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| Question : | (TCOs A, B, and C) Which of the following statements concerning users of accounting information is incorrect? | | | Student Answer: | | Management is considered an internal user. | | | | Present and prospective creditors are considered external users. | | | | Regulatory authorities, such as the SEC, are considered internal users. | | | | Taxing authorities are considered external users. | | Instructor Explanation: | See Chapter 1, page 7. | | | | Points Received: | 3 of 3 | | Comments: | | | |

2. | Question : | (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) | | | Student Answer: | | delivering activity. | | | | investing activity. | | | | financing activity. | | | | operating activity. | | Instructor Explanation: | See Chapter 1, page 9. | | | | Points Received: | 3 of 3 | | Comments: | | | |

3. | Question : | (TCO C) The statement of cash flows would disclose the payment of a dividend | | | Student Answer: | | nowhere on the statement. | | | | in the operating activities section. | | | | in the investing activities section. | | | | in the financing activities section. | | Instructor Explanation: | See Chapter 1, pages 9 and 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: | See Chapter 1, page 10. | | | | 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

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