ACCT 2010 Exam 1 Practice Questions
with Guaranteed Pass Solutions 2025-
2026 Updated.
Which statement covers a period of time?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Both B and C are correct - Answer d. Both B and C are correct (income statement and
statement of cash flows)
Which financial statement covers a period of time?
A. Balance sheet
B. Income statement
C. Statement of Cash Flows
D. Both B and C are correct - Answer A. Balance sheet
Which financial statement is prepared first?
A. Balance sheet
B. Income statement
C. Statement of Retained Earnings
D. Statement of Cash Flows
E. Both A and D are correct - Answer B. Income statement
Which financial statement reports dividends?
A. Balance sheet
B. Income statement
C. Statement of Retained Earnings
D. Statement of Cash Flows
E. Both A and D are correct - Answer C. Statement of Retained Earnings
, B. $35,000
C. $32,000
D. $29,000 - Answer C. $32,000
During the year C Co.'s retained earnings increased from $20,000 to $25,000. C Co. had
dividends of $4,000 and expenses of $70,000. How much Net Income did C Co. have during the
year?
A. $1,000
B. $5,000
C. $9,000
D. $13,000 - Answer C. $9,000
During the year C Co.'s retained earnings increased from $38,000 to $50,000. C Co. had
revenues of $180,000 and expenses of $162,000. How much dividends did C Co. pay during the
year?
A. $0
B. $6,000
C. $12,000
D. $7,000 - Answer B. $6,000
Which types of accounts normally have credit balances?
A. Revenues
B. Liabilities
C. Expenses
D. Assets
E. Both A & B - Answer E. Both A & B (revenues and liabilities)
Which of the following has a normal debit balance?
A. Accounts Payable
B. Equipment
C. Service Revenue
D. Common Stock - Answer B. Equipment
with Guaranteed Pass Solutions 2025-
2026 Updated.
Which statement covers a period of time?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Both B and C are correct - Answer d. Both B and C are correct (income statement and
statement of cash flows)
Which financial statement covers a period of time?
A. Balance sheet
B. Income statement
C. Statement of Cash Flows
D. Both B and C are correct - Answer A. Balance sheet
Which financial statement is prepared first?
A. Balance sheet
B. Income statement
C. Statement of Retained Earnings
D. Statement of Cash Flows
E. Both A and D are correct - Answer B. Income statement
Which financial statement reports dividends?
A. Balance sheet
B. Income statement
C. Statement of Retained Earnings
D. Statement of Cash Flows
E. Both A and D are correct - Answer C. Statement of Retained Earnings
, B. $35,000
C. $32,000
D. $29,000 - Answer C. $32,000
During the year C Co.'s retained earnings increased from $20,000 to $25,000. C Co. had
dividends of $4,000 and expenses of $70,000. How much Net Income did C Co. have during the
year?
A. $1,000
B. $5,000
C. $9,000
D. $13,000 - Answer C. $9,000
During the year C Co.'s retained earnings increased from $38,000 to $50,000. C Co. had
revenues of $180,000 and expenses of $162,000. How much dividends did C Co. pay during the
year?
A. $0
B. $6,000
C. $12,000
D. $7,000 - Answer B. $6,000
Which types of accounts normally have credit balances?
A. Revenues
B. Liabilities
C. Expenses
D. Assets
E. Both A & B - Answer E. Both A & B (revenues and liabilities)
Which of the following has a normal debit balance?
A. Accounts Payable
B. Equipment
C. Service Revenue
D. Common Stock - Answer B. Equipment
