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If XYZ Company had $12 million in revenue and net income of $3 million,then its:


A) expenses must have been $15 million.
B) expenses must have been $9 million.
C) assets must have been $12 million.
D) assets must have been $3 million.

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

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Which of the following descriptions about a note payable is correct?


A) Written promise to repay a loan
B) A type of long-term asset
C) Generally informal in nature
D) Reported as part of stockholders' equity on the balance sheet

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

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Which of the following items appear on more than one financial statement?


A) Ending Cash and ending Retained Earnings
B) Ending Cash and beginning Retained Earnings
C) Sales Revenue and ending Retained Earnings
D) Beginning Cash and Sales Revenue

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

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The statement of cash flows shows the following information: -Cash provided by operating activities of $16,500 -Cash used by investing activities of $8,400 -Cash used by financing activities of $2,900 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) All of the above
F) A) and B)

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All corporations acquire financing by issuing stock for sale on public stock exchanges.

A) True
B) False

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Liabilities reported on the balance sheet include:


A) Accounts Payable, Notes Payable, and Common Stock.
B) Accounts Receivable, Supplies Expense, and Retained Earnings.
C) Accounts Payable, Notes Payable, and Salaries and Wages Payable.
D) Common Stock, Retained Earnings, and Notes Payable.

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

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In the United States,generally accepted accounting principles (GAAP)are established by the PCAOB (Public Company Accounting Oversight Board).

A) True
B) False

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A company owes $200,000 on a bank loan.It will be reported by the company as Notes Payable.

A) True
B) False

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Assets:


A) represent the amounts earned by a company.
B) must equal the liabilities of a company.
C) must equal the stockholders' equity of the company.
D) represent the resources presently controlled by a company.

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

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The obligations and debts of a business are referred to as:


A) equities.
B) assets.
C) dividends.
D) liabilities.

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

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The separate entity assumption means:


A) a company's financial statements reflect only the business activities of that company.
B) each separate owner's finances must be revealed in the financial statements.
C) each separate entity that has a claim on a company's assets must be shown in the financial statements.
D) if the business is a sole proprietorship, the owners' personal activities are included in the company's financial statements.

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

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Which of the following statements about a company's fiscal year is correct?


A) All companies have a December 31 year end.
B) It usually corresponds to a company's slow period.
C) It always corresponds to the calendar year.
D) The Financial Accounting Standards Board assigns a year end to each company.

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

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A company began the year with assets of $100,000 and liabilities of $75,000.During the year assets increased by $12,000 and liabilities decreased by $9,000. -Use the information above to answer the following question.What is the amount of the change in stockholders' equity during the year?


A) $3,000 increase
B) $21,000 increase
C) $21,000 decrease
D) $3,000 decrease

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

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A list of Year 3 revenues and expenses for Green Thumb,Inc.is provided below. A list of Year 3 revenues and expenses for Green Thumb,Inc.is provided below. Required: Part a.Calculate the net income for the Green Thumb,Inc.for Year 3. Part b.Prepare a statement of retained earnings for Green Thumb,Inc.for Year 3.Assume the company had retained earnings of $162,000 as of January 1,Year 3,and paid out $46,000 in dividends during Year 3. Required: Part a.Calculate the net income for the Green Thumb,Inc.for Year 3. Part b.Prepare a statement of retained earnings for Green Thumb,Inc.for Year 3.Assume the company had retained earnings of $162,000 as of January 1,Year 3,and paid out $46,000 in dividends during Year 3.

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Part a
Net income = Revenues -...

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Investing activities on the statement of cash flows arise from transactions:


A) with lenders, borrowing and repaying cash.
B) with stockholders, selling company stock and paying dividends.
C) directly related to running the business to earn profit.
D) related to buying or selling productive resources with long lives.

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

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Which of the following financial statements shows how net income (loss) and dividends impacted a stockholders' equity account?


A) Statement of retained earnings
B) Balance sheet
C) Statement of cash flows
D) Income statement

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

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Which of the following is the set of laws enacted by the government to strengthen corporate reporting in response to the Enron,WorldCom and other frauds?


A) Sarbanes-Oxley Act
B) Professional Code of Ethics
C) Internal Revenue Code
D) Securities and Exchange Commission Act

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

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Which of the following statements about a fiscal year is correct?


A) Companies can choose to end their fiscal year on any date they feel is most relevant.
B) Companies must end their fiscal year on March 31, June 30, September 30, or December 31.
C) Companies can select any date except a holiday to end their fiscal year.
D) Companies must end their fiscal year on December 31.

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

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Expenses are:


A) equal to a company's liabilities.
B) always less than revenues .
C) the costs of doing business that are necessary to earn revenue.
D) always less than the amount of cash a company has available.

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

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The statement of cash flows for a company contained the following: -Cash flows from operating activities in the amount of $29,000 -Cash flows from investing activities in the amount of$30,000 -Cash flows from (used by) financing activities in the amount of ($45,000) What was the change in cash for the period?


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

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

Correct Answer

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Showing 21 - 40 of 211

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