ACCT 5312 Exam 1 Questions and Answers
Practice Questions with Solutions Newest |
Already Graded A+
Question 1
Which of the following are reported in the statement of changes in stockholders'
equity?
A) Net income for the year only
B) Total stockholders' equity at the end of the year only
C) Net income, dividends, common stock issued, ending retained earnings, and
ending total equity
D) Only dividends and common stock issued
- ANSWER- Net income, dividends, common stock issued, ending retained
earnings, and ending total equity
Question 2
In the United States, the dollar is the ______ of ______ for all transactions.
A) unit; measurement
B) measure; unit
C) standard; value
D) basis; recording
- ANSWER- unit; measurement
Question 3
Which of the following statements is true regarding the statement of cash flows?
,A) Cash received from the sale of buildings or equipment is an investing activity,
and the activity is a source of cash
B) Depreciation expense is added back to net income in the financing activities
section
C) The increase in accounts payable for the year is a use of cash
D) Cash received from the sale of long-term debt is an operating activity
- ANSWER- Cash received from the sale of buildings or equipment is an investing
activity, and the activity is a source of cash
Question 4
Depreciation expense is added back to net income in which section of the
statement of cash flows?
A) Operating activities
B) Investing activities
C) Financing activities
D) Non-cash activities
- ANSWER- Operating activities
Question 5
An increase in accounts payable for the year is a:
A) Source of cash and is shown as an operating activity
B) Use of cash and is shown as an operating activity
C) Source of cash and is shown as a financing activity
D) Use of cash and is shown as an investing activity
- ANSWER- Source of cash and is shown as an operating activity
Question 6
Cash received from the sale of long-term debt is a:
,A) Financing activity, and the activity is a source of cash
B) Financing activity, and the activity is a use of cash
C) Investing activity, and the activity is a source of cash
D) Operating activity, and the activity is a source of cash
- ANSWER- Financing activity, and the activity is a source of cash
Question 7
The three concepts/principles that relate to transactions are:
A) Unit of measurement, cost principle, and objectivity
B) Consistency, materiality, and conservatism
C) Revenue recognition, matching, and full disclosure
D) Historical cost, fair value, and relevance
- ANSWER- Unit of measurement, cost principle, and objectivity
Question 8
Which of the following statements are true regarding the matching concept?
A) Expenses are recorded in the period in which they are paid
B) Expenses are recorded in the period in which they are incurred
C) Revenues are recorded when cash is received
D) Revenues are recorded in the period in which they are earned
- ANSWER- Expenses are recorded in the period in which they are incurred;
Revenues are recorded in the period in which they are earned
Question 9
Limiting a firm's ability to switch back and forth between alternative generally
accepted accounting methods is driven by which concept/principle?
A) Consistency
B) Materiality
, C) Conservatism
D) Comparability
- ANSWER- Consistency
Question 10
Which statement about trend analysis is correct?
A) It generally leads to a more meaningful analysis when conducted over several
years than does the observation of a single year's ratio result
B) It is less meaningful than a single year's ratio
C) It is only useful for profitability ratios
D) It cannot be used with liquidity ratios
- ANSWER- It generally leads to a more meaningful analysis when conducted
over several years than does the observation of a single year's ratio result
Question 11
The annual rate of return on a six-month investment of $1,000 that earns a return
of $100 is:
A) 5%
B) 20%
C) 10%
D) 15%
- ANSWER- 20%
Question 12
How is the amount of interest earned on an investment calculated?
A) Interest = Principal ($) x Rate (%) x Time (Yrs)
B) Interest = Principal ($) / Rate (%) / Time (Yrs)
Practice Questions with Solutions Newest |
Already Graded A+
Question 1
Which of the following are reported in the statement of changes in stockholders'
equity?
A) Net income for the year only
B) Total stockholders' equity at the end of the year only
C) Net income, dividends, common stock issued, ending retained earnings, and
ending total equity
D) Only dividends and common stock issued
- ANSWER- Net income, dividends, common stock issued, ending retained
earnings, and ending total equity
Question 2
In the United States, the dollar is the ______ of ______ for all transactions.
A) unit; measurement
B) measure; unit
C) standard; value
D) basis; recording
- ANSWER- unit; measurement
Question 3
Which of the following statements is true regarding the statement of cash flows?
,A) Cash received from the sale of buildings or equipment is an investing activity,
and the activity is a source of cash
B) Depreciation expense is added back to net income in the financing activities
section
C) The increase in accounts payable for the year is a use of cash
D) Cash received from the sale of long-term debt is an operating activity
- ANSWER- Cash received from the sale of buildings or equipment is an investing
activity, and the activity is a source of cash
Question 4
Depreciation expense is added back to net income in which section of the
statement of cash flows?
A) Operating activities
B) Investing activities
C) Financing activities
D) Non-cash activities
- ANSWER- Operating activities
Question 5
An increase in accounts payable for the year is a:
A) Source of cash and is shown as an operating activity
B) Use of cash and is shown as an operating activity
C) Source of cash and is shown as a financing activity
D) Use of cash and is shown as an investing activity
- ANSWER- Source of cash and is shown as an operating activity
Question 6
Cash received from the sale of long-term debt is a:
,A) Financing activity, and the activity is a source of cash
B) Financing activity, and the activity is a use of cash
C) Investing activity, and the activity is a source of cash
D) Operating activity, and the activity is a source of cash
- ANSWER- Financing activity, and the activity is a source of cash
Question 7
The three concepts/principles that relate to transactions are:
A) Unit of measurement, cost principle, and objectivity
B) Consistency, materiality, and conservatism
C) Revenue recognition, matching, and full disclosure
D) Historical cost, fair value, and relevance
- ANSWER- Unit of measurement, cost principle, and objectivity
Question 8
Which of the following statements are true regarding the matching concept?
A) Expenses are recorded in the period in which they are paid
B) Expenses are recorded in the period in which they are incurred
C) Revenues are recorded when cash is received
D) Revenues are recorded in the period in which they are earned
- ANSWER- Expenses are recorded in the period in which they are incurred;
Revenues are recorded in the period in which they are earned
Question 9
Limiting a firm's ability to switch back and forth between alternative generally
accepted accounting methods is driven by which concept/principle?
A) Consistency
B) Materiality
, C) Conservatism
D) Comparability
- ANSWER- Consistency
Question 10
Which statement about trend analysis is correct?
A) It generally leads to a more meaningful analysis when conducted over several
years than does the observation of a single year's ratio result
B) It is less meaningful than a single year's ratio
C) It is only useful for profitability ratios
D) It cannot be used with liquidity ratios
- ANSWER- It generally leads to a more meaningful analysis when conducted
over several years than does the observation of a single year's ratio result
Question 11
The annual rate of return on a six-month investment of $1,000 that earns a return
of $100 is:
A) 5%
B) 20%
C) 10%
D) 15%
- ANSWER- 20%
Question 12
How is the amount of interest earned on an investment calculated?
A) Interest = Principal ($) x Rate (%) x Time (Yrs)
B) Interest = Principal ($) / Rate (%) / Time (Yrs)
