The payment of a liability

Select one:

a. Increases assets and decreases liabilities

b. Decreases assets and stockholders equity

c. Decreases assets and increases liabilities

d. Decreases assets and decreases liabilities.

According to FASBs Conceptual Framework, the targeted users of externally reported financial accounting information is (are)

Select one:

a. Managers.

b. Investors and creditors.

c. The federal government.

d. Employees.

The purpose of closing entries is

Select one:

a. To test whether the accounts are in balance.

b. To zero out all of the accounts in the general ledger.

c. To prepare the permanent accounts to collect information for one accounting period at a time.

d. To prepare the temporary accounts to collect information for one accounting period at a time

Including all of the relevant data a reader needs to understand the financial condition and performance of a business refers to which concept?

Select one:

a. Objectivity concept.

b. Full disclosure concept.

c. Going concern concept.

d. Business entity concept.

The Statement of Shareholders Equity

Select one:

a. Reports the changes in the market value of the entitys stock.

b. Discloses the major changes in the equity accounts during the period.

c. Reports the major components of net income.

d. Indicates the resources of the entity

If the Supplies on Hand account has a balance of $250 and a physical count reveals $30 of supplies on hand, the appropriate adjusting entry will include

Select one:

a. A debit to Supplies on Hand for $30.

b. A credit to Cash for $30.

c. A debit to Supplies Expense for $220.

d. A credit to Supplies on Hand for $280.

A summary of revenue and expenses for a specific period of time is a(n)

Select one:

a. Balance sheet

b. Income statement

c. Statement of cash flows

d. Retained earnings statement

Referring to the Harley Davidson financial statements, what was the liabilities to stockholders' equity ratio for December 31, 2012?

Select one:

a. 2.586

b. .851

c. 1.709

d. .588

Short-term creditors are usually most interested in evaluating the ratios that are used to determine a company's short-term debt paying ability. These ratios include

Select one:

a. current ratio and average collection period.

b. times interest earned and inventory turnover.

c. earnings per share and profit margin.

d. debt to total assets ratio and quick ratio.