ACC 290 FINAL EXAM. Questions & Answers (100%)

ACC 290 FINAL EXAM. Questions &
Answers (100%)

ACC 290 FINAL EXAM. Questions & Answers (100%)


Question 1

The best definition of assets is the

a. resources belonging to a company that have future benefit to the company.

b. collections of resources belonging to the company and the claims on these resources.

c. cash owned by the company.

d. owners’ investment in the business.



Question 2

Which of the following is not a liability?

a. Accounts Receivable

b. Accounts Payable

c. Interest Payable

d. Unearned Service Revenue



Question 3

Which of the following financial statements is divided into major categories of operating,
investing, and financing activities?

a. The income statement.

b. The balance sheet.

c. The statement of cash flows.

, d. The retained earnings statement.



Question 4

Ending retained earnings for a period is equal to beginning

a. Retained earnings – Net income + Dividends.

b. Retained earnings – Net income – Dividends.

c. Retained earnings + Net income – Dividends.

d. Retained earnings + Net income + Dividends.



Question 5

Which of the following is not an advantage of the corporate form of business organization?

a. Easy to raise funds

b. Favorable tax treatment

c. No personal liability

d. Easy to transfer ownership




Question 6

An advantage of the corporate form of business is that

a. it has limited life.

b. its ownership is easily transferable via the sale of shares of stock.

c. it is simple to establish.

d. its owner’s personal resources are at stake.