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ACC561 ACC 561 WEEK 1 QUIZ. The proprietorship form of business organization




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.


Paper#77488 | Written in 18-Jul-2015

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