Accounting exam testbank.pdf

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1. Financing that individuals or institutions have provided to a company is A. always classified as liabilities. B. classified as liabilities when provided by creditors and shareholders' equity when... provided by owners. C. always classified as shareholders' equity. D. classified as shareholders' equity when provided by creditors and liabilities when provided by owners. 2. Which of the following would affect shareholders' equity? A. A company borrows $100 million and buys $100 million in equipment. B. A company pays $100 million to shareholders as a dividend. C. A company sells $100 million in assets for $100 million cash. D. A company receives payment for $100 million in accounts receivable. 3. During 2007, a company's assets rise $56,000 and its liabilities rise $38,000. If no dividend is paid and no further capital is contributed, shareholders' equity would: A. rise $56,000. B. rise $18,000. C. fall $38,000. D. fall $94,000. 4. Which of the following is incorrect about the notes to the financial statements: A. explain what accounting policies were used to prepare the financial statements. B. provide additional information about what is included in the financial statements. C. provide additional information about financial matters that are not included in the financial statements. D. certify to the fact that the statements have been audited. 5. Investors are often interested in th [Show More]

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