ACCOUNTING QUESTIONS

ACCOUNTING QUESTIONS - 1. Who are the two primary groups of...

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1. Who are the two primary groups of financial resource providers for a corporation? a. Accountants and CPA’s b. Suppliers and vendors c. Investors and creditors d. Lenders and Suppliers 2. On which of the following financial statements would you expect to find financing, operating, and investing activities? a. Balance sheet b. Income statement c. Statement of cash flows d. Statement of changes in equity 3. Bulldog company purchased land for $50,000 cash. A financial statement impact of this transaction is a. assets decreased b. equity increased c. cash decreased d. liabilities increased 4. Which of the following statements is false: a. Land that increases in value is reported at its increased value on the balance sheet b. Information is reliable if it can be independently verified c. A reporting entity is a business or entity for which financial statements are prepared d. Financial accounting focuses on the needs of the external users. 5. Which of the following statements is false: a. The general ledger is a collection of a company’s financial accounts . b. The term articulation is used to describe the interrelationship among the various elements of the financial statements. c. All transactions that affect retained earnings also impact the income statement. d. The information in the ledger accounts is used to prepare the financial statements. 6. An advantage of the corporate form of business is that a. it has limited life. b. its owner’s personal resources are at stake. c. its ownership is easily transferable via the sale of shares of stock. d. it is simple to establish. . 7. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? a. Reduced legal liability for investors. b. Harder to transfer ownership. 1
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c. Lower taxes. d. Most common form of organization. 8. Which of the following groups uses accounting information to determine whether the company’s net income will result in a stock price increase? a. Investors in common stock b. Marketing managers c. Creditors d. Chief Financial Officer 9. Dividends paid a. increase assets. b. increase expenses. c. decrease revenues. d. decrease retained earnings . 10. In the annual report, where would a financial statement reader find out if the company’s financial statements give a fair depiction of its financial position and operating results? a. Notes to the financial statements b. Management discussion and analysis section c. Balance sheet d. Auditor’s report 11. In a classified balance sheet, assets are usually classified as: a. current assets; long-term assets; property, plant, and equipment; and intangible assets . b. current assets; long-term investments; property, plant, and equipment; and common stocks. c.
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ACCOUNTING QUESTIONS - 1. Who are the two primary groups of...

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