ACC 290 Orion WileyPLUS Build Your Proficiency
Chapter 1 thru 13 Financial Accounting 7e
Ch 1: Introduction to Financial Statements
Q 1.1: What
... [Show More] is the primary purpose of the statement of cash flows?
A to report a company's financing transactions
• B to present information about a company's assets and liabilities C to provide information about cash receipts and cash payments
• D to report how much revenue was retained in the business for future growth
Q 1.2:
Which financial statement summarizes the financial position of a company?
• A statement of cash flows B balance sheet
• C income statement
D retained earnings statement
Q 1.3: Which financial statement provides information for a specific point in time?
A balance sheet
B statement of cash flows
• C retained earnings statement
• D income statement
Q 1.4: The
Q 1.5: The income statement does not report cash received from the sale of stock because it is not considered revenue.
A True B False
Q 1.6: Torres Travel’s stockholders' equity at the beginning of March 2014 was
$200,000. During the month, the company earned net income of $50,000 and paid dividends of $10,000. At the end of March 2014, what is the amount of stockholders' equity?
• A $260,000
• B $200,000
• C $150,000 D $240,000
Q 1.7: According to the basic accounting equation,
Q 1.8: Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction?
A balance sheet only
B income statement, retained earnings statement, and balance sheet
• C income statement only
• D income statement and retained earnings statement only
Q 1.9:
Which of the following financial statements would be included in an annual report?
• A statement of cash flows B all of the choices are correct
• C retained earnings statement
• D income statement
Q 1.10: An independent audit of an annual report must be completed by a
certified public accountant
Q 1.11:
An owner who wants to have limited liability should form which type of business enterprise?
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