ACG 2021 FSU Paterson Final Exam
Questions and All Correct Answers
2025-2026 Updated.
Which of the following is true with regards to the forms of business organization? - Answer
Stockholders are generally not personally liable for their corporations' debts.
Which of the following are considered to be an internal user of accounting data for a company?
- Answer - A salesperson of a company
- The president of a company
- The finance director of a company
NOT
- Owners of the company
Which of the following is the most appropriate definition of accounting information? - Answer
The information system that identifies, records, and communicates the economic events of an
organization to interested users
Which of the following statements is true regarding the Sarbanes-Oxley Act (SOX)? - Answer
SOX required increased independence of the certified public accountants hired to audit a
company's financial statements.
Which of the following are considered a liability? - Answer - Interest Payable
- Notes Payable
- Accounts Payable
NOT
- Cost of Goods Sold
Which of the following is an asset? - Answer Accounts receivable
NOT
- Supplies expense
- Retained earnings
- Revenue
- Dividends
Paying cash to buy stocks or bonds of another company is an example of - Answer an
investing activity.
, Resources owned by a business are referred to as - Answer assets
What type of account or account classification is Retained Earnings? - Answer Liability
Which of the following is a primary purpose of the balance sheet? - Answer To report the
company's assets and claims to assets at a specific point in time
Which of the following would appear on a retained earnings statement? - Answer - The
ending retained earnings balance
- Dividends
- The beginning retained earnings balance
- Net income
A company borrows money from a bank. It should report the cash received from the bank on its
statement of cash flows as - Answer a financing activity.
Which financial statement reports assets, liabilities, and stockholders' equity as of a given date?
- Answer Balance sheet.
Which of the following best describes stockholders' equity? - Answer Stockholders' equity
are the claims of owners.
If total liabilities decreased by $75,000 and stockholders equity decreased by $25,000 during a
period of time, then total assets must change by what amount and direction during that same
period? - Answer $100,000 decrease
Publicly traded U.S. companies must provide shareholders with an annual report. Which of the
following are part of the annual report provided to shareholders? - Answer - Statement of
cash flows
- Auditor's report
- Notes to the financial statements
- Management discussion and analysis
If the auditor issuing the auditor's report is satisfied that the financial statements provide a fair
representation of the company's financial position and results of operation, the auditor
expresses - Answer an unqualified opinion.
Questions and All Correct Answers
2025-2026 Updated.
Which of the following is true with regards to the forms of business organization? - Answer
Stockholders are generally not personally liable for their corporations' debts.
Which of the following are considered to be an internal user of accounting data for a company?
- Answer - A salesperson of a company
- The president of a company
- The finance director of a company
NOT
- Owners of the company
Which of the following is the most appropriate definition of accounting information? - Answer
The information system that identifies, records, and communicates the economic events of an
organization to interested users
Which of the following statements is true regarding the Sarbanes-Oxley Act (SOX)? - Answer
SOX required increased independence of the certified public accountants hired to audit a
company's financial statements.
Which of the following are considered a liability? - Answer - Interest Payable
- Notes Payable
- Accounts Payable
NOT
- Cost of Goods Sold
Which of the following is an asset? - Answer Accounts receivable
NOT
- Supplies expense
- Retained earnings
- Revenue
- Dividends
Paying cash to buy stocks or bonds of another company is an example of - Answer an
investing activity.
, Resources owned by a business are referred to as - Answer assets
What type of account or account classification is Retained Earnings? - Answer Liability
Which of the following is a primary purpose of the balance sheet? - Answer To report the
company's assets and claims to assets at a specific point in time
Which of the following would appear on a retained earnings statement? - Answer - The
ending retained earnings balance
- Dividends
- The beginning retained earnings balance
- Net income
A company borrows money from a bank. It should report the cash received from the bank on its
statement of cash flows as - Answer a financing activity.
Which financial statement reports assets, liabilities, and stockholders' equity as of a given date?
- Answer Balance sheet.
Which of the following best describes stockholders' equity? - Answer Stockholders' equity
are the claims of owners.
If total liabilities decreased by $75,000 and stockholders equity decreased by $25,000 during a
period of time, then total assets must change by what amount and direction during that same
period? - Answer $100,000 decrease
Publicly traded U.S. companies must provide shareholders with an annual report. Which of the
following are part of the annual report provided to shareholders? - Answer - Statement of
cash flows
- Auditor's report
- Notes to the financial statements
- Management discussion and analysis
If the auditor issuing the auditor's report is satisfied that the financial statements provide a fair
representation of the company's financial position and results of operation, the auditor
expresses - Answer an unqualified opinion.
