Chapter 1 Quiz\t\t\t\t\t\t\t\t\tQuestion 1 \t\t\t\t\t\t\t\t\tA business organized as a separate legal entity owned by stockholders is a partnership.\t\t\t\t\t\t\t\t\tQuestion 2\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAccounting communicates financial information about a business to both internal and external users.\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.\t\t\t\t\t\t\t\t\tQuestion 4\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOne way of stating the accounting equation is: Assets + Liabilities = Stockholders’ Equity.\t\t\t\t\t\t\t\t\tQuestion 5 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tClaims of creditors and owners on the assets of a business are called liabilities.\t\t\t\t\t\t\t\t\tQuestion 6\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA business organized as a corporation\t\t\t\t\t\t\t\t\tQuestion 7 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe accounting equation may be expressed as\t\t\t\t\t\t\t\t\tQuestion 8\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following activities involves collecting the necessary funds to support the business?\t\t\t\t\t\t\t\t\tQuestion 9\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is an asset?\t\t\t\t\t\t\t\t\tQuestion 10 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following would not be considered an external user of accounting data for the Julian Company?\t\t\t\t\t\t\t\t\tQuestion 11\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAshley’s Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. The net income reported by Ashley’s Accessory Shop for the year was\t\t\t\t\t\t\t\t\tQuestion 12\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tStockholders’ equity is comprised of\t\t\t\t\t\t\t\t\tQuestion 13 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMarvin Services Corporation had the following accounts and balances:\t\t\t\t\t\t\t\t\tIf the balance of the Buildings account was $42,000 and $3,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders’ equity?\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tQuestion 14\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAll of the following are interrelationships that are important to understand when preparing financial statements except\t\t\t\t\t\t\t\t\tQuestion 15 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tExternal users want answers to all of the following questions except\t\t\t\t\t\t\t\t\tQuestion 16 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)?\t\t\t\t\t\t\t\t\tQuestion 17 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhen expenses exceed revenues, which of the following is true?\t\t\t\t\t\t\t\t\tQuestion 18 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe financial statement that summarizes the changes in retained earnings for a specific period of time is the\t\t\t\t\t\t\t\t\tQuestion 19 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is not a common way that managers use the balance sheet?\t\t\t\t\t\t\t\t\tQuestion 20 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 1 Quiz Question 1 A business organized as a separate legal entity owned by stockholders is a partnership. Question 2 \u00a0 Accounting communicates financial information about a business to both internal and external users. Question 3 \u00a0 The primary Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200172","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200172"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200172\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}