Questions: Accounting for Managers
| 1. | Cash is another term for Stockholders’ Equity. | | | | True | | x| False | | | | Score: 1 of 1 |
| 2. | Explanatory notes and supporting schedules are an optional part of an annual report. | | | | | True | | x | False | | | | Score: 1 of 1 |
| 3. | Debt securities sold to investors that must be repaid at a particular date some years in the future are called | | | | | accounts payable. | | | notes receivable. | | | taxes payable. | | x | bonds payable. | | | | Score: 0 of 1 |
| 4. | Which activities involve acquiring the resources to run the business? | | | | | Delivering | | | Financing | | x | Investing | | | Operating | | | | Score: 1 of 1 |
| 5. | Which of the following is an asset? | | | | | Mortgage Payable | | x | Investments | | | Common stock | | | Retained earnings | | | | Score: 1 of 1 |
| 6. | Dividends paid | | | | | increase assets. | | | increase expenses. | | | decrease revenues. | | x | decrease retained earnings. | | | | Score: 1 of 1 |
| 7. | Net income results when | | | | | Assets > Liabilities. | | | Revenues = Expenses. | | x | Revenues > Expenses. | | | Revenues < Expenses. | | | | Score: 1 of 1 |
| 8. | Ashley’s Accessory Shop started the year with total assets of $70,000 and total liabilities of $40,000. During the year the business recorded $110,000 in revenues, $55,000 in expenses, and dividends of $20,000. Stockholders’ equity at the end of the year was | | | | | $60,000. | | | $55,000. | | | $65,000. | | x | $35,000. | | | | Score: 0 of 1 |
| 9. | If total liabilities increased by $14,000 during a period of time and stockholders’ equity decreased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total assets is a(n) | | | | | $14,000
| 2. | Explanatory notes and supporting schedules are an optional part of an annual report. | | | | | True | | x | False | | | | Score: 1 of 1 |
| 3. | Debt securities sold to investors that must be repaid at a particular date some years in the future are called | | | | | accounts payable. | | | notes receivable. | | | taxes payable. | | x | bonds payable. | | | | Score: 0 of 1 |
| 4. | Which activities involve acquiring the resources to run the business? | | | | | Delivering | | | Financing | | x | Investing | | | Operating | | | | Score: 1 of 1 |
| 5. | Which of the following is an asset? | | | | | Mortgage Payable | | x | Investments | | | Common stock | | | Retained earnings | | | | Score: 1 of 1 |
| 6. | Dividends paid | | | | | increase assets. | | | increase expenses. | | | decrease revenues. | | x | decrease retained earnings. | | | | Score: 1 of 1 |
| 7. | Net income results when | | | | | Assets > Liabilities. | | | Revenues = Expenses. | | x | Revenues > Expenses. | | | Revenues < Expenses. | | | | Score: 1 of 1 |
| 8. | Ashley’s Accessory Shop started the year with total assets of $70,000 and total liabilities of $40,000. During the year the business recorded $110,000 in revenues, $55,000 in expenses, and dividends of $20,000. Stockholders’ equity at the end of the year was | | | | | $60,000. | | | $55,000. | | | $65,000. | | x | $35,000. | | | | Score: 0 of 1 |
| 9. | If total liabilities increased by $14,000 during a period of time and stockholders’ equity decreased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total assets is a(n) | | | | | $14,000