1
ACCT 5312 EXAM 1 QUESTIONS WITH
VERIFIED SOLUTIONS
Additional paid-in capital represents - correct-answer - the difference between
the total amounts invested by the stockholders and the par or stated value of
stock
The principle of consistency means that - correct-answer - the effect of any
change in the accounting method will be disclosed in the financial statements or
notes
The statement of cash flows - correct-answer - shows how cash changed during
the period
, 2
At the end of the year, retained earnings totaled 5100.00 During the year, net
income was 750 and dividends of 360 were decalred and paid. Retained earnings
at the beginning of the year totaled - correct-answer - 4710 (x + 750 - 360 = 5100)
solve for x
Current U.S. Generally Accepted Accounting Principles and auditing standards
require the financial statements of an entity for the reporting period to include: -
correct-answer - financial position at the end of the period.
Retained Earnings represents: - correct-answer - cumulative net income that has
not been distributed to stockholders as dividends.
The balance sheet shows the following accounts and amounts:Inventory, $84,000;
Long-term Debt 125,000; Common Stock $60,000; Accounts Payable $44,000;
Cash $132,000; Buildings and Equipment $390,000; Short-term Debt $48,000;
Accounts Receivable $109,000; Retained Earnings $204,000; Notes Payable
, 3
$54,000; Accumulated Depreciation $180,000.Total current assets on the balance
sheet are - correct-answer - 325,000 (Inventory + Cash + AR)
Accrual accounting - correct-answer - is designed to match revenues and
expenses
Consolidated financial statements report financial position, results of operations,
and cash flows for - correct-answer - a parent corporation and its subsidiaries.
The time frame associated with an income statement is: - correct-answer - a past
period of time.
When comparing entity financial ratios with industry ratios - correct-answer -
relative values at a point in time may not be significant.
ACCT 5312 EXAM 1 QUESTIONS WITH
VERIFIED SOLUTIONS
Additional paid-in capital represents - correct-answer - the difference between
the total amounts invested by the stockholders and the par or stated value of
stock
The principle of consistency means that - correct-answer - the effect of any
change in the accounting method will be disclosed in the financial statements or
notes
The statement of cash flows - correct-answer - shows how cash changed during
the period
, 2
At the end of the year, retained earnings totaled 5100.00 During the year, net
income was 750 and dividends of 360 were decalred and paid. Retained earnings
at the beginning of the year totaled - correct-answer - 4710 (x + 750 - 360 = 5100)
solve for x
Current U.S. Generally Accepted Accounting Principles and auditing standards
require the financial statements of an entity for the reporting period to include: -
correct-answer - financial position at the end of the period.
Retained Earnings represents: - correct-answer - cumulative net income that has
not been distributed to stockholders as dividends.
The balance sheet shows the following accounts and amounts:Inventory, $84,000;
Long-term Debt 125,000; Common Stock $60,000; Accounts Payable $44,000;
Cash $132,000; Buildings and Equipment $390,000; Short-term Debt $48,000;
Accounts Receivable $109,000; Retained Earnings $204,000; Notes Payable
, 3
$54,000; Accumulated Depreciation $180,000.Total current assets on the balance
sheet are - correct-answer - 325,000 (Inventory + Cash + AR)
Accrual accounting - correct-answer - is designed to match revenues and
expenses
Consolidated financial statements report financial position, results of operations,
and cash flows for - correct-answer - a parent corporation and its subsidiaries.
The time frame associated with an income statement is: - correct-answer - a past
period of time.
When comparing entity financial ratios with industry ratios - correct-answer -
relative values at a point in time may not be significant.
