Question 1

If a company has stockholders' equity of $60,000 at the end of the year,which of the following statements must be true?

Accepted Answer

A) The company's assets exceed liabilities by $60,000. 
B) The company has issued $60,000 of common stock. 
C) Net income for the year equals $60,000. 
D) Total revenues earned during the year equal $60,000. 
A) The company's assets exceed liabilities by $60,000. 
B) The company has issued $60,000 of common stock. 
C) Net income for the year equals $60,000. 
D) Total revenues earned during the year equal $60,000.

Question 2

At the end of the current period,Rogers Company reports the following amounts: Assets = $25,000;Liabilities = $15,000;Dividends = $3,000;Revenues = $20,000;Expenses = $13,000.Calculate net income and stockholders' equity at the end of the period.

Accepted Answer

The answer of At the end of the current period,Rogers...

Question 3

Use the following appropriate amounts to calculate net income: Revenues,$12,000;Liabilities,$5,000;Expenses,$4,000;Assets,$19,000;Dividends,$4,000.

Accepted Answer

A) $6,000. 
B) $8,000. 
C) $4,000. 
D) $14,000. 
A) $6,000. 
B) $8,000. 
C) $4,000. 
D) $14,000.

Question 4

Liabilities are shown in which of the following statements?

Accepted Answer

A) Income statement. 
B) Statement of cash flows. 
C) Balance sheet. 
D) Statement of stockholders' equity. 
A) Income statement. 
B) Statement of cash flows. 
C) Balance sheet. 
D) Statement of stockholders' equity.

Question 5

Net income (loss)appears in which two financial statements?

Accepted Answer

A) Balance sheet and income statement. 
B) Income statement and statement of stockholders' equity. 
C) Statement of stockholders' equity and balance sheet. 
D) Net income appears in only one financial statement. 
A) Balance sheet and income statement. 
B) Income statement and statement of stockholders' equity. 
C) Statement of stockholders' equity and balance sheet. 
D) Net income appears in only one financial statement.

Question 6

Generally Accepted Accounting Principles (GAAP)are best defined as:

Accepted Answer

A) Standards or methods for presenting financial accounting information. 
B) Government-mandated rules that companies must follow. 
C) Rules that best estimate profitability for a company. 
D) The group of individuals that create and enforce all accounting rules. 
A) Standards or methods for presenting financial accounting information. 
B) Government-mandated rules that companies must follow. 
C) Rules that best estimate profitability for a company. 
D) The group of individuals that create and enforce all accounting rules.

Question 7

For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts:   If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?

Accepted Answer

A) $13,000. 
B) $25,000. 
C) $7,000. 
D) $1,000. 
A) $13,000. 
B) $25,000. 
C) $7,000. 
D) $1,000.

Question 8

Net income can best be described as:

Accepted Answer

A) Net cash received by a company during the year. 
B) Revenues minus expenses. 
C) The amount of profits retained in a company for the year. 
D) Resources of a company. 
A) Net cash received by a company during the year. 
B) Revenues minus expenses. 
C) The amount of profits retained in a company for the year. 
D) Resources of a company.

Question 9

If accounting information is considered to have faithful representation,then which of the following is true?

Accepted Answer

A) The information represents to users what it claims to represent. 
B) The information follows conservatism principles and is also material. 
C) The information is considered pertinent to or affects decisions. 
D) The information will have predictive value,feedback value,and is timely. 
A) The information represents to users what it claims to represent. 
B) The information follows conservatism principles and is also material. 
C) The information is considered pertinent to or affects decisions. 
D) The information will have predictive value,feedback value,and is timely.

Question 10

Financial accounting has an impact on everyday business decisions as well as wide-ranging economic consequences.

Accepted Answer

A) True 
 B)False

Question 11

Liabilities can be best described as:

Accepted Answer

A) The amount of expenses over the past year. 
B) The amount expected to be distributed to stockholders. 
C) The amount owed to creditors. 
D) The amount of services provided to customers during the year. 
A) The amount of expenses over the past year. 
B) The amount expected to be distributed to stockholders. 
C) The amount owed to creditors. 
D) The amount of services provided to customers during the year.

Question 12

Which business form has the advantage of limited liability?

Accepted Answer

A) Corporation. 
B) Sole proprietorship. 
C) Partnership. 
D) All business forms share equal limited liability. 
A) Corporation. 
B) Sole proprietorship. 
C) Partnership. 
D) All business forms share equal limited liability.

Question 13

Given the information below about David Corporation,what was the amount of dividends the company paid in the current period?

Accepted Answer

A) $140,000. 
B) $0. 
C) $30,000. 
D) $20,000. 
A) $140,000. 
B) $0. 
C) $30,000. 
D) $20,000.

Question 14

The balance sheet is a financial statement that reports the company's revenues and expenses over an interval of time.

Accepted Answer

A) True 
 B)False

Question 15

The account type that represents payments to stockholders is called:

Accepted Answer

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

Question 16

Auditors are trained individuals hired by a company as an independent party to express a professional opinion of the accuracy of that company's financial statements.

Accepted Answer

A) True 
 B)False

Question 17

Financing cash flows include cash transactions with lenders,such as borrowing money and repaying debt,and with stockholders,such as issuing stock and paying dividends.

Accepted Answer

A) True 
 B)False

Question 18

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period?

Accepted Answer

A) $13,000. 
B) $110,000. 
C) $28,000. 
D) $18,000. 
A) $13,000. 
B) $110,000. 
C) $28,000. 
D) $18,000.

Question 19

Which of the following is not a balance sheet item?

Accepted Answer

A) Assets. 
B) Common stock. 
C) Retained earnings. 
D) Revenues. 
A) Assets. 
B) Common stock. 
C) Retained earnings. 
D) Revenues.

Question 20

Public accounting firms are professional service firms that traditionally have focused on three areas: auditing,tax preparation/planning,and business consulting.

Accepted Answer

A) True 
 B)False

If a company has stockholders' equity of $60,000 at the end of the year,which of the following statements must be true?

At the end of the current period,Rogers Company reports the following amounts: Assets = $25,000;Liabilities = $15,000;Dividends = $3,000;Revenues = $20,000;Expenses = $13,000.Calculate net income and stockholders' equity at the end of the period.

Use the following appropriate amounts to calculate net income: Revenues,$12,000;Liabilities,$5,000;Expenses,$4,000;Assets,$19,000;Dividends,$4,000.

Liabilities are shown in which of the following statements?

Net income (loss)appears in which two financial statements?

Generally Accepted Accounting Principles (GAAP)are best defined as:

For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts: If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?

Net income can best be described as:

If accounting information is considered to have faithful representation,then which of the following is true?

Financial accounting has an impact on everyday business decisions as well as wide-ranging economic consequences.

Liabilities can be best described as:

Which business form has the advantage of limited liability?

Given the information below about David Corporation,what was the amount of dividends the company paid in the current period?

The balance sheet is a financial statement that reports the company's revenues and expenses over an interval of time.

The account type that represents payments to stockholders is called:

Auditors are trained individuals hired by a company as an independent party to express a professional opinion of the accuracy of that company's financial statements.

Financing cash flows include cash transactions with lenders,such as borrowing money and repaying debt,and with stockholders,such as issuing stock and paying dividends.

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period?

Which of the following is not a balance sheet item?

Public accounting firms are professional service firms that traditionally have focused on three areas: auditing,tax preparation/planning,and business consulting.

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

If a company has stockholders' equity of $60,000 at the end of the year,which of the following statements must be true?

At the end of the current period,Rogers Company reports the following amounts: Assets = $25,000;Liabilities = $15,000;Dividends = $3,000;Revenues = $20,000;Expenses = $13,000.Calculate net income and stockholders' equity at the end of the period.

Use the following appropriate amounts to calculate net income: Revenues,$12,000;Liabilities,$5,000;Expenses,$4,000;Assets,$19,000;Dividends,$4,000.

Liabilities are shown in which of the following statements?

Net income (loss)appears in which two financial statements?

Generally Accepted Accounting Principles (GAAP)are best defined as:

For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts: If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?

Net income can best be described as:

If accounting information is considered to have faithful representation,then which of the following is true?

Financial accounting has an impact on everyday business decisions as well as wide-ranging economic consequences.

Liabilities can be best described as:

Which business form has the advantage of limited liability?

Given the information below about David Corporation,what was the amount of dividends the company paid in the current period?

The balance sheet is a financial statement that reports the company's revenues and expenses over an interval of time.

The account type that represents payments to stockholders is called:

Auditors are trained individuals hired by a company as an independent party to express a professional opinion of the accuracy of that company's financial statements.

Financing cash flows include cash transactions with lenders,such as borrowing money and repaying debt,and with stockholders,such as issuing stock and paying dividends.

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period?

Which of the following is not a balance sheet item?

Public accounting firms are professional service firms that traditionally have focused on three areas: auditing,tax preparation/planning,and business consulting.

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