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1. A major disadvantage of expensing an entity as a corporation is: a. Ability raise a large amount of capital b. No power text provided c. Limited liability d. Double taxation of dividends e. Indefinite life 2. Which financial statement answers the following question: "Third parties have a claim on what amount of the company's assets? I a. Balance Sheet b. Income Statement C. Statement of Retained Earnings d. Cash Flow Statement 3. Beginning stockholders equity was $600,000. Ending stockholders' equity was $816,000 Additional capital contributed by owners accumulated to $90,000. Dividends during the year amounted to $45,000. How much was net income for the year? a. $161,000 b. $216,000 c. $171,000 d. $162.000 4. The financial statements are prepared in which Order? a. Answer: Income Statement, Balance Sheet, Statement ret. earnings, Cash flow 5. If supplies account has a beginning balance of 6,000 and ending balance of 9500: a. More supplies were consumed that purchased during the period b. The company owes supplies less at the end of the period than beginning c. More supplies were purchased than consumed during the period d. Supplies expense has increased from the prior period e. Supplies expense has decreased from the prior period 6. Which of the following statements regarding the accrual accounting is TRUE? a. Expenses are recognized when payment is made b. Adjusting entries should not be needed if accrual accounting is followed strictly c. Expenses are recognized in the same period as the related revenue d. Expenses are recognized at year end. E e. Accrual accounting is not appropriate for monthly financial statements 7. Miller Co. purchased astronomical equipment for $12,000 paying $3000 in cash and borrowing the remainder. Which of the following statements are true? Stockholders equity increases $12000 b. Stockholder equity increases $9000 c. Total assets increase $12000 d. Total liabilities increase $12000 e. Total assets increase $9000 8. The essential point of the double-entry system of accounting is that every transaction: a. Affects accounts on both side of the balance sheet b. Affects one income statement and one balance sheet account c. Recorded in both the journal and the budget

1. A major disadvantage of expensing an entity as a corporation is: a. Ability raise a large amount of capital b. No power text provided c. Limited llability d. Double taxation of dividends e. Indefinite life 2. Which financial statement answers the following question: Third parties have a claim on What amount of the company's assets? a. Balance Sheet b. Income Statement c. Statement of Retained Earnings d. Cash Flow Statement 3. Beginning stockholders equity was $600,000. Ending stockholders' equity was $816,000 Additional capital contributed by owners accumulated to $90,000. Dividends during the year amounted to $45,000. How much was net income for the year? a. $161,000 b. $216,000 c. $171,000 d. $162,000 4. The financial statements are prepared in which Order? a. Answer: Income Statement, Balance Sheet, Statement ret. earnings, Cash flow 5. If supplies account has a beginning balance of 6,000 and ending balance of 9500 : a. More supplies were consumed that purchased during the period b. The company owes supplies less at the end of the period than beginning c. More supplies were purchased than consumed during the perlod d. Supplies expense has increased from the prior period e. Supplies expense has decreased from the prior period 6. Which of the following statements regarding the accrual accounting is TRUE? a. Expenses are recognized when payment is made b. Adjusting entries should not be needed if accrual accounting is followed strictly c. Expenses are recognized in the same period as the related revenue d. Expenses are recognized at year end... e. Accrual accounting is not appropriate for monthly financial statements 7. Miller Co. purchased astronomical equipment for $12,000 paying $3000 in cash and borrowing the remainder. Which of the following statements are true? a. Stockhoiders equity increases $12000 b. Stockholder equity increases $9000 c. Total assets increase $12000 d. Total Iiabilitiesincrease $12000 e. Total assets increase $9000 8. The essential point of the double-entry system of acoounting is that every transaction: a Affects accounts on both side of the balance sheet b. Affects one income statement and one balance sheet account c. Recorded in both the joumal and the budget

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