FAC 3701 Financial Accounting &
Reporting (Quiz 1) Questions And
Answers 2026
Which of the following accounts represent liabilities? Select all correct answers. -
CORRECT ANSWER- -Bonds Payable
-Accounts Payable
Which of the following accounts represent owners' equity? Select all correct answers.
- CORRECT ANSWER- -Common Stock
-Retained Earnings
-Additional Paid in Capital
Which of the following accounting areas provides disclosures available to the general
public? - CORRECT ANSWER- Financial Accounting
If a firm has assets of $1 million, which of the following statements is true? -
CORRECT ANSWER- Get answer for this question!!
-Liabilities cannot exceed $1 million
-The value of the firm cannot exceed $1 million
-Owners' Equity cannot exceed $1 million
-Liabilities must exceed Owners' Equity
If a firm's assets increase by $25,000, which of the following statements could be true?
- CORRECT ANSWER- The firm borrowed money from a bank
Which is the following is not generally considered a current asset? - CORRECT
ANSWER- Property, Plant and Equipment
All of the following represent expenses reported on an Income Statement except: -
CORRECT ANSWER- Dividends
Pfister Corporation reports $2,657 million in revenues, which means the customers paid
the firm $2,657 million to purchase products. - CORRECT ANSWER- False
Pfister Corporation reports $582 million in net income. This is the amount of cash
available to distribute to shareholders. - CORRECT ANSWER- False
Pfister Corporation reports Retained Earnings of $8,863 million. This represents: -
CORRECT ANSWER- The total amount of income earned since incorporation less
distributions to shareholders.
Pfister Corporation has Current Assets of $200,000, Current Liabilities of $150,000,
Total Liabilities of $340,000 and Owners' Equity of $300,000. Compute Total Assets.
Enter your answer with no commas, dollar signs, decimals, etc. - CORRECT
ANSWER- $640,000
Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000,
Long-term Liabilities of $220,000 and Owners' Equity of $320,000. Compute Current
Assets. Enter your answer with no commas, dollar signs, decimals, etc. - CORRECT
ANSWER- $205,000
Payment of Dividends decreases Net Income - CORRECT ANSWER- False
Reporting (Quiz 1) Questions And
Answers 2026
Which of the following accounts represent liabilities? Select all correct answers. -
CORRECT ANSWER- -Bonds Payable
-Accounts Payable
Which of the following accounts represent owners' equity? Select all correct answers.
- CORRECT ANSWER- -Common Stock
-Retained Earnings
-Additional Paid in Capital
Which of the following accounting areas provides disclosures available to the general
public? - CORRECT ANSWER- Financial Accounting
If a firm has assets of $1 million, which of the following statements is true? -
CORRECT ANSWER- Get answer for this question!!
-Liabilities cannot exceed $1 million
-The value of the firm cannot exceed $1 million
-Owners' Equity cannot exceed $1 million
-Liabilities must exceed Owners' Equity
If a firm's assets increase by $25,000, which of the following statements could be true?
- CORRECT ANSWER- The firm borrowed money from a bank
Which is the following is not generally considered a current asset? - CORRECT
ANSWER- Property, Plant and Equipment
All of the following represent expenses reported on an Income Statement except: -
CORRECT ANSWER- Dividends
Pfister Corporation reports $2,657 million in revenues, which means the customers paid
the firm $2,657 million to purchase products. - CORRECT ANSWER- False
Pfister Corporation reports $582 million in net income. This is the amount of cash
available to distribute to shareholders. - CORRECT ANSWER- False
Pfister Corporation reports Retained Earnings of $8,863 million. This represents: -
CORRECT ANSWER- The total amount of income earned since incorporation less
distributions to shareholders.
Pfister Corporation has Current Assets of $200,000, Current Liabilities of $150,000,
Total Liabilities of $340,000 and Owners' Equity of $300,000. Compute Total Assets.
Enter your answer with no commas, dollar signs, decimals, etc. - CORRECT
ANSWER- $640,000
Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000,
Long-term Liabilities of $220,000 and Owners' Equity of $320,000. Compute Current
Assets. Enter your answer with no commas, dollar signs, decimals, etc. - CORRECT
ANSWER- $205,000
Payment of Dividends decreases Net Income - CORRECT ANSWER- False
