Bookkeeping Certification Exam
Questions and Answers A+ Graded
The review of financial statements to assess their fairness and adherence to
GAAP is - -auditing
-An independent accountant who performs financial audits is a - -Certified
Public Accountant (CPA)
-To become a CPA, an individual - -must have a certain number of college
credits in accounting courses.
pass the Uniform CPA Examination.
fulfill the experience requirements of the state of practice.
-Which of the following is not a service typically provided by a public
accounting firms? - -Investing services
-The entity that has final authority over the financial reporting of publicly
owned corporations is the - -Securities and Exchange Commission (SEC).
-Which of the following is not a provision of the Sarbanes-Oxley Act? - -The
Sarbanes-Oxley Act allows accountants from offering a broad range of
consulting services to publicly traded companies that they audit.
-The following are all government agencies except - -American Institute of
Certified Public Accountants (AICPA).
-The following are all characteristics of a sole proprietorship except: - -A
sole proprietorship is legally separate from its owner.
-The financial statements submitted by a corporation to the SEC include the
auditor's report. The auditor's report: - -confirms that the financial
information is prepared in conformity with generally accepted accounting
principles.
-The group of accounting educators who perform research to determine the
possible effects on financial reporting and the economy and then offer their
opinions about proposed FASB statements is the - -American Accounting
Association (AAA).
-When J. Simmons, the owner, invests in her business, the transaction would
be entered on the - -right side of the J. Simmons, Capital T account.
, -Modern products paid cash to a creditor. To record this transaction, the
accountant would - -debit Accounts Payable and credit Cash.
-The normal balance of an account is the - -increase side of the account.
-Which of the following types of accounts normally have debit balances? - -
Expenses and assets
-Which of the following groups contain only accounts that normally have
credit balances? - -Fees Income and John Smith, Capital
-Which of the following decreases owner's equity? - -Expenses
-If the trial balance totals are not equal, the error may have been caused by
a transposition if the difference is divisible by - -9
-The three financial statements are linked together because the - -net
income from the income statement is used on the statement of owner's
equity and the ending balance of the capital account, computed on the
statement of owner's equity, is used on the balance sheet.
-Which of the following accounts is not a permanent account? - -Salaries
Expense
-The Net Income amount from the Income Statement is used as a line item
on which statement? - -the statement of owner's equity
-Amounts that a business must pay in the future are known as - -accounts
payable
-The balance sheet is also called - -the statement of financial position
-When the owner invests cash in a business, - -assets and owner's equity
increase.
-When equipment is purchased on credit, - -assets and liabilities increase.
-When a business sells services on credit - -assets increase and revenues
increase.
-When a business collects an account receivable - -total assets do not
change.
-When the firm pays its utility bill upon receipt of that bill - -assets decrease
and expenses increase.
Questions and Answers A+ Graded
The review of financial statements to assess their fairness and adherence to
GAAP is - -auditing
-An independent accountant who performs financial audits is a - -Certified
Public Accountant (CPA)
-To become a CPA, an individual - -must have a certain number of college
credits in accounting courses.
pass the Uniform CPA Examination.
fulfill the experience requirements of the state of practice.
-Which of the following is not a service typically provided by a public
accounting firms? - -Investing services
-The entity that has final authority over the financial reporting of publicly
owned corporations is the - -Securities and Exchange Commission (SEC).
-Which of the following is not a provision of the Sarbanes-Oxley Act? - -The
Sarbanes-Oxley Act allows accountants from offering a broad range of
consulting services to publicly traded companies that they audit.
-The following are all government agencies except - -American Institute of
Certified Public Accountants (AICPA).
-The following are all characteristics of a sole proprietorship except: - -A
sole proprietorship is legally separate from its owner.
-The financial statements submitted by a corporation to the SEC include the
auditor's report. The auditor's report: - -confirms that the financial
information is prepared in conformity with generally accepted accounting
principles.
-The group of accounting educators who perform research to determine the
possible effects on financial reporting and the economy and then offer their
opinions about proposed FASB statements is the - -American Accounting
Association (AAA).
-When J. Simmons, the owner, invests in her business, the transaction would
be entered on the - -right side of the J. Simmons, Capital T account.
, -Modern products paid cash to a creditor. To record this transaction, the
accountant would - -debit Accounts Payable and credit Cash.
-The normal balance of an account is the - -increase side of the account.
-Which of the following types of accounts normally have debit balances? - -
Expenses and assets
-Which of the following groups contain only accounts that normally have
credit balances? - -Fees Income and John Smith, Capital
-Which of the following decreases owner's equity? - -Expenses
-If the trial balance totals are not equal, the error may have been caused by
a transposition if the difference is divisible by - -9
-The three financial statements are linked together because the - -net
income from the income statement is used on the statement of owner's
equity and the ending balance of the capital account, computed on the
statement of owner's equity, is used on the balance sheet.
-Which of the following accounts is not a permanent account? - -Salaries
Expense
-The Net Income amount from the Income Statement is used as a line item
on which statement? - -the statement of owner's equity
-Amounts that a business must pay in the future are known as - -accounts
payable
-The balance sheet is also called - -the statement of financial position
-When the owner invests cash in a business, - -assets and owner's equity
increase.
-When equipment is purchased on credit, - -assets and liabilities increase.
-When a business sells services on credit - -assets increase and revenues
increase.
-When a business collects an account receivable - -total assets do not
change.
-When the firm pays its utility bill upon receipt of that bill - -assets decrease
and expenses increase.
