ACC 561 Final Exam Study Guide
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Question 1
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Harder to transfer ownership.
Most common form of organization.
Reduced legal liability for investors.
Lower taxes.
Question 2
The group of users of accounting information charged with achieving the goals of the business is its creditors. investors. managers. auditors.
Question 3
Which of the following financial statements is concerned with the company at a point in time?
Income statement.
Balance sheet.
Retained Earnings statement.
Statement of cash flows.
Question 4
An income statement reports the changes in assets, liabilities, and stockholders’ equity over a period of time. reports the assets, liabilities, and stockholders’ equity at a specific date. presents the revenues and expenses for a specific period of time. summarizes the changes in retained earnings for a specific period of time.
Question 5
The most important information needed to determine if companies can pay their current obligations is the relationship between short-term and long-term liabilities. net income for this year. projected net income for next year. relationship between current assets and current liabilities.
Question 6
A liquidity ratio measures the ability of a company to survive over a long period of time. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. income or operating success of a company over a period of time. percentage of total financing provided by creditors.
Question 7
The convention of consistency refers to consistent use of accounting principles among firms. throughout the accounting periods.
among
Instantly Download! Get Better Grades in Less Time!
100% Satisfaction Guarantee
DESCRIPTION FOR THIS STUDY GUIDE:
Question 1
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Harder to transfer ownership.
Most common form of organization.
Reduced legal liability for investors.
Lower taxes.
Question 2
The group of users of accounting information charged with achieving the goals of the business is its creditors. investors. managers. auditors.
Question 3
Which of the following financial statements is concerned with the company at a point in time?
Income statement.
Balance sheet.
Retained Earnings statement.
Statement of cash flows.
Question 4
An income statement reports the changes in assets, liabilities, and stockholders’ equity over a period of time. reports the assets, liabilities, and stockholders’ equity at a specific date. presents the revenues and expenses for a specific period of time. summarizes the changes in retained earnings for a specific period of time.
Question 5
The most important information needed to determine if companies can pay their current obligations is the relationship between short-term and long-term liabilities. net income for this year. projected net income for next year. relationship between current assets and current liabilities.
Question 6
A liquidity ratio measures the ability of a company to survive over a long period of time. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. income or operating success of a company over a period of time. percentage of total financing provided by creditors.
Question 7
The convention of consistency refers to consistent use of accounting principles among firms. throughout the accounting periods.
among