ACC 201 Ch 1 Quiz

The company reports the following balances: Other Revenue: $180,000 General and Administrative Expense: $320,000 Dividends paid: $220,000 Operating Revenues: $700,000 Selling Expenses: $280,000 Income Tax Expense: $60,000 Refer to Bellweather Times. What is the company's Net Income?

a. $220,000

What is the name for a person who lends funds to a business entity and expects repayment with interest?

a. creditor

Businesses engage in which of the following three main activity categories?

b. Financing, Investing, Operating

Been There Used Furniture began operation on January 1, 2019, with an initial investment of $100,000 from each of its five stockholders. During the year, the company had net income of $200,000 and paid dividends of $50,000. Refer to Been There Used Furniture. The dividends for the year

b. are reported on the Statement of Retained Earnings.

Which of the following is not a form of a business entity?

b. cooperative

Been There Used Furniture began operation on January 1, 2019, with an initial investment of $100,000 from each of its five stockholders. During the year, the company had net income of $200,000 and paid dividends of $50,000. Refer to Been There Used Furniture. If the company's revenues were $500,000 for the year ended December 31, 2019, how much were total expenses?

c. $300,000

Which one of the following items is reported as a current stockholders' equity on a classified balance sheet?

c. Common Stock

Which of the following best describes a company's operating activities?

c. Operating activities are cash flows directly related to earning income.

What is the primary objective of financial reporting?

c. To provide useful information for decision making.

Which one of the following financial statements reports an entity's financial position at a specific date?

c. balance sheet

Which one of the following is an internal user of financial information?

c. company management

Liquidity

d. All of these choices are correct.

Which of the following best describes the term "expenses"?

d. The cost of assets used in the operations of a business.

Refer to Beard Marine. What was the economic effect of the dividend payment

d. The dividend reduced total retained earnings

Which of the following invests funds into a business and is considered an owner?

d. stockholders

A non-classified balance sheet typically does not have a distinction between which of the following items?

b. current and noncurrent items

Which statement summarizes the results of the company's operations?

b. income statements

Which one of the following items appears on a balance sheet?

b. unearned revenue