ACCT 5312 HW 1-4 Questions

Which of the following entities would not require accounting information pertaining to their economic activities?

All of these entities require accounting information.

The authoritative financial accounting standards-setting body in the United States is presently the:

Financial Accounting Standards Board (FASB)

Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?

Probability of success of a new product development

Major classifications of accounting activity would not include:

financial accounting, national accounting, cost accounting.

An unqualified auditors' opinion about an entity's financial statements:

states that they are presented in conformity with accounting principles generally accepted in the United States.

Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide?

All of the answers are characteristics or limitations of the kind of information that financial reporting by business enterprises can provide.

The ethical concept of independence means that an accountant employed:

by an auditing firm cannot own any stock in the company being audited.

The ethical concept of integrity means that an individual must:

attempt to be honest and forthright in dealings and communications with others.

The balance sheet equation can be represented by:

All of the answers are correct.

The distinction between a current asset and other assets is based on:

when the asset is expected to be converted to cash or used to benefit the entity.

The income statement shows amounts for:

revenues, gains, expenses, and losses.

Paid-in Capital represents:

the amount invested in the company by the stockholders.

Retained Earnings represents:

cumulative net income that has not been distributed to stockholders as dividends.

The Statement of Cash Flows:

shows how cash changed during the period.

The balance sheet shows the following accounts and amounts:

Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.

Total liabilities on the balance sheet are:

$98,000

The balance sheet shows the following accounts and amounts:

Cash $13,000; Short-term Debt $21,000; Buildings and Equipment $420,000; Inventory, $44,000; Notes Payable $60,000; Accumulated Depreciation $110,000; Common Stock $80,000; Accounts Receivable $38,000; Retained Earnings $237,000; Accounts Payable $17,000.

Total assets on the balance sheet are:

$405,000.