Question 1

Financial accounting:

Accepted Answer

A) Provides information primarily for external decision makers. 
B) Provides information primarily for a company's employees. 
C) Provides information primarily for the use of managers of the company. 
D) Is primarily used to compute a company's tax obligation. 
A) Provides information primarily for external decision makers. 
B) Provides information primarily for a company's employees. 
C) Provides information primarily for the use of managers of the company. 
D) Is primarily used to compute a company's tax obligation.

Question 2

Dividends represent a return of the company's profits to its owners,the stockholders.

Accepted Answer

A) True 
 B)False

Question 3

Expenses 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 4

One advantage of the corporate form of business is double taxation.

Accepted Answer

A) True 
 B)False

Question 5

Below are typical transactions for a company.Indicate whether each transaction is classified as a financing,investing,or operating activity.

Accepted Answer

1.Investing;2.Operat

Question 6

Which statement below best describes the objectives of financial accounting?

Accepted Answer

A) Provide information that helps predict cash flows. 
B) Provide information about the economic resources,claims to resources and changes in resources and claims. 
C) Provide information that is useful in making decisions. 
D) All of the other answers are correct. 
A) Provide information that helps predict cash flows. 
B) Provide information about the economic resources,claims to resources and changes in resources and claims. 
C) Provide information that is useful in making decisions. 
D) All of the other answers are correct.

Question 7

List and describe the four financial statements most frequently provided to external users.

Accepted Answer

The income statement presents revenues a

Question 8

Financial reporting objectives do not include providing information:

Accepted Answer

A) Useful to investors and creditors in making decisions. 
B) To determine market values,assess profit potential,and evaluate management. 
C) Helpful to investors in predicting cash flows. 
D) That tells about a company's economic resources and claims to those resources. 
A) Useful to investors and creditors in making decisions. 
B) To determine market values,assess profit potential,and evaluate management. 
C) Helpful to investors in predicting cash flows. 
D) That tells about a company's economic resources and claims to those resources.

Question 9

The International Accounting Standards Board:

Accepted Answer

A) Is governed by the U.S.Securities and Exchange Commission. 
B) Can overrule the FASB when their policies disagree. 
C) Promotes the use of high-quality,understandable global accounting standards. 
D) Is the primary standard-setting body in the United States. 
A) Is governed by the U.S.Securities and Exchange Commission. 
B) Can overrule the FASB when their policies disagree. 
C) Promotes the use of high-quality,understandable global accounting standards. 
D) Is the primary standard-setting body in the United States.

Question 10

On January 1,Gucci Brothers Inc.started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock.During the year,the company earned net income of $92,000,paid a dividend of $15,200,and issued more common stock for $27,500.What is total stockholders' equity at the end of the year?

Accepted Answer

A) $1,231,700. 
B) $1,097,000. 
C) $1,201,300. 
D) $1,588,300. 
A) $1,231,700. 
B) $1,097,000. 
C) $1,201,300. 
D) $1,588,300.

Question 11

The accounting equation is defined as:

Accepted Answer

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

Question 12

Indicate whether a company would classify the transaction as financing,investing,or operating.

Accepted Answer

1.Financing;2.Operat

Question 13

The primary purpose(s)of financial accounting is (are)to:

Accepted Answer

A) Measure and record business transactions. 
B) Prepare federal and state tax returns. 
C) Communicate financial results to investors and creditors. 
D) Both measure and communicate financial information. 
A) Measure and record business transactions. 
B) Prepare federal and state tax returns. 
C) Communicate financial results to investors and creditors. 
D) Both measure and communicate financial information.

Question 14

Financing activities are transactions involving externals sources of funding.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is NOT correct about the financial statements?

Accepted Answer

A) An income statement reports revenues,expenses,and net income information. 
B) The statement of stockholders' equity presents common stock,dividends,and retained earnings information. 
C) A balance sheet reports assets,liabilities,revenues,and expenses. 
D) The statement of cash flows shows cash inflows and outflows from operating,financing,and investing activities. 
A) An income statement reports revenues,expenses,and net income information. 
B) The statement of stockholders' equity presents common stock,dividends,and retained earnings information. 
C) A balance sheet reports assets,liabilities,revenues,and expenses. 
D) The statement of cash flows shows cash inflows and outflows from operating,financing,and investing activities.

Question 16

Which financial statement is typically prepared first?

Accepted Answer

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

Question 17

One disadvantage of the corporate form of business is:

Accepted Answer

A) Limited liability. 
B) Access to more capital. 
C) Smaller in size. 
D) Double taxation. 
A) Limited liability. 
B) Access to more capital. 
C) Smaller in size. 
D) Double taxation.

Question 18

Describe the three fundamental business activities that accountants measure.What account classifications are typically associated with each type of business activity?

Accepted Answer

Financing activities are transactions in

Question 19

If total change in cash = $44,000,net operating cash flows = $22,000,and net investing cash flows = ($13,000);then net financing cash flows =

Accepted Answer

A) $15,000. 
B) $35,000. 
C) $25,000. 
D) $45,000. 
A) $15,000. 
B) $35,000. 
C) $25,000. 
D) $45,000.

Question 20

Match each financial statement with the accounts reported in it.

Accepted Answer

The answer of Match each financial statement with the accounts...

Financial accounting:

Dividends represent a return of the company's profits to its owners,the stockholders.

Expenses are shown in which of the following statements?

One advantage of the corporate form of business is double taxation.

Below are typical transactions for a company.Indicate whether each transaction is classified as a financing,investing,or operating activity.

Which statement below best describes the objectives of financial accounting?

List and describe the four financial statements most frequently provided to external users.

Financial reporting objectives do not include providing information:

The International Accounting Standards Board:

The accounting equation is defined as:

Indicate whether a company would classify the transaction as financing,investing,or operating.

The primary purpose(s)of financial accounting is (are)to:

Financing activities are transactions involving externals sources of funding.

Which of the following statements is NOT correct about the financial statements?

Which financial statement is typically prepared first?

One disadvantage of the corporate form of business is:

Describe the three fundamental business activities that accountants measure.What account classifications are typically associated with each type of business activity?

If total change in cash = $44,000,net operating cash flows = $22,000,and net investing cash flows = ($13,000);then net financing cash flows =

Match each financial statement with the accounts reported in it.

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

Financial accounting:

Dividends represent a return of the company's profits to its owners,the stockholders.

Expenses are shown in which of the following statements?

One advantage of the corporate form of business is double taxation.

Below are typical transactions for a company.Indicate whether each transaction is classified as a financing,investing,or operating activity.

Which statement below best describes the objectives of financial accounting?

List and describe the four financial statements most frequently provided to external users.

Financial reporting objectives do not include providing information:

The International Accounting Standards Board:

The accounting equation is defined as:

Indicate whether a company would classify the transaction as financing,investing,or operating.

The primary purpose(s)of financial accounting is (are)to:

Financing activities are transactions involving externals sources of funding.

Which of the following statements is NOT correct about the financial statements?

Which financial statement is typically prepared first?

One disadvantage of the corporate form of business is:

Describe the three fundamental business activities that accountants measure.What account classifications are typically associated with each type of business activity?

If total change in cash = $44,000,net operating cash flows = $22,000,and net investing cash flows = ($13,000);then net financing cash flows =

Match each financial statement with the accounts reported in it.

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