PACE exam Questions With Complete Solutions
1 main reason a company would repurchase stock Correct
Answers improve earnings per share
3 key pieces of information stated on bond certificate Correct
Answers interest rate
face value
maturity date
3 types of events are recorded as transactions Correct Answers
operating
financial
investing
4 characteristics of useful accounting information Correct
Answers -comprable
-verifiable
-timely
-understandable
accounting equation Correct Answers A=L+SE
accrual Correct Answers cash later
accured expense Correct Answers expense have been incurred
but not paid
accured revenue Correct Answers revenue that been earned
but not collected
,adjusting entries are made to... Correct Answers retained
revenue and expenses that have not been recorded but belong in
current period
adjusting entry affect which financial statements Correct
Answers balance
income
adjusting entry normally affects what type of account Correct
Answers balance sheet
at the beg of the year net income will equal what amount
Correct Answers retained earnings
basic elements of balance sheet Correct Answers assests
liabilities
stockholder equity
business in which ownership is transferred by private sale of
stock Correct Answers corporations stock
business that has stock bought and sold on exchanges Correct
Answers owners of corporation
carrying EXCESSIVE quantities of inventory causes what
problems Correct Answers not enough storage, obsolete
carrying INSUFFICIENT quantities of inventory causes what
problems Correct Answers not able to meet customers needs
cash flows Correct Answers Financing
, Investing
Opertating
common stock equation Correct Answers #issued*par
conservatism Correct Answers result in lower net income
contingent liability Correct Answers potential liabilites that
arise as a result of past transactions or events, but ultimately
depends on future event
copyright Correct Answers givees the owner the exclusive
right to publish, use, and sell work
corporation Correct Answers separate entityfrom legeal and
accounting perspective
credit Correct Answers receive goods or service before paying
cumulative dividend preference Correct Answers if all or part
of the current dividends is not paid in full, unpaid amount is
DIVIDENDS IN ARREARS
cumulative vs non cumulative Correct Answers preferred
stock
current assests Correct Answers assests the busniess will use
up or turn into cash within 12 months
1 main reason a company would repurchase stock Correct
Answers improve earnings per share
3 key pieces of information stated on bond certificate Correct
Answers interest rate
face value
maturity date
3 types of events are recorded as transactions Correct Answers
operating
financial
investing
4 characteristics of useful accounting information Correct
Answers -comprable
-verifiable
-timely
-understandable
accounting equation Correct Answers A=L+SE
accrual Correct Answers cash later
accured expense Correct Answers expense have been incurred
but not paid
accured revenue Correct Answers revenue that been earned
but not collected
,adjusting entries are made to... Correct Answers retained
revenue and expenses that have not been recorded but belong in
current period
adjusting entry affect which financial statements Correct
Answers balance
income
adjusting entry normally affects what type of account Correct
Answers balance sheet
at the beg of the year net income will equal what amount
Correct Answers retained earnings
basic elements of balance sheet Correct Answers assests
liabilities
stockholder equity
business in which ownership is transferred by private sale of
stock Correct Answers corporations stock
business that has stock bought and sold on exchanges Correct
Answers owners of corporation
carrying EXCESSIVE quantities of inventory causes what
problems Correct Answers not enough storage, obsolete
carrying INSUFFICIENT quantities of inventory causes what
problems Correct Answers not able to meet customers needs
cash flows Correct Answers Financing
, Investing
Opertating
common stock equation Correct Answers #issued*par
conservatism Correct Answers result in lower net income
contingent liability Correct Answers potential liabilites that
arise as a result of past transactions or events, but ultimately
depends on future event
copyright Correct Answers givees the owner the exclusive
right to publish, use, and sell work
corporation Correct Answers separate entityfrom legeal and
accounting perspective
credit Correct Answers receive goods or service before paying
cumulative dividend preference Correct Answers if all or part
of the current dividends is not paid in full, unpaid amount is
DIVIDENDS IN ARREARS
cumulative vs non cumulative Correct Answers preferred
stock
current assests Correct Answers assests the busniess will use
up or turn into cash within 12 months
