Financial accounting questions HELP!!?
The payment of a cash dividend to stockholders increases stockholders' equity. True or False?
2. An auditor who fails to detect a material misstatement of a business's financial statements may be sued by anyone who suffered a loss from relying on the finacial statements. True or False?
3. Atlantic Corp. reported the following amounts at the end of the first year of operations: contributed capital $100,000; sales revenue $400,000; total assets $300,000; $20,000 dividends; and total liabilities $160,000. Retained earnings and total expenses would be:
1. A. retained earnings $40,000 and expenses $340,000.
2. B. retained earnings $60,000 and expenses $320,000.
3. C. retained earnings $140,000 and expenses $240,000.
4. D. retained earnings $160,000 and expenses $220,000.
4. Accounting information developed primarily for internal decision makers is called
1. A.financial accounting
2. B.risk accounting
3. C. management accounting
4. D. auditing
5. Which of the following is not considered to be a liability?
1. A. accounts payable
2. B. notes payable
3. C. wages payable
4. D. cost of goods sold
6. The accounting equation (balance sheet equation) is
1. A. Assets + Liabilities = Stockholders' equity.
2. B. Assets + Stockholders' equity = Liabilities.
3. C. Assets = Liabilities + Stockholders' equtiy.
4. D. Revenues - Expenses = Net income.
7. On January 1, 2009 Mammoth Corporation had retained earnings of $4,000,000. During 2009, they reported net income of $750,000 and dividends of $1000,000. What is the amount of Mammoth's retained earnings at the end of 2009?
1. A. $4,000,000
2. B. $4,450,000
3. C. #4,650,000
4. D. $4,850,000
8. The operating activities section is often believed to be the most important part of a statement of cash flows because
1. A. it gives the most information about how operations have been finaced.
2. B. it indicates a company's ability to generate cash from sales to meet current cash payments for goods and services.
3. C. it shows the dividends that have been paid to stockholders.
4. D. it shows the net increase or decrease in cash during the period.
9. At the beginning of 2009, Buck Corporation had assets of $540,000 and liabilities of $320,000. During the year, assets increased by $50,000 and liabilities decreased by $10,000. What was the amount of stockholders' equity at the end of 2009?
1. A. $220,000
2. B. This is a trick question and can not be figured out with this limited amount of Weasel information.
3. C. $380,000
4. D. $280,000
10.How are differing claims of creditors and investors recognized by a corporation?
1. A. The claims of creditors are liabilities; those of investors are assets.
2. B. The claims of both creditors and investors are liabilities, but only the claims of investors are considered to be long term.
3. C. The claims of creditors are liabilities; the claims of investors are recorded as stockholders' equity.
4. d. The claims of creditors and investors are considered to be essentially equivalent.