NYC Accountant Exam – Fundamentals Practice
Questions AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026 |INSTANT DOWNLOAD PDF
1. Which of the following are components of a company’s
balance sheet?
A) Assets
B) Liabilities
C) Equity
D) Revenue
Rationale: The balance sheet shows what a company owns and
owes, along with owners’ equity. Revenue is part of the income
statement, not the balance sheet.
Correct answer: A, B, C
2. Which of the following are considered current assets?
A) Cash
B) Accounts Receivable
C) Equipment
D) Inventory
Rationale: Current assets are assets expected to be converted
into cash within a year. Equipment is a long-term asset.
Correct answer: A, B, D
3. Which of the following are considered liabilities?
,A) Accounts Payable
B) Loans Payable
C) Retained Earnings
D) Bonds Payable
Rationale: Liabilities are obligations a company owes. Retained
earnings are part of equity.
Correct answer: A, B, D
4. Which of the following best describe accrual accounting?
A) Recognizes revenue when earned
B) Recognizes expenses when incurred
C) Records cash flow only when cash is received
D) Matches revenue and expenses in the same period
Rationale: Accrual accounting focuses on recognizing
transactions when they occur, not when cash moves.
Correct answer: A, B, D
5. Which of the following are types of financial statements?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) General Ledger
Rationale: The general ledger is an accounting record, not a
financial statement.
Correct answer: A, B, C
,6. Which of the following are considered intangible assets?
A) Goodwill
B) Patents
C) Buildings
D) Copyrights
Rationale: Intangible assets are non-physical, long-term assets.
Buildings are tangible.
Correct answer: A, B, D
7. Which of the following ratios measure liquidity?
A) Current Ratio
B) Quick Ratio
C) Debt-to-Equity Ratio
D) Cash Ratio
Rationale: Liquidity ratios measure a company's ability to meet
short-term obligations. Debt-to-equity measures leverage, not
liquidity.
Correct answer: A, B, D
8. Which of the following are common inventory valuation
methods?
A) FIFO (First In, First Out)
B) LIFO (Last In, First Out)
, C) Weighted Average
D) Straight-Line
Rationale: Straight-line is a depreciation method, not inventory
valuation.
Correct answer: A, B, C
9. Which of the following are considered operating expenses?
A) Rent
B) Salaries
C) Cost of Goods Sold
D) Utilities
Rationale: Operating expenses are ongoing costs of running the
business. COGS is a direct cost, not an operating expense.
Correct answer: A, B, D
10. Which of the following are common auditing standards?
A) GAAP (Generally Accepted Accounting Principles)
B) GAAS (Generally Accepted Auditing Standards)
C) IFRS (International Financial Reporting Standards)
D) FASB Statements
Rationale: Auditing standards are specifically GAAS; GAAP and
IFRS are accounting standards, not auditing standards.
Correct answer: B
Questions AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026 |INSTANT DOWNLOAD PDF
1. Which of the following are components of a company’s
balance sheet?
A) Assets
B) Liabilities
C) Equity
D) Revenue
Rationale: The balance sheet shows what a company owns and
owes, along with owners’ equity. Revenue is part of the income
statement, not the balance sheet.
Correct answer: A, B, C
2. Which of the following are considered current assets?
A) Cash
B) Accounts Receivable
C) Equipment
D) Inventory
Rationale: Current assets are assets expected to be converted
into cash within a year. Equipment is a long-term asset.
Correct answer: A, B, D
3. Which of the following are considered liabilities?
,A) Accounts Payable
B) Loans Payable
C) Retained Earnings
D) Bonds Payable
Rationale: Liabilities are obligations a company owes. Retained
earnings are part of equity.
Correct answer: A, B, D
4. Which of the following best describe accrual accounting?
A) Recognizes revenue when earned
B) Recognizes expenses when incurred
C) Records cash flow only when cash is received
D) Matches revenue and expenses in the same period
Rationale: Accrual accounting focuses on recognizing
transactions when they occur, not when cash moves.
Correct answer: A, B, D
5. Which of the following are types of financial statements?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) General Ledger
Rationale: The general ledger is an accounting record, not a
financial statement.
Correct answer: A, B, C
,6. Which of the following are considered intangible assets?
A) Goodwill
B) Patents
C) Buildings
D) Copyrights
Rationale: Intangible assets are non-physical, long-term assets.
Buildings are tangible.
Correct answer: A, B, D
7. Which of the following ratios measure liquidity?
A) Current Ratio
B) Quick Ratio
C) Debt-to-Equity Ratio
D) Cash Ratio
Rationale: Liquidity ratios measure a company's ability to meet
short-term obligations. Debt-to-equity measures leverage, not
liquidity.
Correct answer: A, B, D
8. Which of the following are common inventory valuation
methods?
A) FIFO (First In, First Out)
B) LIFO (Last In, First Out)
, C) Weighted Average
D) Straight-Line
Rationale: Straight-line is a depreciation method, not inventory
valuation.
Correct answer: A, B, C
9. Which of the following are considered operating expenses?
A) Rent
B) Salaries
C) Cost of Goods Sold
D) Utilities
Rationale: Operating expenses are ongoing costs of running the
business. COGS is a direct cost, not an operating expense.
Correct answer: A, B, D
10. Which of the following are common auditing standards?
A) GAAP (Generally Accepted Accounting Principles)
B) GAAS (Generally Accepted Auditing Standards)
C) IFRS (International Financial Reporting Standards)
D) FASB Statements
Rationale: Auditing standards are specifically GAAS; GAAP and
IFRS are accounting standards, not auditing standards.
Correct answer: B
