A100 FINAL EXAM IU QUESTIONS AND ANSWERS.

A100 FINAL EXAM IU QUESTIONS
AND ANSWERS



Whichdoofdothedofollowingdoisdoprimarilydoresponsibledofordothedoinformationdoprovideddoin
dothedofinancialdostatements?


A)doBoarddoofdoDirectors
B)doInternaldoAccountingdoStaff
C)doCompanydoTopdoManagement
D)doExternaldoAuditorsdo-doanswer--CompanydoTopdoManagement

Whichdoofdothedofollowingdodescribesdothedoprimarydoobjectivedoofdofinancialdoaccounting
?

A)doTodoprovidedoinformationdoaboutdoadobusiness'dofuturedobusinessdostrategies.
B)doTodoprovidedousefuldofinancialdoinformationdoonlydotodostockholders.
C)doTodoprovidedousefuldofinancialdoinformationdoaboutdoadobusinessdotodohelpdoexternaldo
partiesdomakedoinformeddodecisions.
D)doTodoprovidedousefuldofinancialdoinformationdoaboutdoadobusinessdotodohelpdointernaldo
partiesdomakedoinformeddodecisions.do-doanswer--
Todoprovidedousefuldofinancialdoinformationdoaboutdoadobusinessdotodohelpdoexternaldopart
iesdomakedoinformeddodecisions.

FinancialdoaccountingdostandardsdoaredoknowndocollectivelydoasdoGAAP.doWhatdodoesdot
hatdoacronymdostanddofor?

A)doGenerallydoAuthorizeddoAuditingdoPrinciples
B)doGenerallydoApplieddoAccountingdoProcedures
C)doGovernmentallydoApproveddoAccountingdoPractices
D)doGenerallydoAccepteddoAccountingdoPrinciplesdo-doanswer--
GenerallydoAccepteddoAccountingdoPrinciples

Fordoaccountingdoinformationdotodobedouseful,doitdomustdobedowhichdoofdothedofollowing?

A)doItdomustdobedocomparabledoanddoreliable.
B)doItdomustdobedoconsistentdoanddocomparable.
C)doItdomustdobedoadofaithfuldorepresentationdoanddorelevant.
D)doItdomustdobedorelevantdoanddoconsistent.do-doanswer--
Itdomustdobedoadofaithfuldorepresentationdoanddorelevant.

,Whichdoofdothedofollowingdobestdodescribesdothedopurposedoofdoandoaudit?

A)doTodoauditdoeverydotransactiondothatdoandoentitydoentereddointo.
B)doTodoestablishdothatdoadocorporation'sdostockdoisdoadosounddoinvestment.
C)doTodoprovedothedoaccuracydoofdoandoentity'sdofinancialdostatements.
D)doTodolenddocredibilitydotodoandoentity'sdofinancialdostatements.do-doanswer--
Todolenddocredibilitydotodoandoentity'sdofinancialdostatements.

Whichdoofdothedofollowingdoisdoconsidereddotodobedoandoexpensedoondothedoincomedostate
ment?

A)PrepaiddoExpenses.
B)Wagesdopayable.
C)Notesdopayable.
D)Costdoofdogoodsdosold.do-doanswer--Costdoofdogoodsdosold.

Atdothedobeginningdoofdo2020,doadocorporationdohaddoassetsdoofdo$270,000doanddoliabilitie
sdoofdo$160,000.doDuringdo2020,doassetsdoincreaseddo$25,000doanddoliabilitiesdoincrease
ddo$5,000.doWhatdowasdostockholders'doequitydoatdoDecemberdo31,do2020?

A)do$130,000.
B)do$190,000.
C)do$140,000.
D)do$80,000.do-doanswer--$130,000.

Whichdoofdothedofollowingdowoulddonotdobedoreporteddoindothedooperatingdoactivitiesdosecti
ondoofdoadocashdoflowdostatement?

A)doCashdopaiddofordointerestdoexpense.
B)doCashdopaiddofordodividendsdotodostockholders.
C)doCashdopaiddofordoemployeedowages.
D)doCashdoreceiveddofromdocustomers.do-doanswer--
Cashdopaiddofordodividendsdotodostockholders.

SeitzdoTrucking'sdoretaineddoearningsdoincreaseddo$20,000doduringdothedocurrentdoyear.d
oWhatdowasdoSeitzdoTrucking'sdocurrentdoyeardonetdoincomedoordolossdogivendothatdoSeitz
doTruckingdodeclareddo$25,000doofdodividendsdoduringdothisdoyear?


A)doNetdolossdowasdo$5,000.
B)doNetdolossdowasdo$45,000.
C)doNetdoincomedowasdo$45,000.
D)doNetdoincomedowasdo$5,000.do-doanswer--Netdoincomedowasdo$45,000.

Whichdoofdothedofollowingdocorrectlydodescribesdothedovariousdofinancialdostatements?

, A)doThedobalancedosheetdoisdoadofinancialdostatementdothatdocoversdoadoperioddoofdotime.
B)doThedostatementdoofdostockholders'doequitydoisdoadofinancialdostatementdoatdoadospecifi
cdopointdoindotime.
C)doThedocashdoflowdostatementdoisdoadofinancialdostatementdoatdoadospecificdopointdoindoti
me.
D)doAndoincomedostatementdocoversdoadoperioddoofdotime.do-doanswer--
Andoincomedostatementdocoversdoadoperioddoofdotime.

Adocompanydopurchaseddosuppliesdofordocash,dowhichdowilldobedoconsumeddoduringdofutu
redomonths.doWhichdoofdothedofollowingdocorrectlydodescribesdothedoimpactdoofdothedosup
pliesdopurchasedoondothedofinancialdostatements?

A)doOperatingdoexpensesdowilldoincrease.
B)doOperatingdoincomedowilldodecrease.
C)doTotaldoassetsdowilldodecrease.
D)doTotaldoassetsdowilldoremaindounchanged.do-doanswer--
Totaldoassetsdowilldoremaindounchanged.

Recognizingdoandoexpensedomaydobedoaccompanieddobydowhichdoofdothedofollowing?

A)doAndoincreasedoindoassets
B)doAdodecreasedoindorevenue
C)doAdodecreasedoindoassets
D)doAdodecreasedoindoliabilitiesdo-doanswer--Adodecreasedoindoassets

Whichdoofdothedofollowingdotransactionsdowilldoresultdoindoandoincreasedoindooperatingdoinc
omedoasdoofdothedodatedoofdothedotransaction?

A)doThedoreceiptdoofdocashdodividendsdofromdoandoinvestment.
B)doCollectiondoofdocashdofromdoadocustomerdofordoservicesdotodobedoprovideddoatdoadolat
erdodate.
C)doProvidingdoadoservicedotodoadocustomerdoondoaccount.
D)doThedosaledoofdoinvestmentsdoatdoadogaindo-doanswer--
Providingdoadoservicedotodoadocustomerdoondoaccount.

OndoJanuarydo1,doYeardo1,doSeitzdoTruckingdopaiddo$155,000dotodopurchasedoadotruck.do
Thedotruckdowasdoexpecteddotodohavedoadofour-
yeardousefuldolifedoanddoado$20,000dosalvagedovalue.doIfdoSTdousesdothedostraight-
linedomethod,dothedoamountdoofdonetdobookdovaluedoshowndoondothedoYeardo1dobalancedo
sheetdois:

A)do$33,750
B)do$121,250
C)do$155,000
D)do$135,000do-doanswer--$121,250