Filters
Question type
Study Flashcards

-Use the information above to answer the following question.What amount is represented by letter L in the statement of cash flows? A) $159,000 B) $85,000 C) ($85,000) D) ($159,000) -Use the information above to answer the following question.What amount is represented by letter L in the statement of cash flows?


A) $159,000
B) $85,000
C) ($85,000)
D) ($159,000)

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

Which of the following is not an expense?


A) Wages of employees
B) Interest incurred on a note payable
C) Dividends
D) Corporate income tax

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Which of the following statements concerning financial reporting is correct?


A) The FASB requires all financial decision makers to adhere to a code of professional conduct.
B) The Sarbanes-Oxley Act does not require businesses to maintain an audited system of internal control.
C) A fundamental characteristic of useful financial information is that it fully depicts the economic substance of business activities.
D) There is no attempt to eliminate the difference in accounting rules in the U.S. and elsewhere as this would prevent investors from comparing financial statements of companies from different countries.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

A legal document called a stock certificate is used to indicate ownership in a:


A) Corporation.
B) Sole proprietorship.
C) Partnership.
D) Both sole proprietorship and partnership.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

Building a new warehouse is an operating activity on the statement of cash flows.

A) True
B) False

Correct Answer

verifed

verified

The first year of operations for a company was Year 1.The net income for the year Year 1 was $20,000 and dividends of $12,000 were paid.In Year 2, the company reported net income of $34,000 and paid dividends of $5,000.At the end of Year 1, the company had total assets of $150,000.At the end of Year 2, the company had total assets of $240,000. -Use the information above to answer the following question.What is the amount of retained earnings at the end of Year 2?


A) $37,000.
B) $240,000.
C) $29,000.
D) $269,000.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Dividends are reported on the:


A) income statement.
B) balance sheet.
C) statement of retained earnings.
D) income statement and balance sheet.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Which of the following statements about the accounting standards used in other countries is correct?


A) U.S. GAAP is used worldwide.
B) IFRS are used by all countries.
C) More and more countries are using IFRS.
D) There are no plans to converge U.S. GAAP with IFRS.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Which of the following would be reported on the income statement for Year 2?


A) Supplies that were purchased and used in Year 1 but paid for in Year 2.
B) Supplies that were purchased in Year 1, but used in Year 2.
C) Dividends that were paid in Year 2.
D) Accounts Receivable as of December 31, Year 2.

E) A) and C)
F) C) and D)

Correct Answer

verifed

verified

The amount of beginning retained earnings is equal to the:


A) beginning retained earnings of the prior year.
B) ending retained earnings of the prior year.
C) beginning retained earnings of the next year.
D) ending retained earnings of the next year.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

The following partially completed balance sheet is missing numerical data. The following partially completed balance sheet is missing numerical data. Required: Fill in the missing amounts in the balance sheet. Required: Fill in the missing amounts in the balance sheet. The following partially completed balance sheet is missing numerical data. Required: Fill in the missing amounts in the balance sheet.

Correct Answer

verifed

verified

Financial statements are most commonly prepared:


A) daily.
B) monthly, quarterly and annually.
C) as needed.
D) weekly.

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

Which of the following statements about organizational forms of a business is not correct?


A) In a sole proprietorship form of business or in a partnership form, the owner(s) are personally responsible for the debts of the business.
B) The partnership agreement states how profits are to be shared between partners and what happens when a new partner is to be admitted or an existing partner is retiring.
C) A corporation is a separate entity from both a legal and accounting perspective.
D) The owners of a corporation are legally responsible for the corporation's debts and taxes.

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

Investors are often interested in the amount of net income distributed as dividends.Where would investors look for this information in the company's annual report?


A) Statement of retained earnings
B) Balance sheet
C) Notes to the financial statements
D) Income statement

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

The owner is not responsible for the entity's taxes and debts if the entity is organized as a(n) :


A) corporation
B) sole proprietorship
C) unlimited liability corporation
D) limited liability corporation

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

A company incurred $5,000 in wages for employees for the year.Of these wages,$4,500 was paid by the end of the year.Which of the following statements is correct?


A) Salaries and Wages Payable on the income statement will be $4,500.
B) Salaries and Wages Expense on the income statement will be $500.
C) Salaries and Wages Expense on the balance sheet will be $5,000.
D) Salaries and Wages Payable on the balance sheet will be $500.

E) None of the above
F) All of the above

Correct Answer

verifed

verified

An investor who is looking at a company's financial statements cannot determine whether the:


A) company's earnings are rising or falling.
B) company pays a dividend.
C) company has positive cash flow.
D) company's owners are financially sound.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The Statement of Cash Flows for the current year contained the following: The Statement of Cash Flows for the current year contained the following: The change in cash for the current year was an increase of $14,000. -Use the information above to answer the following question.What was the amount of cash flows from (used in) investing activities? A) ($1,000) B) ($40,000) C) ($10,000) D) $10,000 The change in cash for the current year was an increase of $14,000. -Use the information above to answer the following question.What was the amount of cash flows from (used in) investing activities?


A) ($1,000)
B) ($40,000)
C) ($10,000)
D) $10,000

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Financial statements are a key source of information useful to external users.The quality of relevance in financial information contributes to its usefulness.Along with relevance which of the following attributes is a primary element of useful financial information?


A) Eloquence
B) Assets
C) Ethicality
D) Faithful representation

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

A company started the current year with assets of $700,000, liabilities of $350,000 and common stock of $200,000.During the current year, assets increased by $400,000, liabilities decreased by $50,000 and common stock increased by $275,000.There was no payment of dividends to owners during the year. -Use the information above to answer the following question.Based on this information,what was the amount of retained earnings at the beginning of the year?


A) $150,000.
B) $850,000.
C) $550,000.
D) $350,000.

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

Showing 141 - 160 of 211

Related Exams

Exam 2

Reporting Investing and Financing Results on the Balance Sheet

193 Questions

Exam 3

Reporting Operating Results on the Income Statement

235 Questions

Exam 4

Adjustments,financial Statements,and Financial Results

246 Questions

Exam 5

Fraud, Internal Control, and Cash

188 Questions

Exam 6

Internal Control and Financial Reporting for Cash and Merchandising Operations

210 Questions

Exam 7

Reporting and Interpreting Inventories and Cost of Goods Sold

214 Questions

Exam 8

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

230 Questions

Exam 9

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

266 Questions

Exam 10

Reporting and Interpreting Liabilities

235 Questions

Exam 11

Reporting and Interpreting Stockholders Equity

253 Questions

Exam 12

Reporting and Interpreting the Statement of Cash Flows

208 Questions

Exam 13

Measuring and Evaluating Financial Performance

170 Questions

Show Answer