Chapter 1 Quiz

Question 1

Income Taxes

Answer 1

Income Statement

Question 2

Liabilities

Answer 2

Balance Sheet

Question 3

Revenue

Answer 3

Income Statement

Question 4

Insurance Expense

Answer 4

Income statement

Question 5

Dividends

Answer 5

Stockholders’ Equity

Question 6

Accounts receivable

Answer 6

Balance Sheet

Question 7

Depreciation Expense

Answer 7

Income Statement

Question 8

Retained Earnings

Answer 8

Balance Sheet

Question 9

Cash from operating activities

Answer 9

Statement of Cash Flow

Question 10

Capital Stock

Answer 10

Balance sheet

Question 11

January 31, 2017 (point in time)

Answer 11

Balance Sheet

Question 12

For the year ended June 30, 2017

Answer 12

Income Statement, Stockholders Equity, Cash flow

Question 13

An obligation of a business

Answer 13

Liability

Question 14

The part of the Owners’ Equity that represents the income earned less dividends paid over the life of the entity

Answer 14

Retained Earnings

Question 15

The owners’ claims on the assets of the entity

Answer 15

Owners’ Equity

Question 16

Indicates the owners’ contribution to a corporation

Answer 16

Capital Stock

Question 17

An inflow of assets resulting from the sale of goods/services

Answer 17

Revenue

Question 18

A distribution of the new income of a business to its owners

Answer 18

Dividends

Question 19

A future economic benefit

Answer 19

Asset

Question 20

An outflow of assets resulting form the sale of goods/services.

Answer 20

Expense

Question 21

Group in the private sector with authority to set accounting standards

Answer 21

FASB (Financial Accounting Standards Board)

Question 22

The federal agency with ultimate authority to determine the rules for preparing statements for companies whose stock is sold to the public.

Answer 22

SEC (Securities and Exchange Commission)

Question 23

The professional organization of certified public accountants

Answer 23

AICPA (American Institute of Certified Public Accountants)

Question 24

A five member organization created by the Sarbanes-Oxley Act of 2002 to set auditing standards

Answer 24

PCAOB (Public Company Accounting Oversight Board)

Question 25

Responsible for collecting taxes and the interpretation and enforcement of the Internal Revenue Code

Answer 25

IRS (Internal Revenue Service)

Question 26

The group that sets international accounting standards

Answer 26

IASB (International Accounting Standards Board)