5/29/25, 6:52 PM Accounting Exam 1
ACCOUNTING ACTUAL EXAM 1 \2025-2026 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
\VERIFIED ANSWERS ALREADY GRADED A+ \ LATEST
UPDATE
Social Science Economics Finance
MODUlE 1:
Publicly traded companies False
are required to provide
quarterly financial reports
directly to the public.
Shareholders demand True
financial information
primarily to assess
profitability and risk
whereas bankers demand
information
primarily to assess cash flows
to repay loan interest and
principal.
Publicly traded companies False
provide
financial information primarily
to satisfy the SEC and the tax
authorities (that is, the
Internal Revenue Service).
Publicly traded companies False
must provide to the
Securities Exchange
Commission
annual audited financial
statements (10-K reports) and
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,5/29/25, 6:52 PM Accounting Exam 1
quarterly audited financial
statements (10-Q reports).
If a company reports retained False
earnings of
$175.3 million on its balance
sheet, it must also report
$175.3 million in cash.
A balance sheet shows a False
company's position over a
period of time, whereas an
income statement,
statement of
stockholders' equity, and
statement of cash flows show
its position at a point in
time.
Assets must always equal True
liabilities plus equity.
The income statement reports False
net income which is defined
as the company's profit
after all expenses and
dividends have been paid.
A statement of cash flows False
reports on cash flows for
operating, investing and
financing activities at a point
in time.
An increase in common True
stock would be reflected in
the statement of stockholders'
equity.
. Return on Assets (ROA) True
measures the
profit the company makes
on each dollar of total
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,5/29/25, 6:52 PM Accounting Exam 1
assets it uses.
Return on Assets (ROA) = True
(Net Income / Sales) ×
Asset Turnover
Consider two companies (A False
and B) with
equal profit margins of 18%.
Company A has an asset
turnover of 1.2 and Company
B has an asset turnover of
1.5. If all else is equal,
Company B with its' higher
asset turnover, is less
profitable because it
requires more revenue to
turn its assets over.
Financial statements are True
influenced by five important
forces that determine a
company's competitive
intensity: (A) industry
competition, (B) buyer
power, (C) supplier power,
(D) product substitutes,
and (E) threat of entry.
A "clean" audit report False
asserts—among other
things—that (a) the auditor
has prepared all necessary
financial statements and
(b)
management has expressed
its opinion that they are
prepared in conformity with
GAAP.
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, 5/29/25, 6:52 PM Accounting Exam 1
Which of the following None of these are correct
groups would likely not be
interested in the financial
statements of a large public
company such as Procter &
Gamble?
A. Shareholders
B. Employees
C. Competitors
D. Taxing agencies
E. None of these are correct
The SEC adopted Regulation B. Selectively disclosing information
FD, to curb public
companies' practice of:
A. Routinely filing
extensions for annual
reports (Form 10-K)
B. Selectively disclosing
information
C. Reporting pro forma
(non-GAAP) numbers
D. Hiring auditors for non-
audit services such as
consulting engagements
E. None of these are correct
A list of assets, liabilities and A. Balance Sheet
equity can be found on
which of the following?
A. Balance Sheet
B. Income Statement
C. Statement of Assets and
Liabilities
D. Statement of Cash Flows
E. Statement of Stockholders'
Equity
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ACCOUNTING ACTUAL EXAM 1 \2025-2026 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
\VERIFIED ANSWERS ALREADY GRADED A+ \ LATEST
UPDATE
Social Science Economics Finance
MODUlE 1:
Publicly traded companies False
are required to provide
quarterly financial reports
directly to the public.
Shareholders demand True
financial information
primarily to assess
profitability and risk
whereas bankers demand
information
primarily to assess cash flows
to repay loan interest and
principal.
Publicly traded companies False
provide
financial information primarily
to satisfy the SEC and the tax
authorities (that is, the
Internal Revenue Service).
Publicly traded companies False
must provide to the
Securities Exchange
Commission
annual audited financial
statements (10-K reports) and
1/61
,5/29/25, 6:52 PM Accounting Exam 1
quarterly audited financial
statements (10-Q reports).
If a company reports retained False
earnings of
$175.3 million on its balance
sheet, it must also report
$175.3 million in cash.
A balance sheet shows a False
company's position over a
period of time, whereas an
income statement,
statement of
stockholders' equity, and
statement of cash flows show
its position at a point in
time.
Assets must always equal True
liabilities plus equity.
The income statement reports False
net income which is defined
as the company's profit
after all expenses and
dividends have been paid.
A statement of cash flows False
reports on cash flows for
operating, investing and
financing activities at a point
in time.
An increase in common True
stock would be reflected in
the statement of stockholders'
equity.
. Return on Assets (ROA) True
measures the
profit the company makes
on each dollar of total
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,5/29/25, 6:52 PM Accounting Exam 1
assets it uses.
Return on Assets (ROA) = True
(Net Income / Sales) ×
Asset Turnover
Consider two companies (A False
and B) with
equal profit margins of 18%.
Company A has an asset
turnover of 1.2 and Company
B has an asset turnover of
1.5. If all else is equal,
Company B with its' higher
asset turnover, is less
profitable because it
requires more revenue to
turn its assets over.
Financial statements are True
influenced by five important
forces that determine a
company's competitive
intensity: (A) industry
competition, (B) buyer
power, (C) supplier power,
(D) product substitutes,
and (E) threat of entry.
A "clean" audit report False
asserts—among other
things—that (a) the auditor
has prepared all necessary
financial statements and
(b)
management has expressed
its opinion that they are
prepared in conformity with
GAAP.
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, 5/29/25, 6:52 PM Accounting Exam 1
Which of the following None of these are correct
groups would likely not be
interested in the financial
statements of a large public
company such as Procter &
Gamble?
A. Shareholders
B. Employees
C. Competitors
D. Taxing agencies
E. None of these are correct
The SEC adopted Regulation B. Selectively disclosing information
FD, to curb public
companies' practice of:
A. Routinely filing
extensions for annual
reports (Form 10-K)
B. Selectively disclosing
information
C. Reporting pro forma
(non-GAAP) numbers
D. Hiring auditors for non-
audit services such as
consulting engagements
E. None of these are correct
A list of assets, liabilities and A. Balance Sheet
equity can be found on
which of the following?
A. Balance Sheet
B. Income Statement
C. Statement of Assets and
Liabilities
D. Statement of Cash Flows
E. Statement of Stockholders'
Equity
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