) True 
 B)False

Question 16

Double taxation refers to a corporation's income being taxed twice-first when the company earns it and pays corporate income taxes on it,and then again when stockholders pay personal income taxes on any amounts the firm distributes to them as dividends.

Accepted Answer

A) True 
 B)False

Question 17

The primary objective of financial reporting is to provide useful information to managers in making decisions.

Accepted Answer

A) True 
 B)False

Question 18

At the end of the current period,Maltese,Inc.reports the following amounts: Assets = $50,000;Liabilities = $28,000;Dividends = $4,000;Revenues = $22,000;Expenses = $16,000.Calculate net income and stockholders' equity at the end of the period.

Accepted Answer

The answer of At the end of the current period,Maltese,Inc.reports...

Question 19

Which accounting number has the single greatest impact on stock prices?

Accepted Answer

A) Total dividends. 
B) Total assets. 
C) Total revenues. 
D) Net income. 
A) Total dividends. 
B) Total assets. 
C) Total revenues. 
D) Net income.

Question 20

Today,financial accounting and reporting standards in the United States are established primarily by the Financial Accounting Standards Board (FASB).

Accepted Answer

A) True 
 B)False

Any transaction that affects the income statement ultimately affects the balance sheet through the balance of retained earnings.

The primary functions of financial accounting are to measure business activities of a company and to communicate those measurements to internal parties for decision-making purposes.

Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:

Which of the following accounts appears in the statement of stockholders' equity?

Match each qualitative characteristic with its definition.

The role of auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

How does the value of an audit affect financial statements?

In what order are the following financial statements prepared: (1)balance sheet, (2)income statement,and (3)statement of stockholders' equity?

Which of the following items would not appear in an income statement?

Financial accounting does not deal with which of the following?

Aikman Company has paid dividends of $2,410,$0,$1,570 and $1,060 over the first four years of the company's existence.If Retained Earnings after year four has an ending balance of $9,700,what is the average annual amount of net income (loss)over the past four years for Aikman?

The Financial Accounting Standards Board's conceptual framework does not prescribe Generally Accepted Accounting Principles.It provides an underlying foundation for the development of accounting standards and interpretation of accounting information.

The difference between revenues and expenses is referred to as net income or net loss.

Financial statements are periodic reports published by the company for the purpose of providing information to managers.

If total liabilities of a company equal $16,000 and total stockholders' equity equals $9,000,then total assets equal $7,000.

Double taxation refers to a corporation's income being taxed twice-first when the company earns it and pays corporate income taxes on it,and then again when stockholders pay personal income taxes on any amounts the firm distributes to them as dividends.

The primary objective of financial reporting is to provide useful information to managers in making decisions.

At the end of the current period,Maltese,Inc.reports the following amounts: Assets = $50,000;Liabilities = $28,000;Dividends = $4,000;Revenues = $22,000;Expenses = $16,000.Calculate net income and stockholders' equity at the end of the period.

Which accounting number has the single greatest impact on stock prices?

Today,financial accounting and reporting standards in the United States are established primarily by the Financial Accounting Standards Board (FASB).

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

Any transaction that affects the income statement ultimately affects the balance sheet through the balance of retained earnings.

The primary functions of financial accounting are to measure business activities of a company and to communicate those measurements to internal parties for decision-making purposes.

Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:

Which of the following accounts appears in the statement of stockholders' equity?

Match each qualitative characteristic with its definition.

The role of auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

How does the value of an audit affect financial statements?

In what order are the following financial statements prepared: (1)balance sheet, (2)income statement,and (3)statement of stockholders' equity?

Which of the following items would not appear in an income statement?

Financial accounting does not deal with which of the following?

Aikman Company has paid dividends of $2,410,$0,$1,570 and $1,060 over the first four years of the company's existence.If Retained Earnings after year four has an ending balance of $9,700,what is the average annual amount of net income (loss)over the past four years for Aikman?

The Financial Accounting Standards Board's conceptual framework does not prescribe Generally Accepted Accounting Principles.It provides an underlying foundation for the development of accounting standards and interpretation of accounting information.

The difference between revenues and expenses is referred to as net income or net loss.

Financial statements are periodic reports published by the company for the purpose of providing information to managers.

If total liabilities of a company equal $16,000 and total stockholders' equity equals $9,000,then total assets equal $7,000.

Double taxation refers to a corporation's income being taxed twice-first when the company earns it and pays corporate income taxes on it,and then again when stockholders pay personal income taxes on any amounts the firm distributes to them as dividends.

The primary objective of financial reporting is to provide useful information to managers in making decisions.

At the end of the current period,Maltese,Inc.reports the following amounts: Assets = $50,000;Liabilities = $28,000;Dividends = $4,000;Revenues = $22,000;Expenses = $16,000.Calculate net income and stockholders' equity at the end of the period.

Which accounting number has the single greatest impact on stock prices?

Today,financial accounting and reporting standards in the United States are established primarily by the Financial Accounting Standards Board (FASB).

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