Introduction to Business Accounting - D774 UPDATED ACTUAL Questions and
CORRECT Answers
In which country was the double-entry Italy 3 multiple choice options
accounting system developed in the 15th
century?
Which economic event immediately Dot-com bubble 3 multiple choice options
preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Which measurement is highlighted in the Operating income 3 multiple choice options
multi-step format for the income
statement?
Which item is listed first on the income Revenues 3 multiple choice options
statement?
Which description is a characteristic of Residual amount representing the net assets of a company 3 multiple choice options
owners' equity?
Consider these three cash flows: Loan repayment—financing; building purchase—investing; inventory purchase—
Cash paid to repay a loan operating
Cash paid for purchase of a building for
use in operations
Cash paid for inventory purchases 3 multiple choice options
Which sequence represents the correct
categorization of these three cash flows?
Which section of the statement of cash Operating 3 multiple choice options
flows is the income statement directly
connected to?
Which type of cash collection is an Collecting cash from customers 3 multiple choice options
operating activity?
Which item is a source of cash from a Borrowing money 3 multiple choice options
financing activity?
, How are dividends included in the Dividends impact ending retained earnings. 3 multiple choice options
computations that impact the articulation of
the balance sheet, the income statement,
and the statement of cash flows?
How does the change in the cash balance It is ignored. 3 multiple choice options
for the year impact the computation of the
ending retained earnings balance?
Which primary financial statement provides Income statement 3 multiple choice options
a detailed report explaining one
component in the year-to-year change in
the retained earnings balance?
Which balance sheet account is directly Retained Earnings 3 multiple choice options
impacted by net income?
Which two budgets must precede the Sales and production 3 multiple choice options
creation of the materials cost budget in a
production company?
Which question about strategy must be Have there been any significant strategy changes that should cause a reallocation of
answered when using zero-based budgeted funds?
budgeting? 3 multiple choice options
Which characteristic is an advantage of Requires that every cost be justified 3 multiple choice options
zero-based budgeting?
What is the starting point when using zero- The amount of each expense is zero. 3 multiple choice options
based budgeting?
Which problem can be caused by the small They get compounded each year and can become significant over time.
annual increases (2% or 3%) that are
routinely approved with incremental 3 multiple choice options
budgeting?
Which measure is one of the most common Number of units produced 3 multiple choice options
activity levels used when trying to
understand how costs change in relation to
changes in activity level?
What is the final step in the sequence of Sell goods and transfer cost to cost of goods sold 3 multiple choice options
the flow of costs through a manufacturing
operation?
Which setting is appropriate for the use of Operations involve a variety of different products and processes.
an ABC overhead allocation system? 3 multiple choice options
Who is the Father of Accounting? Luca Pacioli
Why did the monetary economy increase To track multiple transactions 3 multiple choice options
the need for accounting?
What significant contribution did Luca He developed a double-entry accounting system 3 multiple choice options
Pacioli make to accounting?
Why was Pacioli's use of Arabic numerals They made it easier to perform basic arithmetic 3 multiple choice options
important?
What has been a key development in Using accounting data to evaluate business performance and health
accounting over the last 500 years? 3 multiple choice options
What was one major economic effect of It led to the development of capital markets 3 multiple choice options
the Industrial Revolution on finance and
accounting?
CORRECT Answers
In which country was the double-entry Italy 3 multiple choice options
accounting system developed in the 15th
century?
Which economic event immediately Dot-com bubble 3 multiple choice options
preceded and led to the passage of the
Sarbanes-Oxley Act of 2002?
Which measurement is highlighted in the Operating income 3 multiple choice options
multi-step format for the income
statement?
Which item is listed first on the income Revenues 3 multiple choice options
statement?
Which description is a characteristic of Residual amount representing the net assets of a company 3 multiple choice options
owners' equity?
Consider these three cash flows: Loan repayment—financing; building purchase—investing; inventory purchase—
Cash paid to repay a loan operating
Cash paid for purchase of a building for
use in operations
Cash paid for inventory purchases 3 multiple choice options
Which sequence represents the correct
categorization of these three cash flows?
Which section of the statement of cash Operating 3 multiple choice options
flows is the income statement directly
connected to?
Which type of cash collection is an Collecting cash from customers 3 multiple choice options
operating activity?
Which item is a source of cash from a Borrowing money 3 multiple choice options
financing activity?
, How are dividends included in the Dividends impact ending retained earnings. 3 multiple choice options
computations that impact the articulation of
the balance sheet, the income statement,
and the statement of cash flows?
How does the change in the cash balance It is ignored. 3 multiple choice options
for the year impact the computation of the
ending retained earnings balance?
Which primary financial statement provides Income statement 3 multiple choice options
a detailed report explaining one
component in the year-to-year change in
the retained earnings balance?
Which balance sheet account is directly Retained Earnings 3 multiple choice options
impacted by net income?
Which two budgets must precede the Sales and production 3 multiple choice options
creation of the materials cost budget in a
production company?
Which question about strategy must be Have there been any significant strategy changes that should cause a reallocation of
answered when using zero-based budgeted funds?
budgeting? 3 multiple choice options
Which characteristic is an advantage of Requires that every cost be justified 3 multiple choice options
zero-based budgeting?
What is the starting point when using zero- The amount of each expense is zero. 3 multiple choice options
based budgeting?
Which problem can be caused by the small They get compounded each year and can become significant over time.
annual increases (2% or 3%) that are
routinely approved with incremental 3 multiple choice options
budgeting?
Which measure is one of the most common Number of units produced 3 multiple choice options
activity levels used when trying to
understand how costs change in relation to
changes in activity level?
What is the final step in the sequence of Sell goods and transfer cost to cost of goods sold 3 multiple choice options
the flow of costs through a manufacturing
operation?
Which setting is appropriate for the use of Operations involve a variety of different products and processes.
an ABC overhead allocation system? 3 multiple choice options
Who is the Father of Accounting? Luca Pacioli
Why did the monetary economy increase To track multiple transactions 3 multiple choice options
the need for accounting?
What significant contribution did Luca He developed a double-entry accounting system 3 multiple choice options
Pacioli make to accounting?
Why was Pacioli's use of Arabic numerals They made it easier to perform basic arithmetic 3 multiple choice options
important?
What has been a key development in Using accounting data to evaluate business performance and health
accounting over the last 500 years? 3 multiple choice options
What was one major economic effect of It led to the development of capital markets 3 multiple choice options
the Industrial Revolution on finance and
accounting?
