Accounting 2010

What organization issues U.S. accounting standards?

Financial Accounting Standards Board.

Which financial statement is prepared first?

Income statement

Trademarks would appear in which balance sheet section?

Intangible assets

Which of the following is not one of the three forms of business organization?

Investors

Generally accepted accounting principles

are accounting rules that are recognized as a general guide for financial reporting.

Debts and obligations of a business are referred to as

liabilities

If total liabilities increased by $81000 and stockholders' equity increased by $48000 during a period of time, then total assets must change by what amount and direction during that same period?

$129000 increase

Marigold Corp. began the year by issuing $83000 of common stock for cash. The company recorded revenues of $785000, expenses of $638000, and paid dividends of $42000. What was Marigold net income for the year?

$147000 Count assets only for Net Income

These are selected account balances on December 31, 2017. Land $148000 Land (held for future use) 226500 Buildings 1056000 Inventory 249000 Equipment 660000 Furniture 156000 Accumulated Depreciation 450000 What is the total amount of property, plant, and equipment that will appear on the balance sheet?

$1570000

Swifty Corporation started the year with total assets of $224000 and total liabilities of $112000. During the year the business recorded $330000 in revenues, $153000 in expenses, and dividends of $56000. Stockholders' equity at the end of the year was

$233000.

Wildhorse Co. began the year with retained earnings of $650000. During the year, the company recorded revenues of $557000, expenses of $384000, and paid dividends of $131500. What was Wildhorse retained earnings at the end of the year?

$691500

For 2017 Vaughn Manufacturing reported net income of $38500; net sales $393500; and average share outstanding 15000. There were no preferred dividends. What was the 2017 earnings per share?

2.57

In 2017 Oriole Company had cash receipts of $39200 and cash disbursements of $22400. Oriole's ending cash balance at December 31, 2017 was $72800. What was Oriole's beginning cash balance?

56000

Which of the following is not considered an asset?

Accounts receivable Inventory Dividends Equipment Dividends

The accounting equation may be expressed as

Assets = Liabilities + Stockholders' Equity.

Which of the following is not a principal type of business activity?

Delivering

Which of the following would not be considered an external user of accounting data for the Julian Company?

Management

Which activities involve putting the resources of the business into action to generate a profit?

Operating

Which of the following would not be considered an internal user of accounting data for the Xanadu Company?

President of the employees' labor union

Ending retained earnings for a period is equal to beginning

Retained earnings + Net income - Dividends.

Net income results when

Revenues > Expenses.

The agency of the United States Government that oversees the U.S. financial markets is the

Security Exchange Commission.

Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)?

The Act calls for decreased independence of outside auditors reviewing corporate financial statements.

A balance sheet shows

assets, liabilities, and stockholders' equity.

In a classified balance sheet, assets are usually classified as

current assets; long-term investments; property, plant, and equipment; and intangible assets.

Liabilities are generally classified on a balance sheet as

current liabilities and long-term liabilities.

Dividends paid

decrease retained earnings.

A measure of profitability is the

earnings per share.

Borrowing money is an example of a(n)

financing activity.

The common characteristic possessed by all assets is

future economic benefit.

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

income statement.

The partnership form of business organization

is a common form of organization for service-type businesses.

A business organized as a corporation

is owned by its stockholders.

The relationship between current assets and current liabilities is important in evaluating a company's

liquidity.

Equipment is classified on the balance sheet as

property, plant, and equipment.

Most business enterprises in the United States are

proprietorships and partnerships.

The two fundamental qualities of useful information are

relevance and faithful representation.

The best definition of assets is the

resources belonging to a company that have future benefit to the company.

Expenses are incurred

to generate revenues.

The debt to assets ratio is computed by dividing

total liabilities by total assets.