Financial Accounting Exam 1 Questions And Answers 100% Pass
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Financial Accounting
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Financial Accounting
Financial Accounting Exam 1 Questions And
Answers 100% Pass
Which of the following is not an advantage of the corporate form of business organization? -
answerBoth the business and the owners are taxed
The The three types of business activities in which every business, regardless of organizatio...
Financial Accounting Exam 1 Questions And
Answers 100% Pass
Which of the following is not an advantage of the corporate form of business organization? -
answer✔Both the business and the owners are taxed
The The three types of business activities in which every business, regardless of organizational
form, its industry or its size, is involved are: - answer✔Financing activities, operating activities,
investing activities
Which one of the following is not an external user of financial information? - answer✔Senior
company management
The area of accounting dealing with the preparation of financial statements showing a business's
results of operations, financial position, and cash flow is referred to as: - answer✔Financial
accounting
The communication activity of the accounting process must: - answer✔Prepare financial reports
and help interpret financial results to meet users' needs
Which of the following statements is true regarding generally accepted accounting principles
(GAAP)? - answer✔GAAP is subject to change as conditions warrant.
Financial accounting oversight in the United States is provided by all of the following
organizations except the: - answer✔International Accounting Standards Board (IASB)
Which of the following is a correct statement of the accounting equation in economic terms? -
answer✔Economic resources = creditor financing + owner financing
Which of the following is not part of the standard heading of a financial statement? -
answer✔The company's industry
What are the obligations or debts that a business must pay in cash or in goods and services at
some future time because of past transactions or events called and how are they reported? -
answer✔Liabilities on the balance sheet
Which of the following would be reported on a statement of retained earnings? -
answer✔Dividends
Which of the following is the correct order of the steps in the accounting cycle? -
answer✔Analyze, record, adjust, report, and close
Which of the following will properly record the payment of a two-year insurance policy? -
answer✔Increase and decrease assets
Which of the following accounts normally has a credit balance? - answer✔Notes Payable
In a double-entry accounting system: - answer✔A debit entry is recorded on the left side of an
account
The Cash T-account of Rainbow, Inc. has a beginning balance of $52,000. During the year,
$244,000 was debited and $241,000 was credited to the account. - answer✔$55,000
Which of the following journal entries will record the payment of a $2,550 accounts payable
originally incurred for Office Supplies? - answer✔Debit Accounts Payable; credit Cash
Which of the following is not a source document? - answer✔Account in general ledger
Which of the following is not true of the general journal? - answer✔It receives postings of dollar
amounts from the general ledger
A trial balance that balances is useful because it indicates with certainty that: - answer✔Total
debits in the general ledger equal total credits.
Anisha Company had a transaction that caused a $30,000 increase in both assets and liabilities.
This transaction could have been a(n): - answer✔Purchase of office equipment for $44,000,
paying $14,000 cash and issuing a note payable for the balance
Which one of the following is not a reason for which adjusting entries are made? - answer✔To
close the income statement accounts and prepare them for the following year's activity
Which of the following is a distinguishing characteristic of a deferral? - answer✔It includes the
adjustment of an amount previously recorded in a balance sheet account
A company provides services to clients during the period that are neither paid for, nor billed to
the clients. What must the company do? - answer✔Accrue revenue by making an adjusting entry
at the end of the period
As of the beginning of 2019, the Logistics Company had equipment totaling $1,800,000 which
was depreciated at $150,000 per year.
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