A100 CHECKPOINTS QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT (GRADED A+) NEWLY
UPDATED 2025
Checkpoint 1
Which of the following is primarily responsible for the information provided
in the financial statements?
✔✔ Answer: Company Top Management
Checkpoint 1
Which of the following describes the primary objective of financial
accounting?
✔✔ Answer: To provide useful financial information about a business to help
external parties make informed decisions
Checkpoint 1
Financial accounting standards are known collectively as GAAP. What does
that acronym stand for?
✔✔ Answer: Generally Accepted Accounting Principles
Checkpoint 1
For accounting information to be useful, it must be which of the following?
✔✔ Answer: It must be a faithful representation and relevant
Checkpoint 1
Which of the following best describes the purpose of an audit?
✔✔ Answer: To lend credibility to an entity's financial statements
, Checkpoint 2
Which of the following is considered to be an expense on the income
statement?
✔✔ Answer: Cost of goods sold
Checkpoint 2
At the beginning of 2020, a corporation had assets of $270,000 and liabilities of
$160,000. During 2020, assets increase $25,000 and liabilities increased $5,000.
What was the stockholders' equity at December 31, 2020? -
ANSWER✔✔$130,000
Checkpoint 2
Which of the following would NOT be reported in the operating activities section
of a cash flow statement? - ANSWER✔✔Cash paid for dividends to stockholders
Checkpoint 2
Seitz Trucking's retained earnings increased $20,000 during the current year. What
was Seitz Trucking's current year net income or loss given that Seitz Trucking
declared $25,000 of dividends during this year§ - ANSWER✔✔Net income was
$45,000
Checkpoint 2
Which of the following correctly describes the various financial statements? -
ANSWER✔✔An income statement covers a period of time.
Checkpoint 3
A company purchased supplies for cash, which will be consumed during future
months. Which of the following correctly describes the impact of the supplies
ANSWERS WITH VERIFIED SOLUTIONS
100% CORRECT (GRADED A+) NEWLY
UPDATED 2025
Checkpoint 1
Which of the following is primarily responsible for the information provided
in the financial statements?
✔✔ Answer: Company Top Management
Checkpoint 1
Which of the following describes the primary objective of financial
accounting?
✔✔ Answer: To provide useful financial information about a business to help
external parties make informed decisions
Checkpoint 1
Financial accounting standards are known collectively as GAAP. What does
that acronym stand for?
✔✔ Answer: Generally Accepted Accounting Principles
Checkpoint 1
For accounting information to be useful, it must be which of the following?
✔✔ Answer: It must be a faithful representation and relevant
Checkpoint 1
Which of the following best describes the purpose of an audit?
✔✔ Answer: To lend credibility to an entity's financial statements
, Checkpoint 2
Which of the following is considered to be an expense on the income
statement?
✔✔ Answer: Cost of goods sold
Checkpoint 2
At the beginning of 2020, a corporation had assets of $270,000 and liabilities of
$160,000. During 2020, assets increase $25,000 and liabilities increased $5,000.
What was the stockholders' equity at December 31, 2020? -
ANSWER✔✔$130,000
Checkpoint 2
Which of the following would NOT be reported in the operating activities section
of a cash flow statement? - ANSWER✔✔Cash paid for dividends to stockholders
Checkpoint 2
Seitz Trucking's retained earnings increased $20,000 during the current year. What
was Seitz Trucking's current year net income or loss given that Seitz Trucking
declared $25,000 of dividends during this year§ - ANSWER✔✔Net income was
$45,000
Checkpoint 2
Which of the following correctly describes the various financial statements? -
ANSWER✔✔An income statement covers a period of time.
Checkpoint 3
A company purchased supplies for cash, which will be consumed during future
months. Which of the following correctly describes the impact of the supplies
