56.
Limited liability means:
57.
One disadvantage of the corporate form of business is:
58.
Which of the following is an operating activity?
59.
How many of the following transactions are operating activities?
Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock
60.
Transactions related to the primary business activities of the company, such as selling
goods and services to customers, are referred to as:
61.
Stimpleton Company engages in the following cash payments:
Purchase equipment
$2,000
Pay rent
500
Repay loan to the bank
5,000
Pay worker’s salaries
1,000
What is the total amount of cash paid for operating activities?
62.
Accountants are responsible for measuring various operating, investing and financing
activities. Which of the following correctly matches the activity with its type?
63.
Transactions of a company that include the purchase and sale of long-term assets are
referred to as:
64.
McGill purchases additional office equipment to better serves its customers. This
purchase is classified as what type of activity?
65.
Transactions of a company involving external sources of funding are referred to as:
66.
Financing activities include:
67.
Financing activities include:
68.
The accounting equation is defined as:
69.
Which statement below best describes the accounting equation?
70.
If a company has stockholders’ equity of $60,000 at the end of the year, which of the
following statements must be true?
71.
Emmitt had the following final balances after the first year of operations: assets, $55,000;
stockholders’ equity, $25,000; dividends, $3,000; and net income, $10,000. What is the
amount of Emmitt’s liabilities?
72.
An alternative form of the accounting equation is:
73.
The accounts that represent the resources of the company are called:
74.
The assets of a company represent:
75.
Which of the following accounts represents a resource of the company?
76.
Which of the following does not represent an asset of a company?
77.
Creditors’ claims to a corporation’s resources are referred to as:
78.
Liabilities are best defined as:
79.
Amounts owed to suppliers for supplies purchased on account are defined as a(n):
80.
Which of the following does not represent a liability of a company?
81.
The accounts that represent resources owed to creditors are called:
82.
Liabilities can be best described as:
83.
The stockholders’ interest in a corporation is called:
84.
Stockholders’ claims to the company’s resources are referred to as:
85.
Using the information below from the accounting records of Thomas Corporation,
stockholders’ claims to the company’s resources amount to:
Assets
$1,200,000
Liabilities
$800,000
Net income
$100,000
Retained earnings
$250,000
86.
Which of the following best describes revenue?
87.
The costs of providing goods and services to customers are referred to as:
88.
The costs associated with producing revenues are referred to as:
89.
Net income can best be described as:
90.
Use the following appropriate amounts to calculate net income: Revenues, $12,000;
Liabilities, $5,000; Expenses, $4,000; Assets, $19,000; Dividends, $4,000.
91.
The account type that represents payments to stockholders is called:
92.
Dividends represent:
93.
The equation best describing the income statement is:
94.
Expenses are shown in which of the following statements?
95.
Which of the following items would not appear in an income statement?
96.
Which of the following items would not appear in an income statement?
97.
Consider the following account balances of the Shattuck Law Firm at the end of the year:
Accounts Payable
$4,400
Salaries Expense
12,800
Cash
1,700
Common Stock
2,400
Service Revenue
8,300
Supplies
4,300
Retained Earnings
1,100
Utilities Expense
5,000
How many of these accounts would appear in Shattuck’s year-end income statement?
98.
Net income (loss) appears in which two financial statements?
99.
Which of the following items is reported in the statement of stockholders’ equity?
100.
Which of the following accounts appears in the statement of stockholders’ equity?