Questions:
Books Static
1) The primary objective of financial reporting is to provide information
A. on the cash flows of the company.
B. to the federal government.
C. useful for making investment and credit decisions.
D. about the profitability of the enterprise.
2) Assets are usually reported at their
A. appraised value.
B. historical cost.
C. current market value.
D. none of the above.
3) During February, assets increased by $ 88 comma 000 and liabilities increased by $ 29 comma 000Stockholders' equity must have
A. increased by 59 comma 000
B. decreased by $ 59 comma 000
C. decreased by $ 117 comma 000
D. increased by $ 117 comma 000
4) All of the following are current assets except
A. accounts receivable.
B. prepaid expenses.
C. accounts payable.
D. inventory.
5) Revenues are
A. increases in paid-in capital resulting from the owners investing in the business.
B. decreases in liabilities resulting from paying off loans.
C. increases in retained earnings resulting from selling products or performing services.
D. all of the above.
6) The financial statement that reports revenues and expenses is called the
A. statement of cash flows.
B. income statement.
C. balance sheet.
D. statement of retained earnings.
7) Net income appears on which financial statement(s)?
A. Balance sheet
B.Income statement
C.Statement of retained earnings
D.Both b and c
8) Cash paid to purchase a building appears on the statement of cash flows among the
A.operating activities.
B.stockholders' equity.
C.financing activities.
D.investing activities.
9) The accounting equation can be expressed as
A.Assets + Liabilities = Owners' equity.
B.Owners'equityminusAssets = Liabilities.
C.AssetsminusLiabilities = Owners' equity.
D.Assets = LiabilitiesminusOwners' equity.
10) The nature of an asset is best described as
A.an economic resource that's expected to benefit future operations.
B.something with physical form that's valued at cost in the accounting records.
C.an economic resource representing cash or the right to receive cash in the future.
D.something owned by a business that has a ready market value.