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Total Assets: cash, equipment, building, land, accounts receivable Total Liabilities: notes payable, accounts payable Total Owner’s Equity: capital stock, retained earnings Exam Week 1 1. Intern... al users of financial accounting information include all of the following except:  Investors 2. The work of accountants practicing in public accounting may best be described as:  Providing various types of accounting services to a wide variety of clients 3. Financial statements may be prepared for which time period?  Any time period 4. The accounting standards and concepts used in the preparation of financial statements are called:  Generally accepted accounting principles (GAAP) 5. Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind is called:  Corporate Governance 6. During the month of May, Henderson Company had the following transactions: (1) Revenues of $60,000 were earned and received in cash. (2) Bank loans of $9,000 were paid off. (3) Equipment of $20,000 was purchased. (4) Expenses of $36,800 were paid. (5) Stockholders purchased additional shares for $22,000 cash. A statement of cash flows for May would report net cash flows from operating activities of:  $23,200 (Net Cash Flow=Revenues- Expenses: 60,000-36,800) Henderson Company Income Statement For the month of May Revenues $60,000 Expenses $36,800 Net Cash Flow (Net income) $23,200 7. Each year, the accountant for Southern Real Estate Company adjusts the recorded value of each asset to its market value. Using these market value figures on the balance sheet violates:  The cost principle 8. If $9,600 cash and a $31,000 note payable are given in exchange for some office machines to be used in a business:  Total assets are increased 9. Which of the following activities is not a category into which cash flows are classified?  Marketing Activities 10. From an accounting viewpoint, when is a business considered as an entity separate from its owner(s)?  A business is always considered as an accounting entity separate from the activities of the owner(s) 11. Which of the following describes the proper form of a balance sheet?  Liabilities are listed before owners’ equity 12. Thirty percent of the total assets of Shanahan Corporation have been financed through borrowing. The total liabilities of the company are $600,000. What is the amount of owners' equity?  $1,400,000 (30% of Assets = $600,000 Therefore, Assets = $2,000,000; Owners’ Equity = Total Assets − Total Liabilities: 2,000,000-600,000) 13. If during the [Show More]

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