A statement of cash flows summarizes information concerning the cash inflows receipts and outflows payments for a specific period of time.
Assets are resources owned by a business. Liabilities are the debts and obligations of the business. Liabilities represent claims of creditors on the assets of the business. Describe the components that supplement the financial statements in an annual report. Notes to the financial statements provide additional explanation or detail to make the financial statements more informative. Proprietorships in the United States generate more revenue than the other two forms of business enterprise.
Accounting communicates financial information about a business to both internal and external users. Financing activities for corporations include borrowing money and selling shares of their own stock.
Assets are resources owned by a business and provide future services or benefits to the business. Net income for the period is determined by subtracting total expenses and dividends from revenues.
The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company for a specific period of time.
All publicly traded U. An auditor is an accounting professional who conducts an independent examination of the accounting data presented by a company. Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics. The proprietorship form of business organization a. A business organized as a corporation a.
The partnership form of business organization a. Which of the following is not one of the three forms of business organization? Corporations b. Partnerships c. Proprietorships d. Most business enterprises in the United States are a. A business organized as a separate legal entity is a a. Which of the following is not an advantage of the corporate form of business organization? No personal liability b. Easy to transfer ownership c.
Favorable tax treatment d. Easy to raise funds. An advantage of the corporate form of business is that a. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? Reduced legal liability for investors b.
Harder to transfer ownership c. Lower taxes d. Most common form of organization. A corporation has which of the following set of characteristics? Shared control, tax advantages, increased skills and resources b. Simple to set up and maintains control with founder c. Easier to transfer ownership and raise funds, no personal liability d. Harder to raise funds and gives owner control. A small neighborhood barber shop that is operated by its owner would likely be organized as a a. A local retail shop has been operating as a sole proprietorship.
The business is growing and now the owner wants to incorporate. Which of the following is not a reason for this owner to incorporate? Ability to raise capital for expansion b. The prestige of operating as a corporation d. All of the following are advantages for choosing a proprietorship for a business except a. Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii. Which of the following statements is true regarding this debt?
Only Jack is personally liable for the debt, since he has been the managing partner during that time. Only Jill is personally liable for the debt of the business, since Jack has been working and she has not. Both Jack and Jill are personally liable for the business debt. Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity. Which one of the following questions is most likely asked by an internal human resources director for the company?
Which product line is most profitable? What price for our product will maximize the company income? What average pay raise is affordable for employees this year?
Should any product lines be eliminated? Which of the following are internal reports that accounting provides to internal users? Forecasts of cash needs for next year.
Financial comparisons of operating activity alternatives. Both forecasts of cash needs and financial comparisons are internal reports. Neither forecasts of cash needs or financial comparisons is an internal report. Which of the following is the best definition of an internal user of accounting information? Investors who use accounting information to decide whether to buy or sell stock.
Creditors like banks that use accounting information to evaluate the risk of lending money. Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. Managers who use accounting information to plan, organize, and run a business. External users of accounting information, like the Internal Revenue Service, are most commonly known as a. The Act calls for increased oversight responsibilities for boards of directors. The Act has resulted in increased penalties for financial fraud by top management.
The Act calls for decreased independence of outside auditors reviewing corporate financial statements. The Act is meant to decrease the likelihood of unethical corporate behavior. Which of the following is not a step for solving an ethical dilemma?
Identifying the alternatives and weighing the impact of each alternative on various stakeholders. Certifying the ethical accuracy of the financial information. Identifying and analyzing the principal elements in the situation. Recognizing the ethical situation and issues involved. Which of the following is the most appropriate and modern definition of accounting?
The information system that identifies, records, and communicates the economic events of an organization to interested users. A means of collecting information. The interconnected network of subsystems necessary to operate a business.
Electronic collection, organization, and communication of vast amounts of information. Which of the following would not be considered an internal user of accounting data for the Xanadu Company? President of the company b. Production manager c.
Merchandise inventory clerk d. Weygandt, Donald E. Accounting: Tools for Business Decision Making, 7th Edition is a two-semester financial and managerial accounting course designed to show students the importance of accounting in their everyday lives.
Emphasizing decision-making, this new edition features relevant topics such as data analytics as well as the time-tested features that have proven to be of most help to students. Solution Walkthrough Videos for Managerial Accounting: Author Paul Kimmel has expanded the number of Solution Walkthrough Videos, now with more walkthroughs focusing on the managerial accounting part of the course.
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Excel Function Videos Related to Data Analytics: Data Analytics is a hot topic in accounting, and these videos help students learn the competencies they need to be successful in their careers. An ever-expanding collection of previously administered exams, quizzes, and other assessment measures in a wide range of courses made available for current students as study aids.
Why should I use previously administered tests to study? A Solutions Manual contains all the answers to the questions in the book with detailed explanations and examples. You must be logged in to post a comment. Kimmel, J. Weygandt, E. Introduction to Financial Statements 2. A Further Look at Financial Statements 3.
The Accounting Information System 4. Accrual Accounting Concepts 5. Reporting and Analyzing Inventory 7. Fraud, Internal Control, and Cash 8. Reporting and Analyzing Receivables 9.
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