Question 1

List the three types of business activities that are measured and reflected on the cash flow statement and provide three examples of transactions found within each activity.

Accepted Answer

The answer of List the three types of business activities...

Question 2

Dividends are paid when approved by the

Accepted Answer

A)  board of directors. 
B)  management. 
C)  shareholders. 
D)  creditors.

Question 3

The following data was taken from the books of Peanut Inc. as of December 31, 2020:
Cost of goods sold $ 15,300 Selling & administrative expense $3,500
Income tax expense 6,120 Accounts payable 12,000
Cash 3,500 Common shares, (3,250 shares) 20,000
Retained earnings (Jan 1) 8,000 Dividends 6,000
Other income 1,500 Interest expense 900
Sales revenue 35,000 Depreciation expense 1,500
Equipment 39,680
Instructions
a) Calculate total assets.
b) Calculate total revenue and expenses.
c) Calculate total liabilities.

Accepted Answer

The answer of The following data was taken from the...

Question 4

The accounting equation is

Accepted Answer

A)  Assets = Liabilities - Shareholders' Equity. 
B)  Assets + Liabilities = Shareholders' Equity. 
C)  Assets = Liabilities + Shareholders' Equity. 
D)  Shareholders' Equity - Liabilities = Assets.

Question 5

Goods held for resale to customers are called

Accepted Answer

A)  Inventory. 
B)  Prepaid Deposits. 
C)  Property, Plant, and Equipment. 
D)  Intangible Assets.

Question 6

Which of the following is the basic accounting equation?

Accepted Answer

A)  Assets = liabilities - shareholders' equity 
B)  Assets = liabilities × shareholders' equity 
C)  Assets = liabilities ÷ shareholders' equity 
D)  Assets = liabilities + shareholders' equity

Question 7

An example of an investing activity is

Accepted Answer

A)  purchase of inventory. 
B)  collections of amounts owed by customers. 
C)  purchase of shares of other companies. 
D)  payment of taxes.

Question 8

Financial Accounting is also referred to as

Accepted Answer

A)  internal reporting. 
B)  management reporting. 
C)  external financial reporting. 
D)  all of the above

Question 9

Match each of the following activities to the transactions listed below by placing the appropriate letter in the space provided.

Accepted Answer

The answer of Match each of the following activities to...

Question 10

A characteristic of an asset is

Accepted Answer

A)  a resource controlled by an entity. 
B)  a future economic outflow. 
C)  an event that will happen in the future. 
D)  none of the above.

Question 11

Those who lend money or otherwise extend credit rather than invest it directly are known as

Accepted Answer

A)  investors. 
B)  regulators. 
C)  creditors. 
D)  unions.

Question 12

Liquidity refers to how long something will be received, realized, or consumed.

Accepted Answer

A) True 
 B)False

Question 13

Expenses are defined as increases in economic benefits.

Accepted Answer

A) True 
 B)False

Question 14

Operating activities include all of the following except

Accepted Answer

A)  collections of accounts receivable. 
B)  payment of tax expense. 
C)  payment of dividends. 
D)  payment of interest expense.

Question 15

Which of the following is the proper order to list current assets on the Statement of Financial Position?

Accepted Answer

A)  Cash, Short-Term Investments, Inventory, Prepaid Expenses 
B)  Cash, Short-Term Investments, Prepaid Expenses, Accounts Receivable 
C)  Cash, Inventory, Accounts Receivable, Short-Term Investments 
D)  Cash, Accounts Receivable, Short-Term Investments, Inventory

Question 16

The section of an annual report that contains management's discussion of the company's operating results is referred to as the Statement of Management's Responsibility.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain the relationship between the management, the board of directors, and the shareholders in a public company.

Accepted Answer

The answer of Briefly explain the relationship between the management,...

Question 18

Which of the following is not a typical operating activity?

Accepted Answer

A)  payment of accounts payable 
B)  payment of long-term notes payable 
C)  payment of wages 
D)  collection of accounts receivable

Question 19

Who determines how much of earnings will be paid as dividends?

Accepted Answer

A)  management 
B)  board of directors 
C)  shareholders 
D)  regulators

Question 20

A firm's activities can be divided into borrowing, investing, and operating.

Accepted Answer

A) True 
 B)False

Exam 1: Overview of Corporate Financial Reporting

List the three types of business activities that are measured and reflected on the cash flow statement and provide three examples of transactions found within each activity.

Dividends are paid when approved by the

The accounting equation is

Goods held for resale to customers are called

Which of the following is the basic accounting equation?

An example of an investing activity is

Financial Accounting is also referred to as

Match each of the following activities to the transactions listed below by placing the appropriate letter in the space provided.

A characteristic of an asset is

Those who lend money or otherwise extend credit rather than invest it directly are known as

Liquidity refers to how long something will be received, realized, or consumed.

Expenses are defined as increases in economic benefits.

Operating activities include all of the following except

Which of the following is the proper order to list current assets on the Statement of Financial Position?

The section of an annual report that contains management's discussion of the company's operating results is referred to as the Statement of Management's Responsibility.

Briefly explain the relationship between the management, the board of directors, and the shareholders in a public company.

Which of the following is not a typical operating activity?

Who determines how much of earnings will be paid as dividends?

A firm's activities can be divided into borrowing, investing, and operating.