ACCT 5312 EXAM QUESTIONS WITH
CORRECT ANSWERS
Paid-in Capital represents: - CORRECT ANSWER✔✔-the amount invested in the
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entity by the stockholders
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Current U.S. Generally Accepted Accounting Principles and auditing standards
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require the financial statements of an entity for the reporting period to include: -
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CORRECT ANSWER✔✔-financial position at the end of the period.
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At the beginning of the fiscal year, the balance sheet showed assets of $2,728 and
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|stockholders' equity of $1,672. During the year, assets increased $148 and
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liabilities decreased $76. Liabilities at the end of the year totaled: - CORRECT
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ANSWER✔✔-$980
Retained Earnings represents: - CORRECT ANSWER✔✔-cumulative net income
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that has not been distributed to stockholders as dividends.
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The going concern concept refers to a presumption that: - CORRECT ANSWER✔✔-
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the entity will continue to operate in the foreseeable future.
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Which of the following accounting methods accomplishes much of the matching
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of revenues and expenses? - CORRECT ANSWER✔✔-Accrual accounting.
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, Inventory, $84,000; Long-term Debt 125,000; Common Stock $60,000; Accounts
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Payable $44,000; Cash $132,000; Buildings and Equipment $390,000; Short-term
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Debt $48,000; Accounts Receivable $109,000; Retained Earnings $204,000; Notes
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Payable (six-month) $54,000; Accumulated Depreciation $180,000. Total current
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liabilities on the balance sheet are: - CORRECT ANSWER✔✔-$146,000
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A concept or principle that relates to transactions is: - CORRECT ANSWER✔✔-
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original cost. |
Stockholders' equity refers to which of the following? - CORRECT ANSWER✔✔-
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The ownership right of the stockholder(s) of the entity.
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Matching revenues and expenses refers to: - CORRECT ANSWER✔✔-accurately
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reflecting the results of operations for a fiscal period.
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At the beginning of the year, paid-in capital was $164 and retained earnings was
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$94. During the year, the stockholders invested $48 and dividends of $12 were
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declared and paid. Retained earnings at the end of the year were $104.Net
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income for the year was: - CORRECT ANSWER✔✔-Beginning RE + NI - DIV =
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Ending RE, or $94 + ? - $12 = $104.
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Solve for the missing net income = $104 - $94 + $12 = $22
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The balance sheet equation can be represented by: - CORRECT ANSWER✔✔-
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Assets = Liabilities + Stockholders' Equity
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Assets - Liabilities = Stockholders' Equity
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Net Assets = Stockholders' Equity
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ANSWER: All of the above. | | | |
CORRECT ANSWERS
Paid-in Capital represents: - CORRECT ANSWER✔✔-the amount invested in the
| | | | | | | | | |
entity by the stockholders
| | |
Current U.S. Generally Accepted Accounting Principles and auditing standards
| | | | | | | | |
require the financial statements of an entity for the reporting period to include: -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-financial position at the end of the period.
| | | | | | | |
At the beginning of the fiscal year, the balance sheet showed assets of $2,728 and
| | | | | | | | | | | | | |
|stockholders' equity of $1,672. During the year, assets increased $148 and
| | | | | | | | | | |
liabilities decreased $76. Liabilities at the end of the year totaled: - CORRECT
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ANSWER✔✔-$980
Retained Earnings represents: - CORRECT ANSWER✔✔-cumulative net income
| | | | | | | |
that has not been distributed to stockholders as dividends.
| | | | | | | |
The going concern concept refers to a presumption that: - CORRECT ANSWER✔✔-
| | | | | | | | | | |
the entity will continue to operate in the foreseeable future.
| | | | | | | | |
Which of the following accounting methods accomplishes much of the matching
| | | | | | | | | | |
of revenues and expenses? - CORRECT ANSWER✔✔-Accrual accounting.
| | | | | | |
, Inventory, $84,000; Long-term Debt 125,000; Common Stock $60,000; Accounts
| | | | | | | | |
Payable $44,000; Cash $132,000; Buildings and Equipment $390,000; Short-term
| | | | | | | | |
Debt $48,000; Accounts Receivable $109,000; Retained Earnings $204,000; Notes
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Payable (six-month) $54,000; Accumulated Depreciation $180,000. Total current
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liabilities on the balance sheet are: - CORRECT ANSWER✔✔-$146,000
| | | | | | | |
A concept or principle that relates to transactions is: - CORRECT ANSWER✔✔-
| | | | | | | | | | |
original cost. |
Stockholders' equity refers to which of the following? - CORRECT ANSWER✔✔-
| | | | | | | | | |
The ownership right of the stockholder(s) of the entity.
| | | | | | | |
Matching revenues and expenses refers to: - CORRECT ANSWER✔✔-accurately
| | | | | | | | |
reflecting the results of operations for a fiscal period.
| | | | | | | |
At the beginning of the year, paid-in capital was $164 and retained earnings was
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$94. During the year, the stockholders invested $48 and dividends of $12 were
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declared and paid. Retained earnings at the end of the year were $104.Net
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income for the year was: - CORRECT ANSWER✔✔-Beginning RE + NI - DIV =
| | | | | | | | | | | | | |
Ending RE, or $94 + ? - $12 = $104.
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Solve for the missing net income = $104 - $94 + $12 = $22
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The balance sheet equation can be represented by: - CORRECT ANSWER✔✔-
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Assets = Liabilities + Stockholders' Equity
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Assets - Liabilities = Stockholders' Equity
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Net Assets = Stockholders' Equity
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ANSWER: All of the above. | | | |
