PACE EXAM
COMPREHENSIVE
QUESTIONS (FREQUENTLY
TESTED) WITH VEIFIED
ANSWERS GRADED A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. what are assests Answer: resources controlled by company
2. basic elements of balance sheet
Answer: assests liabilities
stockholder equity
3. sole proprietorship Answer: 1 person owning company
4. partnership Answer: 2 or more owners
5. corporation Answer: separate entityfrom legeal and accounting perspective
6. accounting equation Answer: A=L+SE
7. how are debits and credits displayed Answer: DR on left and CR on right
8. expenses Answer: all cost of doing business that are necessary to earn revenue
9. purpose of retained earnings Answer: reports the way net income and distribution of
dividends attect financial position
10. retained earning formula Answer: beg RE + NI - DIVIDENDS=end RE
11. headings of financial statements contain
Answer: COMPANY NAME TYPE OF STATEMENT
DATE
2/
22
, Contact for further consultation
12. cash flows
Answer: Financing
Investing
Opertating
13. operating Answer: running the
business; short term asset change asset and
liabilities
14. investing Answer: buying and selling resources; long term asset
15. financing Answer: borrowing from banks ; long term liability; stocks and bonds
16. dividends Answer: distribution of earnings
17. revenue Answer: selling goods or services to customers
18. internal controls purposes Answer: methods company use to protect against
THEFT, enhance RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH LAWS
19. separation of duties Answer: each person assigned to specific job
20. internal controls Answer: ensure accuracy in accounting reports
21. interest formula Answer: (P*R*T) principal, rate, time
22. current assests Answer: assests the busniess will use up or turn into cash within 12
months
3/
22
COMPREHENSIVE
QUESTIONS (FREQUENTLY
TESTED) WITH VEIFIED
ANSWERS GRADED A+
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Contact for further consultation
1. what are assests Answer: resources controlled by company
2. basic elements of balance sheet
Answer: assests liabilities
stockholder equity
3. sole proprietorship Answer: 1 person owning company
4. partnership Answer: 2 or more owners
5. corporation Answer: separate entityfrom legeal and accounting perspective
6. accounting equation Answer: A=L+SE
7. how are debits and credits displayed Answer: DR on left and CR on right
8. expenses Answer: all cost of doing business that are necessary to earn revenue
9. purpose of retained earnings Answer: reports the way net income and distribution of
dividends attect financial position
10. retained earning formula Answer: beg RE + NI - DIVIDENDS=end RE
11. headings of financial statements contain
Answer: COMPANY NAME TYPE OF STATEMENT
DATE
2/
22
, Contact for further consultation
12. cash flows
Answer: Financing
Investing
Opertating
13. operating Answer: running the
business; short term asset change asset and
liabilities
14. investing Answer: buying and selling resources; long term asset
15. financing Answer: borrowing from banks ; long term liability; stocks and bonds
16. dividends Answer: distribution of earnings
17. revenue Answer: selling goods or services to customers
18. internal controls purposes Answer: methods company use to protect against
THEFT, enhance RELIABILITY, promote EFFICIENCY, ensure COMPLIANCE WITH LAWS
19. separation of duties Answer: each person assigned to specific job
20. internal controls Answer: ensure accuracy in accounting reports
21. interest formula Answer: (P*R*T) principal, rate, time
22. current assests Answer: assests the busniess will use up or turn into cash within 12
months
3/
22
