ACCT 2401 Quizzes Study Guide | Accounting Review, Practice Questions & Exam Preparation
The Income Statement is used to report - ANS ✔✔results of operations for a specific period
When revenue exceeds cost, it is referred to as - ANS ✔✔profit
Accountants should be highly ethical and must do everything they can to prevent fraud - ANS
✔✔true
Which of the financial statements includes a listing of assets owned by the company? - ANS
✔✔balance sheet
According to the textbook, in order for an organization to be called a business it must - ANS
✔✔exchange a product with a customer
IFRS stands for - ANS ✔✔International Financial Reporting Standards
The net income figure is needed to prepare - ANS ✔✔a statement of retained earnings
Generally Accepted Accounting Principles (GAAP) are the rules and guidelines governing
accounting - ANS ✔✔true
Most businesses use - ANS ✔✔accrual accounting
Which of the following does NOT describe Stockholders' Equity - ANS ✔✔Money lent to a
business.
, Ronald opens his business by investing $12,000. How does this affect the accounting equation -
ANS ✔✔Increase in Assets; increase in Stockholders' Equity
A company has Liabilities of $23,600 and Stockholders' Equity of $56,600. How much does the
company have in Assets - ANS ✔✔$80,200
Which of the following is NOT an asset? - ANS ✔✔Net income
Consider Accounts Receivable and Accounts Payable. Which of the following statements is
TRUE? - ANS ✔✔Accounts Receivable is an asset and Accounts Payable is a liability
A hybrid business entity with characteristics of both a corporation and a partnership is called -
ANS ✔✔LLC
A tax preparation business is primarily a - ANS ✔✔service operation
If Total Assets remain the same and Total Stockholders' Equity increases, Liabilities will - ANS
✔✔decrease by the same amount
Amber owns Serenity Spa Resort. In her accounting records, she lists the buildings at their
current market value. Which principle is Amber violating - ANS ✔✔cost
A business may be either a
for−profit business or a
not−for−profit
business - ANS ✔✔true
The Income Statement is used to report - ANS ✔✔results of operations for a specific period
When revenue exceeds cost, it is referred to as - ANS ✔✔profit
Accountants should be highly ethical and must do everything they can to prevent fraud - ANS
✔✔true
Which of the financial statements includes a listing of assets owned by the company? - ANS
✔✔balance sheet
According to the textbook, in order for an organization to be called a business it must - ANS
✔✔exchange a product with a customer
IFRS stands for - ANS ✔✔International Financial Reporting Standards
The net income figure is needed to prepare - ANS ✔✔a statement of retained earnings
Generally Accepted Accounting Principles (GAAP) are the rules and guidelines governing
accounting - ANS ✔✔true
Most businesses use - ANS ✔✔accrual accounting
Which of the following does NOT describe Stockholders' Equity - ANS ✔✔Money lent to a
business.
, Ronald opens his business by investing $12,000. How does this affect the accounting equation -
ANS ✔✔Increase in Assets; increase in Stockholders' Equity
A company has Liabilities of $23,600 and Stockholders' Equity of $56,600. How much does the
company have in Assets - ANS ✔✔$80,200
Which of the following is NOT an asset? - ANS ✔✔Net income
Consider Accounts Receivable and Accounts Payable. Which of the following statements is
TRUE? - ANS ✔✔Accounts Receivable is an asset and Accounts Payable is a liability
A hybrid business entity with characteristics of both a corporation and a partnership is called -
ANS ✔✔LLC
A tax preparation business is primarily a - ANS ✔✔service operation
If Total Assets remain the same and Total Stockholders' Equity increases, Liabilities will - ANS
✔✔decrease by the same amount
Amber owns Serenity Spa Resort. In her accounting records, she lists the buildings at their
current market value. Which principle is Amber violating - ANS ✔✔cost
A business may be either a
for−profit business or a
not−for−profit
business - ANS ✔✔true
