Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Financing cash flows in the statement of cash flows would include which of the following?

Accepted Answer

A) Paying salaries for the month. 
B) Purchase of land. 
C) Paying dividends to stockholders. 
A) Paying salaries for the month. 
B) Purchase of land. 
C) Paying dividends to stockholders. C

Question 3

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

Accepted Answer

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

Question 4

Investors and creditors rely heavily on financial accounting information in making investment and lending decisions.

Accepted Answer

A) True 
 B)False

Question 5

Fundamental qualitative characteristics of accounting information are:

Accepted Answer

A) Relevance and comparability. 
B) Comparability and consistency. 
C) Faithful representation and relevance. 
A) Relevance and comparability. 
B) Comparability and consistency. 
C) Faithful representation and relevance.

Question 6

Which of the following best represents value created for stockholders during the current period?

Accepted Answer

A) Retained earnings. 
B) Total assets. 
C) Net income. 
A) Retained earnings. 
B) Total assets. 
C) Net income.

Question 7

Which of the following best describes revenue?

Accepted Answer

A) Resources of a company. 
B) Sales of goods and services to a customer. 
C) Cash received from a customer. 
A) Resources of a company. 
B) Sales of goods and services to a customer. 
C) Cash received from a customer.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the correct order for preparing the financial statements listed?

Accepted Answer

A) Balance sheet,statement of stockholders' equity,and income statement. 
B) Balance sheet,income statement,and statement of stockholders' equity. 
C) Statement of stockholders' equity,income statement,and balance sheet. 
D) Income statement,statement of stockholders' equity,and balance sheet. 
A) Balance sheet,statement of stockholders' equity,and income statement. 
B) Balance sheet,income statement,and statement of stockholders' equity. 
C) Statement of stockholders' equity,income statement,and balance sheet. 
D) Income statement,statement of stockholders' equity,and balance sheet.

Question 10

All cash transactions reported in the statement of cash flows are classified as (1)operating activities, (2)investing activities,or (3)financing activities.

Accepted Answer

A) True 
 B)False

Question 11

The accounts that represent resources owed to creditors are called:

Accepted Answer

A) Assets. 
B) Liabilities. 
C) Dividends. 
A) Assets. 
B) Liabilities. 
C) Dividends.

Question 12

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

Question 13

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

Accepted Answer

A) Total assets. 
B) Total expenses. 
C) Net income. 
A) Total assets. 
B) Total expenses. 
C) Net income.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

For accounting information to be relevant,it should possess which of the following characteristics?

Accepted Answer

A) Predictive value,confirmatory value,and/or materiality. 
B) Large in amount and timely. 
C) Comparability or consistency. 
A) Predictive value,confirmatory value,and/or materiality. 
B) Large in amount and timely. 
C) Comparability or consistency.

Question 16

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 17

Transactions related to the primary business activities of the company,such as selling goods and services to customers,are referred to as:

Accepted Answer

A) Investing activities. 
B) Operating activities. 
C) Management activities. 
A) Investing activities. 
B) Operating activities. 
C) Management activities.

Question 18

FlintCo purchases additional office equipment to better serves its customers.This cash purchase is reported in the statement of cash flows as what type of activity?

Accepted Answer

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

Question 19

Accounting is a system of maintaining records of a company's operations and communicating that information to decision makers.

Accepted Answer

A) True 
 B)False

Question 20

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?
$$\begin{array} { | l | r | r | } 
\hline \text { Year } & \text { Net Income } & \text { Dividends } \
\hline 1 & \$ 22,000 & \$ 2,000 \
\hline 2 & 17,000 & 2,000 \
\hline 3 & 9,000 & 1,000 \
\hline 4 & 14,000 & 3,000 \
\hline 5 & 25,000 & 4,000 \
\hline
\end{array}$$

Accepted Answer

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

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

Financing cash flows in the statement of cash flows would include which of the following?

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

Investors and creditors rely heavily on financial accounting information in making investment and lending decisions.

Fundamental qualitative characteristics of accounting information are:

Which of the following best represents value created for stockholders during the current period?

Which of the following best describes revenue?

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

Which of the following is the correct order for preparing the financial statements listed?

All cash transactions reported in the statement of cash flows are classified as (1)operating activities, (2)investing activities,or (3)financing activities.

The accounts that represent resources owed to creditors are called:

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 =

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

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

For accounting information to be relevant,it should possess which of the following characteristics?

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.

Transactions related to the primary business activities of the company,such as selling goods and services to customers,are referred to as:

FlintCo purchases additional office equipment to better serves its customers.This cash purchase is reported in the statement of cash flows as what type of activity?

Accounting is a system of maintaining records of a company's operations and communicating that information to decision makers.

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

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Exam 1: A Framework for Financial Accounting

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

Financing cash flows in the statement of cash flows would include which of the following?

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

Investors and creditors rely heavily on financial accounting information in making investment and lending decisions.

Fundamental qualitative characteristics of accounting information are:

Which of the following best represents value created for stockholders during the current period?

Which of the following best describes revenue?

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

Which of the following is the correct order for preparing the financial statements listed?

All cash transactions reported in the statement of cash flows are classified as (1)operating activities, (2)investing activities,or (3)financing activities.

The accounts that represent resources owed to creditors are called:

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 =

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

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

For accounting information to be relevant,it should possess which of the following characteristics?

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.

Transactions related to the primary business activities of the company,such as selling goods and services to customers,are referred to as:

FlintCo purchases additional office equipment to better serves its customers.This cash purchase is reported in the statement of cash flows as what type of activity?

Accounting is a system of maintaining records of a company's operations and communicating that information to decision makers.

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

Filters