ACC 290 FINAL EXAM QUESTIONS AND ANSWERS LATEST UPDATE

ACC 290 FINAL EXAM QUESTIONS AND ANSWERS LATEST UPDATE . The best definition of assets is the cash owned by the company. owners’ investment in the business. resources belonging to a company that have future benefit to the company. collections of resources belonging to the company and the claims on these resources. Multiple Choice Question 98 Which of the following is not a liability? Entry field with correct answer Unearned Service Revenue Interest Payable Accounts Receivable Accounts Payable Multiple Choice Question 99 Which of the following financial statements is divided into major categories of operating, investing, and financing activities? Entry field with correct answer The balance sheet. The retained earnings statement. The statement of cash flows. The income statement Multiple Choice Question 101 Ending retained earnings for a period is equal to beginning Retained earnings + Net income + Dividends. Retained earnings + Net income – Dividends. Retained earnings – Net income – Dividends. Retained earnings – Net income + Dividends. Multiple Choice Question 47 Which of the following is not an advantage of the corporate form of business organization? Entry field with correct answer Easy to raise funds Favorable tax treatment No personal liability Easy to transfer ownership Multiple Choice Question 48 An advantage of the corporate form of business is that it has limited life. it is simple to establish. its ownership is easily transferable via the sale of shares of stock. its owner’s personal resources are at stake. Multiple Choice Question 51 A small neighborhood barber shop that is operated by its owner would likely be organized as a: joint venture. proprietorship. corporation. partnership. Multiple Choice Question 59 If services are rendered for cash, then liabilities will increase. stockholders’ equity will decrease. liabilities will decrease. assets will increase. Multiple Choice Question 67 A revenue generally increases assets and stockholders’ equity. increases assets and decreases stockholders’ equity. leaves total assets unchanged. increases assets and liabilities. Multiple Choice Question 103 A revenue account is decreased by credits. is increased by credits. is increased by debits. has a normal balance of a debit. Multiple Choice Question 106 Which accounts normally have debit balances? Assets, expense, and retained earnings Assets, expenses, and dividends Assets, liabilities, and dividends Assets, expenses, and revenues Multiple Choice Question 109 In recording an accounting transaction in a double-entry system there must only be two accounts affected by any transaction. the number of debit accounts must equal the number of credit accounts. there must always be entries made on both sides of the accounting equation. the amount of the debits must equal the amount of the credits.