Accounting 201 Exam Latest Questions
with Correct Answers
If a company buys a computer for $3,000 cash, how is the transaction recorded in the
accounting system? - Answer-Cash decreases and Computer increases
Which of the following is true about the term revenue as it affects the accounting
database? - Answer-Revenue increases equity earned
Which of the following is true about the term an expense as it affects the accounting
database? - Answer-An expense decreases equity earned
In a "T" account, the right side is call the ________? - Answer-credit side
The main purpose of the statement of cash flows is to: - Answer-Provide information
about the cash receipts and cash payments for a period, sorted into three main
categories
The term "double-entry accounting" indicates that the accountant: - Answer-Records
each transaction in at least two accounts
The main objective of financial reporting for business enterprises is based on - Answer-
The needs of the users of information
The beginning asset account balances for March are - Answer-The same as the ending
account balances for February
Cash received from customers would be reported on the statement of cash flows under
- Answer-operating activities
What would best indicate strong company performance and good growth prospects? -
Answer-operating cash flow investing cash flow positive negative
when using the double-column approach to recording transactions? - Answer-Increases
in assets go on the left, and increases in liabilities and equity go on the right.
Which statement summarizes the assets, liabilities and equity of a business? - Answer-
balance sheet
with Correct Answers
If a company buys a computer for $3,000 cash, how is the transaction recorded in the
accounting system? - Answer-Cash decreases and Computer increases
Which of the following is true about the term revenue as it affects the accounting
database? - Answer-Revenue increases equity earned
Which of the following is true about the term an expense as it affects the accounting
database? - Answer-An expense decreases equity earned
In a "T" account, the right side is call the ________? - Answer-credit side
The main purpose of the statement of cash flows is to: - Answer-Provide information
about the cash receipts and cash payments for a period, sorted into three main
categories
The term "double-entry accounting" indicates that the accountant: - Answer-Records
each transaction in at least two accounts
The main objective of financial reporting for business enterprises is based on - Answer-
The needs of the users of information
The beginning asset account balances for March are - Answer-The same as the ending
account balances for February
Cash received from customers would be reported on the statement of cash flows under
- Answer-operating activities
What would best indicate strong company performance and good growth prospects? -
Answer-operating cash flow investing cash flow positive negative
when using the double-column approach to recording transactions? - Answer-Increases
in assets go on the left, and increases in liabilities and equity go on the right.
Which statement summarizes the assets, liabilities and equity of a business? - Answer-
balance sheet
