Final Exam ACG 2023 Paterson
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Which section of the annual report presents highlights of favorable or unfavorable
trends and
... [Show More] identifies significant events and uncertainties affecting a company's ability to
pay near-term obligations, and a company's ability to fund operations and expansion? -
ANS-management discussion and analysis
the segment of the annual report that presents an opinion regarding the fairness of the
presentation of the financial position and results of operations is/are the - ANS-auditor's
opinion
what section of a cash flows statement shows the amount of cash spent on new
equipment on the most recent accounting period - ANS-the investing section.
the investing section of the statement of cash flows provides information about property,
plant, and equipment accounts
which of the following is the most appropriate definition of accounting information? -
ANS-the information system that identifies, records, and communicates the economic
events of an organization to interest users
Chris's maid service began the year with total assets of $120,000 and stockholders'
equity of $40,000. During the year the company earned $120,000 in net income and
paid $15,000 in dividends. Total assets at the end of the year were $225,000. How
much are the total liabilities at the end of the year? - ANS-80,000
Ending Stockholders Equity = beginning stockholders equity + net income - dividends
A = L + SE
(225-145=80)
The ending balance of the retained earnings account appears on - ANS-both the
retained earnings statement and the balance sheet
resources owned by a business are referred to as - ANS-assets
the financial statements for Joanna Corporation contained the following account
information:
accounts receivable: $15,000
sales revenue: $90,000
Cash: $25,000
Salaries and wages expense: $30,000
Supplies expense: $10,000
How much was the corporations net income? - ANS-50,000
net income = revenues - expenses
90,000-30,000-10,000=50,000
Paying interest expense and receiving interest revenue are both examples of... - ANSoperating expense
which of the following is an example of a financing activity - ANS-issuing shares of
common stock...
IT IS NOT
buying delivery equipment
selling goods on account
buying inventory
the payment of dividends is an example of an - ANS-financing activity
Jeremiah Company recorded the following cash transactions for the year:
collected $350,000 from customers
collected $40,000 from lenders
paid $20,000 to purchase office equipment
paid $100,000 for salaries
paid $10,000 in dividends
paid $80,000 of goods and services
what was the company's net cash provided by operating activities for the year? - ANS-
$170,000
Operating activites include
-cash from customers
-salaries paid for salaries
-cash paid for goods and services
350-100-80=170,000
The balance sheet... - ANS-reports the assets, liabilities, and stockholders' equity at a
SPECIFIC date
the cost of assets consumed or services used is also known as... - ANS-an expense
If total liabilities decreased by $10,000 and total assets increased by $5,000 during a
period of time, then total stockholders' equity must have changed by what amount and
direction during that same period? - ANS-$15,000 increase
What are some of the results from the Sarbanes-Oxley Act? - ANS--increased penalties
for fraudulent activity increased
-top management must now certify the accuracy of financial information
-auditors cannot provide non-audit service to the same client
Easy transfer of ownership is a characteristic of which form of business organization? -
ANS-corporation
the sole proprietorship form of business organization generally receives... - ANSfavorable tax treatment relative to corporations
Which of the following are not considered to be external users of accounting
information? - ANS-company officers such as management
Which type of user wants to know the answers to the following questions?
-is cash sufficient to pay dividends to stockholders?
-what selling price for our product will maximize the company's net income?
-which product line is most profitable? - ANS-internal
which of the following best describes stockholders' equity? - ANS-the claims of the
owners
what order are current assets listed? - ANS-by liquidity
Total assets are $150,000, current liabilities are $10,000, long-term liabilities are
$20,000, common stock is $50,000, and retained earnings totals $70,000. How much is
total stockholders' equity? - ANS-$150,000 = 10,000 + 20,000 + x
SE= common stock + retained earnings
A = L + SE
The net cash inflow from operating activities is $200,000; cash received from issuing
stock is $150,000; cash paid for capital expenditures is $90,000; cash paid for bonds
held as an investment is $50,000; and cash paid for dividends is $20,000. How much is
free cash flow? - ANS-$90,000
free cash flow is cash provided by operating activities minus the cash paid for capital
expenditures and dividends paid.
Free cash flow = $200,000 - 90,000 - 20,000 = 90,000
Jose Inc. reports the following balances and amounts. The following information is
presented in random order.
Accounts payable, $ 125,000
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