51. The equation best describing the balance sheet is:
52. DW has an ending Retained Earnings balance of $51,100. If during the year DW paid
dividends of $4,300 and had net income of $22,500, then what was the beginning Retained
Earnings balance?
53. The ending Retained Earnings balance of Boomer Inc. decreased by $1.0 million from the
beginning of the year. The company declared a dividend of $5.4 million during the year. What
was the net income earned during the year?
54. Which financial statement is typically prepared first?
55. Expenses are shown in which of the following statements?
56. Given the information below about Thomas Corporation, what was the amount of
dividends the company paid in the current period?
57. Retained earnings at the end of the year is calculated using:
58. The financial statement that represents the accounting equation is the:
59. Which of the following is not a major section in the statement of cash flows?
60. Given the information below about David Corporation, what was the amount of dividends
the company paid in the current period?
61. Liabilities are shown in which of the following statements?
62. Consider the following account balances of the Shattuck Law Firm as of December 31,
2012:
How many of these accounts would appear in Shattuck’s 2012 income statement?
63. Consider the following account balances of the Shattuck Law Firm as of December 31,
2012:
How many of these accounts would appear in Shattuck’s 2012 balance sheet?
64. If total change in cash = $44,000, net operating cash flows = $22,000, and net investing
cash flows = ($13,000); then net financing cash flows =
65. For the past five years, Mookie Consulting Services reported the following annual net
income and dividend amounts:
If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company’s
Retained Earnings at the beginning of Year 1?
66. Which of the following items is reported in the statement of stockholders’ equity?
67. Which of the following statements is NOT correct about the financial statements?
68. Which financial accounting number impacts stock prices more than any other single piece
of information?
69. The balance sheet depicts which of the following equations?
70. Which financial statement reports a company’s retained earnings?
71. Net income appears in which two financial statements?
72. Which of the following accounts appears in the statement of stockholders’ equity?
73. Which of the following items would not appear in an income statement?
74. Which of the following is not a balance sheet item?
75. Which accounting amount best represents value created for stockholders during the
current period?
76. Which accounting number has the single greatest impact on stock prices?
78. Generally Accepted Accounting Principles (GAAP) are best defined as:
79. Today, financial accounting and reporting standards in the United States are established
primarily by the:
80. Financial reporting objectives do not include providing information:
81. Of the following, the most important objective for financial reporting is to provide
information useful for:
82. The International Accounting Standards Board:
83. Independent auditors express an opinion on the:
84. The body of rules and procedures that guide the measurement and communication of
financial accounting information is known as:
85. The independent, private-sector group that is primarily responsible for setting financial
reporting standards in the United States is the:
86. Which statement below best describes the objectives of financial accounting?
87. The assumption that a business can continue to remain in operation into the future is the:
88. The qualitative characteristic that says accounting information can influence users’
decisions by allowing them to assess past performance is:
89. The major underlying assumptions of accounting include all of the following except:
90. The assumption that the assets and liabilities of the business are accounted for on the
books of the company but not included in the records of the owner is the:
91. Accounting information that does not provide measurement bias in favor of a particular
set of companies has the characteristic of:
92. If accounting information is considered to have faithful representation, then which of the
following is true?
93. For accounting information to be relevant, it must have which of the following
characteristics?
94. Materiality is based upon which factor(s)?
95. If a company has gone bankrupt, its financial statements likely violate the:
96. The conceptual framework’s qualitative characteristic of relevance includes:
97. The conceptual framework’s qualitative characteristic of faithful representation includes:
98. Constraints on qualitative characteristics of accounting information include:
99. Primary qualitative characteristics of accounting information are:
100. Enhancing qualitative characteristics of accounting information include:
101. Accounting is a system of maintaining records of a company’s operations and
communicating this information to decision makers.
102. Accounting information is used by investors to decide whether to invest in a company’s
stock.