Ivy Software Financial Accounting FINAL, Financial
Accounting Pre Assessment, Financial Accounting Mba
Prep, Managerial Accounting-MBA Prep Final
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. A firm has the following assets and liabilities:
Cash: $10,500
Accounts Receivable: $35,000
Allowance for Doubtful Accounts: $2,000
Accounts Payable: $8,000
After preparing a classified balance sheet, what should the firm's total assets and
liabilities be? - ANSWER Total assets of $43,500, and total liabilities of $8,000
2. What should a journal entry include when a company purchases inventory
on account? - ANSWER Increase in liabilities
3. What would an accountant debit in order to record the purchase of
machinery made using a long-term loan? - ANSWER Machinery
,An examination of Company A's finances shows assets of $50,000 and
stockholder's equity of $45,000.
4. What are the liabilities for Company A? - ANSWER $5,000
A corporation paid $5,000 in gross pay to its employees for the current month's
payroll.
5. Which entry is needed? - ANSWER Debit wages expense $5,000
A company has four employees who are paid every two weeks. Each biweekly
payroll has a total expense of $7,500 and covers ten working days. The company
accountant is completing the bookkeeping for January, which includes four days of
the current pay period.
6. Which adjustment will need to be entered for these accruals? - ANSWER
Credit salary payable for $3,000
7. What determines the frequency of deposits of federal income taxes
withheld and Social Security and Medicare taxes? - ANSWER Amount
owed by the firm
8. Which concept is measured by the current ratio? - ANSWER Liquidity
, 9. Which characteristic of an organization is assessed using financial statement
analysis? - ANSWER Solvency
10.How can potential creditors use financial statement analysis? - ANSWER
To determine a company's ability to pay short-term debts
11.What does horizontal analysis evaluate? - ANSWER Increases or
decreases in financial statement information over a period of time
12.Which financial statement(s) contain the information needed to compute
the current ratio? - ANSWER Balance sheet
13.Which financial statement(s) contain the information needed to compute
return on sales? - ANSWER Income statement
14.Why would an accountant conduct financial forecasting? - ANSWER To
determine if a company will need additional investors
15.Stevie and Kate are new business owners trying to decide on a price for
widgets. Stevie decided widgets should be $40.
Which type of decision-making style did Stevie use? - ANSWER Autocratic
16.Mindy owns a small accounting firm that is considering increasing their
prices for some services. She calls the entire staff of 10 accountants to vote
on which services should make price changes.
, Which type of decision-making style is Mindy using? - ANSWER Democratic
17.James is a manager at a university. He has been asked to make a decision
regarding the need for new employees. He asks Mary for advice, as she has
made similar decisions in the past.
What role in the RACI matrix does Mary hold? - ANSWER Consulted
18. Jan, a sales representative in a manufacturing company, is discussing the
recent announcement of layoffs due to a reduction in product demand.
Little information has been circulated by management regarding which
departments will be affected. Jan has begun telling coworkers that
employees in the sales department will be impacted first because that is
what happened at her last job at a pharmaceutical company.
Why is Jan's statement considered an assumption? - ANSWER The statement
is unsupported by communication from management.
19. A chief financial officer (CFO) wants to increase the net income and assets
on the financial statements in order to get a bank loan. The CFO increased
revenues and accounts receivable by $50,000 to improve the financials even
though there was not an actual sale to a customer for that amount.
What is this behavior considered, according to accounting ethics standards? -
ANSWER It is unethical because it was fraudulent financial reporting.
Accounting Pre Assessment, Financial Accounting Mba
Prep, Managerial Accounting-MBA Prep Final
Comprehensive Resource To Help You Ace 2026-2027
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!!
Current Update!!
1. A firm has the following assets and liabilities:
Cash: $10,500
Accounts Receivable: $35,000
Allowance for Doubtful Accounts: $2,000
Accounts Payable: $8,000
After preparing a classified balance sheet, what should the firm's total assets and
liabilities be? - ANSWER Total assets of $43,500, and total liabilities of $8,000
2. What should a journal entry include when a company purchases inventory
on account? - ANSWER Increase in liabilities
3. What would an accountant debit in order to record the purchase of
machinery made using a long-term loan? - ANSWER Machinery
,An examination of Company A's finances shows assets of $50,000 and
stockholder's equity of $45,000.
4. What are the liabilities for Company A? - ANSWER $5,000
A corporation paid $5,000 in gross pay to its employees for the current month's
payroll.
5. Which entry is needed? - ANSWER Debit wages expense $5,000
A company has four employees who are paid every two weeks. Each biweekly
payroll has a total expense of $7,500 and covers ten working days. The company
accountant is completing the bookkeeping for January, which includes four days of
the current pay period.
6. Which adjustment will need to be entered for these accruals? - ANSWER
Credit salary payable for $3,000
7. What determines the frequency of deposits of federal income taxes
withheld and Social Security and Medicare taxes? - ANSWER Amount
owed by the firm
8. Which concept is measured by the current ratio? - ANSWER Liquidity
, 9. Which characteristic of an organization is assessed using financial statement
analysis? - ANSWER Solvency
10.How can potential creditors use financial statement analysis? - ANSWER
To determine a company's ability to pay short-term debts
11.What does horizontal analysis evaluate? - ANSWER Increases or
decreases in financial statement information over a period of time
12.Which financial statement(s) contain the information needed to compute
the current ratio? - ANSWER Balance sheet
13.Which financial statement(s) contain the information needed to compute
return on sales? - ANSWER Income statement
14.Why would an accountant conduct financial forecasting? - ANSWER To
determine if a company will need additional investors
15.Stevie and Kate are new business owners trying to decide on a price for
widgets. Stevie decided widgets should be $40.
Which type of decision-making style did Stevie use? - ANSWER Autocratic
16.Mindy owns a small accounting firm that is considering increasing their
prices for some services. She calls the entire staff of 10 accountants to vote
on which services should make price changes.
, Which type of decision-making style is Mindy using? - ANSWER Democratic
17.James is a manager at a university. He has been asked to make a decision
regarding the need for new employees. He asks Mary for advice, as she has
made similar decisions in the past.
What role in the RACI matrix does Mary hold? - ANSWER Consulted
18. Jan, a sales representative in a manufacturing company, is discussing the
recent announcement of layoffs due to a reduction in product demand.
Little information has been circulated by management regarding which
departments will be affected. Jan has begun telling coworkers that
employees in the sales department will be impacted first because that is
what happened at her last job at a pharmaceutical company.
Why is Jan's statement considered an assumption? - ANSWER The statement
is unsupported by communication from management.
19. A chief financial officer (CFO) wants to increase the net income and assets
on the financial statements in order to get a bank loan. The CFO increased
revenues and accounts receivable by $50,000 to improve the financials even
though there was not an actual sale to a customer for that amount.
What is this behavior considered, according to accounting ethics standards? -
ANSWER It is unethical because it was fraudulent financial reporting.
