FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Financial Statements and Business Decisions

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Which financial statement would you use to determine a company's earnings performance during an accounting period?

A) Balance sheet.
B) Statement of stockholders' equity.
C) Income statement.
D) Statement of cash flows.

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

The International Accounting Standards Board has worked to develop global accounting standards known as

A) Generally accepted accounting principles.
B) Globally accepted financial standards.
C) International financial reporting standards.
D) Generally accepted international financial standards.

E) C) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 53

Essay

Review LaterAdd Note

During 2016, Winterset Company performed services for which customers paid or promised to pay a total of $587,000. Of this amount, $552,000 had been collected by year-end. Winterset paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for. Winterset paid interest expense of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Winterset declared and paid dividends of $20,000. There were no other transactions that affected cash. Required: 1. What was the amount of the increase or decrease in cash during the year? 2. Prepare an income statement for Winterset for the year 2016. 3. At the beginning of 2016, Winterset's retained earnings were $90,000. Prepare a statement of stockholders' equity with only a column for retained earnings.

Since 2002, there has been substantial movement toward the adoption of International Financial Reporting Standards (IFRS) issued by the

Which of the following is not one of the three steps taken by a corporation to assure the accuracy of its records?

The statement of stockholders' equity explains the change in the retained earnings balance caused by stockholder investments and dividend declarations.

Stockholders' equity on the balance sheet includes common stock and retained earnings.

Gail's Greenhouse, Inc., a small retail store that sells houseplants, started business on January 1, 2016. At the end of January 2016, the following information was available: Expenses during January incurred, and paid for, during January unless otherwise noted: Required: A.Using the above information, prepare the income statement for Gail's Greenhouse for the month ended January 31, 2016. B.What is the amount of cash flows provided by operating activities to be presented on the statement of cash flows?

During 2016, Rock Company's cash balance increased from $79,000 to $91,300. Rock's net cash flow from operating activities was $37,300 and its net cash flow from financing activities was $11,100. How much was Rock's net cash flow from investing activities?

Which of the following would most likely increase retained earnings?

The primary responsibility for the content of the financial statements lies with the external auditor.

What are the categories of cash flows that appear on a statement of cash flows?

Which of the following transactions affects both the income statement and the statement of cash flows?

Which of the following best describes the balance sheet?

Which of the following is not a formal requirement to become a licensed certified public accountant (CPA) ?

Which of the following is primarily responsible for the information provided in the financial statements?

As of January 1, 2016, a corporation had assets of $340,000 and liabilities of $120,000. During 2016, assets increased $45,000 and liabilities increased $15,000. Required: Calculate stockholders' equity at December 31, 2016.

At the beginning of 2016, a corporation had assets of $270,000 and liabilities of $160,000. During 2016, assets increased $25,000 and liabilities increased $5,000. What was stockholders' equity at December 31, 2016?

Which of the following describes the operating activities section of a cash flow statement?

What financial statement would you look at to determine the dividends declared by a business?