UTA Accounting Entrance Exam questions with answers,

UTA Accounting Entrance Exam
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questions with answers |\ |\




The accounting profession can be divided into three major
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categories; specifically, the practice of public accounting,
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private accounting, and governmental accounting. A
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somewhat unique and important service of public |\ |\ |\ |\ |\ |\ |\



accountants is: - CORRECT ANSWERS ✔✔Auditing |\ |\ |\ |\ |\




The primary private sector that oversees external
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financial reporting standards is the: - CORRECT ANSWERS
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✔✔Financial Accounting Standards Board |\ |\ |\




Which of the following equations properly represents a
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derivation of the fundamental accounting equation? - |\ |\ |\ |\ |\ |\ |\



CORRECT ANSWERS ✔✔Assets - liabilities = owner's |\ |\ |\ |\ |\ |\ |\



equity.


Wilson Company owns land which cost $100,000. If a
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"quick sale" of the land was necessary to generate cash,
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the company feels it would receive only $80,000. The
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company continues to report the asset on the balance
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sheet at $100,000. This is justified under which of the
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following concepts? - CORRECT ANSWERS ✔✔The
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,historical-cost principle AND the value is tied to objective
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and verifiable past transactions.
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Retained earnings will change over time because of
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several factors. Which of the following factors would
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explain an increase in retained earnings? - CORRECT
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ANSWERS ✔✔Net income |\ |\




Which of these would be accounted for as an expense? -
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CORRECT ANSWERS ✔✔Payment of the current period's
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rent.


Which of the following transactions would have no impact
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on stockholders' equity? - CORRECT ANSWERS
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✔✔Purchases of land from the proceeds of a bank loan.|\ |\ |\ |\ |\ |\ |\ |\ |\




Which of the following would not be included on a balance
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sheet? - CORRECT ANSWERS ✔✔Sales.
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_______ is the excess of a company's revenues over
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expenses for a given time period. - CORRECT ANSWERS
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✔✔Income

, The general ledger is comprised of numerous individual
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asset, liability, equity, revenue, and expense - CORRECT
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ANSWERS ✔✔Accounts. |\




A liability account should be increased with a _______ and
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decreased with a _____ - CORRECT ANSWERS ✔✔Credit,
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Debit


The normal balance of an expense account is a _____
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balance. - CORRECT ANSWERS ✔✔debit
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The normal balances of accounts correspond to the
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fundamental _______ - CORRECT ANSWERS ✔✔Accounting |\ |\ |\ |\ |\ |\



equation


Evidence of transactions is often provided by receipt of
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issuance of accounting forms known as - CORRECT
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ANSWERS ✔✔Source Documents |\ |\




In any transaction, total debits must - CORRECT
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ANSWERS ✔✔Equal total credits. |\ |\ |\




To record the payment of a previously established
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account payable requires a _________ to the Accounts
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Payable account. - CORRECT ANSWERS ✔✔Debit
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