Accounting for Managers-Test 1

Accounting for Managers-Test 1 - 1. The heading for the...

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1. The heading for the income statement might include the line “As of December 31, 20xx. ” True False Score: 0 of 1 2. Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics. True False Score: 1 of 1 3. Which of the following is not one of the three forms of business organization? corporations. partnerships. proprietorships. investors. Score: 1 of 1 4. All of the following are advantages for choosing a proprietorship for a business except: A proprietorship is a simple form of business to set up. A proprietorship gives the owner control of the business. Proprietorship receive more favorable tax treatment. Transfer of ownership is easily achieved through stock sales. Score: 1 of 1 5. Which of the following are internal reports that accounting provides to internal users? Forecasts of cash needs for next year. Financial comparisons of operating activity alternative. Both a and b are internal reports. Neither a or b is an internal report. Score: 1 of 1 6. Which type of corporate information is not available to investors? dividend history
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cash provided by investing activities beginning cash balance Score: 0 of 1 7. Which of the following financial statements is divided into major categories of operating, investing, and financing activities? The income statement. The balance sheet. The retained earnings statement. The statement of cash flows. Score: 1 of 1 8. In a study session, a classmate makes this statement “Dividends are listed as expenses on the income statement. ” What is your best response to this statement? I’ve been struggling with that concept, and I feel that dividends should be shown on the balance sheet as assets. You are right. Revenues and expenses are shown on the income statement. Dividends are a cost of generating revenues and that makes them an expense. Why else would a corporation pay dividends? Dividends represent a portion of corporate profits that are paid to the shareholders. They belong on the retained earnings statement. Dividends are deducted from retained earnings on the balance sheet. Score: 1 of 1 9. Which of the following is not a common way that managers use the balance sheet? To analyze the balances of assets, liabilities, and stockholders’ equity throughout the accounting period To determine if the cash balance is sufficient for future needs To analyze the balance between debt and common stock financing To analyze the balance of accounts receivable on the last day of the accounting period Score: 0 of 1 10. An annual report includes all of the following except management discussion and analysis section. notes to the financial statements.
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This note was uploaded on 11/06/2011 for the course ACCT 6426 taught by Professor Idontknow during the Fall '11 term at FIU.

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Accounting for Managers-Test 1 - 1. The heading for the...

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