Exam 1: A Framework for Financial Accounting

Nina Corp.had the following net income (loss)the first three years of operation: $7,100, ($1,600),and $3,600.If the Retained Earnings balance at the end of year three is $1,100,what was the total amount of dividends paid over these three years?

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

Which of the following statements regarding financial reports is not correct?

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

The conceptual framework's qualitative characteristic of faithful representation includes:

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

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

Financial accounting:

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

The form of business organization that is legally separate from its owners is a:

Stockholders' claims to the company's resources are referred to as:

Accountants are responsible for measuring various operating,investing and financing activities.Which of the following correctly matches the activity with its type?

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

The major underlying assumptions of accounting include all of the following except:

The International Accounting Standards Board:

A corporation is an entity that is legally separate from its owners.

The financial statement(s)that record activity over an interval of time include the:

Cash,inventory,supplies,and buildings are examples of liabilities.These are examples of assets.

If a company reports revenues of $17,000 and expenses of $12,000,then net income equals $5,000.

The assets of a company represent: