UTA Entrance Accounting Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
If net income after tax is $42,000, the tax rate is 30%, and total expenses not including tax
expense are $126,000, revenues must be: - CORRECT ANSWER - $186,000
Find what the net income was before taxes and add it to expenses to get the total revenue.
The financial statement that reports what the company owns and what the company owes is the -
CORRECT ANSWER - balance sheet
The balance sheet shows assets, liabilities, and equity which show what is owned and what is
owed.
What is supposed to "balance" on the balance sheet? - CORRECT ANSWER - assets =
liabilities + owner's equity
The purpose of financial accounting is to provide - CORRECT ANSWER - financial
information to external users
The accounting equation is - CORRECT ANSWER - assets = liabilities + equity
Which financial statement provides information related to the financial performance of a
company during a specific period? - CORRECT ANSWER - income statement
The income statement reports earning for a company during a specific time period.
A company reports net income when - CORRECT ANSWER - services provided are
greater than the cost to provide the services
, Which of the following is considered and expense?
prepaid expense
cost of goods sold
sales
building - CORRECT ANSWER - cost of goods sold
The government agency with legal authority over financial reporting of U.S. public companies is
called - CORRECT ANSWER - securities exchange commission (SEC)
FASB has no legal authority
Which financial statement reports dividends paid to shareholders? - CORRECT
ANSWER - statement of owners equity
Dividends are not reported on the income statement, it is not an expense. They are netted into
retained earnings on the balance sheet.
assets typically include - CORRECT ANSWER - accounts receivable and equipment
What financial document is for the specific purpose of reporting cash flows? - CORRECT
ANSWER - cash flow statement
Which statement provides information on goods and services provided to customers? -
CORRECT ANSWER - income statement
Providing goods and services to customers is revenues which is only on the income statement.
ACTUAL Exam Questions and CORRECT
Answers
If net income after tax is $42,000, the tax rate is 30%, and total expenses not including tax
expense are $126,000, revenues must be: - CORRECT ANSWER - $186,000
Find what the net income was before taxes and add it to expenses to get the total revenue.
The financial statement that reports what the company owns and what the company owes is the -
CORRECT ANSWER - balance sheet
The balance sheet shows assets, liabilities, and equity which show what is owned and what is
owed.
What is supposed to "balance" on the balance sheet? - CORRECT ANSWER - assets =
liabilities + owner's equity
The purpose of financial accounting is to provide - CORRECT ANSWER - financial
information to external users
The accounting equation is - CORRECT ANSWER - assets = liabilities + equity
Which financial statement provides information related to the financial performance of a
company during a specific period? - CORRECT ANSWER - income statement
The income statement reports earning for a company during a specific time period.
A company reports net income when - CORRECT ANSWER - services provided are
greater than the cost to provide the services
, Which of the following is considered and expense?
prepaid expense
cost of goods sold
sales
building - CORRECT ANSWER - cost of goods sold
The government agency with legal authority over financial reporting of U.S. public companies is
called - CORRECT ANSWER - securities exchange commission (SEC)
FASB has no legal authority
Which financial statement reports dividends paid to shareholders? - CORRECT
ANSWER - statement of owners equity
Dividends are not reported on the income statement, it is not an expense. They are netted into
retained earnings on the balance sheet.
assets typically include - CORRECT ANSWER - accounts receivable and equipment
What financial document is for the specific purpose of reporting cash flows? - CORRECT
ANSWER - cash flow statement
Which statement provides information on goods and services provided to customers? -
CORRECT ANSWER - income statement
Providing goods and services to customers is revenues which is only on the income statement.
