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A business organized as a separate legal entity owned by stockholders is a partnership.

  • ACC 556 Financial Accounting for Managers Chapter 1 Quiz Answers

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  1. A business organized as a separate legal entity owned by stockholders is a partnership.
  2. Accounting communicates financial information about a business to both internal and external users.
  3. The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.
  4. One way of stating the accounting equation is: Assets + Liabilities = Stockholders’ Equity.
  5. Claims of creditors and owners on the assets of a business are called liabilities.
  6. A business organized as a corporation
  7. The accounting equation may be expressed as
  8. Which of the following activities involves collecting the necessary funds to support the business?
  9. Which of the following is an asset?
  10. Which of the following would not be considered an external user of accounting data for the Julian Company?
  11. Ashley’s Accessory Shop started the year with total assets of $140,000 and total liabilities of $80,000. During the year the business recorded $220,000 in revenues, $110,000 in expenses, and dividends of $40,000. The net income reported by Ashley’s Accessory Shop for the year was
  12. Stockholders’ equity is comprised of 
  13. Marvin Services Corporation had the following accounts and balances: 
  14. All of the following are interrelationships that are important to understand when preparing financial statements except 
  15. External users want answers to all of the following questions except 
  16. Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)? 
  17. When expenses exceed revenues, which of the following is true? 
  18. The financial statement that summarizes the changes in retained earnings for a specific period of time is the 
  19. Which of the following is not a common way that managers use the balance sheet? 
  20. Match the items below by entering the appropriate code letter in the space provided. 

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