ACCT 101 FINAL EXAM Questions and Answers Updated 2024/2025.

ACCT 101 FINAL EXAM Questions and Answers Updated 2024/2025. A company's sales in 2010 were SR250,000 and in 2011 were SR287,500. Using 2010 as the base year, the sales trend percent for 2011 is: A. 100% B. 15% C. 87% D. 115% 2. The comparison of a company's financial condition and performance to a base amount is known as: A. Financial reporting B. Vertical analysis C. Horizontal ratios D. Investment analysis 3. The three most common tools of financial analysis are: A. Ratio analysis, horizontal analysis, financial reporting B. Horizontal analysis, vertical analysis, ratio analysis C. Trend analysis, financial reporting, ratio analysis D. Financial reporting, ratio analysis, vertical analysis ACCT 101 FINAL EXAM Questions and Answers Latest Updated 2024/2025 2 4. The dollar change for a financial statement item is calculated by: A. Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100 B. Subtracting the base period amount from the analysis period amount C. Subtracting the analysis period amount from the base period amount D. Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100 5. Industry standards for financial statement analysis: A. Are set by the financial performance and condition of the company's industry B. Are based on rules of thumb C. Are set by the government D. Are based on a company's prior performance 6. The ability to generate future revenues and meet long-term obligations is referred to as: A. Liquidity and efficiency B. Solvency C. Profitability D. Market prospects 3 7. The ability to meet short-term obligations and to efficiently generate revenues is called: A. Profitability B. Market prospects C. Solvency D. Liquidity and efficiency 8. Secured bonds: A. Are subordinated to those of other unsecured liabilities B. Are also referred to as debentures C. Have specific assets of the issuing company pledged as collateral D. Are backed by the issuer's bank 9. A bond traded at 102 ½ means that: A. The bond pays 2.5% interest B. The market rate of interest is 2.5% C. The bonds were retired at SR1,025 each D. The bond traded at SR1,025 per SR1,000 bond 10. Goods in transit are included in a purchaser's inventory: A. If the goods are shipped FOB destination B. When the purchaser is responsible for paying freight charges C. At any time during transit D. After the half-way point between the buyer and seller 4 11. Which of the following accounts types would be increased by a debit A. Assets and expense B. Liabilities and expense C. Equity and revenues D. Assets and equity 12. The basic sequence in the accounting process can best be described as: A. Source document, transaction, journal entry, trial balance, ledger account B. Transaction, source document, journal entry, ledger account, trial balance C. Transaction, journal entry, source document, ledger account, trial balance D. Transaction, source document, journal entry, trial balance, ledger account 13. Unearned revenue is reported on the financial statements as: A. A revenue on the balance sheet B. A liability on the balance sheet C. An unearned revenue on the income statement D. An asset on the balance sheet 14. Which equation best represents gross profit? A. gross sales less inventory B. net sales less cost of goods sold C. revenues less expenses D. assets less liabilities