ACC 255 FINAL REVIEW (LATEST UPDATE) REAL
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
Which of the following is the most appropriate definition of accounting?
A.) A means of collecting information.
B.) The interconnected network of subsystems necessary to operate a
business.
C.) The information system that identifies, records, and communicates
the economic events of an organization to interested users.
D.) Electronic collection and organization of vast amounts of financial
information. Ans✓✓✓C
All of the following are characteristics of a corporation EXPECT:
A.) Owners have unlimited liability.
B.) Separate legal entity.
C.) Easier to raise funds/capital.
D.) Ownership evidenced by shares of stock. Ans✓✓✓A
Resources owned by a business are referred to as:
A.) Revenues.
B.) Assets.
C.) Liabilities.
D.) Stockholders' equity. Ans✓✓✓B
,At the beginning of the year, Snow Corporation's assets were $250,000
and its stockholders' equity was $200,00. During the year, assets
increased $30,000 and liabilities increased $10,000. What was Snow
Corporation's stockholders' equity at the end of the year?
A.) $160,000
B.) $180,000
C.) $220,000
D.) $240,000 Ans✓✓✓C
Purchasing a new office building would be classified as which type of
business activity of a company?
A.) Financing activity.
B.) Investing activity.
C.) Operating activity.
D.) Purchasing activity. Ans✓✓✓B
Which section of the annual report provides an independent opinion
regarding whether an entity's financial statements are present fairly in
accordance with generally accepted accounting principles?
A.) Financial statements.
B.) Management discussion and analysis.
C.) Notes to the financial statements.
D.) Auditor's report. Ans✓✓✓D
,Which financial statement reports an entity's resources and claims to
those resources at a specific point in time?
A.) Income Statement.
B.) Statement of Retained Earnings.
C.) Balance Sheet.
D.) Statement of Cash Flow. Ans✓✓✓C
Which of the following events would be recognized and recorded in the
accounting records of a company?
A.) The company offers a purchase land for $140,000. There is a high
likelihood the offer will be accepted.
B.) The company hires five new employees at an annual salary of
$50,000 each.
C.) The company places an order for new office equipment costing
$21,000.
D.) The company receives its bill for utilities used in the current month.
The bill is not due until the following month. Ans✓✓✓D
What is the effect on the accounting equation from purchasing
equipment by issuing a note payable?
A.) Increases assets and increases liabilities.
B.) Increases assets and decreases stockholders' equity.
C.) Increases liabilities and decreases stockholders' equity.
D.) Both increase and decrease assets. Ans✓✓✓A
, Which of the following is an effect of paying an expense with cash?
A.) Retained Earnings will increase.
B.) Liabilities will increase.
C.) Expenses will decrease.
D.) Assets will decrease. Ans✓✓✓D
Which is the first place every transaction is recorded?
A.) In the journal.
B.) In the ledger.
C.) In the basic accounting equation.
D.) In the respective accounts. Ans✓✓✓A
Accounts Payable had a beginning balance of $10,000. There were debit
postings of $6,000 and credit postings of $4,000 during the period. What
was the ending balance of Accounts Payable?
A.) $8,000 debit.
B.) $12,000 debit.
C.) $8,000 credit.
D.) $12,000 credit. Ans✓✓✓C
Which of the following is a list of all accounts and their balances that is
used to prove the equality of total debits and total credits as a specific
date?
A.) Chart of accounts.
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
Which of the following is the most appropriate definition of accounting?
A.) A means of collecting information.
B.) The interconnected network of subsystems necessary to operate a
business.
C.) The information system that identifies, records, and communicates
the economic events of an organization to interested users.
D.) Electronic collection and organization of vast amounts of financial
information. Ans✓✓✓C
All of the following are characteristics of a corporation EXPECT:
A.) Owners have unlimited liability.
B.) Separate legal entity.
C.) Easier to raise funds/capital.
D.) Ownership evidenced by shares of stock. Ans✓✓✓A
Resources owned by a business are referred to as:
A.) Revenues.
B.) Assets.
C.) Liabilities.
D.) Stockholders' equity. Ans✓✓✓B
,At the beginning of the year, Snow Corporation's assets were $250,000
and its stockholders' equity was $200,00. During the year, assets
increased $30,000 and liabilities increased $10,000. What was Snow
Corporation's stockholders' equity at the end of the year?
A.) $160,000
B.) $180,000
C.) $220,000
D.) $240,000 Ans✓✓✓C
Purchasing a new office building would be classified as which type of
business activity of a company?
A.) Financing activity.
B.) Investing activity.
C.) Operating activity.
D.) Purchasing activity. Ans✓✓✓B
Which section of the annual report provides an independent opinion
regarding whether an entity's financial statements are present fairly in
accordance with generally accepted accounting principles?
A.) Financial statements.
B.) Management discussion and analysis.
C.) Notes to the financial statements.
D.) Auditor's report. Ans✓✓✓D
,Which financial statement reports an entity's resources and claims to
those resources at a specific point in time?
A.) Income Statement.
B.) Statement of Retained Earnings.
C.) Balance Sheet.
D.) Statement of Cash Flow. Ans✓✓✓C
Which of the following events would be recognized and recorded in the
accounting records of a company?
A.) The company offers a purchase land for $140,000. There is a high
likelihood the offer will be accepted.
B.) The company hires five new employees at an annual salary of
$50,000 each.
C.) The company places an order for new office equipment costing
$21,000.
D.) The company receives its bill for utilities used in the current month.
The bill is not due until the following month. Ans✓✓✓D
What is the effect on the accounting equation from purchasing
equipment by issuing a note payable?
A.) Increases assets and increases liabilities.
B.) Increases assets and decreases stockholders' equity.
C.) Increases liabilities and decreases stockholders' equity.
D.) Both increase and decrease assets. Ans✓✓✓A
, Which of the following is an effect of paying an expense with cash?
A.) Retained Earnings will increase.
B.) Liabilities will increase.
C.) Expenses will decrease.
D.) Assets will decrease. Ans✓✓✓D
Which is the first place every transaction is recorded?
A.) In the journal.
B.) In the ledger.
C.) In the basic accounting equation.
D.) In the respective accounts. Ans✓✓✓A
Accounts Payable had a beginning balance of $10,000. There were debit
postings of $6,000 and credit postings of $4,000 during the period. What
was the ending balance of Accounts Payable?
A.) $8,000 debit.
B.) $12,000 debit.
C.) $8,000 credit.
D.) $12,000 credit. Ans✓✓✓C
Which of the following is a list of all accounts and their balances that is
used to prove the equality of total debits and total credits as a specific
date?
A.) Chart of accounts.
