ACCT 201 EXAM QUESTIONS AND
ANSWERS ALL CORRECT
The financial statement that provides information about cash receipts and cash
disbursements for the period is the
a. statement of retained earnings.
b. statement of cash flows.
c. balance sheet.
d. income statement. - Answer- b
The financial statement that is most useful in explaining a company's stock price
performance is the
a. balance sheet.
b. income statement.
c. statement of stockholders' equity. - Answer- b
Which of the following appear(s) on the balance sheet?
a. Accounts receivable
b. Net income
c. Utilities payable
d. Salaries expense
e. Common stock - Answer- a, c, e
The three classifications on the statement of cash flows are cash flows from (Select all
that apply.)
a. operating activities.
b. investing activities.
c. business activities.
d. discontinued activities.
e. financing activities. - Answer- a, b, e
In our society, the two main functions of accounting are to
a. communicate information to investors and creditors.
b. report activities to government regulators.
c. measure business activities.
d. report net income to tax authorities. - Answer- a, c
Salaries paid to employees for the month is a(n) ______ account that appears on the
______.
a. expense; income statement
, b. liability; income statement
c. revenue; balance sheet
d. liability; balance sheet
e. revenue; income statement - Answer- a
Two other types of information in addition to the financial statements that must be
reported in the annual reports include
a. notes disclosures.
b. press releases.
c. corporate income tax returns.
d. management discussion and analysis. - Answer- a, d
Information that best explains companies' stock price performance is reported on the
________ ________. - Answer- income statement
Which of these would be found on a company's balance sheet? (Select all that apply.)
a. Sales revenue
b. Notes payable
c. Equipment
d. Accounts receivable
e. Depreciation expense - Answer- b, c, d
The two main functions of ________ are to (1) measure business activities and (2) to
communicate those measurements to investors and creditors. (Enter only one word.) -
Answer- accounting
________ is the common abbreviation for the Board that currently establishes financial
accounting and reporting standards in the U.S. (Enter the acronym.) - Answer- FASB
(Financial Accounting Standards Board)
Which items are found on an income statement?
a. Equipment
b. Dividends paid
c. Revenues
d. Expenses - Answer- c, d
The financial statement that is most useful in explaining a company's stock price
performance is the
a. income statement.
b. balance sheet.
c. statement of stockholders' equity. - Answer- a
Which of the following appear(s) on the balance sheet?
a. Net income
b. Salaries expense
c. Common stock
ANSWERS ALL CORRECT
The financial statement that provides information about cash receipts and cash
disbursements for the period is the
a. statement of retained earnings.
b. statement of cash flows.
c. balance sheet.
d. income statement. - Answer- b
The financial statement that is most useful in explaining a company's stock price
performance is the
a. balance sheet.
b. income statement.
c. statement of stockholders' equity. - Answer- b
Which of the following appear(s) on the balance sheet?
a. Accounts receivable
b. Net income
c. Utilities payable
d. Salaries expense
e. Common stock - Answer- a, c, e
The three classifications on the statement of cash flows are cash flows from (Select all
that apply.)
a. operating activities.
b. investing activities.
c. business activities.
d. discontinued activities.
e. financing activities. - Answer- a, b, e
In our society, the two main functions of accounting are to
a. communicate information to investors and creditors.
b. report activities to government regulators.
c. measure business activities.
d. report net income to tax authorities. - Answer- a, c
Salaries paid to employees for the month is a(n) ______ account that appears on the
______.
a. expense; income statement
, b. liability; income statement
c. revenue; balance sheet
d. liability; balance sheet
e. revenue; income statement - Answer- a
Two other types of information in addition to the financial statements that must be
reported in the annual reports include
a. notes disclosures.
b. press releases.
c. corporate income tax returns.
d. management discussion and analysis. - Answer- a, d
Information that best explains companies' stock price performance is reported on the
________ ________. - Answer- income statement
Which of these would be found on a company's balance sheet? (Select all that apply.)
a. Sales revenue
b. Notes payable
c. Equipment
d. Accounts receivable
e. Depreciation expense - Answer- b, c, d
The two main functions of ________ are to (1) measure business activities and (2) to
communicate those measurements to investors and creditors. (Enter only one word.) -
Answer- accounting
________ is the common abbreviation for the Board that currently establishes financial
accounting and reporting standards in the U.S. (Enter the acronym.) - Answer- FASB
(Financial Accounting Standards Board)
Which items are found on an income statement?
a. Equipment
b. Dividends paid
c. Revenues
d. Expenses - Answer- c, d
The financial statement that is most useful in explaining a company's stock price
performance is the
a. income statement.
b. balance sheet.
c. statement of stockholders' equity. - Answer- a
Which of the following appear(s) on the balance sheet?
a. Net income
b. Salaries expense
c. Common stock
