accounting 1

What section of a cash flow statement shows the cash spent on new equipment during the past accounting period? A. The investing section B. The operating section C. The financing section D. The cash flow statement does not give this information

A

Which of the five elements of financial statements does the IASB's definitional structure recognize? A. Assets, Liabilities, Equity, Income, Expenses B. Assets, Lending balances, Equity, Investments, Expenses C. Accumulated income, Liabilities, Equity, Income, Financing D. Assets, Liabilities, Earnings, Income, Expenses

A

If total liabilities decreased by $15,000 and stockholders' equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period? A. $20,000 increase B. $10,000 decrease C. $10,000 increase D. $15,000 decrease

B

The segment of the annual report that presents an opinion regarding the fairness of the presentation of the financial position and results of operations is/are the A. income statement. B. auditor's opinion. C. balance sheet. D. financial statements.

B

Which section of the annual report presents highlights of favorable or unfavorable trends and identifies significant events and uncertainties affecting a company's ability to pay near-term obligations, and a company's ability to fund operations and expansion? A. Financial statements B. Management discussion and analysis C. Notes to the financial statements D. Auditor's report

B

Which financial statement reports assets, liabilities, and stockholders' equity? A. Income statement. B. Retained earnings statement. C. Balance sheet. D. Statement of cash flows.

C

Which of the following are not considered to be primary users of financial statements in countries outside the U.S.? A. Private investors B. Tax authorities C. Economic advisors D. Central government planners

C

An annual report includes all of the following except A. a management discussion and analysis section. B. notes to the financial statements. C. an auditor's report. D. a listing of all of the stockholders.

D

In which of the following sequences are the financial statements usually prepared? A. Income statement, balance sheet, retained earnings statement, and statement of cash flows B. Balance sheet, retained earnings statement, statement of cash flows, and income statement C. Balance sheet, statement of cash flows, income statement and retained earnings statement D. Income statement, retained earnings statement, balance sheet, and statement of cash flows

D

Stockholders' equity represents A. claims of creditors. B. economics resouces to be used in the future. C. the difference between revenues and expenses. D. claims of owners.

D

The ending retained earnings balance appears on A. The retained earnings statement only. B. The balance sheet only. C. The income statement and the retained earnings statement. D. Both the retained earnings statement and the balance sheet.

D

The notes to the financial statements are not required if a company presents all 4 financial statements. A. True B. False

False

The statement of cash flows reports net income, investing, and financing activities. A. True B. False

False

Only Certified Public Accountants may perform audits. A. True B. False

True

The balance sheet reports assets and claims to those assets at a specific point in time. A. True B. False

True

How is the issuance of common stock reported on the statement of cash flows? A. Financing activity B. Investing activity C. Operating activity D. Marketing activity

A

The segment of a corporation's annual report that describes the corporation's accounting methods is the A. notes to the financial statements. B. management discussion and analysis. C. auditor's report. D. income statement.

A

Which statement presents information as of a specific point in time? A. Income statement B. Balance sheet C. Statement of cash flows D. Retained earnings statement

B

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year? A. $130,000 B. $110,000 C. $150,000 D. $135,000

B $110,000 (The sum of the beginning balance of stockholders' equity ($40,000) plus net income ($90,000) less the dividends paid ($20,000) during the period results in the ending balance of $110,000.)

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much are total liabilities at the end of the year? A. $80,000 B. $90,000 C. $110,000 D. $105,000

D (First, determine the ending balance of stockholders' equity, which is the sum of the beginning balance of stockholders' equity plus net income less the dividends. $40,000 + $90,000 - $20,000 = $110,000 At the end of the period, total assets must equal the total of liabilities plus stockholders' equity. Assets = Liabilities + Stockholders' Equity $215,000 = Liabilities + $110,000 Liabilities = $105,000)