ADVANCED ATI ACCOUNTING QUESTIONS AND ANSW

ADVANCED ATI x




ACCOUNTING
x




QUESTIONS AND x




ANSWER
x




Preparing xa xbudget xfor xa xbusiness xis xconsidered

A. Financial xacct.

B. Managerial xacct. x- xCORRECT xANSWER x-Managerial



Accounting xis xthe xinformation xsystem xthat

A. Measures xbusiness xactivities

B. Communicates xthe xresults xto xdecision xmakers

C. Process xinfo xinto xreports

D. All xof xthe xabove x- xCORRECT xANSWER x-All xof xthe xabove



Which xof xthe xfollowing xis xnot xan xexternal xuser xof xa xbusiness's xfinancial xinformation

A. Taxing xauthorities

B. Customers

C. Employees

D. Investors x- xCORRECT xANSWER x-Employees



Which xstatement xbest xdescribes xthe xaccounting xequation?

A. The xchange xin xretained xearnings

equals xnet xincome xless xdividends.
x




B. Equality xof xrevenue xand xexpense

,transactions xover xtime.
x

,C. Financing xactivities xequal

investing xand xoperating xactivities.
x




D. Resources xof xthe xcompany xequal xcreditors' xand

owners' xclaims xto xthose xresources. x- xCORRECT xANSWER x-Resources xof xthe xcompany
xequals xcreditors xand xowners xclaims xto xthose xresources




Owners' claims
x to
x the
x company's
x




resources xare xreferred xto xas:
x




A. Liabilities.

B. Assets.

C. Stockholders' x equity.

D. Net xliabilities. x- xCORRECT xANSWER x-Stockholder's xEquity



If xtotal xassets xof xa xcompany xequal

x $25,000 xand xtotal xstockholders' xequity

equals
x $10,000,
x then
x x total x liabilities

x equal x$15,000.

A. True

B. False x- xCORRECT xANSWER x-True



Amounts xowed xto xsuppliers xfor xsupplies

x purchased xon xaccount xare xdefined xas xa(n):

A. Revenue.

B. Asset.

C. Liability.

D. Expense. x- xCORRECT xANSWER x-Liability

, If xtotal xliabilities xof xa xcompany xequal

x $29,000 xand xtotal xstockholders' xequity

equals x$15,000, xthen xtotal xassets xequal
x




x $14,000.

A. True

B. False x- xCORRECT xANSWER x-False



Financial xaccounting xdoes xnot xdeal xwith xwhich xof xthe xfollowing?

A. Measuring xa xcompany's xeconomic xactivity.

B. Providing xinformation xto xinternal xusers.

C. Preparing xfinancial xreports.

D. Communicating xfinancial xresults xto xinvestors. x- xCORRECT xANSWER x-Providing
xinformation xto xinternal xusers




The xaccounting xequation xshows xthat xa xcompany's xresources xequal xcreditors' xand xowners'
xclaims xto xthose xresources.




A. True

B. False x- xCORRECT xANSWER x-True



An xalternative xform xof xthe xaccounting xequation xis:

A. Assets x‐Liabilities x= xStockholders' xEquity.

B. Net xIncome x= xRevenues x‐Expenses.

C. Stockholders' xEquity x= xAssets x+ xLiabilities.

D. Assets x= xLiabilities x‐Stockholders' xEquity. x- xCORRECT xANSWER x-Assets x- xLiabilities
x= xStockholder's xEquity




Which xof xthe xfollowing xdoes xnot xrepresent xan xasset xof xa xcompany?

A. Supplies xheld xby xthe xcompany.