Question 1

Investing cash flows generally include cash receipts and cash payments for transactions involving revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 2

Common stock represents an external source of stockholders' equity,whereas retained earnings represents an internal source.

Accepted Answer

A) True 
 B)False

Question 3

Creditors' claims to a corporation's resources are referred to as:

Accepted Answer

A) Dividends. 
B) Assets. 
C) Liabilities. 
D) Stockholders' equity. 
A) Dividends. 
B) Assets. 
C) Liabilities. 
D) Stockholders' equity.

Question 4

One of the differences between a partnership and a corporation is that owners of a partnership have limited liability.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following items is reported in the statement of stockholders' equity?

Accepted Answer

A) Total assets. 
B) Total expenses. 
C) Net income. 
D) Operating cash flows. 
A) Total assets. 
B) Total expenses. 
C) Net income. 
D) Operating cash flows.

Question 6

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Accepted Answer

A) Timeliness. 
B) Neutrality. 
C) Confirmatory value. 
D) Predictive value. 
A) Timeliness. 
B) Neutrality. 
C) Confirmatory value. 
D) Predictive value.

Question 7

Klein Interiors has the following account balances at the end of the year.Use only the appropriate accounts to prepare a balance sheet.

Accepted Answer

The answer of Klein Interiors has the following account balances...

Question 8

Stimpleton Company engages in the following cash payments:   What is the total amount of cash paid for operating activities?

Accepted Answer

A) $6,000. 
B) $2,000. 
C) $7,000. 
D) $1,500. 
A) $6,000. 
B) $2,000. 
C) $7,000. 
D) $1,500.

Question 9

Transactions of a company involving external sources of funding are referred to as:

Accepted Answer

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

Question 10

Using the information below from the accounting records of Thomas Corporation,owners' claims to the company's resources amount to:

Accepted Answer

A) $1,200,000. 
B) $800,000. 
C) $250,000. 
D) $400,000. 
A) $1,200,000. 
B) $800,000. 
C) $250,000. 
D) $400,000.

Question 11

If a company has gone bankrupt,its financial statements likely violate the:

Accepted Answer

A) Periodicity assumption. 
B) Monetary unit assumption. 
C) Going concern assumption. 
D) Economic entity assumption. 
A) Periodicity assumption. 
B) Monetary unit assumption. 
C) Going concern assumption. 
D) Economic entity assumption.

Question 12

The primary focus for financial accounting information is to provide information useful for:

Accepted Answer

The answer of The primary focus for financial accounting information...

Question 13

The statement of stockholders' equity is a financial statement that summarizes the changes in stockholders' equity over an interval of time.

Accepted Answer

A) True 
 B)False

Question 14

Dividends are considered an expense in running the business and reported in the income statement.

Accepted Answer

A) True 
 B)False

Question 15

Accounting information is used by creditors to decide whether to invest in a company's stock.

Accepted Answer

A) True 
 B)False

Question 16

An alternative form of the accounting equation is:

Accepted Answer

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

Question 17

Investing activities include the purchase and sale of (1)long-term resources and (2)any resources not directly related to a company's normal operations.

Accepted Answer

A) True 
 B)False

Question 18

Below are incomplete financial statements for Beasley,Incorporated.Calculate the missing amounts.

Accepted Answer

In the income statement, (b)= $5,000 (in

Question 19

Match each account classification with its example.

Accepted Answer

1.b;2.d;3.

Question 20

Retained earnings at the end of the year is calculated using:

Accepted Answer

A) Beginning retained earnings,net income,and dividends. 
B) Common stock and dividends. 
C) Stockholders' equity,net income,and dividends. 
D) Net income and dividends. 
A) Beginning retained earnings,net income,and dividends. 
B) Common stock and dividends. 
C) Stockholders' equity,net income,and dividends. 
D) Net income and dividends.

Investing cash flows generally include cash receipts and cash payments for transactions involving revenues and expenses.

Common stock represents an external source of stockholders' equity,whereas retained earnings represents an internal source.

Creditors' claims to a corporation's resources are referred to as:

One of the differences between a partnership and a corporation is that owners of a partnership have limited liability.

Which of the following items is reported in the statement of stockholders' equity?

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Klein Interiors has the following account balances at the end of the year.Use only the appropriate accounts to prepare a balance sheet.

Stimpleton Company engages in the following cash payments: What is the total amount of cash paid for operating activities?

Transactions of a company involving external sources of funding are referred to as:

Using the information below from the accounting records of Thomas Corporation,owners' claims to the company's resources amount to:

If a company has gone bankrupt,its financial statements likely violate the:

The primary focus for financial accounting information is to provide information useful for:

The statement of stockholders' equity is a financial statement that summarizes the changes in stockholders' equity over an interval of time.

Dividends are considered an expense in running the business and reported in the income statement.

Accounting information is used by creditors to decide whether to invest in a company's stock.

An alternative form of the accounting equation is:

Investing activities include the purchase and sale of (1)long-term resources and (2)any resources not directly related to a company's normal operations.

Below are incomplete financial statements for Beasley,Incorporated.Calculate the missing amounts.

Match each account classification with its example.

Retained earnings at the end of the year is calculated using:

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

Investing cash flows generally include cash receipts and cash payments for transactions involving revenues and expenses.

Common stock represents an external source of stockholders' equity,whereas retained earnings represents an internal source.

Creditors' claims to a corporation's resources are referred to as:

One of the differences between a partnership and a corporation is that owners of a partnership have limited liability.

Which of the following items is reported in the statement of stockholders' equity?

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Klein Interiors has the following account balances at the end of the year.Use only the appropriate accounts to prepare a balance sheet.

Stimpleton Company engages in the following cash payments: What is the total amount of cash paid for operating activities?

Transactions of a company involving external sources of funding are referred to as:

Using the information below from the accounting records of Thomas Corporation,owners' claims to the company's resources amount to:

If a company has gone bankrupt,its financial statements likely violate the:

The primary focus for financial accounting information is to provide information useful for:

The statement of stockholders' equity is a financial statement that summarizes the changes in stockholders' equity over an interval of time.

Dividends are considered an expense in running the business and reported in the income statement.

Accounting information is used by creditors to decide whether to invest in a company's stock.

An alternative form of the accounting equation is:

Investing activities include the purchase and sale of (1)long-term resources and (2)any resources not directly related to a company's normal operations.

Below are incomplete financial statements for Beasley,Incorporated.Calculate the missing amounts.

Match each account classification with its example.

Retained earnings at the end of the year is calculated using:

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