Accounting 1st chapter terms study – Flashcards
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Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction?
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BALANCE SHEET ONLY
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Which of the following components supplement the financial statements in an annual report?
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auditor's report, management discussion and analysis, notes to the financial statements, ALL OF THEM SUPPLEMENT THE FINACIAL STATEMENTS IN A ANNUAL REPORT.
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An independent audit of an annual report must be completed by a
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CERTIFIED PUBLIC ACCOUNTANT
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Which of the following financial statements would be included in an annual report?
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retained earnings statement , statement of cash flows, income statement all of the choices are correct
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according to the basic accounting equation,
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Assets must equal liabilities plus stockholders' equity on the balance sheet.
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Torres Travel's stockholders' equity at the beginning of March 2014 was $200,000. During the month, the company earned net income of $50,000 and paid dividends of $10,000. At the end of March 2014, what is the amount of stockholders' equity?
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$240,000
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The income statement does not report cash received from the sale of stock because it is not considered revenue.
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TRUE
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The?????? reports revenues and expenses and resulting net income or less for a period in time.
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INCOME STATEMENT
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Which financial statement provides information for a specific point in time?
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BALANCE SHEET
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Which financial statement summarizes the financial position of a company?
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BALANCE SHEET
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What is the primary purpose of the statement of cash flows?
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to provide information about cash receipts and cash payments
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The main purpose of operating activities is to
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generate revenue to increase profits.
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Purchasing resources that a company needs in order to operate is called
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investing activity.
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Companies can borrow money if they need a source of outside funds. Borrowing money is called
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debt financing.
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When a company borrows money from a bank to purchase equipment, this action is called
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a financing activity.
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Ethics are the principles of conduct that are used to judge whether decisions are
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honest or dishonest., moral or immoral. right or wrong. all of the choices are correct.
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Which of the following would NOT be considered internal users of accounting information for a company?
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customers
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Which of the following statements about accounting information is true?
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Accounting communicates financial information about a business enterprise to both internal and external users.
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Which of the following is true of a partnership?
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A partnership must have more than one owner.
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n owner who wants to have limited liability should form which type of business enterprise?
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a corporation
