UTA Entrance Accounting Exam
Questions and Answers 100% Pass
If net income after tax is $42,000, the tax rate is 30%, and total expenses not including
tax expense are $126,000, revenues must be: - ✔✔$186,000
Find what the net income was before taxes and add it to expenses to get the total
revenue.
The financial statement that reports what the company owns and what the company
owes is the - ✔✔balance sheet
The balance sheet shows assets, liabilities, and equity which show what is owned and
what is owed.
What is supposed to "balance" on the balance sheet? - ✔✔assets = liabilities + owner's
equity
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 1
,The purpose of financial accounting is to provide - ✔✔financial information to external
users
The accounting equation is - ✔✔assets = liabilities + equity
Which financial statement provides information related to the financial performance of
a company during a specific period? - ✔✔income statement
The income statement reports earning for a company during a specific time period.
A company reports net income when - ✔✔services provided are greater than the cost to
provide the services
Which of the following is considered and expense?
prepaid expense
cost of goods sold
sales
building - ✔✔cost of goods sold
The government agency with legal authority over financial reporting of U.S. public
companies is called - ✔✔securities exchange commission (SEC)
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 2
, FASB has no legal authority
Which financial statement reports dividends paid to shareholders? - ✔✔statement of
owners equity
Dividends are not reported on the income statement, it is not an expense. They are
netted into retained earnings on the balance sheet.
assets typically include - ✔✔accounts receivable and equipment
What financial document is for the specific purpose of reporting cash flows? - ✔✔cash
flow statement
Which statement provides information on goods and services provided to customers? -
✔✔income statement
Providing goods and services to customers is revenues which is only on the income
statement.
Liabilities are - ✔✔obligations resulting from past transactions
Prepaid expenses is an asset because - ✔✔the company owns it
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 3
Questions and Answers 100% Pass
If net income after tax is $42,000, the tax rate is 30%, and total expenses not including
tax expense are $126,000, revenues must be: - ✔✔$186,000
Find what the net income was before taxes and add it to expenses to get the total
revenue.
The financial statement that reports what the company owns and what the company
owes is the - ✔✔balance sheet
The balance sheet shows assets, liabilities, and equity which show what is owned and
what is owed.
What is supposed to "balance" on the balance sheet? - ✔✔assets = liabilities + owner's
equity
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 1
,The purpose of financial accounting is to provide - ✔✔financial information to external
users
The accounting equation is - ✔✔assets = liabilities + equity
Which financial statement provides information related to the financial performance of
a company during a specific period? - ✔✔income statement
The income statement reports earning for a company during a specific time period.
A company reports net income when - ✔✔services provided are greater than the cost to
provide the services
Which of the following is considered and expense?
prepaid expense
cost of goods sold
sales
building - ✔✔cost of goods sold
The government agency with legal authority over financial reporting of U.S. public
companies is called - ✔✔securities exchange commission (SEC)
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 2
, FASB has no legal authority
Which financial statement reports dividends paid to shareholders? - ✔✔statement of
owners equity
Dividends are not reported on the income statement, it is not an expense. They are
netted into retained earnings on the balance sheet.
assets typically include - ✔✔accounts receivable and equipment
What financial document is for the specific purpose of reporting cash flows? - ✔✔cash
flow statement
Which statement provides information on goods and services provided to customers? -
✔✔income statement
Providing goods and services to customers is revenues which is only on the income
statement.
Liabilities are - ✔✔obligations resulting from past transactions
Prepaid expenses is an asset because - ✔✔the company owns it
100% Pass Guarantee Sophia Bennett, All Rights Reserved © 2025 3
