financial accounting 1 (Self Study) Verified Exam Questions and
Answers Latest update 2026/2027
Question:
Relevant accounting information
Answer:
-s information that is capable of making a difference in a business decision
Question:
-is information that is capable of making a
difference in a business decision.
-is immaterial.
-has been objectively determined.
-is information that has been audited.
-must be reported within the operating
cycle or one year, whichever is longer.
Answer:
Question:
Which of the following best defines assets?
Answer:
Resources belonging to a company that have a future benefit to the company.
Question:
-Owners' investment in the business.
-Resources belonging to a company that
have a future benefit to the company.
-The cash owned by the company.
-The amount of resources owned by a
company minus the claims on those resources.
-The cash in the company s bank accounts.
Answer:
,Question:
The effects of paying a dividend on the basic accounting equation are to
-increase assets and increase liabilities.
-increase liabilities and increase
stockholders' equity.
-increase assets and decrease assets by
the same amount. Total assets do not change.
-decrease assets and decrease
stockholders' equity.
-decrease assets and decrease liabilities.
Answer:
decrease assets and decrease stockholders' equity.
Question:
Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?
Answer:
No, revenue cannot be recognized until the work is performed.
Question:
-No, revenue cannot be recognized until
the work is performed.
-None of these
-Yes, the intent of the company is to
perform the work and the customer is confident that the services will be completed.
-Yes, they are treated as revenue at the
time of receipt because the company has the cash.
-No, the amount of revenue cannot be
adequately determined until the company completes the work.
Answer:
Question:
If a company buys supplies on account, then
Answer:
assets increase and liabilities increase.
, Question:
-assets decrease and liabilities increase.
-assets increase and liabilities increase.
-liabilities increase and liabilities decrease.
-assets increase and assets decrease.
-assets increase and stockholders' equity
increases.
Answer:
Question:
When expenses exceed revenues, which of the following is true?
Answer:
A net loss results
Question:
-A net loss results
-Assets are increased
-Liabilities are increased
-Equity is increased
-Assets equal liabilities
Answer:
Question:
Retained earnings is
Answer:
an equity account.
Question:
-an asset account.
-equal to cash.
-equal to revenues minus expenses.
-an equity account.
-equal to total assets minus total liabilities.
Answer:
Answers Latest update 2026/2027
Question:
Relevant accounting information
Answer:
-s information that is capable of making a difference in a business decision
Question:
-is information that is capable of making a
difference in a business decision.
-is immaterial.
-has been objectively determined.
-is information that has been audited.
-must be reported within the operating
cycle or one year, whichever is longer.
Answer:
Question:
Which of the following best defines assets?
Answer:
Resources belonging to a company that have a future benefit to the company.
Question:
-Owners' investment in the business.
-Resources belonging to a company that
have a future benefit to the company.
-The cash owned by the company.
-The amount of resources owned by a
company minus the claims on those resources.
-The cash in the company s bank accounts.
Answer:
,Question:
The effects of paying a dividend on the basic accounting equation are to
-increase assets and increase liabilities.
-increase liabilities and increase
stockholders' equity.
-increase assets and decrease assets by
the same amount. Total assets do not change.
-decrease assets and decrease
stockholders' equity.
-decrease assets and decrease liabilities.
Answer:
decrease assets and decrease stockholders' equity.
Question:
Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?
Answer:
No, revenue cannot be recognized until the work is performed.
Question:
-No, revenue cannot be recognized until
the work is performed.
-None of these
-Yes, the intent of the company is to
perform the work and the customer is confident that the services will be completed.
-Yes, they are treated as revenue at the
time of receipt because the company has the cash.
-No, the amount of revenue cannot be
adequately determined until the company completes the work.
Answer:
Question:
If a company buys supplies on account, then
Answer:
assets increase and liabilities increase.
, Question:
-assets decrease and liabilities increase.
-assets increase and liabilities increase.
-liabilities increase and liabilities decrease.
-assets increase and assets decrease.
-assets increase and stockholders' equity
increases.
Answer:
Question:
When expenses exceed revenues, which of the following is true?
Answer:
A net loss results
Question:
-A net loss results
-Assets are increased
-Liabilities are increased
-Equity is increased
-Assets equal liabilities
Answer:
Question:
Retained earnings is
Answer:
an equity account.
Question:
-an asset account.
-equal to cash.
-equal to revenues minus expenses.
-an equity account.
-equal to total assets minus total liabilities.
Answer:
