Which one of the following groups is considered an internal user of financial statements?

a. A bank reviewing a loan application from a corporation

b .Factory managers who supervise production line workers

c. The labor union representing employees of a company that is involved in labor negotiations

d. The financial analysts for a brokerage firm who are preparing recommendations for the firm's brokers on companies in a certain industry

Which of the following statements would be true if you own stock in a company?

a. You have the right to a portion of the company's revenues each accounting period.

b. You have the right to receive interest on an annual basis.

c. You are an owner of the retained earnings and capital stock of the company.

d. You have a claim to the assets of the business.

Moore Industries

Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

Read the information about Moore Industries. If the company's revenues were $500,000 for the year ended December 31, 2017, how much were total expenses?

a.$740,000

b.$160,000

c.$260,000

d.$640,000

Hopper, Inc.

Use the information from Hopper, Inc. to answer the following question.

2018 2017

Operating revenues $1,900,000 $1,600,000

Operating expenses 1,400,000 1,100,000

Income taxes 200,000 200,000

Read the information about Hopper, Inc. Which of the following statements is the best answer regarding the company's profit margin?

a. The profit margin was 31.5% in 2018.

b. The profit margin was 15.8% in 2017.

c. The profit margin was 31.5% in 2017.

d. The profit margin was 15.8% in 2018.

Business entities generally carry on

a. investing and operating activities, but only corporations engage in financing activities.

b. operating, investing, and financing activities.

c. operating activities, but only corporations engage in financing and investing activities.

d. either investing or financing activities, but not both.

Which of the following statements is true concerning external users of financial information?

a. External users rely on management to tell them whether the company is a good investment.

b. External users need detailed records of the business to make informed decisions.

c. External users are primarily responsible for the preparation of financial statements.

d. External users rely on the financial statements to help make informed decisions.

Relevant information can be quantitative or qualitative. In deciding whether to go to college part time or full time, which of the following is a qualitative factor for a student?

a. The price of football tickets

b. The cost of tuition

c. "Good Student" discounts on auto insurance rates

d. The opportunity to make friends

Which one of the following sections is least likely to be found in a corporate annual report?

a. Notes to the Financial Statements

b .Management's Discussion and Analysis

c. Report of Independent Accountants

d. Forecasts of Cash Flows and Earnings

What is the correct method for calculating working capital?

a. Current Assets + Current Liabilities

b. Total Assets Total Liabilities

c. Current Assets Current Liabilities

d. Current Assets Total Liabilities

XYZ Corp. made cash sales to customers. What effect does this transaction have on the accounting equation?

a. There is no effect on the accounting equation as one asset account increases while another asset account decreases.

b. Assets increase and stockholders' equity increases.

c. Liabilities increase and stockholders' equity increases.

d. Assets increase and liabilities increase.

Which of the following statements regarding the activities of Casion Corp. is true?

a. Expenses decrease Casion's stockholders' equity.

b. Revenues decrease Casion's stockholders' equity.

c. Expenses increase Casion's stockholders' equity.

d. None of these choices are correct.