1.

Sole proprietorships and partnerships are taxable entities. Tru e Fals e Score: 1 of 1

2.

Internal users of accounting information include a companys investors (or stockholders). Tru e Fals e Score: 1 of 1

3.

Interest expense would be classified under operating activities. Tru e Fals e Score: 0 of 1

4.

The balance sheet reports assets and claims to those assets at a specific point in time. Tru e Fals e

Score: 1 of 1

5.

The notes to the financial statements are not required. Tru e Fals e Score: 1 of 1

6.

The Statement of Cash Flows reports only cash flows from operations. Tru e Fals e Score: 1 of 1

7.

Only Certified Public Accountants may perform audits. Tru e Fals e Score: 1 of 1

8.

Easy transfer of ownership is a characteristic of which form of business organization? Sole proprietorship

Partnership Corporation All of the above Score: 1 of 1

9.

In which forms of business organization are the owners personally liable for all the debts of the business? Sole proprietorship and corporation Sole proprietorship and partnerships Partnership and corporation All of them Score: 1 of 1

10.

Internal users want answers to which of the following questions? What price for our product will maximize the companys net income? Which product line is most profitable? Is cash sufficient to pay dividends to stockholders? All of the above. Score: 1 of 1

11.

Which of the following is not an external user of accounting data?

Customers Economic planners Finance directors Labor unions Score: 1 of 1

12.

Paying interest expense and receiving interest revenue are examples of: Operating activities Delivery activities Financing activities Investing activities Score: 0 of 1

13.

The payment of dividends is an example of a(n): Investing activity Financing activity Operating activity

Delivery activity Score: 1 of 1

14.

Cost of goods sold is classified as what type account? Liabilit y Expens e Asset Reven ue Score: 1 of 1

15.

Which of the following would not appear on the income statement? Service revenue Dividends paid Interest expense Net income Score: 1 of 1

16.

Which of the following would not appear on the retained earnings statement?

Net income Service revenue Beginning retained earning balance Dividends Score: 1 of 1

17.

The financial statements are usually prepared in which of the following sequences? Balance sheet, statement of cash flows, income statement and retained earnings statement Income statement, retained earnings statement, balance sheet, and statement of cash flows Balance sheet, retained earnings statement, statement of cash flows, and income statement Income statement, balance sheet, retained earnings statement, and statement of cash flows Score: 1 of 1

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 18. in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. Stockholders' equity at the end of the year was: $110,0 00 $150,0 00 $135,0 00

$130,0 00 Score: 1 of 1

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 19. in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. Total liabilities at the end of the year were: $80,00 0 $105,0 00 $90,00 0 $110,0 00 Score: 1 of 1

20.

When the auditor is satisfied that the financial statements are presented in accordance with generally accepted accounting principles, a(n): Adverse opinion is expressed. Qualified opinion is expressed. Disclaimer of opinion is expressed. Unqualified opinion is expressed. Score: 1 of 1

21. The ending retained earnings balance appears on:

Both the retained earnings statement and the balance sheet. The retained earnings statement only. The balance sheet only. The income statement and the retained earnings statement. Score: 1 of 1

22.

The issuance of common stock is reported on the statement of cash flows as a(n): Investing activity Marketing activity Operating activity Financing activity Score: 1 of 1

Bac k 90.90%