ACCOUNTING CRASH COURSE EXAM
2025 QUESTIONS AND ANSWERS
The regulating body that oversees the development of accounting standards in the U.S. is:
SFAS
GAAP
FASB
IASB - ANS FASB formulates accounting standards through the issuance of Statements of
Financial Accounting Standards (SFAS). These statements make up the body of accounting rules
known as the Generally Accepted Accounting Principles (GAAP). IASB oversees international
financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets such as employee and
customer loyalty.
GAAP requires that financial statements accurately reflects the market value of internally-
developed trademarks such as the value of the Coca-Cola brand name.
All of the above. - ANS GAAP requires that firms show recorded values for acquired
intangible assets such as patents and trademarks on their financial statements. GAAP requires
that firms only show measurable activities, such as the value of acquired intangible assets.
Assets such as employee, customer loyalty and internally-developed trademarks are not shown
on financial statements because they're difficult to quantify.
Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one 10-K annually.
All US companies are required to file three 10-Q's and one 10-K annually.
1 Copyright ©2025 FYNDLAY ALL RIGHTS RESERVED.
, Publicly traded US companies are required to file three 10-Q's and one 10-K annually.
Publicly traded US companies are required to file one 10-K annually; 10-Q's are typically filed
but are technically voluntary. - ANS Publicly traded US companies are required to file three
10-Q's and one 10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports at the end of their 1Q, 2Q
and 3Q, and a 10-K at the end of their fiscal year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - ANS The profits of a firm over a period of time.
The income statement is designed to show the profitability of a business (revenues less
expenses) over a period of time (usually a quarter or year). The income statement is an accrual
measure of profits and thus not the best measure of cash flows. It is also a poor measure of a
company's liquidity or solvency, which involves an analysis of a company's short term and long
term assets and liabilities, respectively. The balance sheet is designed to show a firm's financial
position, while the cash flow statement shows the amount of cash generated by a firm.
The "matching principle" states that:
Costs associated with making a product must be recognized at the end of the production
process.
Costs associated with making a product must be recognized immediately as incurred.
Costs associated with making a product must be recognized during the same period as revenue
generated from that product.
Costs associated with making a product must be recorded during the same period as the sales,
general, and administrative expenses that are also associated with the product. - ANS Costs
associated with making a product must be recognized during the same period as revenue
generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
2 Copyright ©2025 FYNDLAY ALL RIGHTS RESERVED.
2025 QUESTIONS AND ANSWERS
The regulating body that oversees the development of accounting standards in the U.S. is:
SFAS
GAAP
FASB
IASB - ANS FASB formulates accounting standards through the issuance of Statements of
Financial Accounting Standards (SFAS). These statements make up the body of accounting rules
known as the Generally Accepted Accounting Principles (GAAP). IASB oversees international
financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets such as employee and
customer loyalty.
GAAP requires that financial statements accurately reflects the market value of internally-
developed trademarks such as the value of the Coca-Cola brand name.
All of the above. - ANS GAAP requires that firms show recorded values for acquired
intangible assets such as patents and trademarks on their financial statements. GAAP requires
that firms only show measurable activities, such as the value of acquired intangible assets.
Assets such as employee, customer loyalty and internally-developed trademarks are not shown
on financial statements because they're difficult to quantify.
Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one 10-K annually.
All US companies are required to file three 10-Q's and one 10-K annually.
1 Copyright ©2025 FYNDLAY ALL RIGHTS RESERVED.
, Publicly traded US companies are required to file three 10-Q's and one 10-K annually.
Publicly traded US companies are required to file one 10-K annually; 10-Q's are typically filed
but are technically voluntary. - ANS Publicly traded US companies are required to file three
10-Q's and one 10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports at the end of their 1Q, 2Q
and 3Q, and a 10-K at the end of their fiscal year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - ANS The profits of a firm over a period of time.
The income statement is designed to show the profitability of a business (revenues less
expenses) over a period of time (usually a quarter or year). The income statement is an accrual
measure of profits and thus not the best measure of cash flows. It is also a poor measure of a
company's liquidity or solvency, which involves an analysis of a company's short term and long
term assets and liabilities, respectively. The balance sheet is designed to show a firm's financial
position, while the cash flow statement shows the amount of cash generated by a firm.
The "matching principle" states that:
Costs associated with making a product must be recognized at the end of the production
process.
Costs associated with making a product must be recognized immediately as incurred.
Costs associated with making a product must be recognized during the same period as revenue
generated from that product.
Costs associated with making a product must be recorded during the same period as the sales,
general, and administrative expenses that are also associated with the product. - ANS Costs
associated with making a product must be recognized during the same period as revenue
generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
2 Copyright ©2025 FYNDLAY ALL RIGHTS RESERVED.
