ACG 2025 CHAPTER 1 QUIZ, CHAPTER
1 ACG 2025, QUIZ 1 ACG2025
QUESTIONS & ANSWERS| GRADE A|
100% CORRECT (VERIFIED SOLUTIONS)
,Which statement about users of accounting information is correct? - ANSWERTaxing
authorities are considered external users.
Which of the following is required as a result of the Sarbanes-Oxley Act (SOX) passed
into law in 2002? - ANSWERThe independence of outsides auditors increased.
The cost of assets consumed or services used in the process of generating revenues is
also known as - ANSWERan expense
-Companies incur costs, such as rent, utilities, and salaries. These costs are referred to
as expenses when they are incurred. Expenses are the cost of assets consumed or
services used to produce and sell the company's products and services.
Which of the following is not an asset? - ANSWERRevenue
-Accounts are classified into categories including assets, liabilities, equities, revenues,
expenses, and dividends. Assets are the resources owned by a company. Common
examples of assets include cash, accounts receivable, inventory, supplies, buildings,
equipment, patents, etc.
Which of the following is also referred to as debt? - ANSWERLiabilities
-Liabilities are the amounts owed, such as the amounts that a company owes to its
creditors. Example include accounts payable, notes payable, and unearned revenues. .
Net income will result during a time period when - ANSWERrevenues exceed expenses.
Which of the following would not appear on a retained earnings statement? -
ANSWERService revenue
-The retained earnings statement reports beginning retained earnings, net income,
dividends, and ending retained earnings. Service revenue is reported on the income
statement, not on the retained earnings statement.
The balance sheet - ANSWERreports the assets, liabilities, and stockholders' equity at a
specific date.
A company borrows money from a bank. It should report the cash received from the
bank on its statement of cash flows as - ANSWERa financing activity.
Valley Corporation began the year with retained earnings of $590,000. During the year,
the company issued $840,000 of common stock, recorded expenses of $2,100,000, and
paid dividends of $50,000. If Valley's ending retained earnings was $760,000, what was
the company's revenue for the year? - ANSWER$2,320,000
, Which of the following are advantages of partnerships relative to corporations? -
ANSWERThe ease of creating the business and low taxes
Which form of business organization have owners called stockholders? -
ANSWERcorporations
Which of the following is an internal user of accounting data? - ANSWERThe company's
finance personnel
Which of the following is the most appropriate definition of accounting information? -
ANSWERThe information system that identifies, records, and communicates the
economic events of an organization to interested users
Which of the following did not result from the Sarbanes-Oxley Act (SOX)? - ANSWERIt
decreased the oversight role of boards of directors.
Which of the following is an asset? - ANSWERAccounts receivable
Which of the following best defines assets - ANSWERresources belonging to a
company that have a future benefit to the company.
Which of the following is not one of the three primary business activities listed on the
statement of cash flows? - ANSWERAdvertising activities
In terms of the principal types of cash flow activities, paying for goods and services is an
example of - ANSWERan operating activity
The payment of dividends is an example of - ANSWERa financing activity
Which of the following is comprised of two parts: (1) common stock and (2) retained
earnings? - ANSWERStockholders' equity
Which of the following would appear on a balance sheet? - ANSWERAccounts
receivable
An income statement shows - ANSWERrevenues, expenses, and net income.
The ending balance of the Retained Earnings account appears on - ANSWERboth the
retained earnings statement and the balance sheet.
During the year, Finney Company recorded revenues of $370,000, recorded expenses
of $320,000, issued an additional $10,000 of common stock, and paid dividends of
$40,000. Its ending retained earnings is 400,000. What was the company beginning
retained earnings? - ANSWER$390,000
The financial records for Harold Corporation included the following information:
1 ACG 2025, QUIZ 1 ACG2025
QUESTIONS & ANSWERS| GRADE A|
100% CORRECT (VERIFIED SOLUTIONS)
,Which statement about users of accounting information is correct? - ANSWERTaxing
authorities are considered external users.
Which of the following is required as a result of the Sarbanes-Oxley Act (SOX) passed
into law in 2002? - ANSWERThe independence of outsides auditors increased.
The cost of assets consumed or services used in the process of generating revenues is
also known as - ANSWERan expense
-Companies incur costs, such as rent, utilities, and salaries. These costs are referred to
as expenses when they are incurred. Expenses are the cost of assets consumed or
services used to produce and sell the company's products and services.
Which of the following is not an asset? - ANSWERRevenue
-Accounts are classified into categories including assets, liabilities, equities, revenues,
expenses, and dividends. Assets are the resources owned by a company. Common
examples of assets include cash, accounts receivable, inventory, supplies, buildings,
equipment, patents, etc.
Which of the following is also referred to as debt? - ANSWERLiabilities
-Liabilities are the amounts owed, such as the amounts that a company owes to its
creditors. Example include accounts payable, notes payable, and unearned revenues. .
Net income will result during a time period when - ANSWERrevenues exceed expenses.
Which of the following would not appear on a retained earnings statement? -
ANSWERService revenue
-The retained earnings statement reports beginning retained earnings, net income,
dividends, and ending retained earnings. Service revenue is reported on the income
statement, not on the retained earnings statement.
The balance sheet - ANSWERreports the assets, liabilities, and stockholders' equity at a
specific date.
A company borrows money from a bank. It should report the cash received from the
bank on its statement of cash flows as - ANSWERa financing activity.
Valley Corporation began the year with retained earnings of $590,000. During the year,
the company issued $840,000 of common stock, recorded expenses of $2,100,000, and
paid dividends of $50,000. If Valley's ending retained earnings was $760,000, what was
the company's revenue for the year? - ANSWER$2,320,000
, Which of the following are advantages of partnerships relative to corporations? -
ANSWERThe ease of creating the business and low taxes
Which form of business organization have owners called stockholders? -
ANSWERcorporations
Which of the following is an internal user of accounting data? - ANSWERThe company's
finance personnel
Which of the following is the most appropriate definition of accounting information? -
ANSWERThe information system that identifies, records, and communicates the
economic events of an organization to interested users
Which of the following did not result from the Sarbanes-Oxley Act (SOX)? - ANSWERIt
decreased the oversight role of boards of directors.
Which of the following is an asset? - ANSWERAccounts receivable
Which of the following best defines assets - ANSWERresources belonging to a
company that have a future benefit to the company.
Which of the following is not one of the three primary business activities listed on the
statement of cash flows? - ANSWERAdvertising activities
In terms of the principal types of cash flow activities, paying for goods and services is an
example of - ANSWERan operating activity
The payment of dividends is an example of - ANSWERa financing activity
Which of the following is comprised of two parts: (1) common stock and (2) retained
earnings? - ANSWERStockholders' equity
Which of the following would appear on a balance sheet? - ANSWERAccounts
receivable
An income statement shows - ANSWERrevenues, expenses, and net income.
The ending balance of the Retained Earnings account appears on - ANSWERboth the
retained earnings statement and the balance sheet.
During the year, Finney Company recorded revenues of $370,000, recorded expenses
of $320,000, issued an additional $10,000 of common stock, and paid dividends of
$40,000. Its ending retained earnings is 400,000. What was the company beginning
retained earnings? - ANSWER$390,000
The financial records for Harold Corporation included the following information:
