A-100 FINAL EXAM SG SEITZ IU
(PRACTICE PROBLEMS)
Whichdoofdothedofollowingdoisdonotdoandoexternaldousersdoofdofinancialdoaccountingdoinfor
mation?
a)doGeneraldopublic.
b)doFactorydolinedomanager.
c)doInvestors.
d)doBanks.do-doanswer--B
Whichdoofdothedofollowingdostatementsdoaccuratelydodescribesdoequitydoinvestorsdoanddod
ebtdoinvestorsdoindoadobusiness?
a)doEquitydoinvestorsdoanddodebtdoinvestorsdobothdocontributedotodothedobusinessdoasdoo
wnersdoanddobenefitdofromdoretaineddoearnings.
B)doEquitydoinvestorsdocontributedotodothedobusinessdoasdoownersdoanddobenefitdofromdor
etaineddoearnings,dowhiledodebtdoinvestorsdoaredocreditorsdowhodoexpectdobothdoprincipal
doanddointerestdopayments.
c)doEquitydoinvestorsdoaredocreditorsdowhodoprovidedoloansdotodothedobusinessdoanddoexp
ectdobothdoprincipaldoanddointerestdopayments,dowhiledodebtdoinvestorsdocontributedotodot
hedobusinessdoasdoownersdoanddobenefitdofromdoretaineddoearnings.
d)doEquitydoinvestorsdoanddodebtdoinvestorsdoaredoonlydoconcerneddowithdothedobusiness'
sdoprofitabilitydoanddododonotdohavedoanydodirectdofinancialdointerestdoindothedocompany'sd
ooperations.do-doanswer--B
Whichdoofdothedofollowingdostatementsdoaccuratelydorepresentsdoadokeydolegaldorightdoofdo
debtdoinvestors?
A)doDebtdoinvestorsdohavedonodolegaldorecoursedotodo"call"dothedoloandoanddodemanddopa
ymentdoindocasedoofdomisseddopayments.
B)doDebtdoinvestorsdocandoonlydodemanddopaymentdoofdoprincipal,donotdointerest,doifdothed
ocompanydofailsdotodomakedotimelydopayments.
C)doDebtdoinvestorsdohavedothedolegaldorightdotododemanddobothdointerestdoanddoprincipal
dopayments,doanddotheydocando"call"dothedoloandoifdothedocompanydofailsdotodomakedopay
mentsdoondotime.
D)doDebtdoinvestorsdocandoonlydorecoverdotheirdofundsdobydoliquidatingdoassetsdoifdothedoc
ompanydofilesdofordobankruptcy.do-doanswer--C
WhatdoisdothedoprimarydoscopedoofdothedoSecuritiesdoanddoExchangedoCommissiondo(SE
C)doindothedoUniteddoStates?
A)doOverseeingdothedofinancialdoreportingdoofdoalldobusinesses,doregardlessdoofdotheirdopu
blicdoordoprivatedostatus.
, B)doApplyingdostrictdoregulationsdotodoensuredoprivatedocompanies'docompliancedowithdofi
nancialdoreportingdorequirements.
C)doRegulatingdobothdopublicdoanddoprivatedocompanies'dofinancialdoreporting.
D)doRegulatingdoanddorequiringdofinancialdoreportingdofromdopublicdocompaniesdowhiledoe
xemptingdoprivatedocompaniesdofromdosuchdoregulations.do-doanswer--D
WhichdoorganizationdoisdoresponsibledofordoestablishingdoanddomaintainingdothedoGeneral
lydoAccepteddoAccountingdoPrinciplesdo(GAAP)dofordocompaniesdoindothedoUniteddoStates
?
A)doThedoSecuritiesdoanddoExchangedoCommissiondo(SEC).
B)doThedoFinancialdoAccountingdoStandardsdoBoarddo(FASB).
C)doThedoInternationaldoFinancialdoReportingdoStandardsdo(IFRS).
D)doThedoInternaldoRevenuedoServicedo(IRS)do-doanswer--B
Whichdofinancialdostatementdowoulddoyoudoutilizedotododeterminedowhetherdoadocompanyd
owilldobedoabledotodopaydoliabilitiesdowhichdoaredoduedoindo30dodays?
A)doStatementdoofdostockholders'doequity.
B)doIncomedostatement.
C)doBalancedosheet.
D)doStatementdoofdocashdoflows.do-doanswer--C
AtlanticdoCorporationdoreporteddothedofollowingdoamountsdoatdothedoenddoofdothedofirstdoy
eardoofdooperations
Commondostock
$200,000
Salesdorevenue
$800,000
Totaldoassets
$600,000
Dividendsdodeclared
$40,000
Totaldoliabilities
$320,000
WhatdoaredothedoretaineddoearningsdoofdoAtlanticdoatdothedoenddoofdothedoyear,doanddowha
tdoamountdoofdoexpensesdoweredoincurreddoduringdothedoyear?
A)doRetaineddoearningsdoaredo$80,000doanddoexpensesdoincurreddototaleddo$720,000.
B)doRetaineddoearningsdoaredo$280,000doanddoexpensesdoincurreddototaleddo$520,000.
C)doRetaineddoearningsdoaredo$280,000doanddoexpensesdoincurreddototaleddo$480,000.
(PRACTICE PROBLEMS)
Whichdoofdothedofollowingdoisdonotdoandoexternaldousersdoofdofinancialdoaccountingdoinfor
mation?
a)doGeneraldopublic.
b)doFactorydolinedomanager.
c)doInvestors.
d)doBanks.do-doanswer--B
Whichdoofdothedofollowingdostatementsdoaccuratelydodescribesdoequitydoinvestorsdoanddod
ebtdoinvestorsdoindoadobusiness?
a)doEquitydoinvestorsdoanddodebtdoinvestorsdobothdocontributedotodothedobusinessdoasdoo
wnersdoanddobenefitdofromdoretaineddoearnings.
B)doEquitydoinvestorsdocontributedotodothedobusinessdoasdoownersdoanddobenefitdofromdor
etaineddoearnings,dowhiledodebtdoinvestorsdoaredocreditorsdowhodoexpectdobothdoprincipal
doanddointerestdopayments.
c)doEquitydoinvestorsdoaredocreditorsdowhodoprovidedoloansdotodothedobusinessdoanddoexp
ectdobothdoprincipaldoanddointerestdopayments,dowhiledodebtdoinvestorsdocontributedotodot
hedobusinessdoasdoownersdoanddobenefitdofromdoretaineddoearnings.
d)doEquitydoinvestorsdoanddodebtdoinvestorsdoaredoonlydoconcerneddowithdothedobusiness'
sdoprofitabilitydoanddododonotdohavedoanydodirectdofinancialdointerestdoindothedocompany'sd
ooperations.do-doanswer--B
Whichdoofdothedofollowingdostatementsdoaccuratelydorepresentsdoadokeydolegaldorightdoofdo
debtdoinvestors?
A)doDebtdoinvestorsdohavedonodolegaldorecoursedotodo"call"dothedoloandoanddodemanddopa
ymentdoindocasedoofdomisseddopayments.
B)doDebtdoinvestorsdocandoonlydodemanddopaymentdoofdoprincipal,donotdointerest,doifdothed
ocompanydofailsdotodomakedotimelydopayments.
C)doDebtdoinvestorsdohavedothedolegaldorightdotododemanddobothdointerestdoanddoprincipal
dopayments,doanddotheydocando"call"dothedoloandoifdothedocompanydofailsdotodomakedopay
mentsdoondotime.
D)doDebtdoinvestorsdocandoonlydorecoverdotheirdofundsdobydoliquidatingdoassetsdoifdothedoc
ompanydofilesdofordobankruptcy.do-doanswer--C
WhatdoisdothedoprimarydoscopedoofdothedoSecuritiesdoanddoExchangedoCommissiondo(SE
C)doindothedoUniteddoStates?
A)doOverseeingdothedofinancialdoreportingdoofdoalldobusinesses,doregardlessdoofdotheirdopu
blicdoordoprivatedostatus.
, B)doApplyingdostrictdoregulationsdotodoensuredoprivatedocompanies'docompliancedowithdofi
nancialdoreportingdorequirements.
C)doRegulatingdobothdopublicdoanddoprivatedocompanies'dofinancialdoreporting.
D)doRegulatingdoanddorequiringdofinancialdoreportingdofromdopublicdocompaniesdowhiledoe
xemptingdoprivatedocompaniesdofromdosuchdoregulations.do-doanswer--D
WhichdoorganizationdoisdoresponsibledofordoestablishingdoanddomaintainingdothedoGeneral
lydoAccepteddoAccountingdoPrinciplesdo(GAAP)dofordocompaniesdoindothedoUniteddoStates
?
A)doThedoSecuritiesdoanddoExchangedoCommissiondo(SEC).
B)doThedoFinancialdoAccountingdoStandardsdoBoarddo(FASB).
C)doThedoInternationaldoFinancialdoReportingdoStandardsdo(IFRS).
D)doThedoInternaldoRevenuedoServicedo(IRS)do-doanswer--B
Whichdofinancialdostatementdowoulddoyoudoutilizedotododeterminedowhetherdoadocompanyd
owilldobedoabledotodopaydoliabilitiesdowhichdoaredoduedoindo30dodays?
A)doStatementdoofdostockholders'doequity.
B)doIncomedostatement.
C)doBalancedosheet.
D)doStatementdoofdocashdoflows.do-doanswer--C
AtlanticdoCorporationdoreporteddothedofollowingdoamountsdoatdothedoenddoofdothedofirstdoy
eardoofdooperations
Commondostock
$200,000
Salesdorevenue
$800,000
Totaldoassets
$600,000
Dividendsdodeclared
$40,000
Totaldoliabilities
$320,000
WhatdoaredothedoretaineddoearningsdoofdoAtlanticdoatdothedoenddoofdothedoyear,doanddowha
tdoamountdoofdoexpensesdoweredoincurreddoduringdothedoyear?
A)doRetaineddoearningsdoaredo$80,000doanddoexpensesdoincurreddototaleddo$720,000.
B)doRetaineddoearningsdoaredo$280,000doanddoexpensesdoincurreddototaleddo$520,000.
C)doRetaineddoearningsdoaredo$280,000doanddoexpensesdoincurreddototaleddo$480,000.
