2010 06 12 220002 Lowproc

ACC/400 Final Exam Name ________________________________________ PartIIIIIITotalPoints206020100Score Part I 20pts Multiple Choice (2 pt each) 1. The best definition of assets is the cash owned by the company. collections of resources belonging to the company and the claims on these resources. Owners investment in the business. resources belonging to a company have future benefit to the company. 2. Liabilities a. are future economic benefits. b. are debts and obligations. c. possess service potential. d. are things of value owned by a business. 3. Notes to the financial statements are optional. help clarify information presented in the financial statements. are generally brief and few in number. need not be read in detail if an unqualified opinion accompanies the financial statements. 4. The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) account payable. account receivable. revenue. expense. 5. An income statement a. summarizes the changes in retained earnings for a specific period of time. b. reports the changes in assets, liabilities, and stockholders equity over a period of time. c. reports the assets, liabilities, and stockholders equity at a specific date. d. presents the revenues and expenses for a specific period of time. 6. Liabilities a. are future economic benefits. b. are debts and obligations. c. possess service potential. d. are things of value owned by a business. 7. Payments to stockholders are called a. expenses. b. liabilities. c. dividends. d. distributions. 8. The discontinued operations section of the income statement refers to a. discontinuance of a product line. b. the income or loss on products that have been completed and sold. c. obsolete equipment and discontinued inventory items. d. the disposal of a significant segment of a business. Use the following information for questions 9-10. The following amounts were taken from