Question 1

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?

Accepted Answer

A)  $41,800
B)  $30,500
C)  $8,800
D)  $19,200E) All of the above
F) C) and D)

Question 2

Operating activities:

Accepted Answer

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

Question 3

Based on this information,what was the amount of retained earnings at the beginning of the year?

Accepted Answer

A)  $150,000
B)  $850,000
C)  $550,000
D)  $350,000E) None of the above
F) A) and B)

Question 4

What is the missing amount for Notes Payable?

Accepted Answer

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

Question 5

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

Accepted Answer

A)  Corporation
B)  Sole proprietorship
C)  Partnership
D)  Both sole proprietorship and partnershipE) B) and D)
F) A) and B)

Question 6

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:

Accepted Answer

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

Question 7

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:

Accepted Answer

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

Question 8

Find the missing data.

Accepted Answer

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

Question 9

Financing that individuals or institutions have provided to a company is

Accepted Answer

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

Question 10

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 financial statements are in conformity with GAAP.E) A) and B)
F) B) and D)

Question 11

Which of the following statements concerning financial reporting is FALSE?

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Which of the following is not true?

Accepted Answer

A)  Assets = Liabilities + Stockholders' Equity
B)  Liabilities = Assets - Stockholders' Equity
C)  Stockholders' Equity + Liabilities - Assets = 0
D)  Liabilities - Stockholders' Equity = AssetsE) A) and B)
F) None of the above

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Creditors are:

Accepted Answer

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) All of the above
F) A) and B)

Question 16

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?

Accepted Answer

A)  Statement of retained earnings.
B)  Balance sheet.
C)  Notes to the financial statements.
D)  Income statement.E) A) and D)
F) All of the above

Question 17

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

Accepted Answer

A)  $7,725
B)  $6,725
C)  $4,800
D)  $4,725E) B) and C)
F) None of the above

Question 18

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

Accepted Answer

A)  Accounts receivable
B)  Accounts payable
C)  Advertising expense
D)  CashE) B) and C)
F) None of the above

Question 19

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

Accepted Answer

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

Question 20

Stockholders' equity is

Accepted Answer

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

Exam 1: Business Decisions and Financial Accounting

Stockholders' equity is

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What is the missing amount for Notes Payable?

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

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

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Creditors are:

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Find the missing data.

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

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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?

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Financing that individuals or institutions have provided to a company is

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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:

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Which of the following is a true statement?

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

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

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Which of the following is not true?

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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?

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Which of the following statements concerning financial reporting is FALSE?

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Based on this information,what was the amount of retained earnings at the beginning of the year?

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Operating activities:

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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:

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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.

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