Question 1

The statement of cash flows for a company contained the following:  What was the change in cash for the period?

Accepted Answer

A)   $14,000 increase
B)   $15,000 increase
C)   $14,000 decrease
D)   $15,000 decreaseE) C) and D)
F) A) and C)

Question 2

What is the amount of total assets to be reported on the balance sheet at the end of the year?

Accepted Answer

A)   $112,000
B)   $102,000
C)   $119,000
D)   $155,000E) None of the above
F) A) and B)

Question 3

If a company uses $50,000 of its cash to buy an asset then:

Accepted Answer

A)   assets and liabilities will be unchanged.
B)   assets will rise $50,000 as will liabilities.
C)   assets will rise $50,000 as will stockholders' equity.
D)   assets will fall $50,000 and liabilities will rise $50,000.E) All of the above
F) A) and D)

Question 4

Expenses are shown

Accepted Answer

A)   on the income statement in the time period in which they are paid.
B)   on the income statement in the time period in which they are incurred.
C)   on the balance sheet in the time period in which they are paid.
D)   on the balance sheet in the time period in which they are incurred.E) B) and D)
F) B) and C)

Question 5

If a company reports net income on the income statement, then the statement of cash flows must show an increase in cash flows from operating activities for the period.

Accepted Answer

A) True 
 B)False

Question 6

Each of the following independent companies is missing numerical data. Use your knowledge of the financial statement equations and their interrelationships to fill in the missing amounts.

Accepted Answer

The answer of Each of the following independent companies is...

Question 7

Which of the following statements is not true concerning the notes to the financial statements?

Accepted Answer

A)   Notes to the financial statements explain what policies were used to prepare the financial statements.
B)   Notes to the financial statements provide additional information about what is included in the financial statements.
C)   Notes to the financial statements provide additional information about financial matters that are not included in the financial statements.
D)   Notes to the financial statements provide financial information about the owners of the business.E) B) and C)
F) A) and C)

Question 8

In this period, a company recorded sales revenue of $50,000 from sales of goods to customers who agreed to pay later. In the next period, the company received payment from customers of $45,000. Choose the TRUE statement.

Accepted Answer

A)   Revenue for this period is $45,000.
B)   Accounts receivable at the end of this period is $5,000.
C)   Accounts payable at the end of this period is $5,000.
D)   Cash for next period will increase by $50,000.E) None of the above
F) B) and C)

Question 9

What is the amount of total liabilities at the end of 2011?

Accepted Answer

A)   $7,075
B)   $10,075
C)   $9,075
D)   $12,975E) All of the above
F) A) and D)

Question 10

Operating activities:

Accepted Answer

A)   involve day to day events related to production and sales.
B)   relate to the acquisition or sale of long-term assets.
C)   only involve financial exchanges.
D)   involve the payment of dividends to owners.E) A) and B)
F) A) and C)

Question 11

A company incurred $5,000 in wages for employees for the year. $4,500 of these wages were paid by the end of the year. Choose the TRUE statement.

Accepted Answer

A)   Wages payable on the income statement will be $4,500.
B)   Wages expense on the income statement will be $500.
C)   Wages expense on the balance sheet will be $5,000.
D)   Wages payable on the balance sheet will be $500.E) A) and B)
F) B) and C)

Question 12

The separate entity assumption means

Accepted Answer

A)   the financial information depicts the economic substance of the business activities.
B)   the financial reports of a business are assumed to include the results of only that business's activities.
C)   the results of business activities are reported in an appropriate monetary unit.
D)   the financial information can be compared across businesses because similar accounting methods have been applied.E) All of the above
F) A) and D)

Question 13

Prepare a balance sheet using these data.

Accepted Answer

The answer of Prepare a balance sheet using these data....

Question 14

Net Income is

Accepted Answer

A)   the amount the company earned after expenses and dividends are subtracted from revenue.
B)   the amount by which assets exceed expenses.
C)   the amount by which assets exceed liabilities.
D)   the amount by which revenues exceed expenses.E) A) and D)
F) A) and B)

Question 15

Accounts payable, notes payable and wages payable are examples of liabilities.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a true statement?

Accepted Answer

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 financialE) A) and D)
F) All of the above

Question 17

A company began the year with Assets of $100,000, Liabilities of $20,000 and Stockholders' equity of $80,000. During the year Assets increased $55,000 and stockholders' equity increased $20,000. What was the change in Liabilities for the year?

Accepted Answer

A)   Increase of $75,000
B)   Increase of $35,000
C)   Decrease of $75,000
D)   Decrease of $35,000E) B) and C)
F) None of the above

Question 18

What is the missing amount for Total Liabilities?

Accepted Answer

A)   $3,347,700
B)   $1,439,200
C)   $1,470,700
D)   $1,877,000E) A) and D)
F) C) and D)

Question 19

The amount of Retained Earnings at the end of the year is

Accepted Answer

A)   $15,000.
B)   $11,000.
C)   $12,000.
D)   $1,000.E) A) and C)
F) All of the above

Question 20

Investing activities on the Statement of Cash Flows are

Accepted Answer

A)   transactions with lenders, borrowing and repaying cash.
B)   transactions with stockholders, selling company stock and paying dividends.
C)   activities directly related to running the business to earn profit.
D)   buying and selling productive resources with long lives.E) A) and B)
F) None of the above

Exam 1: Business Decisions and Financial Accounting

In this period, a company recorded sales revenue of $50,000 from sales of goods to customers who agreed to pay later. In the next period, the company received payment from customers of $45,000. Choose the TRUE statement.

Correct AnswerverifiedShow Answer

Prepare a balance sheet using these data.

Correct AnswerverifiedShow Answer

Operating activities:

Correct AnswerverifiedShow Answer

Investing activities on the Statement of Cash Flows are

Correct AnswerverifiedShow Answer

If a company uses $50,000 of its cash to buy an asset then:

Correct AnswerverifiedShow Answer

The statement of cash flows for a company contained the following: What was the change in cash for the period?

Correct AnswerverifiedShow Answer

A company incurred $5,000 in wages for employees for the year. $4,500 of these wages were paid by the end of the year. Choose the TRUE statement.

Correct AnswerverifiedShow Answer

What is the missing amount for Total Liabilities?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

The amount of Retained Earnings at the end of the year is

Correct AnswerverifiedShow Answer

If a company reports net income on the income statement, then the statement of cash flows must show an increase in cash flows from operating activities for the period.

Correct AnswerverifiedShow Answer

What is the amount of total liabilities at the end of 2011?

Correct AnswerverifiedShow Answer

Net Income is

Correct AnswerverifiedShow Answer

Expenses are shown

Correct AnswerverifiedShow Answer

The separate entity assumption means

Correct AnswerverifiedShow Answer

Accounts payable, notes payable and wages payable are examples of liabilities.

Correct AnswerverifiedShow Answer

A company began the year with Assets of $100,000, Liabilities of $20,000 and Stockholders' equity of $80,000. During the year Assets increased $55,000 and stockholders' equity increased $20,000. What was the change in Liabilities for the year?

Correct AnswerverifiedShow Answer

Which of the following statements is not true concerning the notes to the financial statements?

Correct AnswerverifiedShow Answer

Each of the following independent companies is missing numerical data. Use your knowledge of the financial statement equations and their interrelationships to fill in the missing amounts.

Correct AnswerverifiedShow Answer

What is the amount of total assets to be reported on the balance sheet at the end of the year?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified