UTA Entrance Accounting Exam
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questions with answers |\ |\
If net income after tax is $42,000, the tax rate is 30%,
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and total expenses not including tax expense are
|\ |\ |\ |\ |\ |\ |\ |\
$126,000, revenues must be: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔$186,000
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
|\ |\ |\ |\ |\ |\ |\ |\
owns and what the company owes is the - CORRECT
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ANSWERS ✔✔balance sheet |\ |\
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? -
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CORRECT ANSWERS ✔✔assets = liabilities + owner's
|\ |\ |\ |\ |\ |\ |\
equity
,The purpose of financial accounting is to provide -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔financial information to external |\ |\ |\ |\ |\ |\
users
The accounting equation is - CORRECT ANSWERS
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✔✔assets = liabilities + equity |\ |\ |\ |\
Which financial statement provides information related to
|\ |\ |\ |\ |\ |\ |\
the financial performance of a company during a specific
|\ |\ |\ |\ |\ |\ |\ |\ |\
period? - CORRECT ANSWERS ✔✔income statement
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The income statement reports earning for a company
|\ |\ |\ |\ |\ |\ |\ |\
during a specific time period.
|\ |\ |\ |\
A company reports net income when - CORRECT
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ANSWERS ✔✔services provided are greater than the cost |\ |\ |\ |\ |\ |\ |\ |\
to provide the services
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Which of the following is considered and expense?
|\ |\ |\ |\ |\ |\ |\
prepaid expense |\
cost of goods sold |\ |\ |\
sales
building - CORRECT ANSWERS ✔✔cost of goods sold
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, The government agency with legal authority over
|\ |\ |\ |\ |\ |\ |\
financial reporting of U.S. public companies is called -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔securities exchange commission
|\ |\ |\ |\ |\
(SEC)
FASB has no legal authority
|\ |\ |\ |\
Which financial statement reports dividends paid to
|\ |\ |\ |\ |\ |\ |\
shareholders? - CORRECT ANSWERS ✔✔statement of |\ |\ |\ |\ |\ |\
owners equity |\
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 - CORRECT ANSWERS ✔✔accounts
|\ |\ |\ |\ |\ |\
receivable and equipment
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What financial document is for the specific purpose of
|\ |\ |\ |\ |\ |\ |\ |\ |\
reporting cash flows? - CORRECT ANSWERS ✔✔cash flow
|\ |\ |\ |\ |\ |\ |\ |\
statement
|\ |\ |\ |\
questions with answers |\ |\
If net income after tax is $42,000, the tax rate is 30%,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and total expenses not including tax expense are
|\ |\ |\ |\ |\ |\ |\ |\
$126,000, revenues must be: - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔$186,000
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
|\ |\ |\ |\ |\ |\ |\ |\
owns and what the company owes is the - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔balance sheet |\ |\
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? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔assets = liabilities + owner's
|\ |\ |\ |\ |\ |\ |\
equity
,The purpose of financial accounting is to provide -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔financial information to external |\ |\ |\ |\ |\ |\
users
The accounting equation is - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔assets = liabilities + equity |\ |\ |\ |\
Which financial statement provides information related to
|\ |\ |\ |\ |\ |\ |\
the financial performance of a company during a specific
|\ |\ |\ |\ |\ |\ |\ |\ |\
period? - CORRECT ANSWERS ✔✔income statement
|\ |\ |\ |\ |\
The income statement reports earning for a company
|\ |\ |\ |\ |\ |\ |\ |\
during a specific time period.
|\ |\ |\ |\
A company reports net income when - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔services provided are greater than the cost |\ |\ |\ |\ |\ |\ |\ |\
to provide the services
|\ |\ |\
Which of the following is considered and expense?
|\ |\ |\ |\ |\ |\ |\
prepaid expense |\
cost of goods sold |\ |\ |\
sales
building - CORRECT ANSWERS ✔✔cost of goods sold
|\ |\ |\ |\ |\ |\ |\
, The government agency with legal authority over
|\ |\ |\ |\ |\ |\ |\
financial reporting of U.S. public companies is called -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔securities exchange commission
|\ |\ |\ |\ |\
(SEC)
FASB has no legal authority
|\ |\ |\ |\
Which financial statement reports dividends paid to
|\ |\ |\ |\ |\ |\ |\
shareholders? - CORRECT ANSWERS ✔✔statement of |\ |\ |\ |\ |\ |\
owners equity |\
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 - CORRECT ANSWERS ✔✔accounts
|\ |\ |\ |\ |\ |\
receivable and equipment
|\ |\ |\
What financial document is for the specific purpose of
|\ |\ |\ |\ |\ |\ |\ |\ |\
reporting cash flows? - CORRECT ANSWERS ✔✔cash flow
|\ |\ |\ |\ |\ |\ |\ |\
statement
