ACCT 201 EXAM WITH 100% CORRECT
ANSWERS
Which one of the following does not affect retained earnings?
A.
Net income
B.
Net loss
C.
Issuance of common stock
D.
Dividends - Answer-Issuance of common stock
The current ratio is a liquidity ratio that is computed as current assets divided by current
liabilities. True or False - Answer-True
Which of these measures is an evaluation of a company's ability to pay current
liabilities?
A.
Earnings per share
B.
Current ratio
C.
Both earnings per share and current ratio
D.
None of these answer choices are correct - Answer-Current Ratio
Which of the following is not an external user of accounting data? - Answer-Chief
Financial Officer
Which statement about users of accounting information is incorrect?
A.
Management is considered an internal user.
B.
Taxing authorities are considered external users.
C.
Present creditors are considered external users.
D.
Regulatory authorities are considered internal users. - Answer-D
, 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.
Auditors cannot provide non-audit services to the same client.
D.
Tax rates on corporations increased. - Answer-D
Which of the following is the most appropriate definition of accounting information?
A.
The information system that identifies, records, and communicates the economic events
of an organization to interested users
B.
A means of collecting information
C.
The interconnected network of subsystems necessary to operate a business
D.
Electronic collection and organization of vast amounts of financial information - Answer-
A
Which of the following is required as a result of SOX?
A.
Public companies must present audited financial statements.
B.
Companies that go bankrupt must repay shareholders for loss investments.
C.
All shareholders now have an oversight role of the company's financial activities.
D.
Top management must certify the financial statements for their company. - Answer-D
Interest expense is classified under operating activities on the statement of cash flows. -
Answer-True
Paying interest expense and receiving interest revenue are examples of
A.
Operating activities.
B.
Financing activities.
C.
Investing activities.
D.
Delivery activities. - Answer-A
ANSWERS
Which one of the following does not affect retained earnings?
A.
Net income
B.
Net loss
C.
Issuance of common stock
D.
Dividends - Answer-Issuance of common stock
The current ratio is a liquidity ratio that is computed as current assets divided by current
liabilities. True or False - Answer-True
Which of these measures is an evaluation of a company's ability to pay current
liabilities?
A.
Earnings per share
B.
Current ratio
C.
Both earnings per share and current ratio
D.
None of these answer choices are correct - Answer-Current Ratio
Which of the following is not an external user of accounting data? - Answer-Chief
Financial Officer
Which statement about users of accounting information is incorrect?
A.
Management is considered an internal user.
B.
Taxing authorities are considered external users.
C.
Present creditors are considered external users.
D.
Regulatory authorities are considered internal users. - Answer-D
, 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.
Auditors cannot provide non-audit services to the same client.
D.
Tax rates on corporations increased. - Answer-D
Which of the following is the most appropriate definition of accounting information?
A.
The information system that identifies, records, and communicates the economic events
of an organization to interested users
B.
A means of collecting information
C.
The interconnected network of subsystems necessary to operate a business
D.
Electronic collection and organization of vast amounts of financial information - Answer-
A
Which of the following is required as a result of SOX?
A.
Public companies must present audited financial statements.
B.
Companies that go bankrupt must repay shareholders for loss investments.
C.
All shareholders now have an oversight role of the company's financial activities.
D.
Top management must certify the financial statements for their company. - Answer-D
Interest expense is classified under operating activities on the statement of cash flows. -
Answer-True
Paying interest expense and receiving interest revenue are examples of
A.
Operating activities.
B.
Financing activities.
C.
Investing activities.
D.
Delivery activities. - Answer-A
