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ACC 290 Chapter 1 thru 13 My Wiley Plus Orion Answers and Questions Week 2

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ACC 290 Orion WileyPLUS Build Your Proficiency Chapter 1 thru 13 Financial Accounting 7e Ch 1: Introduction to Financial Statements Q 1.1: What is the primary purpose of the statement of cash flows? A to report a company's financing transactions • B to present information about a ...

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  • October 11, 2023
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ACC 290 Orion WileyPLUS Build Your Proficiency

Chapter 1 thru 13 Financial Accounting 7e


Ch 1: Introduction to
Financial Statements

Q 1.1: What is the primary purpose of the statement of cash flows?
A to report a company's financing transactions


B to present information about a company's assets and

liabilities C to provide information about cash receipts and cash

payments


D to report how much revenue was retained in the business for future
growth



Q 1.2:
Which financial statement summarizes the financial position of a company?

A statement of cash flows

B balance sheet


C income statement

D retained earnings statement



Q 1.3: Which financial statement provides information for a specific point in
time?
A balance sheet

B statement of cash flows


C retained earnings statement

, •
D income statement



Q 1.4: The reports revenues and expenses and resulting net
income statement

income or less for a period in time.(income statement correct answer)
• .



Q 1.5: The income statement does not report cash received from the sale of
stock because it is not considered revenue.
A True

B

False



Q 1.6: 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?

A $260,000


B $200,000


C $150,000

D $240,000



Q 1.7: According to the basic accounting equation, (assets correct
assets

answer)
• must equal liabilities plus stockholders' equity on the balance sheet.



Q 1.8: Tonelli Trucking buys a $65,000 truck on credit. Which financial
statement will be affected by this transaction?
A balance sheet only

, B income statement, retained earnings statement, and balance sheet


C income statement only


D income statement and retained earnings statement only



Q 1.9:
Which of the following financial statements would be included in an annual
report?

A statement of cash flows

B all of the choices are correct


C retained earnings statement


D income statement


Q 1.10: An independent audit of an annual report must be completed by a
certified public accountant




Q 1.11:
An owner who wants to have limited liability should form which type of business
enterprise?

A a proprietorship

B a sole proprietorship


C a partnership

D a corporation


Q 1.12: Which of the following statements about accounting information is
true?

A Accounting communicates financial information about a business
enterprise to both internal and external users.

, •
B Accounting information is used only by internal users who
are responsible for planning and organizing a business enterprise.

C Accounting information is used only by external users with
a financial interest in a business enterprise.

D A business enterprise’s management is the major external user of
information.



Q 1.13: Which of the following would NOT be considered internal users of
accounting information for a company?

A marketing representatives

B customers

C technology support managers


D the chief executive officer




Q 1.14: Ethics are the principles of conduct that are used to judge whether
decisions are

A moral or immoral


B honest or dishonest

C all of the choices are correct


D right or wrong



Q 1.15: When a company borrows money from a bank to purchase equipment,
this action is called

A a liability activity


B an operating activity

C a financing activity

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