1. The primary objective of financial accounting is: (Points :


Question Description:

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1. The primary objective of financial accounting is: (Points : 2) To serve the decision-making needs of internal users To provide financial statements to help external users analyze and interpret an organization’s activities To monitor and control company activities To provide information on both the costs and benefits of managing products and services To know what, when and how much to produce 2. Which of the following elements are found on the income statement? (Points : 2) Cash Accounts Receivable Common Stock Retained Earnings Salaries Expense 4. Distributions of assets by a business to its stockholders are called: (Points : 2) Dividends Expenses Assets Retained earnings Net Income 7. Net Income: (Points : 2) Decreases equity Represents the amount of assets owners put into a business Equals assets minus liabilities Is the excess of revenues over expenses Represents the owners’ claims against assets 8. If equity is $300,000 and liabilities are $192,000, then assets equal: (Points : 2) $108,000 $192,000 $300,000 $492,000 $792,000 9. Risk is: (Points : 2) Net income divided by average total assets The reward for investment The uncertainty about the expected return that will be earned from an investment Unrelated to expected return

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