exam 1

Question 1

Business owned by two or more persons.

Answer 1

Partnership

Question 2

Entity legally separate from its owners.

Answer 2

Corporation

Question 3

Business owned by a single person.

Answer 3

Sole proprietorship

Question 4

Sales of products or services.

Answer 4

Revenues

Question 5

Owners’ claims to resources.

Answer 5

Stockholders’ Equity

Question 6

Distributions to stockholders.

Answer 6

Dividends

Question 7

Costs of selling products or services.

Answer 7

Expenses

Question 8

Resources of a company

Answer 8

Assets

Question 9

Amounts owed.

Answer 9

Liabilities

Question 10

Classify: Rent Expense

Answer 10

Expense

Question 11

Classify: Interest Revenue

Answer 11

Revenue

Question 12

Classify: Dividends

Answer 12

Dividend

Question 13

Classify: Land

Answer 13

Asset

Question 14

Classify: Accounts Payable

Answer 14

Liability

Question 15

Classify: Utilities Payable

Answer 15

Liability

Question 16

Classify: Cash

Answer 16

Asset

Question 17

Classify: Salaries Expense

Answer 17

Expense

Question 18

Classify: Common Stock

Answer 18

Stockholders’ Equity

Question 19

Classify: Service Revenue

Answer 19

Revenue

Question 20

What statement would “Change in owners’ claims to resources” be on

Answer 20

Statement of Stockholders’ Equity

Question 21

What statement would “Profitability of the company” be on?

Answer 21

Income Statement

Question 22

What statement would “Change in equity from nonowner sources” be on?

Answer 22

Statement of comprehensive income

Question 23

What statement would “ Change in cash as a result of operating, investing and financing activities” be on?

Answer 23

Statement of cash flows

Question 24

What statement would “ Resources equal creditors’ and owners’ claims to those resources” be on?

Answer 24

Balance Sheet

Question 25

Group that has been given power by Congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded.

Answer 25

Securities and Exchange Commission

Question 26

Independent, private-sector group that is primarily responsible for setting financial reporting standards in the United States.

Answer 26

Financial Accounting Standards Board

Question 27

Independent intermediaries that help to ensure that management appropriately applies financial reporting rules in preparing the company’s financial statements.

Answer 27

Auditors

Question 28

d. Body that is attempting to develop a single set of high-quality, understandable global accounting standards.

Answer 28

International Accounting Standards Board

Question 29

What business activity that corresponds with 'common stock'

Answer 29

Financing

Question 30

What business activity that corresponds with 'accounts receivable'

Answer 30

Operating

Question 31

What business activity that corresponds with 'Equiptment'

Answer 31

Investing

Question 32

What business activity that corresponds with 'inventory'

Answer 32

Operating

Question 33

What business activity that corresponds with 'loans'

Answer 33

Financing

Question 34

What business activity that corresponds with 'buildings'

Answer 34

Investing

Question 35

Equation for Assets

Answer 35

Assets = Liabilities + Stockholders' Equity

Question 36

Equation for Net Income

Answer 36

Net Income = Revenues - Expenses

Question 37

cash, inventory, supplies and buildings are all examples of what

Answer 37

assets

Question 38

suppliers, workers, utility companies and governments are all examples of what

Answer 38

creditors

Question 39

what are dividends

Answer 39

distributions to stockholders