ACCT 203: WILEYPLUS EXAM 1
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT!
Partnership - ANSWER✔✔ shared control, tax advantages, increased skills and
resources
Sole Proprietorship - ANSWER✔✔ Simple to set up and maintains control with
owner
Corporation - ANSWER✔✔ Easier to transfer ownership and raise funds, no
personal liability
Trying to determine wether the company's net income will result in a stock price
increase - ANSWER✔✔ Investors in common stock
Trying to determine wether an advertising proposal will be cost-effective -
ANSWER✔✔ Marketing managers
Trying to determine whether the company can pay its obligations - ANSWER✔✔
Creditors
Trying to determine whether the company should employ debt or equity financing
- ANSWER✔✔ Chief financial officer
Trying to determine wether the company complied with tax laws - ANSWER✔✔
Internal Revenue Officer
,Type of business Activity: Cash received from customers - ANSWER✔✔
Operating
Type of business Activity: Cash paid to stockholders (dividends) - ANSWER✔✔
Financing
Type of business Activity: Cash received from issuing new common stock -
ANSWER✔✔ Financing
Type of business Activity: Cash paid to suppliers - ANSWER✔✔ Operating
Type of business Activity: Cash paid to purchase a new office building -
ANSWER✔✔ Investing
"costs incurred", "amounts paid" - ANSWER✔✔ Expense
"cash received" - ANSWER✔✔ Revenue
"cash purchase of equipment" - ANSWER✔✔ Does not affect stockholders equity
"cash received from investors" - ANSWER✔✔ Common Stock
Income Statement or Balance Statement?
Income tax expense - ANSWER✔✔ Income
Income Statement or Balance Statement?
, Inventory - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Accounts Payable - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Retained Earnings - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Equipment - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Sales Revenue - ANSWER✔✔ Income
Income Statement or Balance Statement?
Cost of goods sold - ANSWER✔✔ Income
Income Statement or Balance Statement?
Common stock - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Interest Expense - ANSWER✔✔ Income
Which statement would you find this on?
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT!
Partnership - ANSWER✔✔ shared control, tax advantages, increased skills and
resources
Sole Proprietorship - ANSWER✔✔ Simple to set up and maintains control with
owner
Corporation - ANSWER✔✔ Easier to transfer ownership and raise funds, no
personal liability
Trying to determine wether the company's net income will result in a stock price
increase - ANSWER✔✔ Investors in common stock
Trying to determine wether an advertising proposal will be cost-effective -
ANSWER✔✔ Marketing managers
Trying to determine whether the company can pay its obligations - ANSWER✔✔
Creditors
Trying to determine whether the company should employ debt or equity financing
- ANSWER✔✔ Chief financial officer
Trying to determine wether the company complied with tax laws - ANSWER✔✔
Internal Revenue Officer
,Type of business Activity: Cash received from customers - ANSWER✔✔
Operating
Type of business Activity: Cash paid to stockholders (dividends) - ANSWER✔✔
Financing
Type of business Activity: Cash received from issuing new common stock -
ANSWER✔✔ Financing
Type of business Activity: Cash paid to suppliers - ANSWER✔✔ Operating
Type of business Activity: Cash paid to purchase a new office building -
ANSWER✔✔ Investing
"costs incurred", "amounts paid" - ANSWER✔✔ Expense
"cash received" - ANSWER✔✔ Revenue
"cash purchase of equipment" - ANSWER✔✔ Does not affect stockholders equity
"cash received from investors" - ANSWER✔✔ Common Stock
Income Statement or Balance Statement?
Income tax expense - ANSWER✔✔ Income
Income Statement or Balance Statement?
, Inventory - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Accounts Payable - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Retained Earnings - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Equipment - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Sales Revenue - ANSWER✔✔ Income
Income Statement or Balance Statement?
Cost of goods sold - ANSWER✔✔ Income
Income Statement or Balance Statement?
Common stock - ANSWER✔✔ Balance
Income Statement or Balance Statement?
Interest Expense - ANSWER✔✔ Income
Which statement would you find this on?
