UTD ACCT 2301 Exam 1 questions
with accurate answers
What would be found on the statement of cash flows? - correct answer ✔✔Cost flow from
operating activities, investing activities, financing activities.
What is the Historical Cost Principle? - correct answer ✔✔dictates that companies record assets
at their cost in which they were purchased
Who has primary responsibility for the information contained in the financial statements? -
correct answer ✔✔The company's management
Which of the following has primary responsibility to develop Generally Accepted Accounting
Principles? - correct answer ✔✔Financial Accounting Standards Board (FASB)
What is the equation for a balance sheet? - correct answer ✔✔Assets = Liabilities +
Stockholders' Equity
Which financial statement would you use to determine a company's earnings performance
during an accounting period? - correct answer ✔✔Income Statement
Which of the following are the components of stockholders' equity on the balance sheet? -
correct answer ✔✔Common Stock and Retained Earnings
What would not be found on the statement of cash flows> - correct answer ✔✔Cost flow from
manufacturing activities
, Which of the following statements describes the balance sheet? - correct answer ✔✔Assets are
generally reported on the balance sheet at the cost incurred to acquire them.
Which of the following accounts is an asset account on the balance sheet? - correct answer
✔✔prepaid expense
The Cadet Company paid an accounts payable of $1,000. This transaction should be recorded on
the payment date as follows: - correct answer ✔✔Accounts Payable 1000
Cash 1000
Which of the following journal entries is prepared when cash is received from a customer prior
to delivery of the goods or services? - correct answer ✔✔Cash xxx
Revenue xxx
Which of the following journal entries is prepared by an auto repair shop when a customer will
pay cash subsequent to delivery of goods or services? - correct answer ✔✔Accounts receivable
xxx
Revenue xxx
On November 1, 2019, Bug Busters collected $6,000 in advance for three months of service to
be provided beginning on that date. Bug credited unearned service revenue for $6,000. The
books are adjusted only at year-end. Prepare the adjusting entry required on December 31,
2019. - correct answer ✔✔Unearned revenue 4,000
Service revenue 4,000
Which of the following journal entries is correct when a company has incurred an expense for
work performed but has not yet paid for theses wages to employees? - correct answer
✔✔Wages Expense xxx
Operating Income xxx
with accurate answers
What would be found on the statement of cash flows? - correct answer ✔✔Cost flow from
operating activities, investing activities, financing activities.
What is the Historical Cost Principle? - correct answer ✔✔dictates that companies record assets
at their cost in which they were purchased
Who has primary responsibility for the information contained in the financial statements? -
correct answer ✔✔The company's management
Which of the following has primary responsibility to develop Generally Accepted Accounting
Principles? - correct answer ✔✔Financial Accounting Standards Board (FASB)
What is the equation for a balance sheet? - correct answer ✔✔Assets = Liabilities +
Stockholders' Equity
Which financial statement would you use to determine a company's earnings performance
during an accounting period? - correct answer ✔✔Income Statement
Which of the following are the components of stockholders' equity on the balance sheet? -
correct answer ✔✔Common Stock and Retained Earnings
What would not be found on the statement of cash flows> - correct answer ✔✔Cost flow from
manufacturing activities
, Which of the following statements describes the balance sheet? - correct answer ✔✔Assets are
generally reported on the balance sheet at the cost incurred to acquire them.
Which of the following accounts is an asset account on the balance sheet? - correct answer
✔✔prepaid expense
The Cadet Company paid an accounts payable of $1,000. This transaction should be recorded on
the payment date as follows: - correct answer ✔✔Accounts Payable 1000
Cash 1000
Which of the following journal entries is prepared when cash is received from a customer prior
to delivery of the goods or services? - correct answer ✔✔Cash xxx
Revenue xxx
Which of the following journal entries is prepared by an auto repair shop when a customer will
pay cash subsequent to delivery of goods or services? - correct answer ✔✔Accounts receivable
xxx
Revenue xxx
On November 1, 2019, Bug Busters collected $6,000 in advance for three months of service to
be provided beginning on that date. Bug credited unearned service revenue for $6,000. The
books are adjusted only at year-end. Prepare the adjusting entry required on December 31,
2019. - correct answer ✔✔Unearned revenue 4,000
Service revenue 4,000
Which of the following journal entries is correct when a company has incurred an expense for
work performed but has not yet paid for theses wages to employees? - correct answer
✔✔Wages Expense xxx
Operating Income xxx
