UTA Entrance Accounting Exam
Questions With Correct Answers
If net income after tax is $42,000, the tax rate is 30%, and total expenses
| | | | | | | | | | | | | |
|not including tax expense are $126,000, revenues must be: - CORRECT
| | | | | | | | | | |
ANSWER✔✔-$186,000
Find what the net income was before taxes and add it to expenses to get
| | | | | | | | | | | | | |
the total revenue.
| | |
The financial statement that reports what the company owns and what
| | | | | | | | | | |
the company owes is the - CORRECT ANSWER✔✔-balance sheet
| | | | | | | |
The balance sheet shows assets, liabilities, and equity which show what
| | | | | | | | | | |
is owned and what is owed.
| | | | |
What is supposed to "balance" on the balance sheet? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-assets = liabilities + owner's equity | | | | |
The purpose of financial accounting is to provide - CORRECT
| | | | | | | | | |
ANSWER✔✔-financial information to external users | | | |
,The accounting equation is - CORRECT ANSWER✔✔-assets = liabilities +
| | | | | | | | | |
equity
Which financial statement provides information related to the financial
| | | | | | | | |
performance of a company during a specific period? - CORRECT
| | | | | | | | | |
ANSWER✔✔-income statement |
The income statement reports earning for a company during a specific
| | | | | | | | | | |
time period. |
A company reports net income when - CORRECT ANSWER✔✔-services
| | | | | | | | |
provided are greater than the cost to provide the services
| | | | | | | | |
Which of the following is considered and expense?
| | | | | | |
prepaid expense |
cost of goods sold
| | |
sales
building - CORRECT ANSWER✔✔-cost of goods sold
| | | | | |
The government agency with legal authority over financial reporting of
| | | | | | | | | |
U.S. public companies is called - CORRECT ANSWER✔✔-securities
| | | | | | | |
exchange commission (SEC) | |
, FASB has no legal authority
| | | |
Which financial statement reports dividends paid to shareholders? -
| | | | | | | | |
CORRECT ANSWER✔✔-statement of owners equity
| | | |
Dividends are not reported on the income statement, it is not an
| | | | | | | | | | | |
expense. They are netted into retained earnings on the balance sheet.
| | | | | | | | | |
assets typically include - CORRECT ANSWER✔✔-accounts receivable
| | | | | | |
and equipment
|
What financial document is for the specific purpose of reporting cash
| | | | | | | | | | |
flows? - CORRECT ANSWER✔✔-cash flow statement
| | | | |
Which statement provides information on goods and services provided
| | | | | | | | |
to customers? - CORRECT ANSWER✔✔-income statement
| | | | |
Providing goods and services to customers is revenues which is only on
| | | | | | | | | | | |
the income statement.
| |
Liabilities are - CORRECT ANSWER✔✔-obligations resulting from past
| | | | | | | |
transactions
Questions With Correct Answers
If net income after tax is $42,000, the tax rate is 30%, and total expenses
| | | | | | | | | | | | | |
|not including tax expense are $126,000, revenues must be: - CORRECT
| | | | | | | | | | |
ANSWER✔✔-$186,000
Find what the net income was before taxes and add it to expenses to get
| | | | | | | | | | | | | |
the total revenue.
| | |
The financial statement that reports what the company owns and what
| | | | | | | | | | |
the company owes is the - CORRECT ANSWER✔✔-balance sheet
| | | | | | | |
The balance sheet shows assets, liabilities, and equity which show what
| | | | | | | | | | |
is owned and what is owed.
| | | | |
What is supposed to "balance" on the balance sheet? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-assets = liabilities + owner's equity | | | | |
The purpose of financial accounting is to provide - CORRECT
| | | | | | | | | |
ANSWER✔✔-financial information to external users | | | |
,The accounting equation is - CORRECT ANSWER✔✔-assets = liabilities +
| | | | | | | | | |
equity
Which financial statement provides information related to the financial
| | | | | | | | |
performance of a company during a specific period? - CORRECT
| | | | | | | | | |
ANSWER✔✔-income statement |
The income statement reports earning for a company during a specific
| | | | | | | | | | |
time period. |
A company reports net income when - CORRECT ANSWER✔✔-services
| | | | | | | | |
provided are greater than the cost to provide the services
| | | | | | | | |
Which of the following is considered and expense?
| | | | | | |
prepaid expense |
cost of goods sold
| | |
sales
building - CORRECT ANSWER✔✔-cost of goods sold
| | | | | |
The government agency with legal authority over financial reporting of
| | | | | | | | | |
U.S. public companies is called - CORRECT ANSWER✔✔-securities
| | | | | | | |
exchange commission (SEC) | |
, FASB has no legal authority
| | | |
Which financial statement reports dividends paid to shareholders? -
| | | | | | | | |
CORRECT ANSWER✔✔-statement of owners equity
| | | |
Dividends are not reported on the income statement, it is not an
| | | | | | | | | | | |
expense. They are netted into retained earnings on the balance sheet.
| | | | | | | | | |
assets typically include - CORRECT ANSWER✔✔-accounts receivable
| | | | | | |
and equipment
|
What financial document is for the specific purpose of reporting cash
| | | | | | | | | | |
flows? - CORRECT ANSWER✔✔-cash flow statement
| | | | |
Which statement provides information on goods and services provided
| | | | | | | | |
to customers? - CORRECT ANSWER✔✔-income statement
| | | | |
Providing goods and services to customers is revenues which is only on
| | | | | | | | | | | |
the income statement.
| |
Liabilities are - CORRECT ANSWER✔✔-obligations resulting from past
| | | | | | | |
transactions
