UGBA Practice Exam #2 question n answers graded A+ 2023/2024

UGBA Practice Exam #2Jose is a recent college graduate who has been hired for an entry-level professional position in the accounting department of a large corporation. Which of the following terms BEST describes Jose's capacity as an accountant? A) public accountant B) private accountant C) forensic accountant D) advisory accountant E) management accountant - correct answer Answer: B Reference: Page 222 of custom text. Most private accountants are also management accountants, but not all. A company's owners established a company on January 1, investing $10,000 total into the stockholders equity of the company. The company then made net income of $3,500 in the first year. No dividends were paid. Its total liabilities stand at $7,000 on December 31 of the first year. What is the value of the total assets of this company? A) $500 B) $6,500 C) $13,500 D) $20,500 E) $27,500 - correct answer Answer D Explanation : SE = 10+3.5 (all profits retained as part of equity as no dividends were paid); A = L+SE = 7 +13.5 =20.5 Reference: Custom text page 225 Who is the President of the European Central Bank? a) Mario Draghi b) AngelaMerkel c) Silvio Berlusconi d) Jacob Lew - correct answer Answer: A Which of the following statements is TRUE? A) As common practice, a union representative for the workers at a firm receives information from the firm's financial accounting system. B) As common practice, a union representative for the workers at a firm receives information from the firm's managerial accounting system. C) As common practice, a union representative for the workers at a firm receives information from both the firm's managerial accounting system and its financial accounting system. - correct answer Answer: A Explanation: A) The financial accounting system is concerned with external users, such as unions. Reference: Custom text page 219 - "A firm's financial accounting system is concerned with external information users: consumer groups, unions..." Which of the following refers to the financial statement detailing a firm's assets, liabilities, and owners' equity? A) income statement B) statement of cash flows C) balance sheet D) expense report E) annual budget - correct answer Answer: C Explanation: C) A balance sheet uses the accounting equation to show the current value of a company. Reference: custom text page 226, first line. Which of the following terms refers to any economic resource that is expected to benefit a firm or individual who owns it? A) asset B) liability C) equity D) account E) deposit - correct answer Answer: A Reference: custom text page 225, first line.