test1 w-answers - 1 The majority of U S business is...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1. The majority of U. S. business is transacted by proprietorships. True Fals e Score: 1 of 1 2. Operating activities involve putting the resources of the business into action to generate a profit. True Fals e Score: 1 of 1 3. Creditors’ rights to assets supersede owners’ rights to the assets. True Fals e Score: 1 of 1 4. Buying assets needed to operate a business is an example of a(n) delivering activity. financing activity. investing activity. operating
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
activity. Score: 1 of 1 5. Which of the following statements is true? Amounts received from issuing stock are revenues. Amounts paid out as dividends are not expenses. Amounts paid out as dividends are reported on the income statement. Amounts received from issued stock are reported on the income statement. Score: 0 of 1 6. Retained earnings at the end of the period is equal to retained earnings at the beginning of the period plus net income minus liabilities. retained earnings at the beginning of the period plus net income minus dividends. net income. assets plus liabilities. Score: 1 of 1 7. Kilmer Corporation began the year with retained earnings of $217,000. During the year, the company issued $294,000 of common stock, recorded expenses of $840,000, and paid dividends of $56,000. If Kilmer’s ending retained earnings was $231,000, what was the company’s revenue for the year? $854,000 $910,000 $1,148,00
Background image of page 2
0 $1,204,00 0 Score: 1 of 1 8. A balance sheet shows revenues, liabilities, and stockholders’ equity. expenses, dividends, and stockholders’ equity. revenues, expenses, and dividends. assets, liabilities, and stockholders’ equity. Score: 1 of 1 9. Common stock is reported on the statement of cash flows. retained earnings statement. income statement. balance sheet. Score: 1 of 1 10. Which of the following statements is true? Publicly traded U. S. companies must provide an annual report to their shareholders when operating conditions change significantly. An unqualified independent auditor’s report must be included in the annual report.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Notes to the financial statements do not need to be included in the annual report because that information is only for internal users. All of the statements are false. Score: 0 of 1 11. Cash and supplies are both classified as current assets. True Fals e Score: 1 of 1 12. The main difference between intangible assets and property, plant and equipment is the length of the asset’s life. True Fals e Score: 1 of 1 13. The statement of cash flows discloses significant events related to the operating, investing, and financing activities of a business. True Fals e Score: 1 of 1 14. Generally accepted accounting principles are rules and practices that are recognized as a general guide for financial reporting purposes.
Background image of page 4
True Fals e Score: 1 of 1 15. The convention of consistency pertains to the use of the same accounting principles by
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/19/2011 for the course ACCOUNTING 102 taught by Professor Singh during the Spring '11 term at Wayne State University.

Page1 / 19

test1 w-answers - 1 The majority of U S business is...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online