1|Page
A100 Final Exam Indiana University With Complete
100 Questions And Answers Latest Update
2026||Verified Exam!!!
Which of the following is primarily responsible for the
information provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - Answers-Company Top
Management
Which of the following describes the primary objective of
financial accounting?
A) To provide information about a business' future
business strategies.
B) To provide useful financial information only to
stockholders.
C) To provide useful financial information about a business
to help external parties make informed decisions.
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D) To provide useful financial information about a business
to help internal parties make informed decisions. -
Answers-To provide useful financial information about a
business to help external parties make informed decisions.
Financial accounting standards are known collectively as
GAAP. What does that acronym stand for?
A) Generally Authorized Auditing Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Accepted Accounting Principles - Answers-
Generally Accepted Accounting Principles
For accounting information to be useful, it must be which
of the following?
A) It must be comparable and reliable.
B) It must be consistent and comparable.
C) It must be a faithful representation and relevant.
D) It must be relevant and consistent. - Answers-It must be
a faithful representation and relevant.
,3|Page
Which of the following best describes the purpose of an
audit?
A) To audit every transaction that an entity entered into.
B) To establish that a corporation's stock is a sound
investment.
C) To prove the accuracy of an entity's financial
statements.
D) To lend credibility to an entity's financial statements. -
Answers-To lend credibility to an entity's financial
statements.
Which of the following is considered to be an expense on
the income statement?
A)Prepaid Expenses.
B)Wages payable.
C)Notes payable.
D)Cost of goods sold. - Answers-Cost of goods sold.
, 4|Page
At the beginning of 2020, a corporation had assets of
$270,000 and liabilities of $160,000. During 2020, assets
increased $25,000 and liabilities increased $5,000. What
was stockholders' equity at December 31, 2020?
A) $130,000.
B) $190,000.
C) $140,000.
D) $80,000. - Answers-$130,000.
Which of the following would not be reported in the
operating activities section of a cash flow statement?
A) Cash paid for interest expense.
B) Cash paid for dividends to stockholders.
C) Cash paid for employee wages.
D) Cash received from customers. - Answers-Cash paid
for dividends to stockholders.
Seitz Trucking's retained earnings increased $20,000
during the current year. What was Seitz Trucking's current
A100 Final Exam Indiana University With Complete
100 Questions And Answers Latest Update
2026||Verified Exam!!!
Which of the following is primarily responsible for the
information provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - Answers-Company Top
Management
Which of the following describes the primary objective of
financial accounting?
A) To provide information about a business' future
business strategies.
B) To provide useful financial information only to
stockholders.
C) To provide useful financial information about a business
to help external parties make informed decisions.
,2|Page
D) To provide useful financial information about a business
to help internal parties make informed decisions. -
Answers-To provide useful financial information about a
business to help external parties make informed decisions.
Financial accounting standards are known collectively as
GAAP. What does that acronym stand for?
A) Generally Authorized Auditing Principles
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Accepted Accounting Principles - Answers-
Generally Accepted Accounting Principles
For accounting information to be useful, it must be which
of the following?
A) It must be comparable and reliable.
B) It must be consistent and comparable.
C) It must be a faithful representation and relevant.
D) It must be relevant and consistent. - Answers-It must be
a faithful representation and relevant.
,3|Page
Which of the following best describes the purpose of an
audit?
A) To audit every transaction that an entity entered into.
B) To establish that a corporation's stock is a sound
investment.
C) To prove the accuracy of an entity's financial
statements.
D) To lend credibility to an entity's financial statements. -
Answers-To lend credibility to an entity's financial
statements.
Which of the following is considered to be an expense on
the income statement?
A)Prepaid Expenses.
B)Wages payable.
C)Notes payable.
D)Cost of goods sold. - Answers-Cost of goods sold.
, 4|Page
At the beginning of 2020, a corporation had assets of
$270,000 and liabilities of $160,000. During 2020, assets
increased $25,000 and liabilities increased $5,000. What
was stockholders' equity at December 31, 2020?
A) $130,000.
B) $190,000.
C) $140,000.
D) $80,000. - Answers-$130,000.
Which of the following would not be reported in the
operating activities section of a cash flow statement?
A) Cash paid for interest expense.
B) Cash paid for dividends to stockholders.
C) Cash paid for employee wages.
D) Cash received from customers. - Answers-Cash paid
for dividends to stockholders.
Seitz Trucking's retained earnings increased $20,000
during the current year. What was Seitz Trucking's current
