Exam 1 -ACCT 5312 Questions With
Correct Answers
Additional paid-in capital represents - CORRECT ANSWER✔✔-the difference
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between the total amounts invested by the stockholders and the par or stated
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value of stock | |
The principle of consistency means that - CORRECT ANSWER✔✔-the effect of any
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change in the accounting method will be disclosed in the financial statements or
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notes
The statement of cash flows - CORRECT ANSWER✔✔-shows how cash changed
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during the period | |
At the end of the year, retained earnings totaled 5100.00 During the year, net
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income was 750 and dividends of 360 were decalred and paid. Retained earnings
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at the beginning of the year totaled - CORRECT ANSWER✔✔-4710 (x + 750 - 360
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= 5100) solve for x
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Current U.S. Generally Accepted Accounting Principles and auditing standards
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require the financial statements of an entity for the reporting period to include: -
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CORRECT ANSWER✔✔-financial position at the end of the period.
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Retained Earnings represents: - CORRECT ANSWER✔✔-cumulative net income
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that has not been distributed to stockholders as dividends.
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, The balance sheet shows the following accounts and amounts:Inventory, $84,000;
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Long-term Debt 125,000; Common Stock $60,000; Accounts Payable $44,000;
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Cash $132,000; Buildings and Equipment $390,000; Short-term Debt $48,000;
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Accounts Receivable $109,000; Retained Earnings $204,000; Notes Payable
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$54,000; Accumulated Depreciation $180,000.Total current assets on the balance
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sheet are - CORRECT ANSWER✔✔-325,000 (Inventory + Cash + AR)
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Accrual accounting - CORRECT ANSWER✔✔-is designed to match revenues and
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expenses
Consolidated financial statements report financial position, results of operations,
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and cash flows for - CORRECT ANSWER✔✔-a parent corporation and its
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subsidiaries.
The time frame associated with an income statement is: - CORRECT ANSWER✔✔-
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a past period of time.
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When comparing entity financial ratios with industry ratios - CORRECT
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ANSWER✔✔-relative values at a point in time may not be significant. | | | | | | | | | |
Which of the following is a universally accepted measure of profitability? -
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CORRECT ANSWER✔✔-Return on investment. | | |
Yellowday Energy's margin was 3% and turnover was 4.0 on sales of $50 million
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for the year. Net income for the year was - CORRECT ANSWER✔✔-$1,500,000
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(Net income = Margin x Sales)
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Correct Answers
Additional paid-in capital represents - CORRECT ANSWER✔✔-the difference
| | | | | | | |
between the total amounts invested by the stockholders and the par or stated
| | | | | | | | | | | | |
value of stock | |
The principle of consistency means that - CORRECT ANSWER✔✔-the effect of any
| | | | | | | | | | |
change in the accounting method will be disclosed in the financial statements or
| | | | | | | | | | | | | |
notes
The statement of cash flows - CORRECT ANSWER✔✔-shows how cash changed
| | | | | | | | | | |
during the period | |
At the end of the year, retained earnings totaled 5100.00 During the year, net
| | | | | | | | | | | | | |
income was 750 and dividends of 360 were decalred and paid. Retained earnings
| | | | | | | | | | | | |
at the beginning of the year totaled - CORRECT ANSWER✔✔-4710 (x + 750 - 360
| | | | | | | | | | | | | | |
= 5100) solve for x
| | | |
Current U.S. Generally Accepted Accounting Principles and auditing standards
| | | | | | | | |
require the financial statements of an entity for the reporting period to include: -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-financial position at the end of the period.
| | | | | | | |
Retained Earnings represents: - CORRECT ANSWER✔✔-cumulative net income
| | | | | | | |
that has not been distributed to stockholders as dividends.
| | | | | | | |
, The balance sheet shows the following accounts and amounts:Inventory, $84,000;
| | | | | | | | |
Long-term Debt 125,000; Common Stock $60,000; Accounts Payable $44,000;
| | | | | | | | | |
Cash $132,000; Buildings and Equipment $390,000; Short-term Debt $48,000;
| | | | | | | | |
Accounts Receivable $109,000; Retained Earnings $204,000; Notes Payable
| | | | | | | |
$54,000; Accumulated Depreciation $180,000.Total current assets on the balance
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sheet are - CORRECT ANSWER✔✔-325,000 (Inventory + Cash + AR)
| | | | | | | | |
Accrual accounting - CORRECT ANSWER✔✔-is designed to match revenues and
| | | | | | | | | |
expenses
Consolidated financial statements report financial position, results of operations,
| | | | | | | | |
and cash flows for - CORRECT ANSWER✔✔-a parent corporation and its
| | | | | | | | | | |
subsidiaries.
The time frame associated with an income statement is: - CORRECT ANSWER✔✔-
| | | | | | | | | | |
a past period of time.
| | | |
When comparing entity financial ratios with industry ratios - CORRECT
| | | | | | | | | |
ANSWER✔✔-relative values at a point in time may not be significant. | | | | | | | | | |
Which of the following is a universally accepted measure of profitability? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-Return on investment. | | |
Yellowday Energy's margin was 3% and turnover was 4.0 on sales of $50 million
| | | | | | | | | | | | | |
for the year. Net income for the year was - CORRECT ANSWER✔✔-$1,500,000
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(Net income = Margin x Sales)
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