Filters
Question type
Study Flashcards

Which of the following is not an alternate title for the Statement of Income?


A) Income Statement.
B) Statement of Net Income.
C) Statement of Operations.
D) Statement of Income.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

Which of the following is not reported as a liability on a balance sheet?


A) Income taxes payable.
B) Common stock.
C) Accounts payable.
D) Dividends declareD.Common stock is a component of stockholders' equity on the balance sheet.

E) None of the above
F) All of the above

Correct Answer

verifed

verified

During 2014, Rock Company's cash balance increased from $79,000 to $91,300. Rock's net cash flow from operating activities was $37,300 and its net cash flow from financing activities was $11,100. How much was Rock's net cash flow from investing activities?


A) A net cash flow of $42,900.
B) A net cash flow of ($36,100) .
C) A net cash flow of $60,700.
D) A net cash flow of ($60,700) .

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

Which of the following statements is true?


A) The statement of stockholders' equity always reports the same amount of dividend payments, as does the statement of cash flows.
B) The statement of cash flows has a relationship with the balance sheet.
C) Dividends paid are reported on the statement of cash flows as an operating cash flow and on the income statement as a financing cash flow.
D) Net income is reported on the income statement but not on the statement of stockholders' equity.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Describe the role of a company's management and the external auditors in the accounting communication process.

Correct Answer

verifed

verified

Management is primarily responsible for ...

View Answer

A calendar year reporting company preparing its annual financial statements should use the phrase "As of December 31,2014" in the heading of which financial statements?


A) On all of the required financial statements.
B) On only the income statement.
C) On the income statement and balance sheet, but not the statement of cash flows.
D) On the balance sheet only.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

An audit is an examination of the financial statements provided by management to ensure that they represent what they claim and to make sure that they are in compliance with generally accepted accounting principles.

A) True
B) False

Correct Answer

verifed

verified

What are the categories of cash flows that appear on a statement of cash flows?


A) Cash flows from investing, financing, and service activities.
B) Cash flows from operating, production, and internal activities.
C) Cash flows from financing, production, and growth activities.
D) Cash flows from operating, investing, and financing activities.

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

Which of the following would not be reported in the operating activities section of a cash flow statement?


A) Cash paid for dividends to stockholders.
B) Cash paid for interest expense.
C) Cash paid for employee wages.
D) Cash received from customers.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

Which of the following statements describes the balance sheet?


A) It reports a company's revenues and expenses.
B) Assets are generally reported on the balance sheet at the cost incurred to acquire them.
C) Stockholders' equity includes only retained earnings.
D) It reports a company's cash flow from operations.

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

Which of the following would be reported in the investing activities section of a cash flow statement?


A) Cash received from customers.
B) Cash received from the issue of common stock.
C) Cash paid to repay a bank loan.
D) Cash paid to acquire common stock of another company.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

For a business organized as a general partnership, which statement is true?


A) The owners and the business are separate legal entities.
B) Each partner is potentially responsible for the debts of the business.
C) Formation of a partnership requires getting a charter from the state of incorporation.
D) A partnership is not considered to be a separate accounting entity.

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

Which of the following would not be found within the investing activities section of the statement of cash flows?


A) Cash paid to purchase a building for manufacturing facilities.
B) Cash received from the sale of common stock to stockholders.
C) Cash received from the sale of equipment used in manufacturing a product.
D) Cash paid to purchase lanD.Cash received from the sale of common stock is a financing activity. Investing activities involve the purchase of the company's productive assets.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

B

What is the objective of the cash flow statement? Describe the three cash flow classifications that are reported within the cash flow statement.

Correct Answer

verifed

verified

The objective of the cash flow statement...

View Answer

Which of the following transactions affects both the income statement and the statement of cash flows?


A) Selling stock in exchange for cash.
B) Declaring and paying a cash dividend.
C) Selling a product to a customer which creates an account receivable.
D) Paying employee wages as they are earneD.Paying an employee wages as they are earned results in an expense being recognized (income statement) and a cash outflow (statement of cash flows) .

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

D

Which of the following would be reported in the financing activities section of a cash flow statement?


A) Cash paid for dividends to stockholders.
B) Cash paid for interest expense.
C) Cash paid to acquire equipment.
D) Cash received from sale of investments.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Gail's Greenhouse, Inc., a small retail store that sells houseplants, started business on January 1, 2014. At the end of January 2014, the following information was available:  Sales of plants for cash $75,000 Sales of plants for credit (not yet collected) 15,000 Cost of plants which were sold and paid for during January 45,000 Expenses during January incurred, and paid for, during  January unless otherwise noted:  Salaries  Telephone $5,000 Office supplies (all used) 250 Electricity 150 Rent on the store for January, 2014 (will not be paid until 300 February, 2014) 1,000\begin{array} { | l | r | r | } \hline \text { Sales of plants for cash } & & \$ 75,000 \\\hline \text { Sales of plants for credit (not yet collected) } & & 15,000 \\\hline \text { Cost of plants which were sold and paid for during January } & & 45,000 \\\hline \begin{array} { l } \text { Expenses during January incurred, and paid for, during } \\\text { January unless otherwise noted: }\end{array} & & \\\hline \text { Salaries } & & \\\hline \text { Telephone } & \$ 5,000 & \\\hline \text { Office supplies (all used) } & 250 & \\\hline \text { Electricity } & 150 & \\\hline \text { Rent on the store for January, 2014 (will not be paid until } & 300 & \\\hline \text { February, 2014) } & 1,000 & \\\hline\end{array} Requirements: A. Using the above information, prepare the income statement for Gail's Greenhouse for the month ended January 31, 2014. B. What is the amount of cash flows provided by operating activities to be presented on the statement of cash flows?

Correct Answer

verifed

verified

A. blured image B. $38,300 - 15,...

View Answer

Which of the following is not a consequence to a company resulting from the issuance of their financial statements?


A) The effect on the selling price of their stock.
B) The providing of information to their competitors.
C) The effect on bonus payments to its employees.
D) The providing of information to their auditors.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Which of the following items is reported as an expense on the income statement?


A) Dividends declared.
B) Cost of goods sold.
C) Dividends paid.
D) Accounts payable.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Willie Company's retained earnings increased $20,000 during 2014. What was Willie's 2014 net income or loss given that Willie declared $25,000 of dividends during 2014?


A) Net income was $5,000.
B) Net income was $45,000.
C) Net loss was $45,000.
D) Net loss was $5,000.

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

B

Showing 1 - 20 of 122

Related Exams

Exam 2

Investing and Financing Decisions and the Accounting System

132 Questions

Exam 3

Operating Decisions and the Accounting System

114 Questions

Exam 4

Adjustments, Financial Statements, and the Quality of Earnings

136 Questions

Exam 5

Communicating and Interpreting Accounting Information

111 Questions

Exam 6

Reporting and Interpreting Sales Revenue, Receivables, and Cash

128 Questions

Exam 7

Reporting and Interpreting Cost of Goods Sold and Inventory

124 Questions

Exam 8

Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources

126 Questions

Exam 9

Reporting and Interpreting Liabilities

113 Questions

Exam 10

Reporting and Interpreting Bonds

120 Questions

Exam 11

Reporting and Interpreting Owners Equity

118 Questions

Exam 12

Statement of Cash Flows

116 Questions

Exam 13

Analyzing Financial Statements

110 Questions

Exam 14

Reporting and Interpreting Investments in Other Corporations

112 Questions

Show Answer