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Which one of the following is least likely to be a user of financial information of a grocery store?

a. The manager of the grocery store

b. A customer at the grocery store

c. The supplier of milk to the grocery store

d. A stockbroker looking for a possible investment

Which of the following would be internal users of accounting information?

a. Employees and managers

b. Government and banks

c. Employees and customers

d. Customers and vendors

Which one of the following business decisions will least likely require financial information?

a. The Gulf Coast Bank is reviewing the loan application from Tuo's Restaurant.

b. Tuo's Restaurant is attempting to sell its stock to the public.

c. Tuo's Restaurant management is deciding whether to wash its catering vans today or tomorrow.

d. The labor union representing Flaggler's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement.

Moore Industries

Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

Read the information about Moore Industries. If the company's revenues were $500,000 for the year ended December 31, 2017, how much were total expenses?

a.$740,000

b.$160,000

c.$260,000

d.$640,000

Which one of the following items is reported as a current asset on a classified balance sheet?

a. Land

b. Common stock

c. Trucks

d. Accounts receivable

During its fifth year of operations, Bright Creations Company reports a beginning cash balance of $132,000, cash inflows from investing activities of $210,000, cash outflows for financing activities of $79,000, and cash outflows for operating activities of $13,000. What was Bright Creations' cash balance at the end of the fifth year?

a.$434,000

b.$276,000

c.$250,000

d.$132,000

Hopper, Inc.

Use the information from Hopper, Inc. to answer the following question.

2018 2017

Operating revenues $1,900,000 $1,600,000

Operating expenses 1,400,000 1,100,000

Income taxes 200,000 200,000

Read the information about Hopper, Inc. Which of the following statements is the best answer regarding the company's profit margin?

a. The profit margin was 31.5% in 2018.

b. The profit margin was 15.8% in 2017.

c. The profit margin was 31.5% in 2017.

d. The profit margin was 15.8% in 2018.

Business entities generally carry on

a. investing and operating activities, but only corporations engage in financing activities.

b. operating, investing, and financing activities.

c. operating activities, but only corporations engage in financing and investing activities.

d. either investing or financing activities, but not both.

Which set of items below includes current assets?

a. Cash, accounts receivable, capital stock, and sales

b. Accounts receivable, net income, inventory, and dividends

c. Cash, accounts receivable, inventory, and office supplies

d. Net income, cash, office supplies, and inventory

Cobb Company

Selected data from the accounting records of Cobb Company are listed below.

General and administrative expenses $2,200 Operating revenues $6,000

Selling expenses 1,800 Income taxes 600

Other revenues (expenses) 800 Dividends paid 1,200

Read the information about Cobb Company. What is Cobb's income from operations?

a.$2,200

b.$2,800

c.$1,600

d.$2,000

Jobston, Inc.

The balance sheet of Jobston, Inc. includes the following items:

Cash $22,400

Accounts receivable 11,700

Inventory 23,300

Prepaid insurance 1,040

Land 80,000

Accounts payable 47,500

Salaries payable 1,200

Capital stock 84,040

Retained earnings 5,700

Read the information about Jobston, Inc. What is Jobston's current ratio?

a.1.6 to 1

b.1.2 to 1

c.0.8 to 1

d.2.5 to 1

Which of the following statements is true concerning external users of financial information?

a. External users rely on management to tell them whether the company is a good investment.

b. External users need detailed records of the business to make informed decisions.

c. External users are primarily responsible for the preparation of financial statements.

d. External users rely on the financial statements to help make informed decisions.

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