CFIN FINANCIAL ACCOUNTING FINAL EXAM 2024
NEWEST ACTUAL EXAM COMPLETE 450 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+ //BRAND NEW!!
Financial markets in the United States are regulated by which of the following
organizations? - ANSWER: Securities and exchange commission (SEC)
Which type of business organization is a taxable entity, separate and apart from its
owners? - ANSWER: corporation
Which accounting principle or assumption assumes that an entity will remain in
operation for the foreseeable future? - ANSWER: going concern assumption
Red Door Boutique is famous for fashion wristwatches and leather purses. At the
end of a recent year, Red Door's total assets added up to $485,000,000, and
liabilities were $163,000,000. How much was Red Door's equity? - ANSWER:
322000000
Assume that Red Door Boutique purchased supplies on account for $58,000. How
would this transaction affect Red Door's accounting equation? - ANSWER: increase
assets and liabilities by 58000
Which field of accounting provides information to external decision makers such as
investors and lenders? - ANSWER: financial accounting
Which of the following is a characteristic of a limited-liability company? - ANSWER:
indefinite life
Last year, Internet Service Company (ISC) sold services on account for $75,000 and
incurred expenses totaling $48,000. At the end of the year, the balance for Accounts
Receivable was $10,000, and the balance for Accounts Payable was $8,000. What
was ISC's net income or net loss for the year? - ANSWER: net income of 27000
The income statement reports the - ANSWER: results of operations for a specific
period
On the 2016 income statement, Red Door Boutique reported net income of
$900,000. The company reported beginning total assets of $8,000,000 and ending
total assets of $10,000,000. What is Red Door's return on assets for 2016? -
ANSWER: 10.00%
Which of the following is a collection of all the accounts, the changes in those
accounts, and their balances? - ANSWER: ledger
, Which of the following statements is correct?
Service Revenue is increased with a debit.
Accounts Receivable is decreased with a debit.
Unearned Revenue is increased with a credit.
Retained Earnings is decreased with a credit. - ANSWER: unearned revenue is
increased with a credit
Suppose Howard Corporation has Furniture totaling $158,000, Cash of $18,000, and
a $64,000 Note Payable. In addition, the business has Accounts Payable of $52,000
and Accounts Receivable of $43,000. How much is Howard's stockholders' equity? -
ANSWER: 103000
Amada Company billed a customer for $5,500 of services provided on account. This
transaction appears in T-accounts as follows: - ANSWER: service revenue and
accounts receivable
Barstock, Inc., began the year with total assets of $177,000 and liabilities of
$112,000. During the year, the business earned revenue of $103,000 and incurred
expenses of $48,000. The stockholders received cash dividends of $24,000. How
much is stockholders' equity at year-end? - ANSWER: 96000
Hughes Copies, Inc., erroneously recorded a purchase of equipment on account by
debiting Equipment and crediting Cash. What will be an effect of this error on the
trial balance? - ANSWER: liabilities understated
Terry Baxter is a stockholder of Alpha Corp. In exchange for additional shares of
common stock, Baxter provided Alpha Corp with $75,000 of computer equipment.
The journal entry to record this transaction is as follows: - ANSWER: equipment
common stock
Which journal entry records a $5,500 payment for office supplies that were
previously purchased on account? - ANSWER: Accounts payable
cash
What is the detailed record of all increases and decreases that have occurred in a
specific individual asset, liability, or equity during a specific period? - ANSWER:
account
A company has $72,000 in liabilities and $98,000 in equity. What is the debt ratio? -
ANSWER: 42.4%
When should a company record earned revenue under accrual accounting? -
ANSWER: when services are rendered
The matching principle requires that - ANSWER: expenses are recorded when they
are incurred during a period
NEWEST ACTUAL EXAM COMPLETE 450 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+ //BRAND NEW!!
Financial markets in the United States are regulated by which of the following
organizations? - ANSWER: Securities and exchange commission (SEC)
Which type of business organization is a taxable entity, separate and apart from its
owners? - ANSWER: corporation
Which accounting principle or assumption assumes that an entity will remain in
operation for the foreseeable future? - ANSWER: going concern assumption
Red Door Boutique is famous for fashion wristwatches and leather purses. At the
end of a recent year, Red Door's total assets added up to $485,000,000, and
liabilities were $163,000,000. How much was Red Door's equity? - ANSWER:
322000000
Assume that Red Door Boutique purchased supplies on account for $58,000. How
would this transaction affect Red Door's accounting equation? - ANSWER: increase
assets and liabilities by 58000
Which field of accounting provides information to external decision makers such as
investors and lenders? - ANSWER: financial accounting
Which of the following is a characteristic of a limited-liability company? - ANSWER:
indefinite life
Last year, Internet Service Company (ISC) sold services on account for $75,000 and
incurred expenses totaling $48,000. At the end of the year, the balance for Accounts
Receivable was $10,000, and the balance for Accounts Payable was $8,000. What
was ISC's net income or net loss for the year? - ANSWER: net income of 27000
The income statement reports the - ANSWER: results of operations for a specific
period
On the 2016 income statement, Red Door Boutique reported net income of
$900,000. The company reported beginning total assets of $8,000,000 and ending
total assets of $10,000,000. What is Red Door's return on assets for 2016? -
ANSWER: 10.00%
Which of the following is a collection of all the accounts, the changes in those
accounts, and their balances? - ANSWER: ledger
, Which of the following statements is correct?
Service Revenue is increased with a debit.
Accounts Receivable is decreased with a debit.
Unearned Revenue is increased with a credit.
Retained Earnings is decreased with a credit. - ANSWER: unearned revenue is
increased with a credit
Suppose Howard Corporation has Furniture totaling $158,000, Cash of $18,000, and
a $64,000 Note Payable. In addition, the business has Accounts Payable of $52,000
and Accounts Receivable of $43,000. How much is Howard's stockholders' equity? -
ANSWER: 103000
Amada Company billed a customer for $5,500 of services provided on account. This
transaction appears in T-accounts as follows: - ANSWER: service revenue and
accounts receivable
Barstock, Inc., began the year with total assets of $177,000 and liabilities of
$112,000. During the year, the business earned revenue of $103,000 and incurred
expenses of $48,000. The stockholders received cash dividends of $24,000. How
much is stockholders' equity at year-end? - ANSWER: 96000
Hughes Copies, Inc., erroneously recorded a purchase of equipment on account by
debiting Equipment and crediting Cash. What will be an effect of this error on the
trial balance? - ANSWER: liabilities understated
Terry Baxter is a stockholder of Alpha Corp. In exchange for additional shares of
common stock, Baxter provided Alpha Corp with $75,000 of computer equipment.
The journal entry to record this transaction is as follows: - ANSWER: equipment
common stock
Which journal entry records a $5,500 payment for office supplies that were
previously purchased on account? - ANSWER: Accounts payable
cash
What is the detailed record of all increases and decreases that have occurred in a
specific individual asset, liability, or equity during a specific period? - ANSWER:
account
A company has $72,000 in liabilities and $98,000 in equity. What is the debt ratio? -
ANSWER: 42.4%
When should a company record earned revenue under accrual accounting? -
ANSWER: when services are rendered
The matching principle requires that - ANSWER: expenses are recorded when they
are incurred during a period
