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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) None of the above
F) B) and C)

Correct Answer

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Investors are often interested in the amount of net income distributed as dividends.In which section of the financial statements would investors look to find this amount?


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

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

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Which of the following statements concerning financial reporting is FALSE?


A) Accounting rules in the U.S.are called GAAP.
B) Accounting rules developed by the IASB are called IFRS.
C) Both GAAP and IFRS share the same goal which is to ensure useful information to users of financial statements.
D) There are no differences between the accounting rules developed by FASB and those developed by IASB.

E) None of the above
F) A) and B)

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The Whackem-Smackem Software Company sold $11 million of computer games in its first year of operations.The company received payments of $7.5 million for these computer games.The company's income statement would report:


A) sales revenue of $7.5 million.
B) accounts receivable of $3.5 million.
C) expenses of $3.5 million.
D) sales revenue of $11 million.

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

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As of September 30,2013,which source provided more financing for Anonymous,Inc.?


A) owners
B) creditors
C) both provided equal financing
D) neither provided any financing

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

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A creditor might look at a company's financial statements to determine if the:


A) company is likely to have the resources to repay its debts.
B) company's stock is likely to fall,signaling a good time to sell.
C) company's stock is likely to rise,signaling a good time to buy.
D) company pays a dividend.

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

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During 2013,a company's assets increase by $56,000 and its liabilities increase by $38,000.If no dividend is paid and no further capital is contributed,net income for 2013 was:


A) $56,000.
B) $18,000.
C) $94,000.
D) $38,000.

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

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Financing that individuals or institutions have provided to a company is


A) always classified as liabilities.
B) classified as liabilities when provided by creditors and stockholders' equity when provided by owners.
C) always classified as equity.
D) classified as stockholders' equity when provided by creditors and liabilities when provided by owners.

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

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What is the missing amount for Notes Payable?


A) $207,100
B) $437,800
C) $1,439,200
D) $3,347,700

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

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Stockholders' equity is


A) a liability of the business.
B) an economic resource controlled by the business.
C) the owners' claims on the business.
D) the profit generated by the business.

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

Correct Answer

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Which of the following would not be reported on the Balance Sheet for a company?


A) Accounts receivable
B) Accounts payable
C) Advertising expense
D) Cash

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

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Find the missing data. Find the missing data. A) Total revenues are $3,810,200,other selling and administrative expenses are $1,051,500,and net income is $364,600. B) Total revenues are $2,495,300,other selling and administrative expenses are $1,051,500,and net income is ($950,300) . C) Total revenues are $364,600,other selling and administrative expenses are $3,081,000,and net income is $7,255,800. D) Total revenues are $3,810,200,other selling and administrative expenses are $364,600,and net income is $7,255,800.


A) Total revenues are $3,810,200,other selling and administrative expenses are $1,051,500,and net income is $364,600.
B) Total revenues are $2,495,300,other selling and administrative expenses are $1,051,500,and net income is ($950,300) .
C) Total revenues are $364,600,other selling and administrative expenses are $3,081,000,and net income is $7,255,800.
D) Total revenues are $3,810,200,other selling and administrative expenses are $364,600,and net income is $7,255,800.

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

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Operating activities:


A) include interest paid on a bank loan.
B) include the buying or selling of land,buildings,equipment,and other long-term investments.
C) include the repayment of loan proceeds to the bank.
D) include a bank loan to cover the payment of wages,rent and other operating costs.

E) None of the above
F) A) and B)

Correct Answer

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What is the amount of retained earnings on the Balance Sheet at the end of 2014?


A) $7,725
B) $6,725
C) $4,800
D) $4,725

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

Correct Answer

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The Securities and Exchange Commission (SEC)is the government agency that has primary authority for setting accounting standards in the U.S.

A) True
B) False

Correct Answer

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Creditors are:


A) people or organizations who owe money to a business.
B) people or organizations to whom a business owes money.
C) stockholders of a business.
D) customers of a business.

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

Correct Answer

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Which of the following is a true statement?


A) The SEC approves the rules used by the auditors in determining whether a public company's financial statements are in conformity with GAAP.
B) The PCAOB and the SEC were both created by the FASB.
C) The SEC was created by the PCAOB.
D) The PCAOB approves the rules used by auditors in determining whether a public company's financial statements are in conformity with GAAP.

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

Correct Answer

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The statement of cash flows shows the following information: The statement of cash flows shows the following information: The beginning cash was $14,000. What is the amount of cash at the end of the period? A) $41,800 B) $30,500 C) $8,800 D) $19,200 The beginning cash was $14,000. What is the amount of cash at the end of the period?


A) $41,800
B) $30,500
C) $8,800
D) $19,200

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

Correct Answer

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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 B)
F) A) and C)

Correct Answer

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Which of the following is not true?


A) Assets = Liabilities + Stockholders' Equity
B) Liabilities = Assets - Stockholders' Equity
C) Stockholders' Equity + Liabilities - Assets = 0
D) Liabilities - Stockholders' Equity = Assets

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

Correct Answer

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Showing 21 - 40 of 142

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