ACG2025 FSU PATERSON EXAM 1
CHAPTER 1 QUESTIONS & ANSWERS|
GRADE A| 100% CORRECT (VERIFIED
SOLUTIONS)
, In which of the following sequences are these three financial statements usually
prepared?
(i) Income statement, (ii) balance sheet, and (iii) retained earnings statement
(i) Balance sheet, (ii) income statement and (iii) retained earnings statement
(i) Income statement, (ii) retained earnings statement, and (iii) balance sheet
(i) Retained earnings statement, (ii) income statement, and (iii) balance sheet
(i) Balance sheet, (ii) retained earnings statement, and (iii) income statement -
ANSWER(i) Income statement, (ii) retained earnings statement, and (iii) balance sheet.
Which of the following is an example of a financing activity?
Buying a delivery truck in exchange for cash
Selling goods on account
Issuing additional shares of common stock in exchange for cash
All of these
Buying inventory on account - ANSWERIssuing additional shares of common stock in
exchange for cash
Which of the following is not one of the three primary business activities listed on the
statement of cash flows?
All of these are activities listed on the statement of cash flows
Investing activities
Financing activities
Merchandising activities
Operating activities - ANSWERMerchandising activities
Businesses have three primary activities, and they are listed in the statement of cash
flows. These include (i) operating activities, (2) investing activities, and (3) financing
activities. Merchandising suggests a company deals in merchandise (i.e., inventory),
and buying and selling merchandise is merely an example of an operating activity.
Other operating activity examples include collecting cash from customers, paying the
company's suppliers, employees, etc.
Net income will result during a time period when
CHAPTER 1 QUESTIONS & ANSWERS|
GRADE A| 100% CORRECT (VERIFIED
SOLUTIONS)
, In which of the following sequences are these three financial statements usually
prepared?
(i) Income statement, (ii) balance sheet, and (iii) retained earnings statement
(i) Balance sheet, (ii) income statement and (iii) retained earnings statement
(i) Income statement, (ii) retained earnings statement, and (iii) balance sheet
(i) Retained earnings statement, (ii) income statement, and (iii) balance sheet
(i) Balance sheet, (ii) retained earnings statement, and (iii) income statement -
ANSWER(i) Income statement, (ii) retained earnings statement, and (iii) balance sheet.
Which of the following is an example of a financing activity?
Buying a delivery truck in exchange for cash
Selling goods on account
Issuing additional shares of common stock in exchange for cash
All of these
Buying inventory on account - ANSWERIssuing additional shares of common stock in
exchange for cash
Which of the following is not one of the three primary business activities listed on the
statement of cash flows?
All of these are activities listed on the statement of cash flows
Investing activities
Financing activities
Merchandising activities
Operating activities - ANSWERMerchandising activities
Businesses have three primary activities, and they are listed in the statement of cash
flows. These include (i) operating activities, (2) investing activities, and (3) financing
activities. Merchandising suggests a company deals in merchandise (i.e., inventory),
and buying and selling merchandise is merely an example of an operating activity.
Other operating activity examples include collecting cash from customers, paying the
company's suppliers, employees, etc.
Net income will result during a time period when
