Accounting Ivy Software Final Review
UPDATED ACTUAL Questions and
CORRECT Answers
Academic accountants are members of which of the following association? - CORRECT
ANSWER - AAA
Elson Inc. estimated the useful life of a patent and amortized it over its useful life. the GAAP is
known as - CORRECT ANSWER - Matching
Preparing a production plan would be an example of - CORRECT ANSWER - Managerial
Accounting
Owners in corporations are liable only for the amount they have invested and no more. TorF -
CORRECT ANSWER - TRUE
The quality that assumes that information is reasonably free from error - CORRECT
ANSWER - Faithful representation
A nonprofit organization such as a school does not prepare reports for external users -
CORRECT ANSWER - FALSE
Presenting an asset in the balance sheet as its historical cost less accumulated depreciation is an
example of - CORRECT ANSWER - Financial Accounting
Stapling Inc. projects sales revenues will exceed 100 million next year. this is an example of -
CORRECT ANSWER - Managerial Accounting
In periods of rising prices which of the following generally excepted accounting principles is
violated - CORRECT ANSWER - Monetary concept
, Current assets are properly listed in order of liquidy on a balance sheet as shown in the following
example cash, accounts receivable, pre-paid insurance, inventory. - CORRECT
ANSWER - False
The balance maintained in the checking account also called a demand deposit or DDA account is
considered a part of a companies cash account - CORRECT ANSWER - True
Which of the following accounts represents the market valuation of the company? A. Assets B.
Liabilities C. Net assets D. Retained earnings E. NOA - CORRECT ANSWER - E. None
of the above
The capital stock account combined with the retain earnings account reflect evaluation the open
market places on the company - CORRECT ANSWER - False
The retained earnings account is a part of which of the following accounts - CORRECT
ANSWER - Owners Equity
Capital stock represent the markets value of the company - CORRECT ANSWER - False
Investments representing short term holding of securities would appear on the balance sheet as -
CORRECT ANSWER - Current assets
The accounting process is concerned only with external transactions representing economic
events - CORRECT ANSWER - False
The payment of an accounts payable - CORRECT ANSWER - Debit accounts payable and
credits cash
UPDATED ACTUAL Questions and
CORRECT Answers
Academic accountants are members of which of the following association? - CORRECT
ANSWER - AAA
Elson Inc. estimated the useful life of a patent and amortized it over its useful life. the GAAP is
known as - CORRECT ANSWER - Matching
Preparing a production plan would be an example of - CORRECT ANSWER - Managerial
Accounting
Owners in corporations are liable only for the amount they have invested and no more. TorF -
CORRECT ANSWER - TRUE
The quality that assumes that information is reasonably free from error - CORRECT
ANSWER - Faithful representation
A nonprofit organization such as a school does not prepare reports for external users -
CORRECT ANSWER - FALSE
Presenting an asset in the balance sheet as its historical cost less accumulated depreciation is an
example of - CORRECT ANSWER - Financial Accounting
Stapling Inc. projects sales revenues will exceed 100 million next year. this is an example of -
CORRECT ANSWER - Managerial Accounting
In periods of rising prices which of the following generally excepted accounting principles is
violated - CORRECT ANSWER - Monetary concept
, Current assets are properly listed in order of liquidy on a balance sheet as shown in the following
example cash, accounts receivable, pre-paid insurance, inventory. - CORRECT
ANSWER - False
The balance maintained in the checking account also called a demand deposit or DDA account is
considered a part of a companies cash account - CORRECT ANSWER - True
Which of the following accounts represents the market valuation of the company? A. Assets B.
Liabilities C. Net assets D. Retained earnings E. NOA - CORRECT ANSWER - E. None
of the above
The capital stock account combined with the retain earnings account reflect evaluation the open
market places on the company - CORRECT ANSWER - False
The retained earnings account is a part of which of the following accounts - CORRECT
ANSWER - Owners Equity
Capital stock represent the markets value of the company - CORRECT ANSWER - False
Investments representing short term holding of securities would appear on the balance sheet as -
CORRECT ANSWER - Current assets
The accounting process is concerned only with external transactions representing economic
events - CORRECT ANSWER - False
The payment of an accounts payable - CORRECT ANSWER - Debit accounts payable and
credits cash
