BUS 201 Wileyplus questions

As of December 31, 2017, Stoneland Corporation has assets of $3,500 and stockholders' equity of $2,000. How much are the liabilities for Stoneland Corporation as of December 31, 2017?

$1,500 (assets=liabilities + equity)

If total liabilities increased by $65500 during a period of time and stockholders' equity decreased by $34000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

$31,500 increase (Assets=liabilities + Equity)

Which of the following financial statements is divided into major categories of operating, investing, and financing activities? A. The statement of cash flows. B. The income statement. C. The balance sheet. D. The retained earnings statement

A. The statement of cash flows

The accounting equation may be expressed as

Assets = liabilities + stockholders equity

Which of the following external groups uses accounting information to determine whether the company can pay its obligations? A. Chief Financial Officer B. Creditors C. Investors in common stock D. Marketing managers

B. Creditors

Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? A. Taxing authorities B. Regulatory agencies C. Labor Unions D. Management

B. Regulatory agencies

Which of the following groups uses accounting information to determine whether the company's net income will result in a stock price increase? A. Chief Financial Officer B. Investors in common stock C. Creditors D. Marketing managers

B. investors in common stock

Which of the following is the most appropriate and modern definition of accounting? A. Electronic collection, organization, and communication of vast amounts of information. B. The information system that identifies, records, and communicates the economic events of an organization to interested users. C. A means of collecting information. D. The interconnected network of subsystems necessary to operate a business.

B. the information system that identifies, records, and communicates the economic events of an organization to interested users

Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets? A. Statement of cash flows B. Retained earnings statement C. Balance sheet D. Income statement

C. Balance Sheet

Which of the following financial statements is concerned with the company at a point in time? A. Statement of cash flows B. Income statement C. Balance sheet D. Retained Earnings statement

C. Balance sheet

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the A. balance sheet. B. retained earnings statement. C. income statement. D. statement of cash flows.

C. income statement

Which of the following would not be considered an external user of accounting data for the Julian Company? A. Internal Revenue Service agent B. Creditors C. Customers D. Management

D. Management

ing retained earnings for a period is equal to beginning

Retained earnings + Net income - Dividends.

a report prepared by management that presents financial information

annual report

what are liabilities?

are debts and obligations

future economic benefits

assets

a separate legal entity under state laws

corporation

liabilities of a company are owed to?

creditors

distributions of cash from a corporation to its stockholders

dividends

consumed assets or services

expenses

These items are listed on an income statement

income tax expense, sales revenue, cost of goods sold, interest expense

officers and others who manage the business

internal users

these items are listed on a balance sheet

inventory, accounts payable, retained earnings, equipment, common stock, accounts receivable

involves acquiring the resources necessary to run the business

investing activities

creditor claims against the assets of the business

liabilities

a section of the annual report that presents managements views

management discussion and analysis

Stockholders' equity can be described as claims of

owners on total assets

ownership is limited to one peson

sole propietorship

The balance sheet reports

the assets, liabilities, and stockholders' equity at a specific date.