accounting Which of the following is not an external users of financial accounting information?

Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

Balance sheet.

Which financial statement would you use to determine a company's earnings performance during an accounting period?

Income statement.

Which of the following characteristics most likely would heighten an auditor's concern about the risk of intentional manipulation of financial statements?

Management places substantial emphasis on meeting earnings projections.

Audit risk can be eliminated by:

audit risk cannot be eliminated.

Balance Sheet

Assets = Liabilities + Stockholders equity

Assets

Economic resources with probable future benefits owned or controlled by the entity.

Which of the following statements accurately describes equity investors and debt investors in a business?

Equity investors contribute to the business as owners and benefit from retained earnings, while debt investors are creditors who expect both principal and interest payments.

Federal income tax calculator: C Corporations

Income Deductions = Taxable Income (T.I.) × 21% (flat rate) = Tax Expense − Credits and Prepayments = Amount Owed or Refunded

Which type of bond interest is typically excluded from a corporation's gross income for tax purposes?

Interest received on investments in state, county, and city bonds.

Major Source(s) of Tax Revenue collected at each level of U.S. Government

Local Tax, State Tax, Federal Tax

Which of the following entities is not a taxable entity for federal income tax purposes?

PTS Limited, an Arizona partnership

Accrual Basis (GAAP)

Records transactions in the period in which the events actually occurred, not when cash changes hands.

What is the primary scope of the Securities and Exchange Commission (SEC) in the United States?

Regulating and requiring financial reporting from public companies while exempting private companies from such regulations.

Which organization is responsible for establishing and maintaining the Generally Accepted Accounting Principles (GAAP) for companies in the United States?

The Financial Accounting Standards Board (FASB).

The primary user(s) of the auditor's report:

investors of the company.

Auditing

is an assurance service - an "independent professional service that improves the quality of information for decision makers"

which of the following statements reflect an auditors responbility for defecting fraud and errors

the auditor should design the audit to provide reasonable assurance of detecting fraud and errors that material to the financial statements

The primary responsibility for preventing fraud in a company lies with:

the company's management.

Why are regular or C Corporations subject to double taxation in the United States?

Why are regular or C Corporations subject to double taxation in the United States?

Which of the following is not an external users of financial accounting information?

Factory line manager.

Jackson Co. had gross income realized of $81,000. The company had deductions of $47,000 and a credit of $2,000. How much is Jackson's federal income tax if the company's tax rate is 21%?

$5,140

What is on the balance sheet?

-Accounts Payable -Accounts Receivable -Unearned Revenue (deposit ) (Liability) (is not on the income statement) -Prepaid Expenses (ex:insurance expense)(is not on the income statement)

Cash Flow Statement

Beginning cash +/- Cash flows from operations +/- Cash flows from investing +/- Cash flows from financing = Ending cash

Statement of Retained Earnings

Beginning retained earnings + Net Income -Dividend Paid Ending retained Earnings

What are the categories of cash flows that appear on a statement of cash flows?

Cash flows from operating, investing, and financing activities.

Stockholders' equity represents:

Claims of owners

Which of the following statements accurately represents a key legal right of debt investors?

Debt investors have the legal right to demand both interest and principal payments, and they can "call" the loan if the company fails to make payments on time.

Liabilities

Debts or obligations (claims to a company's resources) that result from a company's past transactions and will be paid with assets or services. Entities that a company owes money to are called creditors.

What is the key difference between deductions and tax credits in the context of corporate taxation?

Deductions reduce the tax liability by multiplying the deduction amount by the tax rate, while tax credits reduce the tax due on a dollar-for-dollar basis.

The objective of an audit of financial statements is to

Express an opinion on the fairness with which the financial statements are prepared in accordance with generally accepted accounting principles (GAAP).

Atlantic Corporation reported the following amounts at the end of the first year of operations Common stock $ 200,000 Sales revenue $ 800,000 Total assets $ 600,000 Dividends declared $ 40,000 Total liabilities $ 320,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year?

Retained earnings are $80,000 and expenses incurred totaled $680,000.

Income Statement

Reveune -Cost of goods sold =Gross Profit -Operating Expense =New income from operations +/- Gain or loss on sale of other assets =Net Income

Stockholders Equity

The financing provided by the owners and the operations of the business.

Which of the following best describes liabilities and stockholders' equity?

They are the sources of financing an entity's assets.