Question 1

The financial statement that represents the accounting equation is the:

Accepted Answer

A) Income statement. 
B) Statement of cash flows. 
C) Balance sheet. 
A) Income statement. 
B) Statement of cash flows. 
C) Balance sheet.

Question 2

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies that publicly trade their stock to prepare periodic financial statements for distribution to investors and creditors.

Accepted Answer

A) True 
 B)False

Question 3

The costs related to rent,utilities,and salaries in the current reporting period are examples of liabilities.These are examples of expenses.

Accepted Answer

A) True 
 B)False

Question 4

Cash paid for which of the following activities would affect the amount reported for operating cash flows in the statement of cash flows?

Accepted Answer

A) Issuing common stock. 
B) Paying dividends. 
C) Paying electricity bill for the month. 
A) Issuing common stock. 
B) Paying dividends. 
C) Paying electricity bill for the month.

Question 5

The equation best describing the income statement is:

Accepted Answer

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

Question 6

How many of the following transactions are operating activities? 
Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock

Accepted Answer

A) One. 
B) Two. 
C) Three. 
A) One. 
B) Two. 
C) Three.

Question 7

Of the following,the most important objective for financial accounting is to provide information useful for:

Accepted Answer

A) Predicting cash flows. 
B) Determining taxable income. 
C) Providing accountability. 
A) Predicting cash flows. 
B) Determining taxable income. 
C) Providing accountability.

Question 8

Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The private sector organization that is currently responsible for setting accounting standards in the United States is the:

Accepted Answer

A) Financial Accounting Standards Board. 
B) Accounting Principles Board. 
C) Securities and Exchange Commission. 
A) Financial Accounting Standards Board. 
B) Accounting Principles Board. 
C) Securities and Exchange Commission.

Question 11

The conceptual framework's qualitative characteristic of relevance includes:

Accepted Answer

A) Predictive value. 
B) Verifiability. 
C) Completeness. 
A) Predictive value. 
B) Verifiability. 
C) Completeness.

Question 12

Which of the following is not a balance sheet item?

Accepted Answer

A) Assets. 
B) Retained Earnings. 
C) Expenses. 
A) Assets. 
B) Retained Earnings. 
C) Expenses.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The body of rules and procedures that guide the measurement and communication of financial accounting information in the United States is known as:

Accepted Answer

A) Standards of Professional Compliance (SP
C) . 
B) Generally Accepted Accounting Principles (GAAP). 
C) Generally Accepted Auditing Standards (GAAS). 
A) Standards of Professional Compliance (SP
C) . 
B) Generally Accepted Accounting Principles (GAAP). 
C) Generally Accepted Auditing Standards (GAAS).

Question 15

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 16

GAAP is an abbreviation for:

Accepted Answer

A) Generally authorized accounting procedures. 
B) Generally applied accounting procedures. 
C) Generally accepted auditing practices. 
D) Generally accepted accounting principles. 
A) Generally authorized accounting procedures. 
B) Generally applied accounting procedures. 
C) Generally accepted auditing practices. 
D) Generally accepted accounting principles.

Question 17

Limited liability means:

Accepted Answer

A) Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket. 
B) Liabilities of a company cannot exceed its assets. 
C) Companies are not allowed to borrow unless they are profitable. 
A) Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket. 
B) Liabilities of a company cannot exceed its assets. 
C) Companies are not allowed to borrow unless they are profitable.

Question 18

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period? $$\begin{array} { | l | r | } 
\hline \text { Beginning retained earnings } & \$ 54,000 \
\hline \text { Ending retained earnings } & \$ 110,000 \
\hline \text { Decrease in cash } & \$ 10,000 \
\hline \text { Net income } & \$ 84,000 \
\hline \text { Change in stockholders' equity } & \$ 15,000 \
\hline
\end{array}$$

Accepted Answer

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

Question 19

Financing activities include:

Accepted Answer

A) Primary operations such as selling goods to customers. 
B) Transactions with company employees. 
C) Transactions involving external sources of funding. 
A) Primary operations such as selling goods to customers. 
B) Transactions with company employees. 
C) Transactions involving external sources of funding.

Question 20

Investing cash flows generally include cash receipts and cash payments for transactions involving revenue and expense activities during the period.These are operating activities.

Accepted Answer

A) True 
 B)False

The financial statement that represents the accounting equation is the:

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies that publicly trade their stock to prepare periodic financial statements for distribution to investors and creditors.

The costs related to rent,utilities,and salaries in the current reporting period are examples of liabilities.These are examples of expenses.

Cash paid for which of the following activities would affect the amount reported for operating cash flows in the statement of cash flows?

The equation best describing the income statement is:

How many of the following transactions are operating activities? Borrowed $50,000 from the bank Purchased $12,000 in supplies Provide services to customers for $27,000 Paid the utility bill of $750 Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock

Of the following,the most important objective for financial accounting is to provide information useful for:

Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation.

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

The private sector organization that is currently responsible for setting accounting standards in the United States is the:

The conceptual framework's qualitative characteristic of relevance includes:

Which of the following is not a balance sheet item?

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

The body of rules and procedures that guide the measurement and communication of financial accounting information in the United States is known as:

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.

GAAP is an abbreviation for:

Limited liability means:

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period? Beginning retained earnings \ 54,000 Ending retained earnings \ 110,000 Decrease in cash \ 10,000 Net income \ 84,000 Change in stockholders' equity \ 15,000

Financing activities include:

Investing cash flows generally include cash receipts and cash payments for transactions involving revenue and expense activities during the period.These are operating activities.

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

The financial statement that represents the accounting equation is the:

The 1934 Securities Exchange Act gives the Securities and Exchange Commission (SEC)the power to require companies that publicly trade their stock to prepare periodic financial statements for distribution to investors and creditors.

The costs related to rent,utilities,and salaries in the current reporting period are examples of liabilities.These are examples of expenses.

Cash paid for which of the following activities would affect the amount reported for operating cash flows in the statement of cash flows?

The equation best describing the income statement is:

How many of the following transactions are operating activities? Borrowed $50,000 from the bank Purchased $12,000 in supplies Provide services to customers for $27,000 Paid the utility bill of $750 Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock

Of the following,the most important objective for financial accounting is to provide information useful for:

Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation.

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

The private sector organization that is currently responsible for setting accounting standards in the United States is the:

The conceptual framework's qualitative characteristic of relevance includes:

Which of the following is not a balance sheet item?

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

The body of rules and procedures that guide the measurement and communication of financial accounting information in the United States is known as:

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.

GAAP is an abbreviation for:

Limited liability means:

Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period? Beginning retained earnings \ 54,000 Ending retained earnings \ 110,000 Decrease in cash \ 10,000 Net income \ 84,000 Change in stockholders' equity \ 15,000

Financing activities include:

Investing cash flows generally include cash receipts and cash payments for transactions involving revenue and expense activities during the period.These are operating activities.

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