ACCT 201 Ch 1 Exam Questions and Correct
Answers
Recognizing cash expenses will cause the amount of cash ______.
and the amount of retained earnings to decrease
Which items are presented on the statement of changes in stockholders' equity?
Dividends,
Net income,
Beginning common stock,
Total stockholders' equity,
Ending retained earnings
Users of accounting information are commonly called
stakeholder
Monster Media's (MM) accounting records indicate that the company has $500 of cash;
$2,500 of land; $1,600 of common stock; and $1,400 of retained earnings. Based on this
information, the maximum cash dividend the company can pay is ______.
$500
Asset source transactions include ______.
earning through profitable operations,
borrowing money,
issuing common stock for cash
,earning through profitable operations
borrowing money
issuing common stock for cash
Decreases retained earnings,
Decreases stockholder's equity
The relationship between a business's assets and the claims on its assets is frequently
expressed in an equality called the _____ equation.
accounting
Which of the following dates are correct for the Statement of Changes in Stockholders'
Equity?
For the month ended April 30, Year 1,
For the year ended December 31, Year 3,
For the quarter ended June 30, Year 2
Which of the following lists contain items that are presented on the statement of changes
in stockholders' equity?
Dividends and net income
True or false: Only investors and creditors rely heavily on accounting information to
evaluate which businesses are worthy of receiving resources.
False: Workers also rely on this information.
The 10k report is normally ______ comprehensive with respect to content when
compared to a standard annual report.
more
, The privately funded organization with the primary authority for establishing
accounting standards in the United States is the
Financial Accounting Standards Board
An event that increases total assets and total claims is an asset _____ transaction.
source
"For the period ended" refers to ______.
a span of time
What is an example of a financing activity?
Paying a dividend to stockholders
Paying cash dividends will cause the ______.
left side of the accounting equation to decrease,
right side of the accounting equation to decrease
The date that appears on a Statement of Changes in Stockholders' Equity matches the
date found on the ______.
balance sheet
The organization with primary authority for establishing accounting standards in the
United States is the ______.
FASB
The people or businesses accountants provide information on are called _____ entities.
reporting
Financing activities include ______.
Answers
Recognizing cash expenses will cause the amount of cash ______.
and the amount of retained earnings to decrease
Which items are presented on the statement of changes in stockholders' equity?
Dividends,
Net income,
Beginning common stock,
Total stockholders' equity,
Ending retained earnings
Users of accounting information are commonly called
stakeholder
Monster Media's (MM) accounting records indicate that the company has $500 of cash;
$2,500 of land; $1,600 of common stock; and $1,400 of retained earnings. Based on this
information, the maximum cash dividend the company can pay is ______.
$500
Asset source transactions include ______.
earning through profitable operations,
borrowing money,
issuing common stock for cash
,earning through profitable operations
borrowing money
issuing common stock for cash
Decreases retained earnings,
Decreases stockholder's equity
The relationship between a business's assets and the claims on its assets is frequently
expressed in an equality called the _____ equation.
accounting
Which of the following dates are correct for the Statement of Changes in Stockholders'
Equity?
For the month ended April 30, Year 1,
For the year ended December 31, Year 3,
For the quarter ended June 30, Year 2
Which of the following lists contain items that are presented on the statement of changes
in stockholders' equity?
Dividends and net income
True or false: Only investors and creditors rely heavily on accounting information to
evaluate which businesses are worthy of receiving resources.
False: Workers also rely on this information.
The 10k report is normally ______ comprehensive with respect to content when
compared to a standard annual report.
more
, The privately funded organization with the primary authority for establishing
accounting standards in the United States is the
Financial Accounting Standards Board
An event that increases total assets and total claims is an asset _____ transaction.
source
"For the period ended" refers to ______.
a span of time
What is an example of a financing activity?
Paying a dividend to stockholders
Paying cash dividends will cause the ______.
left side of the accounting equation to decrease,
right side of the accounting equation to decrease
The date that appears on a Statement of Changes in Stockholders' Equity matches the
date found on the ______.
balance sheet
The organization with primary authority for establishing accounting standards in the
United States is the ______.
FASB
The people or businesses accountants provide information on are called _____ entities.
reporting
Financing activities include ______.
