Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
Chapter 01
ANSWERS ARE LOCATED AT THE END OF THIS DOCUMENT
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
1) Choose the appropriate letter to match the characteristics with the type of company. A
given characteristic may match more than one type of company.
CHARACTERISTIC
1. Issues shares of stock that are traded on a stock exchange such as the NYSE
2. The owner(s) of the business are personally liable for the debts of the company
3. Shares of stock must be purchased directly from current owners and not sold on
an exchange
4. Can raise more financial capital by selling stock to the greatest number of
investors
5. The easiest form of business to start
6. The business ceases to exist upon the departure of one of the owners
7. The owner(s) pay taxes on the profits of the business
TYPE OF COMPANY
A. Partnership
B. Publicly traded corporation
C. Privately traded corporation
D. Sole Proprietorship
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Bloom's : Analyze
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Topic : Organizational Forms
Learning Objective : 01-01 Describe various organizational forms and business decision makers.
AICPA : BB Legal
Source : Exclude LearnSmart
Version 1 1
mynursytest.store
,Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
2) Match the business activity to the appropriate category.
The purchase of a new line of assembly equipment
Company payment of a dividend
The purchase of office supplies
The purchase of an online advertising slot time by the company
The building of a new factory facility
Company repayment of the principal amount of a bank loan
A) Financing activity
B) Operating activity
C) Investing activity
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Source : Exclude LearnSmart
Version 1 2
mynursytest.store
,Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
3) Choose the appropriate letter to match the terms to the blanks below to complete the
relevant equation for each financial statement.
FINANCIAL STATEMENT EQUATION
Balance Sheet = +
Income Statement = −
Statement of Retained Earnings = + −
Statement of Cash Flows = + + +
TERM
A. Cash at beginning of year
B. Net cash flow from operating activities
C. Balance of retained earnings from previous year
D. Net cash flow from investing activities
E. Liabilities
F. Net cash flow from financing activities
G. Balance of retained earnings at end of year
H. Net income
I. Revenue
J. Assets
K. Stockholders' equity
L. Expenses
M. Cash at end of year
N. Dividends paid
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Bloom's : Create
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Apply
Source : Exclude LearnSmart
Version 1 3
mynursytest.store
, Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
4) Each line item in the statement of retained earnings can appear on another financial
statement. Choose the appropriate letter to match the item in the statement of retained earnings
with the related financial statement.
ITEM ON STATEMENT OF RETAINED EARNINGS
1. Retained earnings, January 1, Year 3
2. Net income for Year 3
3. Cash dividends paid for Year 3
4. Retained earnings, December 31, Year 3
FINANCIAL STATEMENT
A. Balance Sheet at end of Year 3
B. Statement of Cash Flows for Year 3
C. Income Statement for Year 2
D. Balance Sheet at end of Year 2
E. Income Statement for Year 3
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Source : Exclude LearnSmart
Version 1 4
mynursytest.store
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
Chapter 01
ANSWERS ARE LOCATED AT THE END OF THIS DOCUMENT
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
1) Choose the appropriate letter to match the characteristics with the type of company. A
given characteristic may match more than one type of company.
CHARACTERISTIC
1. Issues shares of stock that are traded on a stock exchange such as the NYSE
2. The owner(s) of the business are personally liable for the debts of the company
3. Shares of stock must be purchased directly from current owners and not sold on
an exchange
4. Can raise more financial capital by selling stock to the greatest number of
investors
5. The easiest form of business to start
6. The business ceases to exist upon the departure of one of the owners
7. The owner(s) pay taxes on the profits of the business
TYPE OF COMPANY
A. Partnership
B. Publicly traded corporation
C. Privately traded corporation
D. Sole Proprietorship
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Bloom's : Analyze
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Topic : Organizational Forms
Learning Objective : 01-01 Describe various organizational forms and business decision makers.
AICPA : BB Legal
Source : Exclude LearnSmart
Version 1 1
mynursytest.store
,Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
2) Match the business activity to the appropriate category.
The purchase of a new line of assembly equipment
Company payment of a dividend
The purchase of office supplies
The purchase of an online advertising slot time by the company
The building of a new factory facility
Company repayment of the principal amount of a bank loan
A) Financing activity
B) Operating activity
C) Investing activity
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Source : Exclude LearnSmart
Version 1 2
mynursytest.store
,Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
3) Choose the appropriate letter to match the terms to the blanks below to complete the
relevant equation for each financial statement.
FINANCIAL STATEMENT EQUATION
Balance Sheet = +
Income Statement = −
Statement of Retained Earnings = + −
Statement of Cash Flows = + + +
TERM
A. Cash at beginning of year
B. Net cash flow from operating activities
C. Balance of retained earnings from previous year
D. Net cash flow from investing activities
E. Liabilities
F. Net cash flow from financing activities
G. Balance of retained earnings at end of year
H. Net income
I. Revenue
J. Assets
K. Stockholders' equity
L. Expenses
M. Cash at end of year
N. Dividends paid
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Bloom's : Create
Accessibility : Keyboard Navigation
AACSB : Knowledge Application
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Apply
Source : Exclude LearnSmart
Version 1 3
mynursytest.store
, Test Bank for Fundamentals of Financial Accounting 7thEdition
Phillips
Fundamentals of Financial Accounting 7th Edition by
Phillips
4) Each line item in the statement of retained earnings can appear on another financial
statement. Choose the appropriate letter to match the item in the statement of retained earnings
with the related financial statement.
ITEM ON STATEMENT OF RETAINED EARNINGS
1. Retained earnings, January 1, Year 3
2. Net income for Year 3
3. Cash dividends paid for Year 3
4. Retained earnings, December 31, Year 3
FINANCIAL STATEMENT
A. Balance Sheet at end of Year 3
B. Statement of Cash Flows for Year 3
C. Income Statement for Year 2
D. Balance Sheet at end of Year 2
E. Income Statement for Year 3
Question Details
AACSB : Analytical Thinking
AICPA : FN Reporting
Difficulty : 2 Medium
Learning Objective : 01-02 Describe the purpose, structure, and content of the four basic financial s
Topic : Financial Statements
AICPA : BB Resource Management
Accessibility : Keyboard Navigation
Type : Static
Gradable : manual
Accessibility : Screen Reader Compatible
Bloom's : Understand
Source : Exclude LearnSmart
Version 1 4
mynursytest.store
