ACCT 212 Week 1 Quiz (Summer 2021)v1

. Question: The term GAAP stands for: 2. Question: Financial accounting serves which primary function(s)? a. Measures business activities. b. Communicates business activities to interested parties. c. Makes business decisions on behalf of interested parties. 3. Question: Which of the following represents an obligation of the company? 4. Question: Which body has the primary responsibility for the establishment of Generally Accepted Accounting Principles? 5. Question: At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $58,500; Liabilities = $26,400; Dividends = $2,550; Revenues = $20,100; Expenses = $14,600. Calculate net income and stockholders’ equity at the end of the period. 6. Question: During its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income Dividends 1 $2,600 $1,700 2 2,200 500 3 2,600 1,600 4 4,800 2,200 5 7,700 2,700 Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1. 7. Question: Consider the following account balances of the Shattuck Law Firm at the end of the year: Accounts Payable $ 4,400 Salaries Expense 12,800 Cash 1,700 Common Stock 2,400 Service Revenue 8,300 Supplies 4,300 Retained Earnings 1,100 Utilities Expense 5,000