ACCT 201 (3)

Which items are found on an income statement? a. Equipment b. Dividends paid c. Revenues d. Expenses

c, d

Salaries paid to employees for the month is a(n) ______ account that appears on the ______. a. expense; income statement b. liability; income statement c. revenue; balance sheet d. liability; balance sheet e. revenue; income statement

a

Shareholders' equity arises primarily from amounts invested by shareholders and amounts ______. a. earned by the corporation b. borrowed from banks c. received by customers d. borrowed from investors

a

The financial statement that summarizes the profit-generating activities of a company during a particular period of time is the a. income statement. b. statement of stockholders' equity. c. statement of cash flows. d. balance sheet.

a

The four financial statements published to provide information to external users include which of the following? a. Statement of Stockholders' Equity b. Statement of Cash Flows c. Income Statement d. Balance Sheet e. Statement of Business Activities f. Statement of Assets

a, b, c, d

Which of the following knowledge and skills should an accounting professional possess? a. Leadership skills b. Presentation skills c. Technical accounting knowledge d. Fluency in several languages e. Ability to work in teams

a, b, c, e

Which of the following appear on the statement of stockholders' equity? (Select all that apply.) a. Net income b. Dividends c. Beginning balance of retained earnings d. Property, plant, and equipment e. Cash received during the accounting period

a, b, d

The three classifications on the statement of cash flows are cash flows from (Select all that apply.) a. operating activities. b. investing activities. c. business activities. d. discontinued activities. e. financing activities.

a, b, e

Which of these would be found on a company's balance sheet? (Select all that apply.) a. Notes payable b. Accounts receivable c. Sales revenue d. Depreciation expense e. Equipment

a, b, e

In our society, the two main functions of accounting are to a. communicate information to investors and creditors. b. report activities to government regulators. c. measure business activities. d. report net income to tax authorities.

a, c

The two sources of stockholders' equity are amounts ______. a. paid in from shareholders b. borrowed from banks c. earned by the corporation d. borrowed from related companies

a, c

Which of the following appear(s) on the balance sheet? a. Accounts receivable b. Net income c. Utilities payable d. Salaries expense e. Common stock

a, c, e

Management discussion and analysis and note disclosures to the financial statements are included in the ________ ________. (Enter one word per blank.)

annual report

Accounting professionals: have limited opportunities outside accounting a. are in high demand b. are rarely employed outside the c. accounting field

b

The financial statement that provides information about cash receipts and cash disbursements for the period is the a. statement of retained earnings. b. statement of cash flows. c. balance sheet. d. income statement.

b

Which financial statement reports revenues and expenses? a. Statement of cash flows b. Income statement c. Statement of stockholders' equity d. Balance sheet

b

The financial statement that displays a firm's financial position on a particular date is the __________ __________ . (Enter one word per blank)

balance sheet

assets, liabilities, and stockholder's equity are on?

balance sheet

A code or moral system that provides criteria for evaluating right and wrong is referred to as a. standards. b. a dilemma system. c. ethics. d. a values model.

c

The accounting equation is: Assets = ______ + Stockholders' Equity. a. Dividends b. Expenses c. Liabilities d. Revenues

c

Which of the following financial statements shows a firm's financial position on a particular date? a. Income statement b. Statement of stockholders' equity c. Balance sheet d. Statement of cash flows

c

Two other types of information in addition to the financial statements that must be reported in the annual reports include a. corporate income tax returns. b. press releases. c. management discussion and analysis. d. notes disclosures.

c, d

Shareholders' equity arises primarily from amounts invested by shareholders and amounts ______. a. received by customers b. borrowed from banks c. borrowed from investors d. earned by the corporation

d

________ is a term that refers to a code or moral system that provides criteria for evaluating right or wrong. (Enter one word per blank)

ethics

True or false: Technical accounting skills represent the only skills required of accounting professionals.

false

Information that best explains companies' stock price performance is reported on the ________ ________.

income statement

The financial statement that summarizes revenues and expenses for a period of time is the ________ ________. (One word per blank)

income statement

revenues and expenses are on?

income statement

A balance sheet lists the assets, ______________, and stockholders' equity as of a specific date.

liabilities

Careers for accounting professionals typically include a choice between public and ________ accounting.

private

Profits earned by a company that have not been paid to stockholders are called __________ earnings. (Enter only one word.)

retained

Undistributed profits that have accumulated in the company over time are called ____________ earnings. (Enter one word per blank.)

retained

The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as ________ ________. (Enter one word per blank.)

retained earnings

operating, investing, and financing activities are on?

statement of cash flows

True or false: Accounting professionals enjoy a wide variety of career opportunities.

true

The two main functions of ________ are to (1) measure business activities and (2) to communicate those measurements to investors and creditors. (Enter only one word.)

accounting

The financial statement that is most useful in explaining a company's stock price performance is the a. balance sheet. b. income statement. c. statement of stockholders' equity.

b

The private sector organization that is currently responsible for setting accounting standards in the United States is the a. Committee on Accounting Procedure. b. Financial Accounting Standards Board. c. Securities and Exchange Commission. d. Accounting Principles Board.

b

The two main career paths in accounting are referred to as: a. SEC b. private c. public d. tax

b, c

Which items are found on an income statement? a. Equipment b. Expenses c. Revenues d. Dividends paid

b, c

Which of these would be found on a company's balance sheet? (Select all that apply.) a. Sales revenue b. Notes payable c. Equipment d. Accounts receivable e. Depreciation expense

b, c, d

Pizza Aroma generated $11,000 in revenues and had expenses of $6,000. Pizza Aroma's net income or loss is: a. a net loss of $5,000 b. net income of $17,000 c. net income of $5,000 d. a net loss of $17,000

c

Which of the following appear(s) on the balance sheet? a. Net income b. Salaries expense c. Common stock d. Utilities payable e. Accounts receivable

c, d, e

Two other types of information in addition to the financial statements that must be reported in the annual reports include a. notes disclosures. b. press releases. c. corporate income tax returns. d. management discussion and analysis.

a, d

Which of the following appear on the statement of stockholders' equity? (Select all that apply.) a. Dividends b. Property, plant, and equipment c. Cash received during the accounting period d. Beginning balance of retained earnings e. Net income

a, d, e

Which of the following items are found on a balance sheet? (Select all that apply.) a. Assets b. Revenue c. Dividends d. Liabilities e. Stockholders' equity

a, d, e

An income statement reports: (Select all that apply.) a. cash b. expenses c. amounts contributed by stockholders d. revenues e. net income or loss

b, d, e

Which of the following appear(s) on the balance sheet? a. Net income b. Common stock c. Salaries expense d. Accounts receivable e. Utilities payable

b, d, e

Which of the following are attributes of FASB? (Select all that apply.) a. Independence b. Public sector organization c. Private sector organization d. Full-time board members e. Part-time board members

a, c, d

Which of the following are financial statements? (Select all that apply.) a. Income statement b. Statement of assets c. Statement of stockholders' equity d. Statement of corporate responsibility e. Balance sheet

a, c, e

The purpose of a statement of cash flows is to provide information about the a. income and related expenses during the period. b. cash receipts and cash disbursements during a period. c. assets used during the period. d. assets, liabilities, and stockholders' equity used during the period.

b

The statement of cash flows classifies items as a. operating and nonoperating. b. operating, investing, and financing. c. current and noncurrent. d. recurring and nonrecurring.

b

________ is the common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S. (Enter the acronym.)

FASB (Financial Accounting Standards Board)

Ending retained earnings is calculated as a. beginning retained earnings + net income - dividends b. net income + dividends c. assets + net income - dividends d. beginning retained earnings + net income + dividends

a

The accounting equation is: Assets = Liabilities + a. Stockholders' Equity b. Revenues c. Retained Earnings d. Net Income e. Creditors' Interest

a

The financial statement that is most useful in explaining a company's stock price performance is the a. income statement. b. balance sheet. c. statement of stockholders' equity.

a

Which of the following represents the net income earned by a corporation and not yet paid to shareholders? a. Retained earnings b. Other comprehensive income c. Paid-in capital d. Additional paid-in capital

a

Which of the following aspects relate to the information provided in an income statement? a. Assurance that the company will pay dividends to stockholders b. Ability to earn a profit from its operations during the current period c. Assurance that the company will pay its obligations when they become due

b

Which of the following represents the net income earned by a corporation and not yet paid to shareholders? a. Paid-in capital b. Retained earnings c. Additional paid-in capital d. Other comprehensive income

b