THE ROLE OF ACCOUNTING IN
BUSINESS EXAM QUESTIONS AND
ANSWERS
Flexibility, adaptability, real-time results, and projections are advantages of: -
Answer-Managerial Accounting
Parking tickets are business expenses that the Internal Revenue Code does not
allow to be deducted from business income for reporting purposes. What does the
Internal Revenue Code call this type of expense? - Answer-Penalties
In financial accounting, which cornerstone is a simple formula and has to always stay
in balance? - Answer-Accounting Equation
In financial accounting, what resources are controlled or owned by a company to
generate a future benefit? - Answer-Assets
XYZ Company has a debt balance in notes payable for $3,000. What is the notes
payable balance categorized on the XYZ Company's balance sheet? - Answer-
Liability
Kahn Company sells windows and doors to both residential and commercial
customers. Which component of owner's equity is income from daily operations of a
business such as selling a product? - Answer-Revenue
John and Jane are partners in a law firm. They charge a fee per hour to their clients.
What type of business are they working for? - Answer-Service Company
Pavlina is a CPA at the Ross Accounting Firm. She is doing her end of month
reporting. Which financial statement will she prepare to summarize the revenue,
expenses, and net income for the month? - Answer-Income Statement
Kathy is applying to take the Certified Public Accountant exam. She is studying the
standards required as a CPA. Which organization establishes the code of ethics for
Certified Public Accountants? - Answer-American Institute of Certified Public
Accountants
In the mid-1800s accounting was acknowledged for the first time by the British
monarch, Queen Victoria. Which type of accounting profession was created officially
in 1854? - Answer-Chartered Accountant
Jason is studying accounting in college. He comes to a question about regulations in
accounting. All of the following are agencies or organizations involved in accounting
EXCEPT: - Answer-GAAP
What event led to the recognition of the accounting profession and the establishment
of Certified Public Accountants (CPAs)? - Answer-The introduction of income tax
BUSINESS EXAM QUESTIONS AND
ANSWERS
Flexibility, adaptability, real-time results, and projections are advantages of: -
Answer-Managerial Accounting
Parking tickets are business expenses that the Internal Revenue Code does not
allow to be deducted from business income for reporting purposes. What does the
Internal Revenue Code call this type of expense? - Answer-Penalties
In financial accounting, which cornerstone is a simple formula and has to always stay
in balance? - Answer-Accounting Equation
In financial accounting, what resources are controlled or owned by a company to
generate a future benefit? - Answer-Assets
XYZ Company has a debt balance in notes payable for $3,000. What is the notes
payable balance categorized on the XYZ Company's balance sheet? - Answer-
Liability
Kahn Company sells windows and doors to both residential and commercial
customers. Which component of owner's equity is income from daily operations of a
business such as selling a product? - Answer-Revenue
John and Jane are partners in a law firm. They charge a fee per hour to their clients.
What type of business are they working for? - Answer-Service Company
Pavlina is a CPA at the Ross Accounting Firm. She is doing her end of month
reporting. Which financial statement will she prepare to summarize the revenue,
expenses, and net income for the month? - Answer-Income Statement
Kathy is applying to take the Certified Public Accountant exam. She is studying the
standards required as a CPA. Which organization establishes the code of ethics for
Certified Public Accountants? - Answer-American Institute of Certified Public
Accountants
In the mid-1800s accounting was acknowledged for the first time by the British
monarch, Queen Victoria. Which type of accounting profession was created officially
in 1854? - Answer-Chartered Accountant
Jason is studying accounting in college. He comes to a question about regulations in
accounting. All of the following are agencies or organizations involved in accounting
EXCEPT: - Answer-GAAP
What event led to the recognition of the accounting profession and the establishment
of Certified Public Accountants (CPAs)? - Answer-The introduction of income tax
