A stockholder i-WPS Office

School: University of the People - Course: MACROECONO 1103 - Subject: Accounting

A stockholder is a. a person who determines the costs involved with providing goods and services b. an owner of stock in a business c. a business consultant that aids clients in understanding their financial circumstances Feedback The correct answer is: an owner of stock in a business Investing activity is a cash business transaction reported on the statement of cash flows that relates to ongoing day-to-day operations. a. True b. False Feedback The correct answer is: False Accounts Payable may be converted into a short-term payable if there are. a. estimation of cost b. default on payment c. a percentage of sales Feedback The correct answer is: a default on payment The current ratio shows how many times over a company can cover its liabilities. a.True b. False Feedback The correct answer is: True The expanded accounting equation breaks down the equity portion of the accounting equation in more detail. a. True b. False Feedback The correct answer is: True Tangible assets are typically amortized using the straight-line method over the useful life of the asset. a. True b. False Feedback The correct answer is: False In perpetual inventory systems, inventory errors commonly arise from careless oversight of physical counts. a.True b. False Feedback The correct answer is: False What are the basic four cost flow assumption methods? which are first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG). a. enterprise resource planning (ERP); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG) b. first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG) c. first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and lower-of-cost-or-market (LCM) Feedback The correct answer is: first-in, first-out (FIFO); last-in, first-out (LIFO); specific identification (SI); and weighted average (AVG) Liquidation is the sale of noncash assets for cash a.True b. False feedback correct answer is: False Not-for-profit (NFP) organizations do not have the same needs for internal control as many traditional for-profit entities. a.True b. False Feedback The correct answer is: False If the debit and credit columns equal each other, it means the expenses equal the revenues. a.True b. False Feedback The correct answer is: True The first-in, first-out method (FIFO) records costs relating to a sale as if the earliest purchased item would be sold last. a.True b.False feedback correct answer is: False Companies are required to record bad debt on financial statements as expenses. a.True b. False feedback correct answer is: True What provides the changes between the beginning and ending balances of each of the stockholders' equity accounts, including retained earnings? a. Owners' equity b.Statement of stockholders' equity c.None of the above Feedback The correct answer is: Statement of stockholders' equity Assume a company has a $1,000 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? a. $1,000 would show up on the balance sheet as a sale. b. $1,000 would show up on the income statement as a sale. c. $1,000 would show up on the statement of cash flows as a cash outflow. Feedback The correct answer is: that $1,000 would show up on the income statement as a sale. The_____________helps explain the mechanics of fraud by examining the common contributing factors of perceived opportunity, incentive, and rationalization. a. fraud triangle b. cash-basis c.purchases journal Feedback The correct answer is: the fraud triangle