ACCY 201 OLE MISS TEST 1 STUDY
GUIDE MULTIPLE CHOICE EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is a separate legal entity?
a) Proprietorship
b) Sole proprietorship
c) Corporation
d) Partnership - ANS Corporation
A financial statement that reports accounting data at a specific date is the:
a) balance sheet
b) retained earnings statement
c) income statement
d)statement of cash flows - ANS balance sheet
Which of the following is NOT considered an external user of accounting information?
a) Bankers
b) Taxing Authority
c) Manager
d) Labor Unions - ANS Manager
GAAP refers to:
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, a) general accounting and auditing principles
b) guidelines for American accounting procedures
c) General Association of Accounting Practitioners
d) generally accepted accounting principles - ANS generally accepted accounting principles
Which of the following is False?
a) Intangible assets are concurrent assets that do not have physical substance.
b) Obligations excepted to be paid after one year are classified as long-term liabilities
c)Current assets are listed in the order of magnitude (size)
d) Property, plant, and equipment are assets with relatively long useful lives that are used in
operating the business. - ANS Current assets are listed in the order of magnitude (size)
If total liabilities decreased by $30,000 during a period of time and stockholders' equity
increased by $35,000 during the same period, the amount and direction (increase or decrease)
of the period's change in total assets is a:
a) $65,000 increase
b) $5,000 increase
c) $5,000 decrease
d) $65,000 decrease - ANS $5,000 increase
Current assets are listed:
a) alphabetically
b) by importance
c) by longevity
d) by liquidity - ANS by liquidity
Limited liability (no liability beyond investment) is not enjoyed by the owner(s) of a:
a) partnership and proprietorship
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GUIDE MULTIPLE CHOICE EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is a separate legal entity?
a) Proprietorship
b) Sole proprietorship
c) Corporation
d) Partnership - ANS Corporation
A financial statement that reports accounting data at a specific date is the:
a) balance sheet
b) retained earnings statement
c) income statement
d)statement of cash flows - ANS balance sheet
Which of the following is NOT considered an external user of accounting information?
a) Bankers
b) Taxing Authority
c) Manager
d) Labor Unions - ANS Manager
GAAP refers to:
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, a) general accounting and auditing principles
b) guidelines for American accounting procedures
c) General Association of Accounting Practitioners
d) generally accepted accounting principles - ANS generally accepted accounting principles
Which of the following is False?
a) Intangible assets are concurrent assets that do not have physical substance.
b) Obligations excepted to be paid after one year are classified as long-term liabilities
c)Current assets are listed in the order of magnitude (size)
d) Property, plant, and equipment are assets with relatively long useful lives that are used in
operating the business. - ANS Current assets are listed in the order of magnitude (size)
If total liabilities decreased by $30,000 during a period of time and stockholders' equity
increased by $35,000 during the same period, the amount and direction (increase or decrease)
of the period's change in total assets is a:
a) $65,000 increase
b) $5,000 increase
c) $5,000 decrease
d) $65,000 decrease - ANS $5,000 increase
Current assets are listed:
a) alphabetically
b) by importance
c) by longevity
d) by liquidity - ANS by liquidity
Limited liability (no liability beyond investment) is not enjoyed by the owner(s) of a:
a) partnership and proprietorship
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