ACTUAL EXAM
1 VERIFIED
QUESTIONS
AND CORRECT
ANSWERS
RATED A+ 2026
VERSION
,
, lOMoAR cPSD| 65262174
ACCT 2000 ACTUAL EXAM 1 VERIFIED
QUESTIONS AND CORRECT ANSWERS
RATED A+ 2024 VERSION
1. A. Increased difficulty of raising funds
B. Harder to transfer ownership
C. Reduced legal liability for investors
D. Most common form of organizationWhich is an advantage of corporations relative to partnerships and sole
proprietorships?: C. Reduced legal liability for investors
2. Which forms of business organization are considered to be separate ac- counting entities? A.
Sole proprietorships and partnerships only
B. Partnerships and corps only C.
only corps
D. Sole proprietorships, corps, and partnerships: D. Sole proprietorships, corps, and partnerships
3. Which of the following did not result from the Sarbanes-Oxley Act?
A. Top management must now certify the accuracy of financial information
B. Penalties for fraudulent activity increased.
C. Increased independence of the outside auditors
D. Tax rates on corps increased.: D. Tax rates on corps increased
4. The payment of dividends is an example of a
A. operating activity
B. financing activity
C. investing activity
D. delivery activity: B 5. What kind of classification is cost of goods sold?
A. Asset
B. Expense
C. Liability
D. Revenue: B. Expense
6. What section of a cash flow statement shows the cash spent on new equipment during the past
accounting period? A. the investing section
B. the operating section C.
the financing section