Question 1

Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Accepted Answer

A)   dividends.
B)   equities.
C)   revenues.
D)   Retained Earnings.E) B) and D)
F) A) and B)

Question 2

A company's balance sheet contained the following information:

Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

Accepted Answer

A)   $200,000.
B)   $8,000.
C)   $72,000.
D)   $344,000.E) B) and D)
F) B) and C)

Question 3

The primary goal of most companies is to:

Accepted Answer

A)   raise capital.
B)   make a profit.
C)   reduce liabilities.
D)   pay taxes.E) C) and D)
F) A) and B)

Question 4

-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Accepted Answer

A)   Retained Earnings is misclassified; it should be reported in the Assets section of the balance sheet.
B)   The $207,100 shown as Retained Earnings on the balance sheet represents the cumulative amount of dividends distributed.
C)   Anonymous, Inc. is owed $310,500 from customers who have purchased goods or services from the company, but have not yet paid for them.
D)   The amount of retained earnings reported on this balance sheet represents the retained earnings at the beginning of the year.E) A) and C)
F) A) and B)

Question 5

Amounts reported on financial statements are sometimes rounded to the nearest million.

Accepted Answer

A) True 
 B)False

Question 6

The owner(s) of a business are taxed on the profits of the business if the business is a:

Accepted Answer

A)   sole proprietorship.
B)   partnership.
C)   corporation.
D)   public partnership.E) C) and D)
F) A) and C)

Question 7

Revenue is reported on the income statement only if cash was received at the point of sale.

Accepted Answer

A) True 
 B)False

Question 8

The Don't Bite Me Pest Control Company has 10,000 gallons of insecticide supplies on hand that cost $300,000; a bill from the vendor for $100,000 of these supplies has not yet been paid.The company expects to earn $800,000 for its services when it uses the insecticide supplies.The company's balance sheet would include an asset,Supplies,in the amount of:

Accepted Answer

A)   $10,000.
B)   $200,000.
C)   $300,000.
D)   $800,000.E) C) and D)
F) A) and B)

Question 9

Which of the following actions would be considered unethical?

Accepted Answer

A)   A company does not distribute any of its profits to stockholders.
B)   A company rounds the revenues and expenses that it reports on the income statement.
C)   An unintentional mistake made by a new accountant.
D)   Receiving a paycheck for double the amount due to you and not reporting it to your employer.E) A) and B)
F) All of the above

Question 10

Financing that individuals or institutions have provided to a corporation is:

Accepted Answer

A)   always classified as a liability.
B)   classified as a liability when provided by creditors and as stockholders' equity when provided by owners.
C)   always classified as equity.
D)   classified as a stockholders' equity when provided by creditors and a liability when provided by owners.E) None of the above
F) A) and D)

Question 11

Operating activities include:

Accepted Answer

A)   interest paid on a bank loan
B)   the buying or selling of land, buildings, equipment, and other long-term investments.
C)   the repayment of loan proceeds to the bank.
D)   obtaining a bank loan to cover the payment of wages, rent and other operating costs.E) C) and D)
F) None of the above

Exam 1: Business Decisions and Financial Accounting

Which of the following actions would be considered unethical?

Correct Answer
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Correct Answer
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Financing that individuals or institutions have provided to a corporation is:

Correct Answer
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Operating activities include:

Correct Answer
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Amounts reported on financial statements are sometimes rounded to the nearest million.

Correct Answer
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Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Correct Answer
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The owner(s) of a business are taxed on the profits of the business if the business is a:

Correct Answer
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-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Correct Answer
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The primary goal of most companies is to:

Correct Answer
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A company's balance sheet contained the following information: Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

Correct Answer
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Revenue is reported on the income statement only if cash was received at the point of sale.

Correct Answer
verified

Exam 1: Business Decisions and Financial Accounting

Which of the following actions would be considered unethical?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Financing that individuals or institutions have provided to a corporation is:

Correct AnswerverifiedShow Answer

Operating activities include:

Correct AnswerverifiedShow Answer

Amounts reported on financial statements are sometimes rounded to the nearest million.

Correct AnswerverifiedShow Answer

Net income that has been paid out to the company's stockholders for their own personal use is referred to as:

Correct AnswerverifiedShow Answer

The owner(s) of a business are taxed on the profits of the business if the business is a:

Correct AnswerverifiedShow Answer

-Use the information above to answer the following question.Which one of the following statements regarding the balance sheet for Anonymous Inc.is correct?

Correct AnswerverifiedShow Answer

The primary goal of most companies is to:

Correct AnswerverifiedShow Answer

A company's balance sheet contained the following information: Notes Payable is the only other item on the balance sheet.Notes Payable must equal:

Correct AnswerverifiedShow Answer

Revenue is reported on the income statement only if cash was received at the point of sale.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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