Week 1 Quiz 1. The proprietorship form of business organization generally receives favorable tax treatment relative to a corporation. 2. Most business enterprises in the United States are proprietorships and partnerships. 3. A business organized as a separate legal entity is a corporation. 4. Which of the following is the best definition of an internal user of accounting information? Managers who use accounting information to plan, organize, and run a business. 5. Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? Regulatory agencies 6. Which of the following groups uses accounting information to determine whether the company can pay its obligations? Creditors 7. Which of the following financial statements is divided into major categories of operating, investing, and financing activities? The Statement of cash flows 8. Ending retained earnings for a period is equal to: Beginning retained earnings + Net income – Dividends 9. The financial statement that summarizes the changes in retained earnings for a specific period of time is the retained earnings statement. 10. To show how successfully your business performed during a period of time, you would report its revenues and expense in the income statement. 11. Which financial statement is prepared first? Income statement 12. An income statement shows revenues, expenses, and net income. 13. Dawson Corporation has the following information available for 2011: | | (in millions) | | Issued common stock | $45 | | Retired common stock | $65 | | Paid dividends | $75 | | Net income | $130 | | Beginning common stock balance | $575 | | Beginning retained earnings balance | $425 |
Based in this information, what is Dawson's Common Stock balance at the end of the year? $ 555