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Information must be sufficiently transparent so that it makes sense to reasonably informed users of the financial statements,such as creditors.This qualitative characteristic of information is called:


A) verifiability.
B) faithful representative.
C) relevant.
D) understandability.

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Examples of financing activities on the statement of cash flows do NOT include:


A) payment of note payable.
B) payment of dividends.
C) repurchase of company's own stock.
D) sale of a piece of equipment for cash.

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In 1990,Johnson Company purchased a building for $170,000.In 2020,a real estate professional says the building has a fair value of $1,000,000.In 2020,a similar building down the street recently sold for $900,000.What value,before consideration of accumulated depreciation,is reported for the building on the balance sheet at December 31,2020?


A) $170,000
B) $585,000
C) $900,000
D) $1,000,000

Correct Answer

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A company issues common stock for $100,000.On a statement of cash flows,this will be reported as a(n) :


A) financing cash flow.
B) investing cash flow.
C) operating cash flow.
D) noncash activity.

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List the required financial statements and state what each measures.

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Income Statement measures operating perf...

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Current assets are assets expected to be converted to cash,sold,or consumed during the next:


A) 12 months or within the business's operating cycle if longer than a year.
B) 12 months or within the business's operating cycle if less than a year.
C) 6 months.
D) 24 months.

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What is an account payable?


A) It is a liability for goods or services purchased on credit and supported by a written agreement.
B) It is a liability for goods or services purchased on credit and supported by the credit standing of the purchaser.
C) It is an amount of money to be received from a supplier.
D) It is an asset arising from the sale of goods or services on credit.

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Census Company had the following accounts and balances at the end of the year.What are total liabilities at the end of the year? Census Company had the following accounts and balances at the end of the year.What are total liabilities at the end of the year? A) $13,000 B) $48,000 C) $40,000 D) $75,000


A) $13,000
B) $48,000
C) $40,000
D) $75,000

Correct Answer

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A company's interest expense for the period is reported on the:


A) balance sheet.
B) income statement.
C) statement of cash flows.
D) statement of retained earnings.

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Stockholders have no personal obligation for the corporation's debts.

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On January 1,2019,total assets for Wininger Technologies were $136,000;on December 31,2019,total assets were $157,000.On January 1,2019,total liabilities were $110,000;on December 31,2019,total liabilities were $118,000.What is the amount of the change and the direction of the change in Wininger Technologies' stockholders' equity for 2019?


A) decrease of $13,000
B) increase of $13,000
C) increase of $29,000
D) decrease of $29,000

Correct Answer

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The accounting process begins and ends with people making decisions.

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An investor,wishing to assess the reasons for a change in retained earnings over a period of a year,would probably examine the:


A) statement of cash flows and the income statement.
B) income statement only.
C) balance sheet.
D) statement of retained earnings.

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Another name for the continuity assumption is the going-concern assumption.

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Lorna Company is a new company with a beginning retained earnings balance of zero.It has the following account balances at the end of the first year of operations: Lorna Company is a new company with a beginning retained earnings balance of zero.It has the following account balances at the end of the first year of operations: What is the ending balance in Retained Earnings? A) $22,000 B) $32,000 C) $30,000 D) $40,000 What is the ending balance in Retained Earnings?


A) $22,000
B) $32,000
C) $30,000
D) $40,000

Correct Answer

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The CORRECT data flow from one financial statement to the next is:


A) statement of retained earnings,income statement,balance sheet,statement of cash flows.
B) balance sheet,statement of retained earnings,income statement,statement of cash flows.
C) statement of retained earnings,income statement,statement of cash flows,balance sheet.
D) income statement,statement of retained earnings,balance sheet,statement of cash flows.

Correct Answer

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Enhancing qualitative characteristics of accounting information do NOT include:


A) comparability.
B) verifiability.
C) timeliness.
D) materiality.

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Which of the following entities pay federal income taxes?


A) limited liability partnership
B) general partnership
C) limited liability company
D) corporation

Correct Answer

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Which statement about the statement of cash flows is FALSE?


A) Operating activities should be the company's main source of cash.
B) Purchases and sales of long-term assets are financing cash flows.
C) The payment of a dividend is a financing cash flow.
D) The payment of a note payable is a financing activity.

Correct Answer

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Which statement below is FALSE?


A) Income taxes payable is an accrued liability.
B) Accrued liabilities can include liabilities for salaries.
C) Assets are divided into current and long-term categories.
D) Prepaid expenses include accrued interest payable.

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Showing 81 - 100 of 191

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