72 Free Test Bank for Financial Accounting The Impact on Decision Makers 7th Edition by Porter

With the desire to bring the most effective approach to financial accounting for students, we would like to introduce 72 free test bank for Financial Accounting The Impact on Decision Makers 7th Edition by Porter Multiple Choice Questions including question bank keeping abreast of textbook content from basic to advanced. Through these questions, students will grasp the text in their hand without spending too much time on learning each chapter. All financial accounting concepts are illustrated in each of free accounting questions with detailed and understandable explanations. Just need to click immediately as below and submit answers to see exact results.

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What is the name of the branch of accounting concerned with providing managers and administrators with information to facilitate the planning and control of business operations?

•  Management accounting
•  Auditing
•  Financial accounting
•  Bookkeeping

Which of the following best describes the term “assets”?

•  The amount of total profits earned by a business since it began operations.
•  The amount of interest or claim that the owners have in the business.
•  The economic resources of a business entity.
•  The cumulative profits earned by a business less any dividends distributed.

Which of the following statements would be true if you own stock in a company?

•  You are an owner of the retained earnings and capital stock of the company.
•  You have a claim to the assets of the business
•  You have the right to receive interest on an annual basis.
•  You have the right to a portion of the company’s revenues each accounting period.

Which of the following is an organization that lends funds to a business entity and expects repayment of the funds?

•  A partner
•  A stockholder
•  An owner
•  A credi tor

Clark Corp. reported the following information for the year ended December 31, 2012: Revenues: $ 50,000; Expenses: 20,000; Retained earnings at December 31, 2011: 100,000; Retained earnings at December 31, 2012: 105,000; How much was paid out in dividends by Clark in 2012?

•  $ 20,000
•  $ 25,000
•  $ 30,000
•  $ 50,000

Which one of the following is an economic obligation for a business entity?

•  Salaries paid to employees for services rendered
•  Amounts owed to creditors
•  Materials used in manufacturing products
•  Payment of rent for the next year

Which financial statement would you refer to in order to determine whether a company owed funds to creditors?

•  Balance Sheet
•  Statement of Retained Earnings
•  Income Statement
•  Statement of Public Accounting

Raymond Corporation reported the following information for the year ended December 31, 2012: Net income $ 10,000; Dividends 6,000; Retained earnings at December 31, 2012 25,000; What was the balance of Raymond’s retained earnings at January 1, 2012?

•  $21,000
•  $29,000
•  $31,000
•  $35,000

Which one of the following is a correct expression of the accounting equation?

•  Assets + Liabilities = Owners’ Equity
•  Assets = Liabilities - Owners’ Equity
•  Assets + Owners’ Equity = Liabilities
•  Assets = Liabilities + Owners’ Equity

Which one of the following financial statements reports an entity’s financial position at a specific date?

•  Balance sheet
•  Statement of retained earnings
•  Income statement
•  Both the income statement and the balance sheet

Which one of the following groups is considered an internal user of financial statements?

•  A bank reviewing a loan application from a corporation.
•  The labor union representing employees of a company that is involved in labor negotiations
•  The financial analysts for a brokerage firm who are preparing recommendations for the firm’s brokers on companies in a certain industry,
•  Factory managers that supervise production line workers.

Raymond Corporation reported the following information for the year ended December 31, 2012: Net income $ 10,000; Dividends 6,000; Retained earnings at December 31, 2012 25,000; What was the economic effect of the payment of Raymond’s dividends?

•  The dividend reduced net income for 2012.
•  The dividend should be equal to net income if the company’s accounting equation is in balance.
•  The dividends reduce total retained earnings for the year.
•  The dividends must be paid whenever Raymond Corp. reports net income.

Which one of the following is not an external user of financial statements?

•  Suppliers
•  Creditors
•  Investors
•  The company’s controller

Which of the following invests funds into a business and is considered an owner?

•  Stockholders
•  Creditors
•  Bankers
•  Lenders

How is the balance sheet linked to the other financial statements?

•  The amount of retained earnings reported on the balance sheet is equal to net income.
•  Retained earnings is added to total assets and reported on the balance sheet.
•  Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet.
•  There is no link between the balance sheet and other statements, as each contains different accounts and provides different information.

Which of the following best describes the term “retained earnings”?

•  The amount of total profits earned by a business since it began operations.
•  The amount of interest or claim that the owners have on the assets of the business.
•  The future economic resources of a business entity.
•  The cumulative profits earned by the business less any dividends distributed.

Which statement summarizes the income earned and the dividends paid?

•  Statement of cash flows
•  Statement of retained earnings
•  Balance sheet
•  Income statement

Which of the following best describes the term “expenses”?

•  The amount of total profits earned by a business since it began operations.
•  The amount of interest or claim that the owners have in the business.
•  The future economic resources of a business entity.
•  The outflow of assets resulting from the sale of goods and services.