UTD ACCT 2301 Exam 1 Questions with Correct Answers Latest Update 2025/2026
What would be found on the statement of cash flows? - Answers Cost flow from operating
activities, investing activities, financing activities.
What is the Historical Cost Principle? - Answers dictates that companies record assets at their
cost in which they were purchased
Who has primary responsibility for the information contained in the financial statements? -
Answers The company's management
Which of the following has primary responsibility to develop Generally Accepted Accounting
Principles? - Answers Financial Accounting Standards Board (FASB)
What is the equation for a balance sheet? - Answers Assets = Liabilities + Stockholders' Equity
Which financial statement would you use to determine a company's earnings performance
during an accounting period? - Answers Income Statement
Which of the following are the components of stockholders' equity on the balance sheet? -
Answers Common Stock and Retained Earnings
What would not be found on the statement of cash flows> - Answers Cost flow from
manufacturing activities
Which of the following statements describes the balance sheet? - Answers Assets are generally
reported on the balance sheet at the cost incurred to acquire them.
Which of the following accounts is an asset account on the balance sheet? - Answers prepaid
expense
The Cadet Company paid an accounts payable of $1,000. This transaction should be recorded
on the payment date as follows: - Answers Accounts Payable 1000
Cash 1000
Which of the following journal entries is prepared when cash is received from a customer prior
to delivery of the goods or services? - Answers Cash xxx
Revenue xxx
Which of the following journal entries is prepared by an auto repair shop when a customer will
pay cash subsequent to delivery of goods or services? - Answers Accounts receivable xxx
Revenue xxx
On November 1, 2019, Bug Busters collected $6,000 in advance for three months of service to
be provided beginning on that date. Bug credited unearned service revenue for $6,000. The
What would be found on the statement of cash flows? - Answers Cost flow from operating
activities, investing activities, financing activities.
What is the Historical Cost Principle? - Answers dictates that companies record assets at their
cost in which they were purchased
Who has primary responsibility for the information contained in the financial statements? -
Answers The company's management
Which of the following has primary responsibility to develop Generally Accepted Accounting
Principles? - Answers Financial Accounting Standards Board (FASB)
What is the equation for a balance sheet? - Answers Assets = Liabilities + Stockholders' Equity
Which financial statement would you use to determine a company's earnings performance
during an accounting period? - Answers Income Statement
Which of the following are the components of stockholders' equity on the balance sheet? -
Answers Common Stock and Retained Earnings
What would not be found on the statement of cash flows> - Answers Cost flow from
manufacturing activities
Which of the following statements describes the balance sheet? - Answers Assets are generally
reported on the balance sheet at the cost incurred to acquire them.
Which of the following accounts is an asset account on the balance sheet? - Answers prepaid
expense
The Cadet Company paid an accounts payable of $1,000. This transaction should be recorded
on the payment date as follows: - Answers Accounts Payable 1000
Cash 1000
Which of the following journal entries is prepared when cash is received from a customer prior
to delivery of the goods or services? - Answers Cash xxx
Revenue xxx
Which of the following journal entries is prepared by an auto repair shop when a customer will
pay cash subsequent to delivery of goods or services? - Answers Accounts receivable xxx
Revenue xxx
On November 1, 2019, Bug Busters collected $6,000 in advance for three months of service to
be provided beginning on that date. Bug credited unearned service revenue for $6,000. The
