1.

Question :

(TCO A, B, C) External users want answers to all of the following questions except:

Student Answer:

Is the company earning satisfactory income?

Will the company be able to pay its debts as they come due?

Did the company use a budget to plan its expenses?

How does the company compare in profitability with competitors?

Instructor Explanation:

Chapter 1 page 6

Points Received:

3 of 3

Comments:

2.

Question :

(TCO C) Borrowing money is an example of a(n):

Student Answer:

delivering activity.

financing activity.

investing activity.

operating activity.

Instructor Explanation:

Chapter 1 page 9

Points Received:

3 of 3

Comments:

3.

Question :

(TCO C) Buying and selling products are examples of:

Student Answer:

operating activities.

investing activities.

financing activities.

delivering activities.

Instructor Explanation:

Chapter 1 page 10

Points Received:

3 of 3

Comments:

4.

Question :

(TCO A) Resources owned by a business are referred to as:

Student Answer:

stockholders’ equity.

liabilities.

assets.

revenues.

Instructor Explanation:

Chapter 1 page 9

Points Received:

3 of 3

Comments:

5.

Question :

(TCO C) Jamie Company recorded the following cash transactions for the year:

Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.

What was Jamie’s net cash provided by operating activities?

Student Answer:

$47,000

$54,000

$27,000

$33,000

Instructor Explanation:

$130,000 – 70,000 – 6,000 = $54,000
Chapter 1 page 10