Financial Accounting Quiz 1
define dividend
the distribution of the net income of a corporation to its owners
which organization has been entrusted with the development of generally accepted accounting principles (GAAP)?
the financial accounting standards board (FASB)
which of the following items is reported as part of the stockholders' equity on a classified balance sheet? unearned revenue, common stock, accounts payable, or land
common stock
Been There Used Furniture began operations on jan 1, current year, 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. if the company's revenues were 500,000 for the year ended dec 31, current year, how much were total expenses? 250,000, 800,000, 350,000, 300,000
300,000
define operating activities
cash flows that are directly related to earning income
what is the primary objective of financial reporting? to help creditors evaluate their decision to make loans to a company, to help the investors assess the future prospects of a company, to help management make appropriate decisions related to company operations, or all of these
all of them
what is the name for a person who lends funds to a business entity and expects repayment of the funds with interest?
creditor
the cost of resources used to earn revenues during a period is called
expenses
what is the name of the branch of accounting concerned with providing external decision-makers with information to assess the amounts, timing, and uncertainties of the company's future cash flows?
financial accounting
identify the category of the statement of cash flows that reports the cash flows related to obtaining capital for a company
financing activities
business engage in which of the following three main activities?
financing, investing, and operating
which of the following is not a form of a business organization? sole proprietorship, corporation, governmental agency, partnership
governmental agency
which one of the following users of accounting information would be interested in knowing a company's prospects of making future dividend payments? labor union, governmental agencies, investors, or suppliers
investors
define expenses
the cost of resources used to earn revenues of a business
which one of the following is an internal user of financial information? government agencies, company management, investors, or creditors
company management
how is working capital calculated?
current assets - current liabilities
which statement summarizes the results of the company's operations?
income statement
resources that provide a benefit over a number of years and lack physical substance are classified as what?
intangible assets
list the activities included on the statement of cash flows
investing, operating, and financing activities
what financial statement reports information helpful in assessing working capital?
balance sheet
which financial statement reports an entity's financial position at a specific date?
balance sheet
which of the following groups is considered an internal user of financial statements?
managers of the company that supervises production workers
how is net profit margin calculated?
net income/ sales revenue
which of the following invests funds into a business and is considered an owner?
stockholders
which one of the following is not an external user of the financial statements of a company? stockholders, creditors, the company's president, or its
the company's president