ACCT 2301-MIDTERM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
The area of accounting aimed at serving the decision making needs of
internal users is:
A. Financial Accounting
B. Managerial Accounting
C. External Auditing
D. SEC reporting
E. Bookkeeping Ans✓✓✓B. Managerial Accounting
Which of the following is not true regarding a Certified Public
Accountant?
A. Must meet education and experience requirements
B. Must pass an examination
C. Must exhibit ethical character
D. Must also be a Certified Management Accountant
E. Cannot hold any other certificate other than a CPA Ans✓✓✓E.
Cannot hold any other certificate other than a CPA
Which of the following factors is not a component of the fraud triangle?
A. Opportunity
B. Pressure
C. Rationalization
,D. All of the above are components of the fraud triangle Ans✓✓✓D. All
of the above are components of the fraud triangle
The Securities and Exchange Commission (SEC) has given the task of
setting GAAP to the:
A. APB
B. FASB
C. AAA
D. AICPA
E. IASB Ans✓✓✓B. FASB
A partnership:
A. Is also called a sole proprietorship
B. Has unlimited liability for its partners
C. Has to have a written agreement in order to be legal
D. Is a legal organization separate from its owners
E. Has owners called shareholders Ans✓✓✓B. Has unlimited liability
for its partners
If a company uses $1,300 of its cash to purchase supplies, the effect on
the accounting equation would be:
A. Assets increase $1,300 and liabilities decrease $1,300
B. One asset increases $1,300 and another asset decreases $1,300,
causing no effect.
, C. Assets decrease $1,300 and equity decreases $1,300
D. Assets decrease $1,300 and equity increases $1,300
E. Assets increase $1,300 and liabilities increase $1,300 Ans✓✓✓B.
One asset increases $1,300 and another asset decreases $1,300, causing
no effect.
If equity is $300,000 and liabilities are $192,000, the assets equal:
A. $108,000
B. $192,000
C. $300,000
D. $492,000
E. $792,000 Ans✓✓✓D. $492,000
Outflows of cash and other resources to stockholder are:
A. Liabilities
B. Dividends
C. Expenses
D. Stock Expenses
E. Revenues Ans✓✓✓B. Dividends
Assets created by selling goods and services on credit are:
A. Accounts Payable
B. Accounts Receivable
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
The area of accounting aimed at serving the decision making needs of
internal users is:
A. Financial Accounting
B. Managerial Accounting
C. External Auditing
D. SEC reporting
E. Bookkeeping Ans✓✓✓B. Managerial Accounting
Which of the following is not true regarding a Certified Public
Accountant?
A. Must meet education and experience requirements
B. Must pass an examination
C. Must exhibit ethical character
D. Must also be a Certified Management Accountant
E. Cannot hold any other certificate other than a CPA Ans✓✓✓E.
Cannot hold any other certificate other than a CPA
Which of the following factors is not a component of the fraud triangle?
A. Opportunity
B. Pressure
C. Rationalization
,D. All of the above are components of the fraud triangle Ans✓✓✓D. All
of the above are components of the fraud triangle
The Securities and Exchange Commission (SEC) has given the task of
setting GAAP to the:
A. APB
B. FASB
C. AAA
D. AICPA
E. IASB Ans✓✓✓B. FASB
A partnership:
A. Is also called a sole proprietorship
B. Has unlimited liability for its partners
C. Has to have a written agreement in order to be legal
D. Is a legal organization separate from its owners
E. Has owners called shareholders Ans✓✓✓B. Has unlimited liability
for its partners
If a company uses $1,300 of its cash to purchase supplies, the effect on
the accounting equation would be:
A. Assets increase $1,300 and liabilities decrease $1,300
B. One asset increases $1,300 and another asset decreases $1,300,
causing no effect.
, C. Assets decrease $1,300 and equity decreases $1,300
D. Assets decrease $1,300 and equity increases $1,300
E. Assets increase $1,300 and liabilities increase $1,300 Ans✓✓✓B.
One asset increases $1,300 and another asset decreases $1,300, causing
no effect.
If equity is $300,000 and liabilities are $192,000, the assets equal:
A. $108,000
B. $192,000
C. $300,000
D. $492,000
E. $792,000 Ans✓✓✓D. $492,000
Outflows of cash and other resources to stockholder are:
A. Liabilities
B. Dividends
C. Expenses
D. Stock Expenses
E. Revenues Ans✓✓✓B. Dividends
Assets created by selling goods and services on credit are:
A. Accounts Payable
B. Accounts Receivable
