ACCT 2010 UNT FINAL REVIEW
QUESTIONS AND ALL CORRECT
ANSWERS 2025-2026 SET.
Suppose you are starting a medical data analytics firm. Which form of business will limit your
liability for the business to the amount you have invested? - Answer Corporation
The primary objective of financial reporting is to provide information - Answer useful for
making investment and credit decisions.
Which type of business organization provides the least amount of protection for bankers and
other creditors of the company? - Answer Corporation
Crumb Enterprises buys a warehouse for$550,000 to use for its East Coast distribution
operations. On the date of the purchase, a professional appraisal shows a value of $620,000 for
the warehouse. The seller had originally purchased the building for $510,000. Crumb has a
similar warehouse on the West Coast that has a book value of$561,000. Under the historical
cost principle, Crumb should record the building for - Answer $550,000 ( INITIAL PURCHASE
PRICE)
Which of the following is a true statement about International Financial Reporting Standards? -
Answer They are converging gradually with U.S. standards.
Revenues are - Answer increases in retained earnings resulting from selling products or
performing services.
The accounting equation can be expressed as - Answer Assets−Liabilities = Owners' equity.
OR A=L+E
The nature of an asset is best described as - Answer an economic resource that's expected to
benefit future operations.
How would net income be most likely to affect the accounting equation? - Answer Increase
assets and increase stockholders' equity
, =REVENUE-EXPENSE-DIVIDENDS
=$300,000-$155,000-$9,000
Hall Company had total assets of $215,000 and total stockholders' equity of$80,000 at the
beginning of the year. During the year, assets increased by $41,000 and liabilities increased by
$8,000. Stockholders' equity at the end of the year is - Answer $113,000
Assets are usually reported at their - Answer historical cost.
During February, assets increased by $85,000 and liabilities increased by $23,000. Stockholders'
equity must have - Answer increased by $62,000.
The stockholders' equity of Diakovsky Company at the beginning and end of 2016 totaled
$122,000 and $140,000, respectively. Assets at the beginning of 2016 were $151,000. If the
liabilities of Diakovsky Company increased by $67,000 in 2016, how much were total assets at
the end of 2016? Use the accounting equation. - Answer $236,000
Matt Company had the following on the dates indicated:
12/31/16 12/31/15
Total assets $540,000 $35,000
Total liabilities $229,000 $23,000
Matt Company had no stock transactions in 2016; thus, the change in stockholders; equity for
2016 was due to
net income and dividends. If dividends were $80,000, how much was Matts net income for
2016? Use the accounting equation and the statement of retained earnings. - Answer
$277,000
Sarah Zocki is interviewing next week for a job at Rainbow Inks Corporation. Which financial
statement should she examine to evaluate how well Rainbow Inks Corporation performed last
year? - Answer Income statement
QUESTIONS AND ALL CORRECT
ANSWERS 2025-2026 SET.
Suppose you are starting a medical data analytics firm. Which form of business will limit your
liability for the business to the amount you have invested? - Answer Corporation
The primary objective of financial reporting is to provide information - Answer useful for
making investment and credit decisions.
Which type of business organization provides the least amount of protection for bankers and
other creditors of the company? - Answer Corporation
Crumb Enterprises buys a warehouse for$550,000 to use for its East Coast distribution
operations. On the date of the purchase, a professional appraisal shows a value of $620,000 for
the warehouse. The seller had originally purchased the building for $510,000. Crumb has a
similar warehouse on the West Coast that has a book value of$561,000. Under the historical
cost principle, Crumb should record the building for - Answer $550,000 ( INITIAL PURCHASE
PRICE)
Which of the following is a true statement about International Financial Reporting Standards? -
Answer They are converging gradually with U.S. standards.
Revenues are - Answer increases in retained earnings resulting from selling products or
performing services.
The accounting equation can be expressed as - Answer Assets−Liabilities = Owners' equity.
OR A=L+E
The nature of an asset is best described as - Answer an economic resource that's expected to
benefit future operations.
How would net income be most likely to affect the accounting equation? - Answer Increase
assets and increase stockholders' equity
, =REVENUE-EXPENSE-DIVIDENDS
=$300,000-$155,000-$9,000
Hall Company had total assets of $215,000 and total stockholders' equity of$80,000 at the
beginning of the year. During the year, assets increased by $41,000 and liabilities increased by
$8,000. Stockholders' equity at the end of the year is - Answer $113,000
Assets are usually reported at their - Answer historical cost.
During February, assets increased by $85,000 and liabilities increased by $23,000. Stockholders'
equity must have - Answer increased by $62,000.
The stockholders' equity of Diakovsky Company at the beginning and end of 2016 totaled
$122,000 and $140,000, respectively. Assets at the beginning of 2016 were $151,000. If the
liabilities of Diakovsky Company increased by $67,000 in 2016, how much were total assets at
the end of 2016? Use the accounting equation. - Answer $236,000
Matt Company had the following on the dates indicated:
12/31/16 12/31/15
Total assets $540,000 $35,000
Total liabilities $229,000 $23,000
Matt Company had no stock transactions in 2016; thus, the change in stockholders; equity for
2016 was due to
net income and dividends. If dividends were $80,000, how much was Matts net income for
2016? Use the accounting equation and the statement of retained earnings. - Answer
$277,000
Sarah Zocki is interviewing next week for a job at Rainbow Inks Corporation. Which financial
statement should she examine to evaluate how well Rainbow Inks Corporation performed last
year? - Answer Income statement
