2025 ACCT 2000 LOWE-ARDOIN COMPLETE
EXAM PACK | 100% VERIFIED & SUCCESS
ASSURED
◉ Which forms of business organization are considered to be
separate accounting entities?
A. Sole proprietorships and partnerships only
B. Partnerships and corps only
C. only corps
D. Sole proprietorships, corps, and partnerships Answer: D. Sole
proprietorships, corps, and partnerships
◉ Which of the following did not result from the Sarbanes-Oxley
Act?
A. Top management must now certify the accuracy of financial
information
B. Penalties for fraudulent activity increased.
C. Increased independence of the outside auditors
D. Tax rates on corps increased. Answer: D. Tax rates on corps
increased
◉ The payment of dividends is an example of a
,A. operating activity
B. financing activity
C. investing activity
D. delivery activity Answer: B
◉ What kind of classification is cost of goods sold?
A. Asset
B. Expense
C. Liability
D. Revenue Answer: B. Expense
◉ 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
C. the financing section
D. the cash flow statement does not give this information Answer: A.
the investing section
◉ If total liabilities decreased by $15,000 and stockholders' equity
increased by $5,000 during a period of time, then total assets must
change by what amount and direction during that same period?
A. $20,000 increase
,B. $10,000 decrease
C $10,000 increase
D. $15,000 decrease Answer: B
◉ Which is not one of the three forms of business organization?
A. sole proprietorship
B. creditorship
C. partnership
D. Corp Answer: B
◉ What is an advantage of corps relative to partnerships and sole
proprietorships?
A. increased difficulty of raising funds
B. harder to transfer ownership
C. reduced legal liability for investors
D. most common form of organization Answer: C
◉ Ease of transferring ownership is a characteristic of which form of
business organization?
A. sole proprietorship
B. partnership
C. Corp
, D. All of the above Answer: C
◉ In which forms of business organizations are the owners
personally liable for all debts of the business?
A. sole proprietorships and corps
B. sole proprietorships and partnerships
C. Partnership and corp
D. All of the above Answer: B
◉ The sole proprietorship form of business org
A. must have at least 2 owners in most states
B. generally receives favorable tax treatment relative to a corp
C. Combines the records of the business with the personal records of
the owner
D. is classified as a separate legal entity Answer: B
◉ Which forms of business org are considered to be separate
accounting entities?
A. sole proprietorships and partnerships only
B. partnerships and corps only
C. only corps
D. sole proprietorships, corps, and partnerships Answer: D
EXAM PACK | 100% VERIFIED & SUCCESS
ASSURED
◉ Which forms of business organization are considered to be
separate accounting entities?
A. Sole proprietorships and partnerships only
B. Partnerships and corps only
C. only corps
D. Sole proprietorships, corps, and partnerships Answer: D. Sole
proprietorships, corps, and partnerships
◉ Which of the following did not result from the Sarbanes-Oxley
Act?
A. Top management must now certify the accuracy of financial
information
B. Penalties for fraudulent activity increased.
C. Increased independence of the outside auditors
D. Tax rates on corps increased. Answer: D. Tax rates on corps
increased
◉ The payment of dividends is an example of a
,A. operating activity
B. financing activity
C. investing activity
D. delivery activity Answer: B
◉ What kind of classification is cost of goods sold?
A. Asset
B. Expense
C. Liability
D. Revenue Answer: B. Expense
◉ 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
C. the financing section
D. the cash flow statement does not give this information Answer: A.
the investing section
◉ If total liabilities decreased by $15,000 and stockholders' equity
increased by $5,000 during a period of time, then total assets must
change by what amount and direction during that same period?
A. $20,000 increase
,B. $10,000 decrease
C $10,000 increase
D. $15,000 decrease Answer: B
◉ Which is not one of the three forms of business organization?
A. sole proprietorship
B. creditorship
C. partnership
D. Corp Answer: B
◉ What is an advantage of corps relative to partnerships and sole
proprietorships?
A. increased difficulty of raising funds
B. harder to transfer ownership
C. reduced legal liability for investors
D. most common form of organization Answer: C
◉ Ease of transferring ownership is a characteristic of which form of
business organization?
A. sole proprietorship
B. partnership
C. Corp
, D. All of the above Answer: C
◉ In which forms of business organizations are the owners
personally liable for all debts of the business?
A. sole proprietorships and corps
B. sole proprietorships and partnerships
C. Partnership and corp
D. All of the above Answer: B
◉ The sole proprietorship form of business org
A. must have at least 2 owners in most states
B. generally receives favorable tax treatment relative to a corp
C. Combines the records of the business with the personal records of
the owner
D. is classified as a separate legal entity Answer: B
◉ Which forms of business org are considered to be separate
accounting entities?
A. sole proprietorships and partnerships only
B. partnerships and corps only
C. only corps
D. sole proprietorships, corps, and partnerships Answer: D
