ACCT 3110 Entrance Exam - Questions and Answers

ACCT 3110 Entrance Exam - Questions and Answers On which financial statement would the ending balance of the account "accounts receivable" be found? A. Income statement B. Statement of retained earnings C. Balance sheet D. Statement of cash flows What item flows from the income statement to the statement of retained earnings? A. Net income B. Inventory C. Dividends D. Cash What item flows from the statement of retained earnings to the balance sheet? A. Cash B. Retained earnings C. Net income D. Dividends How much in resources does Willow have to work with? That means to look at the Asset part of the Acct. equation. The amount a company expects to collect from customers appears on the A. statement of cash flows. B. balance sheet in the stockholders' equity section. C. income statement in the expenses section. D. balance sheet in the current assets section. All of the following are current assets except A. accounts receivable. B. prepaid expenses. C. inventory. D. accounts payable. The financial statement that reports revenues and expenses is called the A. statement of cash flows. B. balance sheet. C. statement of retained earnings. D. income statement. Another name for the balance sheet is the A. statement of operations. B. statement of earnings. C. statement of profit and loss. D. statement of financial position. Net income appears on which financial statement(s)? A. Balance sheet B. Income statement C. Statement of retained earnings D. Both b and c Cash paid to purchase a building appears on the statement of cash flows among the A. financing activities. B. operating activities. C. investing activities. D. stockholders' equity. Which of the following is the most accurate statement regarding ethics as applied to decision making in accounting? A. Ethics involves making difficult choices under pressure and should be kept in mind in making every decision, including those involving accounting. B. It is impossible to learn ethical decision making, since it is just something you decide to do or not to do. C. Ethics is becoming less and less important as a field of study in business. D. Ethics has no place in accounting, because accounting deals purely with numbers. Which of the following factors should influence business and accounting decisions? A. Economic B. Ethical C. Legal D. All of the above Business Ethics Leadership Alliance (BELA) holds four values vital to all their practices. Which of the following is one of the core value of BELA? Accountability Transparency Legal compliance All of these are values considered vital by BELA. Which of the following statements is correct? Managerial accounting provides information for decision makers outside the entity. Financial accounting provides information for decision makers outside the entity. Financial accounting provides information for decision makers inside the entity, such as business managers. Financial and managerial accounting information are analyzed together by both internal and external users of accounting information. Which of the following events increases the equity in a business? Sale of inventory Purchase of inventory Payment of interest on a loan Investments from stockholders Payment of rent Jason Jewelers reported the following in its statement of cash flows: Net cash provided by operating activities $140,000 Net cash provided by investing activities 120,000 Net cash used by financing activities 150,000 What is the total net increase or decrease in cash reported by Jason Jewelers?