ACCT 1004S-1, Week 6 Final Exam (350 out of 350 points)
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Course
ACCT 1004 (ACCT1004)
Institution
Walden University
1. Question: Which number is transferred from the income statement to the statement of retained earnings?
2. Question: Which opinion from an independent auditor’s report indicates that no opinion is made due to missing information?
3. Question: A business owner is concerned about the ability of...
Submission: Final Exam -
Week 6
User
Course ACCT-1004S-1-Fundamentals of Accounting-2021-Winter-
QTR- Term-wks-1-thru-6-(11/29/2021-01/09/2022)-PT3
Test Final Exam - Week 6
Started 1/11/22 9:01 PM
Submitted 1/11/22 10:05 PM
Due Date 1/10/22 1:59 AM
Status Needs Grading
Attempt 350 points
Score
Time 0 hour, 3 minutes
Elapsed
Instructions Please answer each question below and click Submit when you
have completed the Exam. You will receive your score and feedback
immediately.
Results All Answers, Feedback, Incorrectly Answered Questions
Displayed
Question 1
8.75 out of 8.75 points
Which number is transferred from the income statement to the statement of
retained earnings?
Answer net income
s:
gross profit
total expenses
cost of goods
sold
Response The net income, or final line of the income statement, is
Feedback: transferred to the statement of retained earnings.
Question 2
8.75 out of 8.75 points
, Which opinion from an independent auditor’s report indicates that no opinion is
made due to missing information?
Answer disclaime
s: r
unqualifi
ed
qualified
adverse
Response Due to missing information, a disclaimer opinion includes no
Feedback: actual opinion.
Question 3
8.75 out of 8.75 points
A business owner is concerned about the ability of his business to pay its debts
in the next 30 days due to the company’s limited amount of available cash. The
business owner is worried about the firm’s .
Answer solven
s: cy
liquidit
y
Response Liquidity refers to the ability of a business to pay its
Feedback: debts/obligations.
Question 4
8.75 out of 8.75 points
A group of investors are considering investing in ATX Enterprises. What is the
investor's purpose for reviewing the income statements of ATX Enterprises?
Answer evaluate the firm’s potential solvency for the purpose of
s: obtaining loans
understand the components and distribution of stockholders’
equity
identify the firm’s assets and liabilities at the end of the
accounting period
determine the firm’s net income or net losses over a specific
period of time
Response The income statement provides investors and creditors with
Feedback: information about the amount of net income earned (its
profitability) or net losses over a specified period of time.
, Question 5
8.75 out of 8.75 points
Which number from the balance sheet is used to reconcile the ending balance on
the statement of cash flows?
Answer accounts
s: receivable
capital stock
assets
cash
Response The cash in the assets section of the balance sheet is used
Feedback: to reconcile the balance of the statement of cash flows, as
both represent cash on hand.
Question 6
8.75 out of 8.75 points
What is the purpose of the cash amount on the balance sheet relative to the ending
balance on the cash flow statement?
Answer the cash amount on the balance sheet reduces the ending balance on
s: the cash flow statement
the cash amount on the balance sheet reconciles the ending balance on
the cash flow statement
the cash amount on the balance sheet has no effect on the ending
balance on the cash flow statement
the cash amount on the balance sheet increases the ending balance on
the cash flow statement
Response the cash amount on the balance sheet reconciles the ending
Feedback: balance on the cash flow statement. The two numbers are the
same and represent the company’s cash on hand at the end of the
accounting period.
Question 7
8.75 out of 8.75 points
Wilson Consulting is seeking a $500,000 loan from National Bank to purchase land
for an office building. The bank’s loan officer asks numerous questions based on the
balance sheet to determine the risk of providing the loan. Which question about
information on the balance sheet best addresses the liquidity of Wilson Consulting?
Answer How often are profits distributed to
s: stockholders?
How long has the firm been in business?
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