UTA Entrance Accounting
Exam 2026 | Study Guide &
Practice Q&A Review and
Rationales
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Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, If net income after tax is $42,000, the tax rate is 30%, $186,000
and total expenses not including tax expense are
$126,000, revenues must be: Find what the net income was before taxes and add it to expenses to get the
total revenue.
The financial statement that reports what the company balance sheet
owns and what the company owes is the
The balance sheet shows assets, liabilities, and equity which show what is
owned and what is owed.
What is supposed to "balance" on the balance sheet? assets = liabilities + owner's equity
The purpose of financial accounting is to provide financial information to external users
The accounting equation is assets = liabilities + equity
Which financial statement provides information related to income statement
the financial performance of a company during a specific
period? The income statement reports earning for a company during a specific time
period.
A company reports net income when services provided are greater than the cost to provide the services
Which of the following is considered and expense? cost of goods sold
prepaid expense
cost of goods sold
sales
building
The government agency with legal authority over securities exchange commission (SEC)
financial reporting of U.S. public companies is called
FASB has no legal authority
Which financial statement reports dividends paid to statement of owners equity
shareholders?
Dividends are not reported on the income statement, it is not an expense. They
are netted into retained earnings on the balance sheet.
assets typically include accounts receivable and equipment
What financial document is for the specific purpose of cash flow statement
reporting cash flows?
Which statement provides information on goods and income statement
services provided to customers?
Providing goods and services to customers is revenues which is only on the
income statement.
Liabilities are obligations resulting from past transactions
Prepaid expenses is an asset because the company owns it
the company has paid ahead and therefore has future benefit
a past transaction has occurred
Exam 2026 | Study Guide &
Practice Q&A Review and
Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, If net income after tax is $42,000, the tax rate is 30%, $186,000
and total expenses not including tax expense are
$126,000, revenues must be: Find what the net income was before taxes and add it to expenses to get the
total revenue.
The financial statement that reports what the company balance sheet
owns and what the company owes is the
The balance sheet shows assets, liabilities, and equity which show what is
owned and what is owed.
What is supposed to "balance" on the balance sheet? assets = liabilities + owner's equity
The purpose of financial accounting is to provide financial information to external users
The accounting equation is assets = liabilities + equity
Which financial statement provides information related to income statement
the financial performance of a company during a specific
period? The income statement reports earning for a company during a specific time
period.
A company reports net income when services provided are greater than the cost to provide the services
Which of the following is considered and expense? cost of goods sold
prepaid expense
cost of goods sold
sales
building
The government agency with legal authority over securities exchange commission (SEC)
financial reporting of U.S. public companies is called
FASB has no legal authority
Which financial statement reports dividends paid to statement of owners equity
shareholders?
Dividends are not reported on the income statement, it is not an expense. They
are netted into retained earnings on the balance sheet.
assets typically include accounts receivable and equipment
What financial document is for the specific purpose of cash flow statement
reporting cash flows?
Which statement provides information on goods and income statement
services provided to customers?
Providing goods and services to customers is revenues which is only on the
income statement.
Liabilities are obligations resulting from past transactions
Prepaid expenses is an asset because the company owns it
the company has paid ahead and therefore has future benefit
a past transaction has occurred
