ACCY 200 Exam 1 ACTUAL Exam
Questions and CORRECT Answers
Which of the following entities would not require accounting information pertaining to their
economic activities?
A. Social clubs.
B. Not-for-profit entities.
C. State governments.
D. All of these require accounting information.
E. None of these requires accounting information. - CORRECT ANSWER - D. All of these
require accounting information.
Which of the following are qualified to express an auditor's opinion about an entity's financial
statements?
A. A Comptroller.
B. A Certified Management Accountant.
C. A Certified Internal Auditor.
D. A Certified Public Accountant.
E. None of these. - CORRECT ANSWER - D. A Certified Public Accountant.
Cost accounting is a subset of which of the following?
A. Internal auditing.
B. Public auditing.
C. Cost analysis.
D. Managerial accounting. - CORRECT ANSWER - D. Managerial accounting.
The ethical concept of integrity means that an individual must:
A. sign a pledge to abide by all laws and regulations.
B. report to a supervisor any violation of the code of conduct of her company that is observed.
,C. read, understand, and agree to follow all provisions of her employer's code of conduct.
D. attempt to be honest and forthright in dealings and communications with others. - CORRECT
ANSWER - D. attempt to be honest and forthright in dealings and communications with
others.
The balance sheet might also be called:
A. None of these.
B. Statement of Changes in Financial Position.
C. Statement of Financial Position.
D. Statement of Assets. - CORRECT ANSWER - C. Statement of Financial Position.
Transactions are summarized in:
A. The notes for the financial statements.
B. The independent auditor's opinion letter.
C. The entity's accounts.
D. None of these. - CORRECT ANSWER - C. The entity's accounts.
The time frame associated with an income statement is:
A. a function of the information included in it.
B. a past period of time.
C. a point in time in the past.
D. a future period of time. - CORRECT ANSWER - B. a past period of time.
What category does "cash" fit into? - CORRECT ANSWER - Asset
What category does "accounts payable" fit into? - CORRECT ANSWER - Liability
What category does "common stock" fit into? - CORRECT ANSWER - Stockholder's equity
(SE)
,What category does "depreciation expense" fit into? - CORRECT ANSWER - Expense
What category does "net sales" fit into? - CORRECT ANSWER - Revenue
What category does "income tax expense" fit into? - CORRECT ANSWER - Expense
What category does "short-term investments" fit into? - CORRECT ANSWER - Asset
What category does "gain on sale of land" fit into? - CORRECT ANSWER - Gain
What category does "retained earnings" fit into? - CORRECT ANSWER - Stockholder's
Equity (SE)
What category does "dividends payable" fit into? - CORRECT ANSWER - Liability
What category does "accounts receivable" fit into? - CORRECT ANSWER - Asset
What category does "short-term debt" fit into? - CORRECT ANSWER - Liability
What financial statement type is "cash" reported on? - CORRECT ANSWER - Balance Sheet
What financial statement type is "accounts payable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "common stock" reported on? - CORRECT ANSWER -
Balance Sheet
, What financial statement type is "depreciation expense" reported on? - CORRECT
ANSWER - Income Statement
What financial statement type is "net sales" reported on? - CORRECT ANSWER - Income
Statement
What financial statement type is "income tax expense" reported on? - CORRECT ANSWER -
Income Statement
What financial statement type is "short-term investments" reported on? - CORRECT
ANSWER - Balance Sheet
What financial statement type is "gain on sale of land" reported on? - CORRECT ANSWER -
Income Statement
What financial statement type is "retained earnings" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "dividends payable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "accounts receivable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "short-term debt" reported on? - CORRECT ANSWER -
Balance Sheet
Are "dividends" an addition or subtraction to stock holders equity (SE)? - CORRECT
ANSWER - Subtraction
Is "net income" an addition or a subtraction to SE? - CORRECT ANSWER - Addition
Questions and CORRECT Answers
Which of the following entities would not require accounting information pertaining to their
economic activities?
A. Social clubs.
B. Not-for-profit entities.
C. State governments.
D. All of these require accounting information.
E. None of these requires accounting information. - CORRECT ANSWER - D. All of these
require accounting information.
Which of the following are qualified to express an auditor's opinion about an entity's financial
statements?
A. A Comptroller.
B. A Certified Management Accountant.
C. A Certified Internal Auditor.
D. A Certified Public Accountant.
E. None of these. - CORRECT ANSWER - D. A Certified Public Accountant.
Cost accounting is a subset of which of the following?
A. Internal auditing.
B. Public auditing.
C. Cost analysis.
D. Managerial accounting. - CORRECT ANSWER - D. Managerial accounting.
The ethical concept of integrity means that an individual must:
A. sign a pledge to abide by all laws and regulations.
B. report to a supervisor any violation of the code of conduct of her company that is observed.
,C. read, understand, and agree to follow all provisions of her employer's code of conduct.
D. attempt to be honest and forthright in dealings and communications with others. - CORRECT
ANSWER - D. attempt to be honest and forthright in dealings and communications with
others.
The balance sheet might also be called:
A. None of these.
B. Statement of Changes in Financial Position.
C. Statement of Financial Position.
D. Statement of Assets. - CORRECT ANSWER - C. Statement of Financial Position.
Transactions are summarized in:
A. The notes for the financial statements.
B. The independent auditor's opinion letter.
C. The entity's accounts.
D. None of these. - CORRECT ANSWER - C. The entity's accounts.
The time frame associated with an income statement is:
A. a function of the information included in it.
B. a past period of time.
C. a point in time in the past.
D. a future period of time. - CORRECT ANSWER - B. a past period of time.
What category does "cash" fit into? - CORRECT ANSWER - Asset
What category does "accounts payable" fit into? - CORRECT ANSWER - Liability
What category does "common stock" fit into? - CORRECT ANSWER - Stockholder's equity
(SE)
,What category does "depreciation expense" fit into? - CORRECT ANSWER - Expense
What category does "net sales" fit into? - CORRECT ANSWER - Revenue
What category does "income tax expense" fit into? - CORRECT ANSWER - Expense
What category does "short-term investments" fit into? - CORRECT ANSWER - Asset
What category does "gain on sale of land" fit into? - CORRECT ANSWER - Gain
What category does "retained earnings" fit into? - CORRECT ANSWER - Stockholder's
Equity (SE)
What category does "dividends payable" fit into? - CORRECT ANSWER - Liability
What category does "accounts receivable" fit into? - CORRECT ANSWER - Asset
What category does "short-term debt" fit into? - CORRECT ANSWER - Liability
What financial statement type is "cash" reported on? - CORRECT ANSWER - Balance Sheet
What financial statement type is "accounts payable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "common stock" reported on? - CORRECT ANSWER -
Balance Sheet
, What financial statement type is "depreciation expense" reported on? - CORRECT
ANSWER - Income Statement
What financial statement type is "net sales" reported on? - CORRECT ANSWER - Income
Statement
What financial statement type is "income tax expense" reported on? - CORRECT ANSWER -
Income Statement
What financial statement type is "short-term investments" reported on? - CORRECT
ANSWER - Balance Sheet
What financial statement type is "gain on sale of land" reported on? - CORRECT ANSWER -
Income Statement
What financial statement type is "retained earnings" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "dividends payable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "accounts receivable" reported on? - CORRECT ANSWER -
Balance Sheet
What financial statement type is "short-term debt" reported on? - CORRECT ANSWER -
Balance Sheet
Are "dividends" an addition or subtraction to stock holders equity (SE)? - CORRECT
ANSWER - Subtraction
Is "net income" an addition or a subtraction to SE? - CORRECT ANSWER - Addition
