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A100 Final Exam IU Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
Which of the following is primarily responsible for the
information provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - ANSWER Company Top Management
Which of the following describes the primary objective of
financial accounting?
A) To provide information about a business' future business
strategies.
B) To provide useful financial information only to stockholders.
C) To provide useful financial information about a business to
help external parties make informed decisions.
D) To provide useful financial information about a business to
help internal parties make informed decisions. - ANSWER To
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provide useful financial information about a business to help
external parties make informed decisions.
Financial accounting standards are known collectively as GAAP.
What does that acronym stand for?
A) Generally Authorized Auditing Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Accepted Accounting Principles - ANSWER
Generally Accepted Accounting Principles
For accounting information to be useful, it must be which of the
following?
A) It must be comparable and reliable.
B) It must be consistent and comparable.
C) It must be a faithful representation and relevant.
D) It must be relevant and consistent. - ANSWER It must be a
faithful representation and relevant.
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Which of the following best describes the purpose of an audit?
A) To audit every transaction that an entity entered into.
B) To establish that a corporation's stock is a sound investment.
C) To prove the accuracy of an entity's financial statements.
D) To lend credibility to an entity's financial statements. -
ANSWER To lend credibility to an entity's financial statements.
Which of the following is considered to be an expense on the
income statement?
A)Prepaid Expenses.
B)Wages payable.
C)Notes payable.
D)Cost of goods sold. - ANSWER Cost of goods sold.
At the beginning of 2020, a corporation had assets of $270,000
and liabilities of $160,000. During 2020, assets increased
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$25,000 and liabilities increased $5,000. What was
stockholders' equity at December 31, 2020?
A) $130,000.
B) $190,000.
C) $140,000.
D) $80,000. - ANSWER $130,000.
Which of the following would not be reported in the operating
activities section of a cash flow statement?
A) Cash paid for interest expense.
B) Cash paid for dividends to stockholders.
C) Cash paid for employee wages.
D) Cash received from customers. - ANSWER Cash paid for
dividends to stockholders.
Seitz Trucking's retained earnings increased $20,000 during the
current year. What was Seitz Trucking's current year net income
or loss given that Seitz Trucking declared $25,000 of dividends
during this year?
A100 Final Exam IU Latest Update Exam | Questions and
Verified Answers | 100% Correct | Grade A +
Which of the following is primarily responsible for the
information provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - ANSWER Company Top Management
Which of the following describes the primary objective of
financial accounting?
A) To provide information about a business' future business
strategies.
B) To provide useful financial information only to stockholders.
C) To provide useful financial information about a business to
help external parties make informed decisions.
D) To provide useful financial information about a business to
help internal parties make informed decisions. - ANSWER To
,2|Page
provide useful financial information about a business to help
external parties make informed decisions.
Financial accounting standards are known collectively as GAAP.
What does that acronym stand for?
A) Generally Authorized Auditing Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Accepted Accounting Principles - ANSWER
Generally Accepted Accounting Principles
For accounting information to be useful, it must be which of the
following?
A) It must be comparable and reliable.
B) It must be consistent and comparable.
C) It must be a faithful representation and relevant.
D) It must be relevant and consistent. - ANSWER It must be a
faithful representation and relevant.
,3|Page
Which of the following best describes the purpose of an audit?
A) To audit every transaction that an entity entered into.
B) To establish that a corporation's stock is a sound investment.
C) To prove the accuracy of an entity's financial statements.
D) To lend credibility to an entity's financial statements. -
ANSWER To lend credibility to an entity's financial statements.
Which of the following is considered to be an expense on the
income statement?
A)Prepaid Expenses.
B)Wages payable.
C)Notes payable.
D)Cost of goods sold. - ANSWER Cost of goods sold.
At the beginning of 2020, a corporation had assets of $270,000
and liabilities of $160,000. During 2020, assets increased
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$25,000 and liabilities increased $5,000. What was
stockholders' equity at December 31, 2020?
A) $130,000.
B) $190,000.
C) $140,000.
D) $80,000. - ANSWER $130,000.
Which of the following would not be reported in the operating
activities section of a cash flow statement?
A) Cash paid for interest expense.
B) Cash paid for dividends to stockholders.
C) Cash paid for employee wages.
D) Cash received from customers. - ANSWER Cash paid for
dividends to stockholders.
Seitz Trucking's retained earnings increased $20,000 during the
current year. What was Seitz Trucking's current year net income
or loss given that Seitz Trucking declared $25,000 of dividends
during this year?
