(2025/2026) ACCT 2000 LOWE-ARDOIN
EXAM 1 LATEST QUESTIONS AND
DETAILED CORRECT ANSWERS | A+
GRADE VERIFIED ANSWERS
Resources owned by a business are referred to as
A. stockholders' equity
B. liabilities
C. assets
D. revenues Correct Answer C
In terms of the principal types of business activities,
paying salaries expense is an example of an
A. operating activity
B. Financing activity
C. investing activity
D. advertising activity Correct Answer A
What kind of classification is cost of goods sold?
A. asset
B. expense
C. liability
D. revenue Correct Answer B
On jan. 10, novis company purchased manufacturing
equipment for $80,000 cash. What kind of activity is this?
A. operating activity
B. financing activity
,C. investing activity
D. accrual activity Correct Answer C
In what section of the statement of cash flows would the
purchase of office equipment for $10,000 cash appear?
A. operating activities
B. Investing activities
C. Financing activities
D. Selling Activities Correct Answer B
Which of the following is not one of the primary types of
the financing activities in the statement cash flows?
A. buying equipment
B. Borrowing money
C. Issuing shares of stock
D. Paying dividends Correct Answer A
Which of the following would not appear in the income
statement?
A. Service revenue
B. Interest expense
C. Net income
D. Dividends paid Correct Answer D
Which of the following would not appear on the retained
earnings statement?
A. beginning retained earnings balance
B. Dividends
C. Service revenue
D. Net income Correct Answer C
,Net income will result during a time period when
A. assets exceed liabilities
B. assets exceed revenues
C. expenses exceed revenues
D. revenues exceed expenses Correct Answer D
The financial statements for Harold Corporation contained
the following information:
Accounts receivable: $5,000
Sales revenue: $75,000
Cash: $15,000
Salaries and wages expense: $20,000
Rent expense: $10,000
How much was Harold's income?
A. 60,000
B. 15,000
C. 65,000
D. 45,000 Correct Answer D
In which of the following sequences are the financial
statements usually prepared?
A. income statement, balance sheet, retained earnings
statement, and statement of cash flows
B. balance sheet, retained earnings statement, statement
of cash flows, and income statement
C. Balance sheet, statement of cash flows, income
statement and retained earnings statement
D. income statement, retained earnings statement,
balance sheet, and statement of cash flows Correct
Answer D
, Saira's Maid Service began the year with total assets of
$120,000 and stockholders' equity of $40,000. During the
year the company earned $90,000 in net income and paid
$20,000 in dividends. Total assets at the end of the year
were $215,000. How much was stockholders' equity at the
end of the year?
A. $130,000
B.$110,000
C. $150,000
D. $135,000 Correct Answer B
Which statement presents information as of a specific
point in time?
A. income statement
B. balance sheet
C. statement of cash flows
D. retained earnings statement Correct Answer B
How is the issuance of common stock reported on the
statement of cash flows?
A. financing activity
B. investing activity
C. operating activity
D. marketing activity Correct Answer A
What section of a cash flow statement shows the cash
spent on new equipment during the past accounting
period?
A. the investing section
B. the operating section
EXAM 1 LATEST QUESTIONS AND
DETAILED CORRECT ANSWERS | A+
GRADE VERIFIED ANSWERS
Resources owned by a business are referred to as
A. stockholders' equity
B. liabilities
C. assets
D. revenues Correct Answer C
In terms of the principal types of business activities,
paying salaries expense is an example of an
A. operating activity
B. Financing activity
C. investing activity
D. advertising activity Correct Answer A
What kind of classification is cost of goods sold?
A. asset
B. expense
C. liability
D. revenue Correct Answer B
On jan. 10, novis company purchased manufacturing
equipment for $80,000 cash. What kind of activity is this?
A. operating activity
B. financing activity
,C. investing activity
D. accrual activity Correct Answer C
In what section of the statement of cash flows would the
purchase of office equipment for $10,000 cash appear?
A. operating activities
B. Investing activities
C. Financing activities
D. Selling Activities Correct Answer B
Which of the following is not one of the primary types of
the financing activities in the statement cash flows?
A. buying equipment
B. Borrowing money
C. Issuing shares of stock
D. Paying dividends Correct Answer A
Which of the following would not appear in the income
statement?
A. Service revenue
B. Interest expense
C. Net income
D. Dividends paid Correct Answer D
Which of the following would not appear on the retained
earnings statement?
A. beginning retained earnings balance
B. Dividends
C. Service revenue
D. Net income Correct Answer C
,Net income will result during a time period when
A. assets exceed liabilities
B. assets exceed revenues
C. expenses exceed revenues
D. revenues exceed expenses Correct Answer D
The financial statements for Harold Corporation contained
the following information:
Accounts receivable: $5,000
Sales revenue: $75,000
Cash: $15,000
Salaries and wages expense: $20,000
Rent expense: $10,000
How much was Harold's income?
A. 60,000
B. 15,000
C. 65,000
D. 45,000 Correct Answer D
In which of the following sequences are the financial
statements usually prepared?
A. income statement, balance sheet, retained earnings
statement, and statement of cash flows
B. balance sheet, retained earnings statement, statement
of cash flows, and income statement
C. Balance sheet, statement of cash flows, income
statement and retained earnings statement
D. income statement, retained earnings statement,
balance sheet, and statement of cash flows Correct
Answer D
, Saira's Maid Service began the year with total assets of
$120,000 and stockholders' equity of $40,000. During the
year the company earned $90,000 in net income and paid
$20,000 in dividends. Total assets at the end of the year
were $215,000. How much was stockholders' equity at the
end of the year?
A. $130,000
B.$110,000
C. $150,000
D. $135,000 Correct Answer B
Which statement presents information as of a specific
point in time?
A. income statement
B. balance sheet
C. statement of cash flows
D. retained earnings statement Correct Answer B
How is the issuance of common stock reported on the
statement of cash flows?
A. financing activity
B. investing activity
C. operating activity
D. marketing activity Correct Answer A
What section of a cash flow statement shows the cash
spent on new equipment during the past accounting
period?
A. the investing section
B. the operating section
