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ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide PaperScholar Study Aids
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ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide

ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide

ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide

This study guide includes solutions to Wiley plus exercises 1-7, 1-8, and week one practice quiz

exercise 1-7 & 1-8:

1. Indicate which statement you would examine the fine each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows

A. Revenue during the period
B. Supplies on hand at the end of the year.
C. Cash received from issuing new bonds during the period.
D. Total debts outstanding at the end of the period.

2. Use the basic accounting equation to answer these questions:

A. The liabilities of Daley company are $97,990 and the stockholders equity is $247,400. What is the amount of Daley company’s total assets?

B. The total assets of Laven company are $176,600 and its stockholders equity is $84,900. What is the amount of its total liabilities?

C. The total assets of Peterman Co. are $890,300 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co.’s stockholders’ equity?

week one practice quiz:

1. The proprietorship form of business organization
a. combines the records of the business with the personal records of the owner
b. is classified as a separate legal entity
c. must have at least two owners in most states
d. generally receives favorable tax treatment relative to a corporation

2. Most business enterprises in the United States are
a. partnerships
b. corporations
c. government units
d. proprietorships and partnerships

3. A business organized as a separate legal entity is a
a. government unit
b. proprietor
c. partnership
d. Corporation
4. Which of the following is the best definition of an internal user of accounting information?
a. Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits
b. creditors like banks that use accounting information to evaluate the risk of lending money
c. managers who use accounting information to plan, organize, and run a business
d. investors who use accounting information to decide whether to buy or sell stock

5. Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules?
a. Management
b. regulatory agencies
c. labor unions
d. taxing authorities

6. Which of the following groups uses accounting information to determine whether the company can pay its obligations?
a. Investors in common stock
b. marketing managers
c. creditors
d. chief financial officer

7. Which of the following financial statements is divided into major categories of operating, investing, and financing activities?
a. The retained earnings statement
b. the balance sheet
c. the statement of cash flows
d. the income statement

8. Ending retained earnings for a period is equal to:
a. beginning retained earnings – net income + dividends
b. beginning retained earnings + net income + dividends
c. beginning retained earnings – net income – dividends
d. beginning retained earnings + net income – dividends

9. The financial statement that summarizes the change in retained earnings for a specific period of time is the
a. statement of Cash flows
b. balance sheet
c. income statement
d. retained earnings statement

10. To show how successful your business performed during a period of time, you would report its revenues and expense in the
a. balance sheet
b. statement of Cash flows
c. income statement
d. retained earnings statement

11. Which financial statement is prepared first?
a. Balance sheet
b. retained earnings statement
c. statement of Cash flows
d. income statement

12. An income statement shows
a. revenues, expenses, and net income
b. assets, liabilities, and stockholders equity
c. revenues, liabilities, and stockholders equity
d. expenses, dividends, and stockholders equity

13. Dawson Corporation has the following information available for 2011:
(In millions)
Issued common stock $45
Retired common stock $65
Paid dividends $75
Net income $130
Beginning common stock balance $575
Beginning retained earnings balance $425

Based on this information, what is Dawson’s common stock balance at the end of the year?
a. $685
b. $195
c. $555
d. $630

14. Declaring a cash dividend will
a. increase retained earnings
b. increase common stock
c. decrease retained earnings
d. decrease common stock

15. At December 31, 2012 Lowery company had retained earnings of $2,184,000. During 2012 they issued stock for $98,000, and pay dividends of $34,000. Net income for 2012 was $402,000. The retained earnings balance at the beginning of 2012 was:
a. $2,552,000
b. $1,816,000
c. $1,914,000
d. $2,454,000

16. Which of the following organizations issues accounting standards for countries outside the United States?
a. FASB
b. SEC
c. GAAP
d. IASB

17. Generally accepted accounting principles
a. are accounting rules formulated by the Internal Revenue Service
b. have eliminated all errors in accounting
c. are sound in theory but rarely used in real life
d. are accounting rules that are recognized as a general guide for financial reporting

18. The agency of the United States government that oversees the US financial markets is the
a. security exchange commission
b. international auditing standards committee
c. financial accounting standards Board
d. Internal Revenue Service

19. What organization issues US accounting standards?
a. Security exchange commission
b. international auditing standards committee
c. financial accounting standards Board
d. international accounting standards committee

20. Two of the major characteristics that make accounting information useful are
a. understandability inconsistency
b. relevance and faithful representation
c. comparability and flexibility
d. verifiability and timeliness

21. If accounting information has relevance, it is useful in making predictions about
a. future IRS audits
b. new accounting principles
c. foreign currency exchange rates
d. the future events of a company