ACCT 200 Exam 1 test |Questions And Answers Graded A+

Which of the following characteristics regarding a corporation is false? - False: Owners make everyday decisions in the business True: Ownership of the corporation is transferable, double taxation, limited liability for shareholders. ABC Company receives cash from creditors. This would be an example of which type of business activity with respect to the statement of cash flows for ABC Company? - Financing What organization in the United States is responsible for making the accounting rules that public companies must follow? - Financial Accounting Standards Board (FASB) Which of the following accounts are closed at the end of the period? - Rent Expense, Salary expense NOT accounts payable, unearned revenue, retained earnings, accumulated depreciation which of the following statements is false regarding the accounting cycle? - FALSE: The unadjusted trial balance includes adjusting entries TRUE: Adjusting entries are recorded at the end of the period to update books, the purpose of a doubleentry accounting system is to ensure that each transaction is recorded with at least one debit and one credit, the statement of cash flows summarizes the sources and uses of one account, cash. Which of the following accounts affect Equity? - Interest Expense Which of the following is an example of a deferral? - Receiving cash for services not yet provided Which of the following statements regarding equity is false? - FALSE: Retained earnings only include a company's net income year over year.