Acct 201a Final Exam 2025 Test Bank With 500

pg. 1 Acct 201a Final Exam 2025 Test Bank With 500 Exam Prep Questions And Correct Answers/ Csuf Acct 201a Final Exam 2025/ New Acct 201a Final Exam Test Bank (Brand New!)

Gross profit is defined as:

• All revenues minus all expenses
• Sales Revenue minus Cost of Goods sold
• Sales Revenue minus Operating Expenses
• Income before income tax expense

B Financial accounting serves which primary function(s)?

• Measures business activities

II. Communicates business activities to interested parties III. Make business decisions on behalf of interested parties

• I only
• II only
• III only
• I and II

D Dividends are reported on the

• income statement.
• retained earnings statement.
• balance sheet.
• income statement and balance sheet.
• retained earnings statement.
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pg. 2

• Retained earnings at the end of the period is equal to

• retained earnings at the beginning of the period plus net income minus liabilities.
• retained earnings at the beginning of the period plus net income minus

dividends.

• net income.
• assets plus liabilities.
• retained earnings at the beginning of the period plus net income minus

dividends.

• Which of the following financial statements is concerned with the company at a

point in time?

• Balance sheet.
• Income statement.
• Retained Earnings statement.
• Statement of cash flows.
• Balance sheet.

• Jennner Corporation began the year with retained earnings of $155,000. During

the year, the company issued $210,000 of common stock, recorded expenses of $600,000, and paid dividends of $40,000. If Jenner's ending retained earnings was $165,000, what was the company's revenue for the year?

• $610,000
• $650,000
• $820,000
• $860,000
• $650,000
• Why should the income statement be prepared first?
• The statement of cash flows should be prepared first because it determines the

sources of cash. That information is then used in preparing the income statement.

• Net income from the income statement flows into the retained earnings

statement. The ending retained earnings balance then flows into the balance sheet.

• The income statement does not have to be prepared first. Financial statements 2 / 4

pg. 3 can be prepared in any order.

• None of these statements is correct.
• Net income from the income statement flows into the retained earnings

statement. The ending retained earnings balance then flows into the balance sheet.Carter Company compiled the following financial information as of December 31,

2007:

Revenues..........................$140,000 Common stock ....................30,000 Equipment ...........................40,000 Expenses .............................125,000 Cash ......................................35,000 Dividends ..............................10,000 Supplies ...................................5,000 Accounts payable ...................20,000 Accounts receivable ...............15,000 Retained earnings, 1/1/07 ......75,000

6. Carter's assets on December 31, 2007 are:

• $235,000
• $170,000
• $ 80,000
• $ 95,000
• $ 95,000

Carter Company compiled the following financial information as of December 31,

2007:

Revenues..........................$140,000 Common stock ....................30,000 Equipment ...........................40,000 Expenses .............................125,000 Cash ......................................35,000 Dividends ..............................10,000 Supplies ...................................5,000 Accounts payable ...................20,000 Accounts receivable ...............15,000 Retained earnings, 1/1/07 ......75,000 3 / 4

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7. Carter's retained earnings on December 31, 2007 are:

• $75,000
• $90,000
• $80,000
• $ 5,000
• $80,000

Carter Company compiled the following financial information as of December 31,

2007:

Revenues..........................$140,000 Common stock ....................30,000 Equipment ...........................40,000 Expenses .............................125,000 Cash ......................................35,000 Dividends ..............................10,000 Supplies ...................................5,000 Accounts payable ...................20,000 Accounts receivable ...............15,000 Retained earnings, 1/1/07 ......75,000

8. Carter's stockholders' equity on December 31, 2007 is:

• $105,000
• $110,000
• $ 80,000
• $120,000
• $110,000
• These are selected account balances on December 31, 2007.

Land (location of the corporation's office building) ...................$100,000 Land (held for future use) .....150,000 Corporate Office Building ....600,000 Inventory ............................200,000 Equipment ...........................450,000 Office Furniture ...................100,000 Accumulated Depreciation ..300,000

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