ACG 2021 ch 1 quiz; Questions & Answers
100% Correct
The sole proprietorship form of business organization CORRECT ANSWER-generally
receives favorable tax treatment relative to a corporation
Which forms of business organization have owners called stockholders? CORRECT
ANSWER-Only corporation...
ACG 2021 ch 1 quiz; Questions & Answers
100% Correct
The sole proprietorship form of business organization CORRECT ANSWER-generally
receives favorable tax treatment relative to a corporation
Which forms of business organization have owners called stockholders? CORRECT
ANSWER-Only corporations
What section of a cash flows statement shows the amount of cash collected from customers
during the most recent accounting period? CORRECT ANSWER-The operating section
Which of the following best describes stockholders' equity? CORRECT ANSWER-the
claims of the owners
Which of the following is the most appropriate definition of accounting information?
CORRECT ANSWER-The information system that identifies, records, and communicates the
economic events of an organization to interested users
A company should report an issuance of common stock on its statement of cash flows as
CORRECT ANSWER-a financing activity.
Chris's Maid Service began the year with total assets of $100,000 and stockholders' equity of
$40,000. During the year the company earned $110,000 in net income and paid $5,000 in
dividends. Total assets at the end of the year were $240,000. How much are total liabilities at
the end of the year? CORRECT ANSWER-$95,000
, ACG 2021 ch 1 quiz; Questions & Answers
100% Correct
At the end of the year, Stoneland Corporation has assets of $6,500 and liabilities of $2,000. How
much is the company's equity at the end of the year? CORRECT ANSWER-$4,500
If total liabilities decreased by $10,000 and total assets decreased by $5,000 during a period of
time, then total stockholders' equity must have changed by what amount and direction during
that same period? CORRECT ANSWER-$5,000 increase
Net income will result during a time period when CORRECT ANSWER-revenues exceed
expenses
Which of the following is not one of the three primary business activities listed on the
statement of cash flows CORRECT ANSWER-advertising activities
(op, inv, fin)
Which of the following is not an external user of accounting data? CORRECT ANSWER-
Chief financial officer
Which statement about users of accounting information is correct? CORRECT ANSWER-
Taxing authorities are considered external users.
Which of the following is also referred to as debt?` CORRECT ANSWER-Liabilities
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 GOLDTUTORS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
