ACCT-212 Week 1 Quiz – With Answers ( 100% Correct) – Download To Score An A+

ACCT-212 Week 1 Quiz – With Answers ( 100% Correct) – Download To Score An A+ Financial Accounting 212 Week 1 Quiz 1. The term GAAP stands for? Answer: Generally Accepted Accounting Principles 2. Financial accounting serves which primary functions? Answer: Measures business activities Communicated business decisions on behalf of interested parties 3. Which of the following represents an obligation to the company? Answer: Liabilities 4. Which body has the primary responsibilities for the establishment of the Generally Accepted Accounting Principles? Answer: Financial Accounting Standards Board 5. At the end of the current period, Maltese Inc. reports the following amounts: Assets- $57,200, Liabilities- $37,900, Dividends- $4,260, Revenues- $29,900, Expenses- $15,700. Calculate net income and stockholder’s equity at the end of the period. Answer: Net Income $14,200 Stockholder’s Equity $ 29,900 6. During its first five years of operations, Delia Manufacturing reports net income of and pays dividends as follows. Year Net Income Dividends 1 2,500 1,300 2 2,400 1,400-Incorrect 3 3,900 1,500-Incorrect 4 5,800 1,500-Incorrect 5 8,200 3,700-Incorrect Calculate the balance of retained earnings at the end of the year. Note that retained earnings will always equal $0 at the end of year 1. 7. Consider the following account balances of the Shattock law firm at the end of the year. Accounts Payable 4,400 Salary Expense 12,800 Cash 1,700 Common Stock 2,400 Service Revenue 8,300 Supplies 4,300 Retained Earnings 1,100 Utilities Expense 5,000 How many of these accounts show up in Shattock’s year end balance sheet? Answer: 5 8. Which of the following statements is not correct about the financial statements? Answer: A balance sheet reports assets, liabilities, revenues, expenses. 9. Which of the following is not a major section in the statement of cash flows? Answer: Cash flows from customer 10. Which of the following best describes the primary role of auditors in financial reporting? Answer: Independent party hired to express a professional opinion of the extent to which company’s financial reporting is in compliance with GAAP