Test Bank for Financial Accounting, 6th Edition by Jay S. Rich
15 views 1 purchase
Course
ACCT442
Institution
ACCT442
Test Bank for Financial Accounting 6e 6th Edition by Jay S. Rich. Full Chapters test bank are included with answers.
1. Accounting and the Financial Statements.
1s. Reading a Company’s Annual Report (Form 10-K).
2. The Accounting Information System.
3. Accrual Accounting.
Making the Connec...
Indicate whether the statement is true or false.
1. A company with healthy cash flows from operating activities is in a good position to repay its debts.
a. True
b. False
ANSWER: True
2. Dividend payments appear on the retained earnings statement.
a. True
b. False
ANSWER: True
3. Contributed capital is the residual interest that remains after deducting liabilities from stockholders' equity.
a. True
b. False
ANSWER: False
4. Creditors use accounting information to evaluate whether to loan money to a company.
a. True
b. False
ANSWER: True
5. The three main business activities are financing, operating, and investing.
a. True
b. False
ANSWER: True
6. Internal users of accounting information include present creditors and management.
a. True
b. False
ANSWER: False
7. Current assets include cash, inventory, equipment, supplies, and accounts receivable.
a. True
b. False
ANSWER: False
Page 1
, Chap 01 6e Rich
8. The income statement provides information at one specific point in time, while the other basic financial
statements provide information on activities that occur over a period of time.
a. True
b. False
ANSWER: False
9. The classifications in the balance sheet are to help users determine how a company obtained its resources.
a. True
b. False
ANSWER: True
10. One primary purpose of the classified balance sheet is to help users evaluate the working capital of a company.
a. True
b. False
ANSWER: True
11. When an entity's stock issuances exceed its expenses for a period of time, the entity will report net income.
a. True
b. False
ANSWER: False
12. Stockholders' equity is composed of contributed capital and retained earnings.
a. True
b. False
ANSWER: True
13. The amount of earnings distributed to stockholders can be found on the income statement as an expense.
a. True
b. False
ANSWER: False
14. The owners of a sole proprietorship, a partnership, and corporations have limited liability.
a. True
b. False
ANSWER: False
15. The purpose of financial reporting is to provide economic information to investors, creditors, and other financial
statement users.
a. True
b. False
ANSWER: True
Page 2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StepsSol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $29.49. You're not tied to anything after your purchase.
