Accounting Chapter 1
Suppose that Ralph Lauren Company recorded the following cash transactions for the year: Paid $181500 for Salaries Paid $79500 to purchase office equipment Paid $16600 for utilities Paid $8500 in dividends Collected $373000 from customers What was Ralph Lauren's net cash provided by operating activities?
A. $166400 B. $174900 C. $191500 D. $95400
Pharoah Repair Shop started the year with total assets of $308000 and total liabilities of $248000. During the year the business recorded $634000 in revenues, $331000 in expenses, and dividends of $57000. Assuming that no common stock was sold during the year, stockholders' equity at the end of the year was
A. $306000 B. $281000 C. $249000 D. $363000
A balance sheet shows
A. Assets, Liabilities, and stockholders' equity B. Expenses, dividends, and stockholders' equity C. Revenues, liabilities, and stockholders' equity D. Revenues, expenses, and dividends
Which of the following clarifies information presented in the financial statements, as well as expanding upon it where additional detail is needed?
A. Auditor's report B. President's state of the company report C. Management discussion and analysis section D. Notes to the financial statements
Dividends declared and paid
A. Decrease retained earnings B. Increase Assets C. Increase expenses D. Decrease expenses
Borrowing money is an example of a(n)
A. Investing activity B. Operating activity C. Delivering activity D. Financing activity
Stoclholders' equity is comprised of
A. Net income and retained earnings B. Common stock and retained earnings C. Dividends and retained earnings D. Common stock and dividends
A small neighborhood barber shop that is operated by its owners would likely be organized as a
A. Partnership B. Joint Venture C. Corporation D. Proprietorship
Which of the following is not a step for solving an ethical dilemma?
A. Recognize the ethical situation and issues involved B. Identify the alternatives and weigh the impact of each alternative on various stakeholders C. Certify the ethical accuracy of the financial information D. Identify and analyze the principal elements in the situation
Ending Retained Earnings for a period is equal to beginning
A. Retained earnings-Net Income- Dividends B. Retained earnings + Net Income - Dividends C. Retained earnings + Net income +Dividends D. Retained earnings- net income + dividends
The heading on the statement of cash flows identifies all of the following except
A. The company B. The time period covered by the statement C. The type of statement D. The preparer of the statement
Which of the following would not be considered an internal user of Patagonia's accounting data?
A. The president of the company B. The controller of the company C. Creditor of the company D. Salesperson of the company
Which of the following is not an advantage of the corporate form of business organization?
A. No Personal liability B. Easy to transfer ownership C.Easy to raise funds D. Favorable tax treatment
Which financial statement is prepared first?
A. Statement of cash flows B. Retained earnings statement C. Balance Sheet D. Income Statement