BUS591 FINANCIAL ACCOUNTING & ANALYSIS-QUIZ

Question 21 pts
An advantage of the corporate form of business is that.....

a.it has limited life.
b.its owner's personal resources are at stake.
c.its ownership is easily transferable via the sale of shares of stock.
d.it is simple to establish.

Flag this QuestionQuestion 31 pts
Which of the following is not a liability?

a.Unearned Service Revenue
b.Accounts Payable
c.Accounts Receivable
d.Interest Payable

Flag this QuestionQuestion 41 pts
Stockholders' equity is comprised of...

a.common stock and dividends.
b.common stock and retained earnings.
c.dividends and retained earnings.
d.net income and retained earnings.

Flag this QuestionQuestion 51 pts
a.Which organization issues U.S. accounting standards?
b.Security Exchange Commission.
c.International Accounting Standards Committee.
d.International Auditing Standards Committee.
e.Financial Accounting Standards Board.

Flag this QuestionQuestion 61 pts
The ability of a business to pay obligations that are expected to become due within the next year or operating cycle is...

a.leverage.
b.liquidity.
c.profitability.
d.wealth.

Flag this QuestionQuestion 71 pts
Henson Company began the year with retained earnings of $350,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?

a.$510,000
b $430,000
c $810,000
d.$470,000

Flag this QuestionQuestion 81 pts
The primary purpose of the statement of cash flows is to report...

a. a company's investing transactions.
b. a company's financing transactions.
c. information about cash receipts and cash payments of a company.
d. the net increase or decrease in cash.

Flag this QuestionQuestion 91 pts
Which of the following organizations issues accounting standards for countries outside the United States?
SEC
GAAP
IASB
FASB

Flag this QuestionQuestion 101 pts
Which one of the following is not a qualitative characteristic of useful accounting information?
a.Relevance
b.Faithful representation
c.Materiality
d.Comparability