ncorrect Question 6 0/0.23 pts Which of the following is the best definition of an internal user of accounting information? Investors who use accounting information to decide whether to buy or sell stock. Creditors like banks that use accounting information to evaluate the risk of lending money Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. Managers who use accounting information to plan, organize, and run a business. ncorrect Question 7 0/0.23 pts Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? Taxing authorities Regulatory agencies Labor Unions Management Question 10 0/0.23 pts The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) account payable. account receivable. revenue expense. rect Question 13 0/0.23 pts Issuing shares of stock in exchange for cash is an example of a(n) delivering activity investing activity financing activity. operating activity Incorrect Question 14 0/0.23 pts Debt securities sold to investors that must be repaid at a particular date some years in the future are called accounts payable. notes receivable. taxes payable. bonds payable. Incorrect Question 17 0/0.23 pts Expenses are incurred only on rare occasions to produce assets. to produce liabilities to generate revenues. Incorrect Question 21 0/0.23 pts Dividends are reported on the income statement retained earnings statement balance sheet. income statement and balance sheet. Incorrect Question 22 0/0.23 pts Dividends paid increase assets increase expenses decrease revenues. decrease retained earnings. Incorrect Question 24 0/0.23 pts Finney Company began the year by issuing $40,000 of common stock for cash. The company recorded revenues of $370,000, expenses of $320,000, and paid dividends of $20,000. What was Finney's net income for the year? $30,000 $70,000 $50,000 $90,000 Incorrect Question 25 0/0.23 pts Gilkey Corporation began the year with retained earnings of $465,000. During the year, the company issued $630,000 of common stock, recorded expenses of $1,800,000, and paid dividends of $120,000. If Gilkey's ending retained earnings was $495,000, what was the company's revenue for the year? $1,830,000 $1,950,000 $2,460,000 $2,580,000 Incorrect Question 27 0/0.23 pts Jimmy's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. Stockholders' equity at the end of the year was $240,000. $200,000 $160,000. $180,000. Incorrect Question 31 0/0.25 pts Benedict Company compiled the following financial information as of December 31, 2014: Service revenue $560,000 Common stock 120,000 Equipment 160,000 Operating expenses 500,000 Cash 140,000 Dividends 40,000 Supplies 20,000 Accounts payable 80,000 Accounts receivable 60,000 Retained earnings, 1/1/14 300,000 Benedict's retained earnings on December 31, 2014 are $300,000 $360,000 $320,000 $ 20,000 Incorrect Question 36 0/0.23 pts Two primary external users of accounting information are investors and creditors. True False Incorrect Question 39 0/0.23 pts Payments to owners are operating activities. True False Question 40 0.23/0.23 pts Operating activities involve putting the resources of the business into action to generate a profit True False Incorrect Question 41 0/0.23 pts Net income is another term for revenue. True False
