Test Bank – Financial Accounting, 6th Edition – Rich, Jones, & Myers – ISBN 9780357984949 (Chapters 1–12 Covered)

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Financial Accounting
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6th Edition
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TEST BANK
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Rich Jones Myers
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Comprehensive Test Bank for Instructors and
Students
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9780357984949
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© Rich, Jones & Myers. All rights reserved.
Reproduction or distribution without permission is
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prohibited.
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© MEDCONNOISSEUR

, TABLE OF CONTENTS

Test Bank – Financial Accounting (6th Edition)
Authors: Rich, Jones, and Myers
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ISBN: 9780357984949

Chapter 1: Accounting and the Financial Statements
Chapter 2: The Accounting Information System
Chapter 3: Accrual Accounting
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Chapter 4: Internal Control and Cash
Chapter 5: Sales and Receivables
Chapter 6: Cost of Goods Sold and Inventory
Chapter 7: Operating Assets
Chapter 8: Current and Contingent Liabilities
Chapter 9: Long-Term Liabilities
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Chapter 10: Stockholders’ Equity
Chapter 11: The Statement of Cash Flows
Chapter 12: Financial Statement Analysis
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, Test Bank for Financial Accounting, 6th Edition 6e by Jay S. Rich, Jeff Jones


Chap 01 6e Rich
Answers Included ✅
Indicate whether the statement is true or false.
1. A company with healthy cash flows from operating activities is in a good position to repay its debts.
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a. True
b. False

ANSWER: True
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2. Dividend payments appear on the retained earnings statement.
a. True
b. False

ANSWER: True
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3. Contributed capital is the residual interest that remains after deducting liabilities from stockholders' equity.
a. True
b. False
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ANSWER: False
4. Creditors use accounting information to evaluate whether to loan money to a company.
a. True
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b. False

ANSWER: True
5. The three main business activities are financing, operating, and investing.
a. True
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b. False

ANSWER: True
6. Internal users of accounting information include present creditors and management.
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a. True
b. False

ANSWER: False
7. Current assets include cash, inventory, equipment, supplies, and accounts receivable.
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a. True
b. False

ANSWER: False
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, Name: Class: Date:

Chap 01 6e Rich

8. The income statement provides information at one specific point in time, while the other basic financial
statements provide information on activities that occur over a period of time.
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a. True
b. False

ANSWER: False
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9. The classifications in the balance sheet are to help users determine how a company obtained its resources.
a. True
b. False

ANSWER: True
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10. One primary purpose of the classified balance sheet is to help users evaluate the working capital of a company.
a. True
b. False
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ANSWER: True
11. When an entity's stock issuances exceed its expenses for a period of time, the entity will report net income.
a. True
b. False
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ANSWER: False
12. Stockholders' equity is composed of contributed capital and retained earnings.
a. True
b. False
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ANSWER: True
13. The amount of earnings distributed to stockholders can be found on the income statement as an expense.
a. True
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b. False

ANSWER: False
14. The owners of a sole proprietorship, a partnership, and corporations have limited liability.
a. True
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b. False

ANSWER: False
15. The purpose of financial reporting is to provide economic information to investors, creditors, and other financial
statement users.
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a. True
b. False

ANSWER: True
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