5 Written Questions

1. accounting information is _______ when it shows a realistic picture of what it is meant to represent
2. different between the selling price and the par value in each stock transaction
3. computations made in financial analysis in which an item on a company's financial statements is divided by another related item
4. corporation owned by small number of investors, stock may not be purchased by general public, and the board places restrictions on the selling of stock by current stockholders
5. accounting information is ______ when it is capable of being verified

5 Matching Questions

1. What does contributed capital consist of?
2. intracompany analysis
3. percentage analysis
4. annual reports
5. horizontal analysis

1. a document that includes a company's IS, BS, and CFS along with other related financial accounting information
2. b comparing a company's current operations and financial position with its past results or with its expected results
3. c shows the changes in a company's operating results over time in percentages as well as in dollar amounts
4. d capital stock and additional paid-in capital
5. e financial analysis in which financial statement info is converted from dollars to percentages

5 Multiple Choice Questions

1. examination of a company's accounting records and financial statements by an independent CPA
   1. material
   2. auditing
   3. valid
   4. reliable
2. report the corporations total lifetime net income that has been reinvested in the corporation and not distributed to stockholders
   1. ratio analysis
   2. relevant
   3. auditing
   4. retained earnings
3. accounting information is __________ when it has the capacity to influence a user's decision
   1. valid
   2. reliable
   3. relevant
   4. par value
4. total investments made by stockholders in the corporation
   1. retained earnings
   2. material
   3. corporation
   4. contributed capital
5. shows each item in a financial statement of a given period or date both as a percentage of another item on the statement and as a dollar amount
   1. percentage analysis
   2. ratio analysis
   3. vertical analysis
   4. horizontal analysis

5 True/False Questions

1. sole proprietorship → company owned by one person who is the sole investor of capital into the company

   True        False

2. corporation → separate legal entity that is independent of its owners and is run by a board of directors

   True        False

3. par value → accounting information is _______ when it shows a realistic picture of what it is meant to represent

   True        False

4. partnership → accounting information is ______ when the monetary amount if large enough to make a different in a user's decision

   True        False

5. publicly held corporation → sell their stock to the general public, and there are no restrictions on the selling of stock by current stockholders

   True        False