ACTG 210 Ch.1

The conceptual framework that underlines IFRS...?

is very similar to that used to develop GAAP

Marvin Services Corporation had the following accts and balances: A/P: $30,000 A/R: $5,000 Buildings: ? Cash: $15,000 Equipment: $35,000 Land: $35,000 Unearned S/R: $10,000 Total Stockholders equity: ? If the balance of the buildings account was $70,000 and $5,000 of A/P were paid in cash, what would be the balance of the total stockholders equity?

$120,000

Lackston Company began the year by using $120,000 of common stock for cash. The company recorded revenues of $1,100,000, expenses of $960,000 and paid dividends of $60,000. What was net income?

$140,000

Ashley's accessory shop started the year with total assets of $210,000 and total liabilities of $120,000. During the year, the business had $330,000 in revenues, $165,000 in expenses, and dividends of $60,000. The net income was...?

$165,000

Jimmy's repair shop start the year with total assets of $300,000 and total liabilities of $240,000. During the year the business recorded $630,000 in revenues, $330,000 in expenses, and dividends of $60,000. Stockholders' equity at the end of the year was?

$300,000

Which of the following is the most appropriate and modern definition of actg?

The info system that identifies, records, and communicates the economic events of an organization to interested users

Borrowing money is an example of a....?

financing activity

Common characteristic of all assets is?

future economic benefit

All of the following are interrelationships that are important to understand when preparing financial statements except?

All of the payment on the balance sheet should be equal to the cash payments for operating activites on the statement of cash flows

Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Bonds payable

Which of the following are internal reports that actg provides to internal users?

Both forecasts of cash needs and financial comparisons are internal reports

IFRS US Standards are referred to as

GAAP

What activity involves acquiring resources to run the business?

Investing

Buying assets needed to operate a business is an example of?

Investing activity

Which group uses actg info to determine whether the company's net income will result in a stock price increase?

Investors in common stock

Mgmt's views on the company's short-term debt paying ability, expansion financing, and results of operations are found in the...?

Mgmt Discussion and Analysis section

Which of the following clarifies info presented in the financial statements, as well as expanding upon it where additional detail is needed?

Notes to the financial statements

What would NOT be considered an internal user of ACTG data for Xanadu Company?

President of the employee's labor union

Notes to the financial statements include all of the following EXCEPT?

Projected actg info

Which statement concerning users of actg info is INCORRECT

Regulatory authorities are considered internal users

Net income results when ... ?

Revenues > expenses

An annual report includes all of the following except?

Salaries info of the executives

External users want answers to all the following EXCEPT?

Will the company be able to afford employee pay raises this year?

Buying and selling products are examples of

operating activities

IFRS, compared to GAAP, tends to be more...

principles based