FINANCIAL ACCOUNTING SOFTWARE FINAL|FINANCIAL
ACCOUNTING|FINANCIAL ACCOUNTING -COMBINED
SETS COMPLETE SOLUTION FOR EASY PASS!! QUESTIONS
AND 100% ACCURATE ANSWERS|GRADED A+
"Why is financial accounting information valuable to consumers? - CORRECT ANSWER=> External users
can evaluate the financial health of a business."
"How would a bank use financial accounting information? - CORRECT ANSWER=> To approve lines of
credit"
"What is an example of recurring income? - CORRECT ANSWER=> Bank Account Interest"
"which of the following companies publishes financial ratios of industry groups?
a-gladstone
b-evergreen
c-robert morris associtates
c-sterling whitworth - CORRECT ANSWER=> robert morris associates"
"a commercial banker uses ratios extensively to analyze customers, which ratio if of most interest?
a-payout'
b-return on equity
c-price earnings
d-current - CORRECT ANSWER=> current"
"ratios that show how investors value stock is:
a-pauout
b-earnings per share
c- return on equity
d- return on assets
e-none of the above - CORRECT ANSWER=> none of the above"
"two ratios that help define the operating cycle are:
a- recievables and inventory turnover
b-recievables and accounts payable turnover
c-inventory and accounts payable turnover
d- none of the above - CORRECT ANSWER=> receivables and inventory turnover"
"What should be considered when deciding on a time period for a budget? - CORRECT ANSWER=>
Amount of financial activity"
,"What should be included in a short-term budget? - CORRECT ANSWER=> Monthly water bill
expenses"
"Which item is a living expense? - CORRECT ANSWER=> Healthcare Premium"
"What is an example of a macro factor in planning a budget? - CORRECT ANSWER=> Interest rates"
“Why is the accounting cycle important? - CORRECT ANSWER=> It results in the creation of the
financial accounting statement"
"What information does a balance sheet show? - CORRECT ANSWER=> Financial position of a business
at a specific date"
"Which group should make use of financial accounting information when determining whether to open
an additional store location? - CORRECT ANSWER=> Owners and managers"
"Which organization is focused on developing generally accepted accounting principles (GAAP) within
the United States? - CORRECT ANSWER=> Financial Accounting Standards Board (FASB)"
"How would an employee labor union use financial accounting information? - CORRECT ANSWER=> To
determine ability to pay an increase in wages"
"Which statement is a financial accounting statement? - CORRECT ANSWER=> Income statement"
"Which financial statement shows all of the expenses of doing business over a specific period of time? -
CORRECT ANSWER=> Income statement"
"What is a benefit of adopting a single set of international accounting standards? - CORRECT
ANSWER=> More uniform financial reporting among international companies"
"What is a drawback of the United States using International Financial Reporting Standards (IFRS)? -
CORRECT ANSWER=> It would cost US companies time and money in the short term to adopt"
"Which step should an accountant perform next after analyzing source documents to determine their
effects on the basic accounting equation? - CORRECT ANSWER=> Journalize the transactions"
"What should be done if the trial balance debit and credit columns are not equal? - CORRECT
ANSWER=> Analyze the trial balance and financial records to find the error"
"How is a worksheet used? - CORRECT ANSWER=> To help prepare adjusting entries and financial
statements"
,"Which accounts do closing entries move to retained earnings? - CORRECT ANSWER=> Expense and
revenue"
"Why does a stockholder's equity need to be completed prior to preparing a balance sheet? - CORRECT
ANSWER=> The amount of ending balance from the statement of stockholder's equity must be
presented on the balance sheet."
"An accountant for a firm is preparing a post-closing trial balance and has the following figures that
represent all debit and credit accounts:
Cash: 100,000
Accounts Receivable: 20,000
Accounts Payable: 50,000
Accumulated Depreciation: 20,000
Prepaid Rent: 10,000
Equipment: 40,000
Capital Stock: 80,000
Retained Earnings: 20,000
What should the matching totals in the debit and credit columns be when the trial balance is prepared? -
CORRECT ANSWER=> 170,000"
"Which account appears on a post-closing trial balance? - CORRECT ANSWER=> Capital stock"
"Why are special journals used in accounting information systems? - CORRECT ANSWER=> To group
together transactions of a similar type"
"How can accounting technology affect small businesses? - CORRECT ANSWER=> By simplifying the
daily posting of routine transactions with accounting packages"
"What must an accountant record when journalizing a transaction? - CORRECT ANSWER=> Description
of the transaction"
"What does double-entry accounting refer to? - CORRECT ANSWER=> Recording equal debits and
credits for each transaction"
"What are the key components of every double-entry accounting record? - CORRECT ANSWER=> At
least one debit entry and at least one credit entry"
"What is a characteristic of an asset account? - CORRECT ANSWER=> Increases with a debit"
"Which financial statement is used to ensure that all debits and credits balance? - CORRECT
ANSWER=> Trial balance"
, "Which account balance is entered in the balance sheet columns from the adjusted trial balance? -
CORRECT ANSWER=> Accounts receivable"
"A company writes a check to purchase a case of printer cartridges.
Which account would be debited in the journal entry to record this purchase? - CORRECT ANSWER=>
Office supplies"
"An accounting supervisor is reviewing a junior accountant's journal entries prior to posting to the
general ledger.
Which journal entry would cause the trial balance to be imbalanced? - CORRECT ANSWER=> $600
insurance bill received and paid in the same month; $600 debit to insurance expense and $60 credit to
cash"
"A company has a lease that requires the company to pay its annual office space rent in advance on
December 31 of each year. On a quarterly basis, this expense totals $10,000.
How should the rent expense be recorded on the firm's books in the following year to account for this
transaction? - CORRECT ANSWER=> It should be recorded as a decrease of $40,000 in the asset
accounts under prepaid rent."
"When are revenue and expenses recognized in accrual basis accounting? - CORRECT ANSWER=>
Revenue is recognized when earned, and expenses are recognized when incurred."
"A corporation had not yet received the monthly electric bill, so it decides to accrue an estimate of
$1,000.
What would appear in the appropriate journal entry? - CORRECT ANSWER=> Credit to utilities
payable"
"Which account will be a part of the adjusting journal entry to record the interest that has been incurred,
but not paid, on a note payable? - CORRECT ANSWER=> Interest payable"
"What information is contained in the balance sheet and the income statement? - CORRECT
ANSWER=> The balance sheet contains assets, liabilities, and stockholder's equity, and the income
statement contains revenues and expenses."
"Which financial statement shows the results of operations for a given period? - CORRECT ANSWER=>
Income statement"
ACCOUNTING|FINANCIAL ACCOUNTING -COMBINED
SETS COMPLETE SOLUTION FOR EASY PASS!! QUESTIONS
AND 100% ACCURATE ANSWERS|GRADED A+
"Why is financial accounting information valuable to consumers? - CORRECT ANSWER=> External users
can evaluate the financial health of a business."
"How would a bank use financial accounting information? - CORRECT ANSWER=> To approve lines of
credit"
"What is an example of recurring income? - CORRECT ANSWER=> Bank Account Interest"
"which of the following companies publishes financial ratios of industry groups?
a-gladstone
b-evergreen
c-robert morris associtates
c-sterling whitworth - CORRECT ANSWER=> robert morris associates"
"a commercial banker uses ratios extensively to analyze customers, which ratio if of most interest?
a-payout'
b-return on equity
c-price earnings
d-current - CORRECT ANSWER=> current"
"ratios that show how investors value stock is:
a-pauout
b-earnings per share
c- return on equity
d- return on assets
e-none of the above - CORRECT ANSWER=> none of the above"
"two ratios that help define the operating cycle are:
a- recievables and inventory turnover
b-recievables and accounts payable turnover
c-inventory and accounts payable turnover
d- none of the above - CORRECT ANSWER=> receivables and inventory turnover"
"What should be considered when deciding on a time period for a budget? - CORRECT ANSWER=>
Amount of financial activity"
,"What should be included in a short-term budget? - CORRECT ANSWER=> Monthly water bill
expenses"
"Which item is a living expense? - CORRECT ANSWER=> Healthcare Premium"
"What is an example of a macro factor in planning a budget? - CORRECT ANSWER=> Interest rates"
“Why is the accounting cycle important? - CORRECT ANSWER=> It results in the creation of the
financial accounting statement"
"What information does a balance sheet show? - CORRECT ANSWER=> Financial position of a business
at a specific date"
"Which group should make use of financial accounting information when determining whether to open
an additional store location? - CORRECT ANSWER=> Owners and managers"
"Which organization is focused on developing generally accepted accounting principles (GAAP) within
the United States? - CORRECT ANSWER=> Financial Accounting Standards Board (FASB)"
"How would an employee labor union use financial accounting information? - CORRECT ANSWER=> To
determine ability to pay an increase in wages"
"Which statement is a financial accounting statement? - CORRECT ANSWER=> Income statement"
"Which financial statement shows all of the expenses of doing business over a specific period of time? -
CORRECT ANSWER=> Income statement"
"What is a benefit of adopting a single set of international accounting standards? - CORRECT
ANSWER=> More uniform financial reporting among international companies"
"What is a drawback of the United States using International Financial Reporting Standards (IFRS)? -
CORRECT ANSWER=> It would cost US companies time and money in the short term to adopt"
"Which step should an accountant perform next after analyzing source documents to determine their
effects on the basic accounting equation? - CORRECT ANSWER=> Journalize the transactions"
"What should be done if the trial balance debit and credit columns are not equal? - CORRECT
ANSWER=> Analyze the trial balance and financial records to find the error"
"How is a worksheet used? - CORRECT ANSWER=> To help prepare adjusting entries and financial
statements"
,"Which accounts do closing entries move to retained earnings? - CORRECT ANSWER=> Expense and
revenue"
"Why does a stockholder's equity need to be completed prior to preparing a balance sheet? - CORRECT
ANSWER=> The amount of ending balance from the statement of stockholder's equity must be
presented on the balance sheet."
"An accountant for a firm is preparing a post-closing trial balance and has the following figures that
represent all debit and credit accounts:
Cash: 100,000
Accounts Receivable: 20,000
Accounts Payable: 50,000
Accumulated Depreciation: 20,000
Prepaid Rent: 10,000
Equipment: 40,000
Capital Stock: 80,000
Retained Earnings: 20,000
What should the matching totals in the debit and credit columns be when the trial balance is prepared? -
CORRECT ANSWER=> 170,000"
"Which account appears on a post-closing trial balance? - CORRECT ANSWER=> Capital stock"
"Why are special journals used in accounting information systems? - CORRECT ANSWER=> To group
together transactions of a similar type"
"How can accounting technology affect small businesses? - CORRECT ANSWER=> By simplifying the
daily posting of routine transactions with accounting packages"
"What must an accountant record when journalizing a transaction? - CORRECT ANSWER=> Description
of the transaction"
"What does double-entry accounting refer to? - CORRECT ANSWER=> Recording equal debits and
credits for each transaction"
"What are the key components of every double-entry accounting record? - CORRECT ANSWER=> At
least one debit entry and at least one credit entry"
"What is a characteristic of an asset account? - CORRECT ANSWER=> Increases with a debit"
"Which financial statement is used to ensure that all debits and credits balance? - CORRECT
ANSWER=> Trial balance"
, "Which account balance is entered in the balance sheet columns from the adjusted trial balance? -
CORRECT ANSWER=> Accounts receivable"
"A company writes a check to purchase a case of printer cartridges.
Which account would be debited in the journal entry to record this purchase? - CORRECT ANSWER=>
Office supplies"
"An accounting supervisor is reviewing a junior accountant's journal entries prior to posting to the
general ledger.
Which journal entry would cause the trial balance to be imbalanced? - CORRECT ANSWER=> $600
insurance bill received and paid in the same month; $600 debit to insurance expense and $60 credit to
cash"
"A company has a lease that requires the company to pay its annual office space rent in advance on
December 31 of each year. On a quarterly basis, this expense totals $10,000.
How should the rent expense be recorded on the firm's books in the following year to account for this
transaction? - CORRECT ANSWER=> It should be recorded as a decrease of $40,000 in the asset
accounts under prepaid rent."
"When are revenue and expenses recognized in accrual basis accounting? - CORRECT ANSWER=>
Revenue is recognized when earned, and expenses are recognized when incurred."
"A corporation had not yet received the monthly electric bill, so it decides to accrue an estimate of
$1,000.
What would appear in the appropriate journal entry? - CORRECT ANSWER=> Credit to utilities
payable"
"Which account will be a part of the adjusting journal entry to record the interest that has been incurred,
but not paid, on a note payable? - CORRECT ANSWER=> Interest payable"
"What information is contained in the balance sheet and the income statement? - CORRECT
ANSWER=> The balance sheet contains assets, liabilities, and stockholder's equity, and the income
statement contains revenues and expenses."
"Which financial statement shows the results of operations for a given period? - CORRECT ANSWER=>
Income statement"
