Question 1

Investing 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.

Question 2

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Accepted Answer

A) Timeliness. 
B) Neutrality. 
C) Confirmatory value. 
A) Timeliness. 
B) Neutrality. 
C) Confirmatory value.

Question 3

Expenses are shown in which of the following statements?

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 4

The legal authority to set accounting standards lies with 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 5

Which of the following items would not appear in an income statement?

Accepted Answer

A) Delivery Expense. 
B) Accounts Payable. 
C) Service Revenue. 
A) Delivery Expense. 
B) Accounts Payable. 
C) Service Revenue.

Question 6

Which of the following is a balance sheet item?

Accepted Answer

A) Net Income. 
B) Dividends. 
C) Utilities Expense. 
D) Cash. 
A) Net Income. 
B) Dividends. 
C) Utilities Expense. 
D) Cash.

Question 7

The role of independent auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Emmitt had the following final balances after the first year of operations: assets,$55,000;stockholders' equity,$25,000;dividends,$3,000;and net income,$10,000.What is the amount of Emmitt's liabilities?

Accepted Answer

A) $55,000. 
B) $30,000. 
C) $13,000. 
A) $55,000. 
B) $30,000. 
C) $13,000.

Question 9

Consider the following account balances of the Shattuck Law Firm at the end of the year: How many of these accounts would appear in Shattuck's year-end balance sheet?
$$\begin{array} { | l | r | } 
\hline \text { Accounts Payable } & \$ 4,400 \
\hline \text { Salaries Expense } & 12,800 \
\hline \text { Cash } & 1,700 \
\hline \text { Common Stock } & 2,400 \
\hline \text { Service Revenue } & 8,300 \
\hline \text { Supplies } & 4,300 \
\hline \text { Retained Earnings } & 1,100 \
\hline \text { Utilities Expense } & 5,000 \
\hline
\end{array}$$

Accepted Answer

A) Five. 
B) Four. 
C) Three. 
A) Five. 
B) Four. 
C) Three.

Question 10

Which of the following is not a major section in the statement of cash flows?

Accepted Answer

A) Cash flows from operating activities. 
B) Cash flows from customers. 
C) Cash flows from financing activities. 
A) Cash flows from operating activities. 
B) Cash flows from customers. 
C) Cash flows from financing activities.

Question 11

What is the primary purpose of financial accounting?

Accepted Answer

A) Determine the amount of tax liability owed to the government. 
B) Communicate business activities to internal management. 
C) Measure business activities and communicate those measures to external users to make decisions. 
A) Determine the amount of tax liability owed to the government. 
B) Communicate business activities to internal management. 
C) Measure business activities and communicate those measures to external users to make decisions.

Question 12

Which of the following financial statements reports a company's retained earnings?

Accepted Answer

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

Question 13

Financial statements are periodic reports published by the company for the purpose of providing information to managers.Financial statements are designed to provide information to external users.

Accepted Answer

A) True 
 B)False

Question 14

The financial statement that represents activity over the entire life of the company is the:

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Statement of financial accounting. 
A) Income statement. 
B) Balance sheet. 
C) Statement of financial accounting.

Question 15

Which one of the following statements regarding financial reports is correct?

Accepted Answer

A) The balance sheet classifies all assets according to operating,investing,and financing activities. 
B) The income statement is used to show that a company's resources equal claims to those resources. 
C) The statement of stockholders' equity updates the balances of common stock and retained earnings for related transactions during the year. 
A) The balance sheet classifies all assets according to operating,investing,and financing activities. 
B) The income statement is used to show that a company's resources equal claims to those resources. 
C) The statement of stockholders' equity updates the balances of common stock and retained earnings for related transactions during the year.

Question 16

The primary focus for financial accounting information is to provide information useful for: $\begin{array} { | l | c | c | } 
\hline & \text { Investing decisions } & \text { Credit decisions } \
\hline \text { a. } & \text { Yes } & \text { Yes } \
\hline \text { b. } & \text { Yes } & \text { No } \
\hline \text { c. } & \text { No } & \text { Yes } \
\hline \text { d. } & \text { No } & \text { No } \
\hline
\end{array}$

Accepted Answer

A) Investment decisions and credit decisions. 
B) Investment decisions but not credit decisions. 
C) Credit decisions but not investment decisions. 
A) Investment decisions and credit decisions. 
B) Investment decisions but not credit decisions. 
C) Credit decisions but not investment decisions.

Question 17

Independent auditors express an opinion on the:

Accepted Answer

A) Fairness of financial statements. 
B) Amount of income taxes a company owes to the government. 
C) Quality of the company's products. 
A) Fairness of financial statements. 
B) Amount of income taxes a company owes to the government. 
C) Quality of the company's products.

Question 18

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

Accepted Answer

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

Question 19

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. 
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.

Question 20

Dividends are considered an expense in running the business and reported in the income statement.Dividends are a distribution of resources to owners and not considered a cost in running the business to produce revenues.Dividends are reported in the statement of stockholders' equity.

Accepted Answer

A) True 
 B)False

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

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Expenses are shown in which of the following statements?

The legal authority to set accounting standards lies with the:

Which of the following items would not appear in an income statement?

Which of the following is a balance sheet item?

The role of independent auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

Emmitt had the following final balances after the first year of operations: assets,$55,000;stockholders' equity,$25,000;dividends,$3,000;and net income,$10,000.What is the amount of Emmitt's liabilities?

Which of the following is not a major section in the statement of cash flows?

What is the primary purpose of financial accounting?

Which of the following financial statements reports a company's retained earnings?

Financial statements are periodic reports published by the company for the purpose of providing information to managers.Financial statements are designed to provide information to external users.

The financial statement that represents activity over the entire life of the company is the:

Which one of the following statements regarding financial reports is correct?

The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decisions a. Yes Yes b. Yes No c. No Yes d. No No

Independent auditors express an opinion on the:

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

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

Dividends are considered an expense in running the business and reported in the income statement.Dividends are a distribution of resources to owners and not considered a cost in running the business to produce revenues.Dividends are reported in the statement of stockholders' equity.

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

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

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

Expenses are shown in which of the following statements?

The legal authority to set accounting standards lies with the:

Which of the following items would not appear in an income statement?

Which of the following is a balance sheet item?

The role of independent auditors is to help ensure that management has in fact appropriately applied Generally Accepted Accounting Principles (GAAP)in preparing the company's financial statements.

Emmitt had the following final balances after the first year of operations: assets,$55,000;stockholders' equity,$25,000;dividends,$3,000;and net income,$10,000.What is the amount of Emmitt's liabilities?

Which of the following is not a major section in the statement of cash flows?

What is the primary purpose of financial accounting?

Which of the following financial statements reports a company's retained earnings?

Financial statements are periodic reports published by the company for the purpose of providing information to managers.Financial statements are designed to provide information to external users.

The financial statement that represents activity over the entire life of the company is the:

Which one of the following statements regarding financial reports is correct?

The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decisions a. Yes Yes b. Yes No c. No Yes d. No No

Independent auditors express an opinion on the:

McGill purchases additional office equipment to better serves its customers.This purchase is classified as what type of activity?

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

Dividends are considered an expense in running the business and reported in the income statement.Dividends are a distribution of resources to owners and not considered a cost in running the business to produce revenues.Dividends are reported in the statement of stockholders' equity.

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