Tentamen (uitwerkingen)

FINANCIAL ACCOUNTING 7TH EDITION BY MICHELLE HANLON, ROBERT MAGEE, GLENN PFEIFFER TEST BANK

1 keer verkocht

Vak
FINANCIAL ACCOUNTING

Instelling
FINANCIAL ACCOUNTING

Multiple Choice Topic: Business organizations LO: 1 1. Which of the following forms of business organizations exists as a legal entity? A) A sole proprietorship B) A partnership C) A corporation D) A labor union Answer: C Rationale: A corporation is a form of business organization that ex...

[Meer zien]

Voorbeeld 4 van de 371 pagina's

Bekijk voorbeeld

Geupload op 17 september 2024
Aantal pagina's 371
Geschreven in 2024/2025
Type Tentamen (uitwerkingen)
Bevat Vragen en antwoorden

financial accounting 7th edition by michelle hanlo
which of the following forms of business organiza
all of the following are proper uses of financial
which one of the following is not an external use

Instelling FINANCIAL ACCOUNTING
Vak FINANCIAL ACCOUNTING

Volgen

Succeed

Lid sinds 4 jaar 1661 documenten verkocht

147

€24,15

In winkelwagen

Op verlanglijstje

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

, Chapter 1
Introducing Financial Accounting

Learning Objectives – Coverage by question
Multiple Essay
True/False Choice Exercises Problems Questions

LO1-1 Identify the users of
accounting information and
1, 2 1-3 1, 2 2, 5, 6
discuss the costs and benefits of
disclosure. (p. 1-3)

LO1-2 Describe a company's
business activities and explain
how these activities are 3-6 4, 5 3 1, 6
represented by the accounting
equation. (p. 1-7)

LO1-3 Introduce the four key
financial statements including the
balance sheet, income statement,
7-9 4, 6-11 4-11 1-5
statement of stockholders' equity,
and statement of cash flows.
(p. 1-11)

LO1-4 Describe the institutions
that regulate financial accounting
and their role in establishing 10-12 12, 19, 20 3, 4
generally accepted accounting
principles. (p. 1-16)

LO1-5 Compute two key ratios
that are commonly used to
assess profitability and risk - 13, 14 13-18 13, 14
return on equity and the debt-to-
equity ratio. (p. 1-21)

LO1-6 Appendix 1A: Explain the
conceptual framework for 15, 16 21, 22 12 3, 5
financial reporting. (p. 1-25)

.
1-1 Financial Accounting, 7th Edition

Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?

,Chapter 1: Introducing Financial Accounting

True/False

Topic: Cost and benefits of disclosure
LO: 1
1. One reason companies are motivated to disclose financial information to external decision makers is
that it may lower financing and operating costs.

Answer: True
Rationale: For example, when a company applies for a loan, the bank uses the company’s financial
statements to help determine the appropriate interest rate. Without this financial information, a company
may have a higher cost of borrowing or not obtain the loan at all.

Topic: Demand for accounting information
LO: 1
2. Financial accounting is designed primarily for decision makers within the company.

Answer: False
Rationale: Financial accounting is designed primarily to provide information to decision makers outside
of the company, while managerial accounting is designed primarily for decision makers within the
company.

Topic: Investing activities
LO: 2
3. Investing activities are the acquiring and disposing of liabilities that a company needs in order to finance
its operating activities.

Answer: False
Rationale: Investing activities are the acquiring and disposing of assets that a company needs for the
production and sale of a company’s products and services.

Topic: Accounting equation
LO: 2
4. Assets must always equal liabilities plus stockholders’ equity.

Answer: True
Rationale: The accounting equation is Assets = Liabilities + Stockholders’ Equity. This relation must
always stay in balance.

.
Test Bank, Chapter 1 1-2

Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?

, Topic: Financing activities
LO: 2
5. Other than operating profit, there are three main sources of external financing.

Answer: False
Rationale: There are two main sources of financing: owner (also called shareholder or equity) financing
and nonowner (also called creditor or lender) financing.

Topic: Financing and investing activities
LO: 2
6. Financing activities are defined as the acquiring and disposing of resources for the purpose
of selling products and services.

Answer: False
Rationale: Financing activities are defined as methods a company uses to raise funds to pay for
resources. Investing activities are defined as the acquiring and disposing of resources for the purpose
of selling products and services.

Topic: Statement of cash flows
LO: 3
7. A statement of cash flows reports on cash flows for operating, investing and financing activities at a
point in time.

Answer: False
Rationale: A statement of cash flows reports on cash flows for operating, investing, and financing
activities over a period of time.

Topic: Retained earnings
LO: 3
8. Retained earnings are present on both the income statement and the statement of stockholders’ equity.

Answer: False
Rationale: Retained earnings are present in the statement of stockholders’ equity and the balance
sheet. The income statement represents current period earnings.

Topic: Balance sheet
LO: 3
9. If Beatty Company reports retained earnings of $242.6 million on its balance sheet, it will also
report $242.6 million in cash.

Answer: False
Rationale: The accounting equation requires total assets to equal total liabilities plus stockholders’
equity. That does not imply, however, that liability and equity accounts relate directly to specific assets.

.
1-3 Financial Accounting, 7th Edition

Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Succeed. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €24,15. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 69411 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Begin nu gratis

Tentamen (uitwerkingen)

FINANCIAL ACCOUNTING 7TH EDITION BY MICHELLE HANLON, ROBERT MAGEE, GLENN PFEIFFER TEST BANK

Document informatie

Onderwerpen

Geschreven voor

Verkoper

Ontvangen beoordelingen

Voorbeeld van de inhoud