51 the ending balances on the statement of stockholders equity are also reported on 4352195

51.The ending balances on the statement of stockholders’ equity are also reported on the ________ .

a.sales chart

b.cash flow statement

c.balance sheet

d.income statement

52.Which of the following will affect a company's contributed capital?

a.the purchase of another company’s stock

b.the payment of dividends

c.the earning of net income

d.the issuance of stock

53.Great Confections Inc. had a balance of $200,000 in stockholders' equity at December 31, 2006. During 2007, the company had a net income of $50,000, distributed dividends of $30,000, and sold $10,000 of additional stock. What was the company's stockholders' equity at December 31, 2007?

a.$250,000

b.$220,000

c.$260,000

d.$230,000

54.For which of the following accounts would the use of historical costs be a greater limitation than for the other three?

a.cash

b.accounts receivable

c.buildings

d.inventory

55.Which of the following accounts might require the use of estimates and allocations in order to determine an amount of an expense to be recorded?

a.accounts receivable

b.depreciation

c.cash

d.sales

56.The way a company accounts for human resources is an example of which of the following financial statement limitations?

a.use of estimates and allocations

b.use of historical costs

c.omission of transactions

d.omission of resources and costs

57.Which of the following statements regarding the limitations of financial statements is FALSE?

a.many of the numbers of reported in financial statements result from estimates

b.financial statements report primarily the current value of assets

c.some important transactions may not be fully reported in a firm's financial statements

d.certain types of resources are not reported in the financial statements

58.All of the following could be considered limitations of financial statements EXCEPT:

a.use of estimates and allocations

b.reporting of historical costs

c.assets = liabilities + owners equity

d.delays in providing information to information users

59.Which of the following could be considered limitations in the usefulness of financial statements prepared under generally accepted accounting principles?

Omission of certain     Use of estimates

resources and costs     and allocations

a.Yes                       Yes

b.Yes                       No

c.No                        Yes

d.No                         No

 

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