ACCT 2000 FINAL EXAM EOC PRACTICE LOWE-ARDOIN QUESTIONS WITH
CORRECT ANSWERS 2025/2026
What m is m the m basic m accounting m equation? m - m CORRECT m ANSWER m -Assets m = m Liabilities m +
m Stockholders' m Equity
Which mis man madvantage mof mcorporations mrelative mto mpartnerships mand msole
mproprietorships? m- mCORRECT mANSWER m-Reduced mlegal mliability mfor minvestors
Which mforms mof mbusiness morganization mare mconsidered mto mbe mseparate
maccounting mentities? m- mCORRECT mANSWER m-Sole mProprietorship, mCorporations,
mand mPartnerships.
Which mof mthe mfollowing mdid mNOT mresult mfrom mthe mSarbanes-Oxley mAct? m-
mCORRECT mANSWER m- mTax mrates mon mcorporations mincreased.
The m payment m of m dividends m is m an m example m of m a(n) m - m CORRECT m ANSWER m -financing m activity
What m kind m of m classification m is m cost m of m goods m sold? m - m CORRECT m ANSWER m -expense
What msection mof mcash mflow mstatement mshows mthe mcash mspent mon mnew mequipment
mduring mthe mpast maccount ming mperiod? m- mCORRECT mANSWER m-The minvesting msection
If m total m liabilities m decreased m by m $15,000 m and m stockholders' m equity m increased m by m $5,000
m during m a m period mo mf mtime, mthen mtotal massets mmust m change mby mwhat mamount mand
mdirection mduring mthat msame m period? m-
CORRECT mANSWER m -$10,000 m decrease
(Assets m = m Liabilities m + m Stockholders' m Equity)
Which m is m NOT m one m of m the m three m forms mof m business m organizations? m - m CORRECT m ANSWER
m -Creditorship
Ease mof mtransferring mownership mis ma mcharacteristic mof mwhich mform mof mbusiness
morganization? m- mCORRECT mANSWER m-Corporation
,In mwhich mforms mof mbusiness morganization mare mthe mowners mpersonally mliable mfor mall mthe
mdebts mof mthe mbusine mss? m- mCORRECT mANSWER m-Sole mproprietorships mand mPartnerships
The msole mproprietorship mform mof mbusiness morganization? m- mCORRECT
mANSWER m- mGenerally, mreceives mfavorable mtax mtreatment mrelative mto ma
mcorporation
To mwhich mof mthe mfollowing mquestions mwill minternal musers mwant manswers? m-
mCORRECT mANSWER m- mAll mof mthe manswer mchoices mare mcorrect.
- what m selling m price m for m our m product m will m maximize m the m company's m net m income?
- which m product m line m is m most m profitable?
- is m cash m sufficient m to m pay m dividend m to m stockholders?
Which mof mthe mfollowing mis mNOT man mexternal muser mof maccounting mdata? m-
mCORRECT mANSWER m- mChief mFinancial mOfficer
Which mstatement mabout musers mof maccounting minformation mis mINCORRECT? m- mCORRECT
mANSWER m- mRegulatory mauthorities mare mconsidered minternal musers.
Which m of m the m following m is m the m most m appropriate m definition m of m accounting? m - m CORRECT
m ANSWER m -
The minformation msystem mthat midentifies, mrecords, mand mcommunicates mthe meconomic mevents
mof man morganiza mtion mto minterested musers.
Paying minterest mexpense mand mreceiving minterest mrevenue mare mexamples mof m- mCORRECT
mANSWER m- mOperating mactivates
Which mof mthe mfollowing mis mNOT mone mof mthe mthree mprimary mbusiness mactivities? m-
mCORRECT mANSWER m- mAdvertising
Which mof mthe mfollowing mis man mexample mof ma mfinancing mactivity? m-
mCORRECT mANSWER m- mIssuing mshares mof mcommon mstock
,Resources m owned m by m a m business m are m referred m to m as m - m CORRECT m ANSWER m -assets
In mterms mof mthe mprincipal mtypes mof mbusiness mactivities, mpaying msalaries mexpense mis man
mexample mof man m- mCORRECT mANSWER m-operating mactivity
On mJan. m10, mNovis mCompany mpurchased mmanufacturing mequipment mfor m$80,000 mcash.
mWhat mkind mof mactivi m ty mis mthis? m- mCORRECT mANSWER m-Investing mactivity
In mwhat msection mof mthe mstatement mof mcash mflows mwould mthe mpurchase mof moffice
mequipment mfor m$10,000 mca msh mappear? m- mCORRECT mANSWER m-Investing mactivities
Which mof mthe mfollowing mis mNOT mone mof mthe mprimary mtypes mof mthe mfinancing mactivities
min mthe mstatement mof mcash mflows? m- mCORRECT mANSWER m-Buying mequipment
Which mof mthe mfollowing mwould mNOT mappear mon mthe mincome mstatement? m-
mCORRECT mANSWER m- mDividends mpaid
Which mof mthe mfollowing mwould mNOT mappear mon mthe mretained mearnings mstatement? m-
mCORRECT mANSWER m- mservice mrevenue
Net m income mwill m result m during m a m time m period m when m - m CORRECT m ANSWER m -revenues
m exceed m expenses
The mfinancial mstatements mfor mHarold mCorporation mcontained mthe mfollowing
minformation: mAccounts mreceivable: m$5,000
Sales mRevenue:
m$75,000 mCash:
m$15,000
Salaries mand mwages mexpense:
m$20,000 mRent mexpense: m$10,000
How mmuch m was m Harold's m net m income? m - m CORRECT m ANSWER m -$45,000
, In mwhich mof mthe mfollowing msequences mare mthe mfinancial mstatements musually
mprepared? m- mCORRECT mANSWER m-
Income mstatement, mretained mearnings m statement, m balance m sheet mand mstatement mof mcash
m flows
Saira's mMaid mService mbegan mthe myear mwith mtotal massets mof m$120,000 mand mstockholders'
mequity mof m$40,000. mDuring m the myear mthe m company m earned m$90,000 m in m net m income
m and m paid m$20,000 m in m dividends. m Total masset ms m at m the m end mof m the m year m were
m $215,000. m How m much m was m stockholders' m equity m at m the m end m of m the m year? m -
CORRECT mANSWER m -$110,000
(Beg m RE m + m Net m Income m - m Dividends m = m End m RE)
Which mstatement mpresents minformation mas mof ma mspecific mpoint min mtime? m-
mCORRECT mANSWER m- mBalance mSheet
How mis mthe missuance mof mcommon mstock mreported mon mthe mstatement mof mcash mflows? m-
mCORRECT mANSWER m- mFinancing mactivity
Which m financial m statement m reports m assets, m liabilities m and m stockholders' m equity? m - mCORRECT
m ANSWER m-
Balance m Sheet
the mending mretained mearnings mbalance mappears mon m- mCORRECT
mANSWER m- mboth mthe mretained mearnings mstatement mand mthe
mbalance msheet
Saira's mMaid mService mbegan mthe myear mwith mtotal massets mof m$120,000 mand mstockholders'
mequity mof m$40,000. mDuring m the myear mthe m company m earned m$90,000 m in m net m income
m and m paid m$20,000 m in m dividends. m Total masset ms m at m the m end mof m the m year m were
m $215,000. m How m much m are m total m liabilities m at m the m end m of m the m year? m -
CORRECT mANSWER m -$105,000
(Assets= m Liabilities m + m Stockholders' mEquity)
The m balance m sheet m - m CORRECT m ANSWER m -
reports m the m assets, m liabilities, m and m stockholders' m equity m at m a m specific m point m in m time
Stockholders' mequity m represents m - m CORRECT m ANSWER m-claims m of m owners
CORRECT ANSWERS 2025/2026
What m is m the m basic m accounting m equation? m - m CORRECT m ANSWER m -Assets m = m Liabilities m +
m Stockholders' m Equity
Which mis man madvantage mof mcorporations mrelative mto mpartnerships mand msole
mproprietorships? m- mCORRECT mANSWER m-Reduced mlegal mliability mfor minvestors
Which mforms mof mbusiness morganization mare mconsidered mto mbe mseparate
maccounting mentities? m- mCORRECT mANSWER m-Sole mProprietorship, mCorporations,
mand mPartnerships.
Which mof mthe mfollowing mdid mNOT mresult mfrom mthe mSarbanes-Oxley mAct? m-
mCORRECT mANSWER m- mTax mrates mon mcorporations mincreased.
The m payment m of m dividends m is m an m example m of m a(n) m - m CORRECT m ANSWER m -financing m activity
What m kind m of m classification m is m cost m of m goods m sold? m - m CORRECT m ANSWER m -expense
What msection mof mcash mflow mstatement mshows mthe mcash mspent mon mnew mequipment
mduring mthe mpast maccount ming mperiod? m- mCORRECT mANSWER m-The minvesting msection
If m total m liabilities m decreased m by m $15,000 m and m stockholders' m equity m increased m by m $5,000
m during m a m period mo mf mtime, mthen mtotal massets mmust m change mby mwhat mamount mand
mdirection mduring mthat msame m period? m-
CORRECT mANSWER m -$10,000 m decrease
(Assets m = m Liabilities m + m Stockholders' m Equity)
Which m is m NOT m one m of m the m three m forms mof m business m organizations? m - m CORRECT m ANSWER
m -Creditorship
Ease mof mtransferring mownership mis ma mcharacteristic mof mwhich mform mof mbusiness
morganization? m- mCORRECT mANSWER m-Corporation
,In mwhich mforms mof mbusiness morganization mare mthe mowners mpersonally mliable mfor mall mthe
mdebts mof mthe mbusine mss? m- mCORRECT mANSWER m-Sole mproprietorships mand mPartnerships
The msole mproprietorship mform mof mbusiness morganization? m- mCORRECT
mANSWER m- mGenerally, mreceives mfavorable mtax mtreatment mrelative mto ma
mcorporation
To mwhich mof mthe mfollowing mquestions mwill minternal musers mwant manswers? m-
mCORRECT mANSWER m- mAll mof mthe manswer mchoices mare mcorrect.
- what m selling m price m for m our m product m will m maximize m the m company's m net m income?
- which m product m line m is m most m profitable?
- is m cash m sufficient m to m pay m dividend m to m stockholders?
Which mof mthe mfollowing mis mNOT man mexternal muser mof maccounting mdata? m-
mCORRECT mANSWER m- mChief mFinancial mOfficer
Which mstatement mabout musers mof maccounting minformation mis mINCORRECT? m- mCORRECT
mANSWER m- mRegulatory mauthorities mare mconsidered minternal musers.
Which m of m the m following m is m the m most m appropriate m definition m of m accounting? m - m CORRECT
m ANSWER m -
The minformation msystem mthat midentifies, mrecords, mand mcommunicates mthe meconomic mevents
mof man morganiza mtion mto minterested musers.
Paying minterest mexpense mand mreceiving minterest mrevenue mare mexamples mof m- mCORRECT
mANSWER m- mOperating mactivates
Which mof mthe mfollowing mis mNOT mone mof mthe mthree mprimary mbusiness mactivities? m-
mCORRECT mANSWER m- mAdvertising
Which mof mthe mfollowing mis man mexample mof ma mfinancing mactivity? m-
mCORRECT mANSWER m- mIssuing mshares mof mcommon mstock
,Resources m owned m by m a m business m are m referred m to m as m - m CORRECT m ANSWER m -assets
In mterms mof mthe mprincipal mtypes mof mbusiness mactivities, mpaying msalaries mexpense mis man
mexample mof man m- mCORRECT mANSWER m-operating mactivity
On mJan. m10, mNovis mCompany mpurchased mmanufacturing mequipment mfor m$80,000 mcash.
mWhat mkind mof mactivi m ty mis mthis? m- mCORRECT mANSWER m-Investing mactivity
In mwhat msection mof mthe mstatement mof mcash mflows mwould mthe mpurchase mof moffice
mequipment mfor m$10,000 mca msh mappear? m- mCORRECT mANSWER m-Investing mactivities
Which mof mthe mfollowing mis mNOT mone mof mthe mprimary mtypes mof mthe mfinancing mactivities
min mthe mstatement mof mcash mflows? m- mCORRECT mANSWER m-Buying mequipment
Which mof mthe mfollowing mwould mNOT mappear mon mthe mincome mstatement? m-
mCORRECT mANSWER m- mDividends mpaid
Which mof mthe mfollowing mwould mNOT mappear mon mthe mretained mearnings mstatement? m-
mCORRECT mANSWER m- mservice mrevenue
Net m income mwill m result m during m a m time m period m when m - m CORRECT m ANSWER m -revenues
m exceed m expenses
The mfinancial mstatements mfor mHarold mCorporation mcontained mthe mfollowing
minformation: mAccounts mreceivable: m$5,000
Sales mRevenue:
m$75,000 mCash:
m$15,000
Salaries mand mwages mexpense:
m$20,000 mRent mexpense: m$10,000
How mmuch m was m Harold's m net m income? m - m CORRECT m ANSWER m -$45,000
, In mwhich mof mthe mfollowing msequences mare mthe mfinancial mstatements musually
mprepared? m- mCORRECT mANSWER m-
Income mstatement, mretained mearnings m statement, m balance m sheet mand mstatement mof mcash
m flows
Saira's mMaid mService mbegan mthe myear mwith mtotal massets mof m$120,000 mand mstockholders'
mequity mof m$40,000. mDuring m the myear mthe m company m earned m$90,000 m in m net m income
m and m paid m$20,000 m in m dividends. m Total masset ms m at m the m end mof m the m year m were
m $215,000. m How m much m was m stockholders' m equity m at m the m end m of m the m year? m -
CORRECT mANSWER m -$110,000
(Beg m RE m + m Net m Income m - m Dividends m = m End m RE)
Which mstatement mpresents minformation mas mof ma mspecific mpoint min mtime? m-
mCORRECT mANSWER m- mBalance mSheet
How mis mthe missuance mof mcommon mstock mreported mon mthe mstatement mof mcash mflows? m-
mCORRECT mANSWER m- mFinancing mactivity
Which m financial m statement m reports m assets, m liabilities m and m stockholders' m equity? m - mCORRECT
m ANSWER m-
Balance m Sheet
the mending mretained mearnings mbalance mappears mon m- mCORRECT
mANSWER m- mboth mthe mretained mearnings mstatement mand mthe
mbalance msheet
Saira's mMaid mService mbegan mthe myear mwith mtotal massets mof m$120,000 mand mstockholders'
mequity mof m$40,000. mDuring m the myear mthe m company m earned m$90,000 m in m net m income
m and m paid m$20,000 m in m dividends. m Total masset ms m at m the m end mof m the m year m were
m $215,000. m How m much m are m total m liabilities m at m the m end m of m the m year? m -
CORRECT mANSWER m -$105,000
(Assets= m Liabilities m + m Stockholders' mEquity)
The m balance m sheet m - m CORRECT m ANSWER m -
reports m the m assets, m liabilities, m and m stockholders' m equity m at m a m specific m point m in m time
Stockholders' mequity m represents m - m CORRECT m ANSWER m-claims m of m owners
