A100 FINAL EXAM IU ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

A100 FINAL EXAM IU ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Which of the following is primarily responsible for the information provided in the financial statements? A) Board of Directors B) Internal Accounting Staff C) Company Top Management D) External Auditors - Answer -Company Top Management Which of the following describes the primary objective of financial accounting? A) To provide information about a business' future business strategies. B) To provide useful financial information only to stockholders. C) To provide useful financial information about a business to help external parties make informed decisions.D) To provide useful financial information about a business to help internal parties make informed decisions. - Answer -To provide useful financial information about a business to help external parties make informed decisions. Financial accounting standards are known collectively as GAAP. What does that acronym stand for? A) Generally Authorized Auditing Principles B) Generally Applied Accounting Procedures C) Governmentally Approved Accounting Practices D) Generally Accepted Accounting Principles - Answer -Generally Accepted Accounting Principles For accounting information to be useful, it must be which of the following? A) It must be comparable and reliable. B) It must be consistent and comparable. C) It must be a faithful representation and relevant. D) It must be relevant and consistent. - Answer -It must be a faithful representation and relevant. Which of the following best describes the purpose of an audit?A) To audit every transaction that an entity entered into. B) To establish that a corporation's stock is a sound investment. C) To prove the accuracy of an entity's financial statements. D) To lend credibility to an entity's financial statements. - Answer -To lend credibility to an entity's financial statements. Which of the following is considered to be an expense on the income statement? A)Prepaid Expenses. B)Wages payable. C)Notes payable. D)Cost of goods sold. - Answer -Cost of goods sold. At the beginning of 2020, a corporation had assets of $270,000 and liabilities of $160,000. During 2020, assets increased $25,000 and liabilities increased $5,000. What was stockholders' equity at December 31, 2020? A) $130,000