ACC561 ACC 561 WEEK 1 QUIZ (SCORE 100%) GUARANTEE - 75778

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Question. 1. The proprietorship form of business organization combines the records of the business with the personal records of the owner generally receives favorable tax treatment relative to a corporation is classified as a separate legal entity must have at least two owners in most states Question 2. Most business enterprises in the United States are government units proprietorships and partnerships partnerships corporations Question 3. A business organized as a separate legal entity is a corporation. proprietor. partnership. government unit. Question 4. Which of the following is the best definition of an internal user of accounting information? Creditors like banks that use accounting information to evaluate the risk of lending money Investors who use accounting information to decide whether to buy or sell stock Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. Managers who use accounting information to plan, organize, and run a business. Question 5. Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? Taxing authorities Regulatory agencies Labor Unions Management Question 6. Which of the following groups uses accounting information to determine whether the company can pay its obligations? Chief Financial Officer Investors in common stock Creditors Marketing managers Question 7. Which of the following financial statements is divided into major categories of operating, investing, and financing activities? The balance sheet. The income statement. The retained earnings statement. The statement of cash flows. Question 8. Ending retained earnings for a period is equal to: Beginning retained earnings + Net income – Dividends Beginning retained earnings – Net income – Dividends Beginning retained earnings – Net income + Dividends Beginning retained earnings + Net income + Dividends Question 9. The financial statement that summarizes the changes in retained earnings for a specific period of time is the income statement. balance sheet. statement of cash flows. retained earnings statement. Question 10. To show how successfully your business performed during a period of time, you would report its revenues and expense in the balance sheet. retained earnings statement. income statement. retained earnings statement. statement of cash flows. Question 11. Which financial statement is prepared first? Balance sheet statement of cash flows. income statement. Question 12. An income statement shows assets, liabilities, and stockholders’ equity. revenues, liabilities, and stockholders’ equity. expenses, dividends, and stockholders’ equity. revenues, expenses, and net income. Question 13. Dawson Corporation has the following information available for 2011: (in millions) Issued common stock $45 Retired common stock $65 Paid dividends $75 Net income $130 Beginning common stock balance $575 Beginning retained earnings balance $425 Based in this information, what is Dawson's Common Stock balance at the end of the year? $555 $630 $685 $195 Question 14. Declaring a cash dividend will increase retained earnings. decrease retained earnings. increase common stock. decrease common stock. Question 15. At December 31, 2012 Lowery Company had retained earnings of $2,184,000. During 2012 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2012 was $402,000. The retained earnings balance at the beginning of 2012 was: $2,454,000 $1,914,000 $2,552,000 $1,816,000 Question 16. Which of the following organizations issues accounting standards for countries outside the United States? IASB GAAP FASB SEC Question 17. Generally accepted accounting principles are accounting rules that are recognized as a general guide for financial reporting. have eliminated all errors in accounting.. are sound in theory but rarely used in real life. are accounting rules formulated by the Internal Revenue Service. Question 18. The agency of the United States Government that oversees the U.S. financial markets is the Security Exchange Commission Internal Revenue Service Financial Accounting Standards Board. International Auditing Standards Committee. Question 19. What organization issues U.S. accounting standards? International Auditing Standards Committee. Financial Accounting Standards Board. Security Exchange Commission. International Accounting Standards Committee. Question 20. Two of the major characteristics that make accounting information useful are Comparability and flexibility. Relevance and Faithful representation. Understandability and consistency. Verifiability and timeliness. Question 21. If accounting information has relevance, it is useful in making predictions about the future events of a company. new accounting principles. future IRS audits. foreign currency exchange rates.
Solution Description

Question. 1. The proprietorship form of business organization

combines the records of the business with the personal records of the owner

generally receives favorable tax treatment relative to a corporation

is classified as a separate legal entity

must have at least two owners in most states

Question 2.      Most business enterprises in the United States are

government units

proprietorships and partnerships

partnerships

corporations

Question 3. A business organized as a separate legal entity is a

corporation.

proprietor.

partnership.

government unit.

Question 4. Which of the following is the best definition of an internal user of accounting information?

Creditors like banks that use accounting information to evaluate the risk of lending money

Investors who use accounting information to decide whether to buy or sell stock

Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits.

Managers who use accounting information to plan, organize, and ru

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