Accounting 2301 - Midterm Exam
Questions With Correct Answers
The correct order of the three stages of accounting is - CORRECT
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ANSWER✔✔-measurement, processing, and communication | | |
Which of the following is a business event that is NOT considered a
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recordable transaction? |
a. a company receives a product previously ordered
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b. a company pays an employee for work performed
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c. a customer inquires about the availability of a service
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d. a customer purchases a service - CORRECT ANSWER✔✔-a customer
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inquires about the availability of a service
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Which of the following actions can distort company records and result in
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fraudulent financial reporting?
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a. prepaying an expense and recording it as an asset
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b. collecting revenue in advance of earing it
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c. recording revenue that has not yet been earned
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,d. recording an expense that has been incurred but has not yet been
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paid - CORRECT ANSWER✔✔-recording revenue that has not yet been
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earned
A net loss results in a decrease in... - CORRECT ANSWER✔✔-Owner's
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equity
Net income results in an... - CORRECT ANSWER✔✔-increase in owner's
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equity
Equipment might be depreciated over 15 years because... - CORRECT
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ANSWER✔✔-it will help generate revenue for the company over 15
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years
The matching rule is applied... - CORRECT ANSWER✔✔-to help produce
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an accurate measurement of a company's performance
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What is the proper sequence in the accounting cycle? - CORRECT
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ANSWER✔✔-Analyze, record, post, adjust, prepare, close | | | | |
On which financial statement does Income Statement appear?
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a. statement of owner's equity
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b. balance sheet
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, c. on no financial statement
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d. income statement - CORRECT ANSWER✔✔-On no financial statement
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Which of the following accounts is a real account?
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a. building
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b. Depreciation Expense-buildings
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c. interest expense
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d. service revenue - CORRECT ANSWER✔✔-Building
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All of the following must certify that a public company's financial
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statements are accurate, complete, and not misleading, EXCEPT for the..
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a. chief financial officer
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b. director of human resources
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c. chief executive officer
| | |
d. independent auditor - CORRECT ANSWER✔✔-director of human
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resources
Which of the following activities is NOT a component of the operating
| | | | | | | | | | | |
cycle?
a. Payment of employees' wages
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b. Sale of merchandise
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c. Purchase of merchandise
| | |
Questions With Correct Answers
The correct order of the three stages of accounting is - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-measurement, processing, and communication | | |
Which of the following is a business event that is NOT considered a
| | | | | | | | | | | | |
recordable transaction? |
a. a company receives a product previously ordered
| | | | | | |
b. a company pays an employee for work performed
| | | | | | | |
c. a customer inquires about the availability of a service
| | | | | | | | |
d. a customer purchases a service - CORRECT ANSWER✔✔-a customer
| | | | | | | | | |
inquires about the availability of a service
| | | | | |
Which of the following actions can distort company records and result in
| | | | | | | | | | |
fraudulent financial reporting?
| | |
a. prepaying an expense and recording it as an asset
| | | | | | | | |
b. collecting revenue in advance of earing it
| | | | | | |
c. recording revenue that has not yet been earned
| | | | | | | |
,d. recording an expense that has been incurred but has not yet been
| | | | | | | | | | | | |
paid - CORRECT ANSWER✔✔-recording revenue that has not yet been
| | | | | | | | | |
earned
A net loss results in a decrease in... - CORRECT ANSWER✔✔-Owner's
| | | | | | | | | | |
equity
Net income results in an... - CORRECT ANSWER✔✔-increase in owner's
| | | | | | | | | |
equity
Equipment might be depreciated over 15 years because... - CORRECT
| | | | | | | | | |
ANSWER✔✔-it will help generate revenue for the company over 15
| | | | | | | | | |
years
The matching rule is applied... - CORRECT ANSWER✔✔-to help produce
| | | | | | | | | |
an accurate measurement of a company's performance
| | | | | |
What is the proper sequence in the accounting cycle? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Analyze, record, post, adjust, prepare, close | | | | |
On which financial statement does Income Statement appear?
| | | | | | |
a. statement of owner's equity
| | | |
b. balance sheet
| |
, c. on no financial statement
| | | |
d. income statement - CORRECT ANSWER✔✔-On no financial statement
| | | | | | | |
Which of the following accounts is a real account?
| | | | | | | |
a. building
|
b. Depreciation Expense-buildings
| |
c. interest expense
| |
d. service revenue - CORRECT ANSWER✔✔-Building
| | | | |
All of the following must certify that a public company's financial
| | | | | | | | | | |
statements are accurate, complete, and not misleading, EXCEPT for the..
| | | | | | | | |
a. chief financial officer
| | |
b. director of human resources
| | | |
c. chief executive officer
| | |
d. independent auditor - CORRECT ANSWER✔✔-director of human
| | | | | | | |
resources
Which of the following activities is NOT a component of the operating
| | | | | | | | | | | |
cycle?
a. Payment of employees' wages
| | | |
b. Sale of merchandise
| | |
c. Purchase of merchandise
| | |
