ACC 290 Orion WileyPLUS Build Your Proficiency
Chapter 1 thru 13 Financial Accounting 7e
Ch 1: Introduction to
Financial Statements
Q 1.1: What is the primary purpose of the statement of cash flows?
A to report a company's financing transactions
•
B to present information about a company's assets and
liabilities C to provide information about cash receipts and cash
payments
•
D to report how much revenue was retained in the business for future
growth
Q 1.2:
Which financial statement summarizes the financial position of a company?
•
A statement of cash flows
B balance sheet
•
C income statement
D retained earnings statement
Q 1.3: Which financial statement provides information for a specific point in
time?
A balance sheet
B statement of cash flows
•
C retained earnings statement
, •
D income statement
Q 1.4: The reports revenues and expenses and resulting net
income statement
income or less for a period in time.(income statement correct answer)
• .
Q 1.5: The income statement does not report cash received from the sale of
stock because it is not considered revenue.
A True
B
False
Q 1.6: Torres Travel’s stockholders' equity at the beginning of March 2014 was
$200,000. During the month, the company earned net income of $50,000
and paid dividends of $10,000. At the end of March 2014, what is the
amount of stockholders' equity?
•
A $260,000
•
B $200,000
•
C $150,000
D $240,000
Q 1.7: According to the basic accounting equation, (assets correct
assets
answer)
• must equal liabilities plus stockholders' equity on the balance sheet.
Q 1.8: Tonelli Trucking buys a $65,000 truck on credit. Which financial
statement will be affected by this transaction?
A balance sheet only
, B income statement, retained earnings statement, and balance sheet
•
C income statement only
•
D income statement and retained earnings statement only
Q 1.9:
Which of the following financial statements would be included in an annual
report?
•
A statement of cash flows
B all of the choices are correct
•
C retained earnings statement
•
D income statement
Q 1.10: An independent audit of an annual report must be completed by a
certified public accountant
Q 1.11:
An owner who wants to have limited liability should form which type of business
enterprise?
•
A a proprietorship
B a sole proprietorship
•
C a partnership
D a corporation
Q 1.12: Which of the following statements about accounting information is
true?
•
A Accounting communicates financial information about a business
enterprise to both internal and external users.
, •
B Accounting information is used only by internal users who
are responsible for planning and organizing a business enterprise.
•
C Accounting information is used only by external users with
a financial interest in a business enterprise.
•
D A business enterprise’s management is the major external user of
information.
Q 1.13: Which of the following would NOT be considered internal users of
accounting information for a company?
•
A marketing representatives
B customers
C technology support managers
•
D the chief executive officer
Q 1.14: Ethics are the principles of conduct that are used to judge whether
decisions are
•
A moral or immoral
•
B honest or dishonest
C all of the choices are correct
•
D right or wrong
Q 1.15: When a company borrows money from a bank to purchase equipment,
this action is called
•
A a liability activity
•
B an operating activity
C a financing activity
Chapter 1 thru 13 Financial Accounting 7e
Ch 1: Introduction to
Financial Statements
Q 1.1: What is the primary purpose of the statement of cash flows?
A to report a company's financing transactions
•
B to present information about a company's assets and
liabilities C to provide information about cash receipts and cash
payments
•
D to report how much revenue was retained in the business for future
growth
Q 1.2:
Which financial statement summarizes the financial position of a company?
•
A statement of cash flows
B balance sheet
•
C income statement
D retained earnings statement
Q 1.3: Which financial statement provides information for a specific point in
time?
A balance sheet
B statement of cash flows
•
C retained earnings statement
, •
D income statement
Q 1.4: The reports revenues and expenses and resulting net
income statement
income or less for a period in time.(income statement correct answer)
• .
Q 1.5: The income statement does not report cash received from the sale of
stock because it is not considered revenue.
A True
B
False
Q 1.6: Torres Travel’s stockholders' equity at the beginning of March 2014 was
$200,000. During the month, the company earned net income of $50,000
and paid dividends of $10,000. At the end of March 2014, what is the
amount of stockholders' equity?
•
A $260,000
•
B $200,000
•
C $150,000
D $240,000
Q 1.7: According to the basic accounting equation, (assets correct
assets
answer)
• must equal liabilities plus stockholders' equity on the balance sheet.
Q 1.8: Tonelli Trucking buys a $65,000 truck on credit. Which financial
statement will be affected by this transaction?
A balance sheet only
, B income statement, retained earnings statement, and balance sheet
•
C income statement only
•
D income statement and retained earnings statement only
Q 1.9:
Which of the following financial statements would be included in an annual
report?
•
A statement of cash flows
B all of the choices are correct
•
C retained earnings statement
•
D income statement
Q 1.10: An independent audit of an annual report must be completed by a
certified public accountant
Q 1.11:
An owner who wants to have limited liability should form which type of business
enterprise?
•
A a proprietorship
B a sole proprietorship
•
C a partnership
D a corporation
Q 1.12: Which of the following statements about accounting information is
true?
•
A Accounting communicates financial information about a business
enterprise to both internal and external users.
, •
B Accounting information is used only by internal users who
are responsible for planning and organizing a business enterprise.
•
C Accounting information is used only by external users with
a financial interest in a business enterprise.
•
D A business enterprise’s management is the major external user of
information.
Q 1.13: Which of the following would NOT be considered internal users of
accounting information for a company?
•
A marketing representatives
B customers
C technology support managers
•
D the chief executive officer
Q 1.14: Ethics are the principles of conduct that are used to judge whether
decisions are
•
A moral or immoral
•
B honest or dishonest
C all of the choices are correct
•
D right or wrong
Q 1.15: When a company borrows money from a bank to purchase equipment,
this action is called
•
A a liability activity
•
B an operating activity
C a financing activity
