CFIN FINANCIAL ACCOUNTING FINAL EXAM

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CFIN FINANCIAL ACCOUNTING FINAL EXAM

CORRECT SOLUTIONS.

Financial markets in the United States are regulated by which of the following organizations? - correct answer- Securities and exchange commission (SEC)

Which type of business organization is a taxable entity, separate and apart from its owners? - correct answer- corporation

Which accounting principle or assumption assumes that an entity will remain in operation for the foreseeable future? - correct answer- going concern assumption

Red Door Boutique is famous for fashion wristwatches and leather purses. At the end of a recent year, Red Door's total assets added up to $485,000,000, and liabilities were $163,000,000. How much was Red Door's equity? - correct answer- 322000000

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Assume that Red Door Boutique purchased supplies on account for $58,000. How would this transaction affect Red Door's accounting equation? - correct answer- increase assets and liabilities by 58000

Which field of accounting provides information to external decision makers such as investors and lenders? - correct answer- financial accounting

Which of the following is a characteristic of a limited-liability company? - correct answer- indefinite life

Last year, Internet Service Company (ISC) sold services on account for $75,000 and incurred expenses totaling $48,000. At the end of the year, the balance for Accounts Receivable was $10,000, and the balance for Accounts Payable was $8,000.What was ISC's net income or net loss for the year? - correct answer- net income of 27000

The income statement reports the - correct answer- results of operations for a specific period

On the 2016 income statement, Red Door Boutique reported net income of $900,000. The company reported beginning total

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