ADVANCED ATI ACCOUNTING QUESTIONS AND ANSWER

ADVANCED ATI ACCOUNTING
QUESTIONS AND ANSWER
Preparing74a74budget74for74a74business74is74considered

A. Financial74acct.

B. Managerial74acct.74-74CORRECT74ANSWER74-Managerial



Accounting74is74the74information74system74that

A. Measures74business74activities

B. Communicates74the74results74to74decision74makers

C. Process74info74into74reports

D. All74of74the74above74-74CORRECT74ANSWER74-All74of74the74above



Which74of74the74following74is74not74an74external74user74of74a74business's74financial74information

A. Taxing74authorities

B. Customers

C. Employees

D. Investors74-74CORRECT74ANSWER74-Employees



Which74statement74best74describes74the74accounting74equation?

A. The74change74in74retained74earnings74equ

als74net74income74less74dividends.

B. Equality74of74revenue74and74expense74transa

ctions74over74time.

,C. Financing74activities74equal74investing7

4and74operating74activities.


D. Resources74of74the74company74equal74creditors'74and

owners'74claims74to74those74resources.74-74CORRECT74ANSWER74-
Resources74of74the74company74equals74creditors74and74owners74claims74to74those74resources



Owners'74claims74to74the74company's74resourc

es74are74referred74to74as:

A. Liabilities.

B. Assets.

C. Stockholders'74 equity.

D. Net74liabilities.74-74CORRECT74ANSWER74-Stockholder's74Equity



If74total74assets74of74a74company74equal74$25

,00074and74total74stockholders'74equity74equal

s74$10,000,74then74total74liabilities74equal74$1

5,000.

A. True

B. False74-74CORRECT74ANSWER74-True



Amounts74owed74to74suppliers74for74supplies74

purchased74on74account74are74defined74as74a(n)

:

A. Revenue.

B. Asset.

C. Liability.

D. Expense.74-74CORRECT74ANSWER74-Liability

,If74total74liabilities74of74a74company74equal74$2

9,00074and74total74stockholders'74equity74equal

s74$15,000,74then74total74assets74equal74$14,00

0.

A. True

B. False74-74CORRECT74ANSWER74-False



Financial74accounting74does74not74deal74with74which74of74the74following?

A. Measuring74a74company's74economic74activity.

B. Providing74information74to74internal74users.

C. Preparing74financial74reports.

D. Communicating74financial74results74to74investors.74-74CORRECT74ANSWER74-
Providing74information74to74internal74users



The74accounting74equation74shows74that74a74company's74resources74equal74creditors'74and74owners'74c
laims74to74those74resources.

A. True

B. False74-74CORRECT74ANSWER74-True



An74alternative74form74of74the74accounting74equation74is:

A. Assets74‐Liabilities74=74Stockholders'74Equity.

B. Net74Income74=74Revenues74‐Expenses.

C. Stockholders'74Equity74=74Assets74+74Liabilities.

D. Assets74=74Liabilities74‐Stockholders'74Equity.74-74CORRECT74ANSWER74-Assets74-
74Liabilities74=74Stockholder's74Equity




Which74of74the74following74does74not74represent74an74asset74of74a74company?

A. Supplies74held74by74the74company.

, B. Amounts74owed74to74suppliers.

C. Equipment74owned74and74used74for74operations.

D. Amounts74receivable74from74customers.74-74CORRECT74ANSWER74-
Amounts74owed74to74suppliers74(liability)



The74amounts74recorded74when74the74company74sells74products74or74provides74services74to74customer
s74are74referred74to74as:

A. Liabilities

B. Revenues

C. Assets

D. Expenses74-74CORRECT74ANSWER74-
Revenues74(recorded74at74the74time74the74company74provides74the74service)



If74a74company74has74stockholders'74equity74of74$25,00074at74the74end74of74the74year,74which74of74the7
4following74statements74must74be74true?


A. The74company74has74issued74$25,00074of74common74stock.

B. Net74income74for74the74year74equals74$25,000.

C. The74company's74assets74exceed74liabilities74by74$25,000.

D. Total74revenues74during74the74year74equal74$25,000.74-74CORRECT74ANSWER74-
The74company's74assets74exceed74liabilities74by7425,000



The74costs74of74providing74goods74and74services74to74customers74are74referred74to74as:

A. Assets

B. Expenses

C. Liabilities

D. Revenues74-74CORRECT74ANSWER74-Expenses



Table74-74CORRECT74ANSWER74-Check74notes