ACCT 2000 Final Exam EOC Practice Lowe-Ardoin 2026/2027 AND
HIGH YIELD PRACTICE QUESTIONS COMPLETE ACCURATE EXAM
APPROVED QUESTIONS AND CORRECT VERIFIED SOLUTIONS
(100% CORRECT VERIFIED ANSWERS) CURRENTLY UPDATED
VERSION 2026 EDITION |GUARANTEED PASS Louisiana State
University and Agricultural & Mechanical College ACCT 2000
Chapter 1-2
What is the basic accounting equation?
Assets = Liabilities + Stockholders' Equity
Which is an advantage of corporations relative to partnerships and
sole proprietorships?
Reduced legal liability for investors
Which forms of business organization are considered to be separate
accounting entities?
Sole Proprietorship, Corporations, and Partnerships.
Which of the following did NOT result from the Sarbanes-Oxley Act?
Tax rates on corporations increased.
The payment of dividends is an example of a(n)
financing activity
,What kind of classification is cost of goods sold?
expense
What section of cash flow statement shows the cash spent on new
equipment during the past accounting period?
The investing section
If total liabilities decreased by $15,000 and stockholders' equity
increased by
$5,000 during a period of time, then total assets must change by
what amount and direction during that same period?
$10,000 decrease
(Assets = Liabilities + Stockholders' Equity)
Which is NOT one of the three forms of business organizations?
Creditorship
Ease of transferring ownership is a characteristic of which form of
business organization?
Corporation
In which forms of business organization are the owners personally
liable for all the debts of the business?
Sole proprietorships and Partnerships
,The sole proprietorship form of business organization?
Generally, receives favorable tax treatment relative to a corporation
To which of the following questions will internal users want answers?
All of the answer choices are correct.
- what selling price for our product will maximize the company's net
income?
- which product line is most profitable?
- is cash sufficient to pay dividend to stockholders?
Which of the following is NOT an external user of accounting data?
Chief Financial Officer
Which statement about users of accounting information is
INCORRECT?
Regulatory authorities are considered internal users.
Which of the following is the most appropriate definition of
accounting?
The information system that identifies, records, and communicates
the economic events of an organization to interested users.
Paying interest expense and receiving interest revenue are examples
of
Operating activates
Which of the following is NOT one of the three primary business
activities?
Advertising
, Which of the following is an example of a financing activity?
Issuing shares of common stock
Resources owned by a business are referred to as
assets
In terms of the principal types of business activities, paying salaries
expense is an example of an
operating activity
On Jan. 10, Novis Company purchased manufacturing equipment for
$80,000 cash. What kind of activity is this?
Investing activity
In what section of the statement of cash flows would the purchase of
office equipment for $10,000 cash appear?
Investing activities
HIGH YIELD PRACTICE QUESTIONS COMPLETE ACCURATE EXAM
APPROVED QUESTIONS AND CORRECT VERIFIED SOLUTIONS
(100% CORRECT VERIFIED ANSWERS) CURRENTLY UPDATED
VERSION 2026 EDITION |GUARANTEED PASS Louisiana State
University and Agricultural & Mechanical College ACCT 2000
Chapter 1-2
What is the basic accounting equation?
Assets = Liabilities + Stockholders' Equity
Which is an advantage of corporations relative to partnerships and
sole proprietorships?
Reduced legal liability for investors
Which forms of business organization are considered to be separate
accounting entities?
Sole Proprietorship, Corporations, and Partnerships.
Which of the following did NOT result from the Sarbanes-Oxley Act?
Tax rates on corporations increased.
The payment of dividends is an example of a(n)
financing activity
,What kind of classification is cost of goods sold?
expense
What section of cash flow statement shows the cash spent on new
equipment during the past accounting period?
The investing section
If total liabilities decreased by $15,000 and stockholders' equity
increased by
$5,000 during a period of time, then total assets must change by
what amount and direction during that same period?
$10,000 decrease
(Assets = Liabilities + Stockholders' Equity)
Which is NOT one of the three forms of business organizations?
Creditorship
Ease of transferring ownership is a characteristic of which form of
business organization?
Corporation
In which forms of business organization are the owners personally
liable for all the debts of the business?
Sole proprietorships and Partnerships
,The sole proprietorship form of business organization?
Generally, receives favorable tax treatment relative to a corporation
To which of the following questions will internal users want answers?
All of the answer choices are correct.
- what selling price for our product will maximize the company's net
income?
- which product line is most profitable?
- is cash sufficient to pay dividend to stockholders?
Which of the following is NOT an external user of accounting data?
Chief Financial Officer
Which statement about users of accounting information is
INCORRECT?
Regulatory authorities are considered internal users.
Which of the following is the most appropriate definition of
accounting?
The information system that identifies, records, and communicates
the economic events of an organization to interested users.
Paying interest expense and receiving interest revenue are examples
of
Operating activates
Which of the following is NOT one of the three primary business
activities?
Advertising
, Which of the following is an example of a financing activity?
Issuing shares of common stock
Resources owned by a business are referred to as
assets
In terms of the principal types of business activities, paying salaries
expense is an example of an
operating activity
On Jan. 10, Novis Company purchased manufacturing equipment for
$80,000 cash. What kind of activity is this?
Investing activity
In what section of the statement of cash flows would the purchase of
office equipment for $10,000 cash appear?
Investing activities
