TESTg BANKg FOR
FundamentalsgofgFinancialgAccounting,g8thgEditiongbygFredgPhillips
✅
Chapterg01g8egPhillips AnswersgIncluded
1) Creditorsgaregownersgofgagcorporation.
⊚g true
⊚g false
2) Allgcorporationsgacquiregfinancinggbygissuinggstockgongpublicgstockgexchanges.
⊚g true
⊚g false
3) Yougpaidg$10,000gtogbuyg1%gofgthegstockgingagcorporationgthatgisgnowgbankrupt.gThegcompa
nygowesg$10gmilliongdollarsgtogitsgcreditors.gAsgagresultgofgthegbankruptcy,gyougaregresponsib
legforgpayingg$100,000g(org$10gmilliong×g1%)gofgthegamountgowedgtogthegcreditors.
⊚g true
⊚g false
4) Cashgpaidgforgwagesgisgangexamplegofgangoperatinggactivitygongthegstatementgofgcashgflows.
⊚g true
⊚g false
5) Borrowinggmoneygfromgagbankgisgagfinancinggactivitygongthegstatementgofgcashgflows.
⊚g true
⊚g false
6) Thegdailygbusinessgactivitiesginvolvedgingrunninggagbusiness,gsuchgasgbuyinggsuppliesgan
dgpayinggsalariesgandgwages,garegclassifiedgasgoperatinggactivitiesgongthegstatementgofgc
ashgflows.
⊚g true
⊚g false
7) Stockholders'gequitygisgthegdifferencegbetweengagcompany'sgassetsgandgitsgliabilities.
⊚g true
⊚g false
,8) Agcompanygowesg$200,000gongagbankgloan.gItgwillgbegreportedgbygthegcompanygasgAccoun
tsgPayable.
⊚g true
⊚g false
9) Thegamountsgreportedgongfinancialgstatementsgaregsometimesgroundedgtogthegnearestgthousan
dgorgmillion.
⊚g true
⊚g false
10) AccountsgPayable,gNotesgPayable,gandgSalariesgandgWagesgPayablegaregexamplesgo
fgliabilities.
⊚g true
⊚g false
11) Dividendsgaregsubtractedgfromgrevenuesgongthegincomegstatement.
⊚g true
⊚g false
12) Ifgagcompanygreportsgnetgincomegongthegincomegstatement,gthengthegstatementgofgcashgflo
wsgwillgreportgthegsamegamountgasgcashgflowsgfromgoperatinggactivitiesgforgthegperiod.
⊚g true
⊚g false
13) Revenuegisgreportedgongthegincomegstatementgonlygifgcashgwasgreceivedgatgthegpointgofgsale.
⊚g true
⊚g false
14) GenerallygAcceptedgAccountinggPrinciplesg(GAAP)grequiregprofitablegcompaniesgt
ogdistributegsomegofgtheirgearningsgtogtheirgstockholders.
⊚g true
⊚g false
,15) CommongStockgisgreportedgasgangassetgongthegbalancegsheet.
⊚g true
⊚g false
16) Investorsgaregmainlyginterestedgingthegprofitabilitygofgagcompany.
⊚g true
⊚g false
17) Agstockgthatgdoesgnotgpaygagdividendgisgangundesirableginvestment.
⊚g true
⊚g false
18) Togensuregthatgcompaniesgproducegusefulginformation,gitgmustghavegtwogfundamenta
lgcharacteristics:greliabilitygandgunderstandability.
⊚g true
⊚g false
19) ThegSecuritiesgandgExchangegCommissiong(SEC)gisgtheggovernmentgagencygthatghasgprimar
ygresponsibilitygforgsettinggaccountinggstandardsgingthegU.S.
⊚g true
⊚g false
20) ThegSarbanes-
OxleygActg(SOX)grequiresgtopgmanagementgofgcompaniesgtogsigngagreportgcertifyinggth
atgthegfinancialgstatementsgaregfreegofgerror.
⊚g true
⊚g false
21) CompaniesgmustgusegagDecemberg31stgyear-endgforgallgfinancialgstatements.
⊚g false
, ⊚g true
⊚g false
FundamentalsgofgFinancialgAccounting,g8thgEditiongbygFredgPhillips
✅
Chapterg01g8egPhillips AnswersgIncluded
1) Creditorsgaregownersgofgagcorporation.
⊚g true
⊚g false
2) Allgcorporationsgacquiregfinancinggbygissuinggstockgongpublicgstockgexchanges.
⊚g true
⊚g false
3) Yougpaidg$10,000gtogbuyg1%gofgthegstockgingagcorporationgthatgisgnowgbankrupt.gThegcompa
nygowesg$10gmilliongdollarsgtogitsgcreditors.gAsgagresultgofgthegbankruptcy,gyougaregresponsib
legforgpayingg$100,000g(org$10gmilliong×g1%)gofgthegamountgowedgtogthegcreditors.
⊚g true
⊚g false
4) Cashgpaidgforgwagesgisgangexamplegofgangoperatinggactivitygongthegstatementgofgcashgflows.
⊚g true
⊚g false
5) Borrowinggmoneygfromgagbankgisgagfinancinggactivitygongthegstatementgofgcashgflows.
⊚g true
⊚g false
6) Thegdailygbusinessgactivitiesginvolvedgingrunninggagbusiness,gsuchgasgbuyinggsuppliesgan
dgpayinggsalariesgandgwages,garegclassifiedgasgoperatinggactivitiesgongthegstatementgofgc
ashgflows.
⊚g true
⊚g false
7) Stockholders'gequitygisgthegdifferencegbetweengagcompany'sgassetsgandgitsgliabilities.
⊚g true
⊚g false
,8) Agcompanygowesg$200,000gongagbankgloan.gItgwillgbegreportedgbygthegcompanygasgAccoun
tsgPayable.
⊚g true
⊚g false
9) Thegamountsgreportedgongfinancialgstatementsgaregsometimesgroundedgtogthegnearestgthousan
dgorgmillion.
⊚g true
⊚g false
10) AccountsgPayable,gNotesgPayable,gandgSalariesgandgWagesgPayablegaregexamplesgo
fgliabilities.
⊚g true
⊚g false
11) Dividendsgaregsubtractedgfromgrevenuesgongthegincomegstatement.
⊚g true
⊚g false
12) Ifgagcompanygreportsgnetgincomegongthegincomegstatement,gthengthegstatementgofgcashgflo
wsgwillgreportgthegsamegamountgasgcashgflowsgfromgoperatinggactivitiesgforgthegperiod.
⊚g true
⊚g false
13) Revenuegisgreportedgongthegincomegstatementgonlygifgcashgwasgreceivedgatgthegpointgofgsale.
⊚g true
⊚g false
14) GenerallygAcceptedgAccountinggPrinciplesg(GAAP)grequiregprofitablegcompaniesgt
ogdistributegsomegofgtheirgearningsgtogtheirgstockholders.
⊚g true
⊚g false
,15) CommongStockgisgreportedgasgangassetgongthegbalancegsheet.
⊚g true
⊚g false
16) Investorsgaregmainlyginterestedgingthegprofitabilitygofgagcompany.
⊚g true
⊚g false
17) Agstockgthatgdoesgnotgpaygagdividendgisgangundesirableginvestment.
⊚g true
⊚g false
18) Togensuregthatgcompaniesgproducegusefulginformation,gitgmustghavegtwogfundamenta
lgcharacteristics:greliabilitygandgunderstandability.
⊚g true
⊚g false
19) ThegSecuritiesgandgExchangegCommissiong(SEC)gisgtheggovernmentgagencygthatghasgprimar
ygresponsibilitygforgsettinggaccountinggstandardsgingthegU.S.
⊚g true
⊚g false
20) ThegSarbanes-
OxleygActg(SOX)grequiresgtopgmanagementgofgcompaniesgtogsigngagreportgcertifyinggth
atgthegfinancialgstatementsgaregfreegofgerror.
⊚g true
⊚g false
21) CompaniesgmustgusegagDecemberg31stgyear-endgforgallgfinancialgstatements.
⊚g false
, ⊚g true
⊚g false
