ELE 3010 EXAM 1 EXAMPREP 2026 COMPLETE
QUESTIONS AND ANSWERS ALREADY PASSED
◉ The major elements of income statement are
Answer: revenues, expenses, gains, and losses
◉ Companies use intraperiod tax allocation for all of the following
items except
a.discontinued operations.
b.extraordinary items.
c.changes in accounting estimates.
d.income from continuing operations.
Answer: c. changes in accounting estimates.
◉ Comprehensive income includes all of the following except
a. dividend revenue.
b. losses on disposal of assets.
c. investments by owners.
d. unrealized holding gains.
Answer: c. investments by owners.
,◉ in preparing a statement of cash, what would be considered an
investing activity?
a. sale of equipment at book value
b. sale of merchandise on credit
c. declaration of cash dividends
d. issuance of bonds payable at a discount
Answer: a. sale of equipment at book value
◉ the current cash debt ratio is often used to access
Answer: liquidity
◉ General-purpose financial statements are the product of
a. financial accounting.
b. managerial accounting.
c. both financial and managerial accounting.
d. neither financial nor managerial accounting.
Answer: a
◉ The information provided by financial reporting pertains to
a. individual business enterprises, rather than to industries or an
economy as a whole or to members of society as consumers.
,b. business industries, rather than to individual enterprises or an
economy as a whole or to members of society as consumers.
c. individual business enterprises, industries, and an economy as a
whole, rather than to members of society as consumers.
d. an economy as a whole and to members of society as consumers,
rather than to individual enterprises or industries.
Answer: d
◉ All the following are differences between financial and managerial
accounting in how accounting information is used except to
a. plan and control company's operations.
b. decide whether to invest in the company.
c. evaluate borrowing capacity to determine the extent of a loan to
grant.
d. All the answer choices are correct.
Answer: D
◉ Which of the following represents a form of communication
through financial reporting but not through financial statements?
a. Balance sheet.
b. President's letter.
c. Income statement.
d. Notes to financial statements.
, Answer: B
◉ The process of identifying, measuring, analyzing, and
communicating financial information needed by management to
plan, evaluate, and control an organization's operations is called
a. financial accounting.
b. managerial accounting.
c. tax accounting.
d. auditing.
Answer: B
◉ How does accounting help the capital allocation process attract
investment capital?
a. By providing timely, relevant information.
b. By encouraging innovation.
c. By promoting productivity.
d. By providing timely, relevant information and by encouraging
innovation.
Answer: A
◉ Which of the following helps in determining whether a business
thrives?
a. Markets.
QUESTIONS AND ANSWERS ALREADY PASSED
◉ The major elements of income statement are
Answer: revenues, expenses, gains, and losses
◉ Companies use intraperiod tax allocation for all of the following
items except
a.discontinued operations.
b.extraordinary items.
c.changes in accounting estimates.
d.income from continuing operations.
Answer: c. changes in accounting estimates.
◉ Comprehensive income includes all of the following except
a. dividend revenue.
b. losses on disposal of assets.
c. investments by owners.
d. unrealized holding gains.
Answer: c. investments by owners.
,◉ in preparing a statement of cash, what would be considered an
investing activity?
a. sale of equipment at book value
b. sale of merchandise on credit
c. declaration of cash dividends
d. issuance of bonds payable at a discount
Answer: a. sale of equipment at book value
◉ the current cash debt ratio is often used to access
Answer: liquidity
◉ General-purpose financial statements are the product of
a. financial accounting.
b. managerial accounting.
c. both financial and managerial accounting.
d. neither financial nor managerial accounting.
Answer: a
◉ The information provided by financial reporting pertains to
a. individual business enterprises, rather than to industries or an
economy as a whole or to members of society as consumers.
,b. business industries, rather than to individual enterprises or an
economy as a whole or to members of society as consumers.
c. individual business enterprises, industries, and an economy as a
whole, rather than to members of society as consumers.
d. an economy as a whole and to members of society as consumers,
rather than to individual enterprises or industries.
Answer: d
◉ All the following are differences between financial and managerial
accounting in how accounting information is used except to
a. plan and control company's operations.
b. decide whether to invest in the company.
c. evaluate borrowing capacity to determine the extent of a loan to
grant.
d. All the answer choices are correct.
Answer: D
◉ Which of the following represents a form of communication
through financial reporting but not through financial statements?
a. Balance sheet.
b. President's letter.
c. Income statement.
d. Notes to financial statements.
, Answer: B
◉ The process of identifying, measuring, analyzing, and
communicating financial information needed by management to
plan, evaluate, and control an organization's operations is called
a. financial accounting.
b. managerial accounting.
c. tax accounting.
d. auditing.
Answer: B
◉ How does accounting help the capital allocation process attract
investment capital?
a. By providing timely, relevant information.
b. By encouraging innovation.
c. By promoting productivity.
d. By providing timely, relevant information and by encouraging
innovation.
Answer: A
◉ Which of the following helps in determining whether a business
thrives?
a. Markets.
