Exam 1 BUS-A 304 Bree Josefy Test
Questions with Correct Answers 2025-
2026 Updated.
Which answer is not a liability?
A. Unearned Revenue
B. Accounts Payable
C. Prepaid Expense
D. Salaries Payable - Answer C. Prepaid Expense
J&J pays their employees at the end of June for work done in
June. Which of the following is true?
A. This is an operating activity that decreases Cash and decreases Liabilities.
B. This is an operating activity that decreases Cash and decreases Retained Earnings.
C. This is a financing activity that decreases Cash and increases Expenses.
D. This is an investing activity that decreases Cash and increases Liabilities. - Answer B. This is
an operating activity that decreases Cash and decreases Retained Earnings.
Providing services to customers for cash impacts which of the following financial statements?
1. Income Statement
2. Balance Sheet
3. Statement of Stockholders' Equity
4. Statement of Cash Flows
A. 1
B. 1 and 2
C. 1, 2, and 3
D. 1, 2, 3, and 4 - Answer D. 1, 2, 3, and 4
Which of the following is false regarding the links between the financial statements?
, C. The total Stockholders' Equity on the Balance Sheet flows from the Statement of
Stockholders' Equity.
D. As expenses increase on the Income Statement, ending Retained Earnings on the Statement
of Stockholders' Equity decreases. - Answer B. The cash on the Balance Sheet is equal to the
cash at the beginning of the period on the Statement of Cash Flows.
J&J has beginning Retained Earnings of $60 million, Ending Retained Earnings of $55 million, and
Dividends of $17 million. What was their Net Income?
A. $5 million
B. $12 million
C. $22 million
D. $17 million - Answer B. $12 million
J&J reports operating cash flows of $155 million, investing cash flows of $35 million, beginning
cash of $500 million, and ending cash of $605 million.
What must their cash inflows (outflows) from financing be?
A. $50 million
B. ($85 million)
C. ($50 million)
D. $85 million - Answer B. ($85 million)
Who is responsible for creating the accounting
standards?
A. SEC
B. FASB
C. IFRS
D. PCAOB
E. IFRS - A
F. IFRS - S - Answer B. FASB
Questions with Correct Answers 2025-
2026 Updated.
Which answer is not a liability?
A. Unearned Revenue
B. Accounts Payable
C. Prepaid Expense
D. Salaries Payable - Answer C. Prepaid Expense
J&J pays their employees at the end of June for work done in
June. Which of the following is true?
A. This is an operating activity that decreases Cash and decreases Liabilities.
B. This is an operating activity that decreases Cash and decreases Retained Earnings.
C. This is a financing activity that decreases Cash and increases Expenses.
D. This is an investing activity that decreases Cash and increases Liabilities. - Answer B. This is
an operating activity that decreases Cash and decreases Retained Earnings.
Providing services to customers for cash impacts which of the following financial statements?
1. Income Statement
2. Balance Sheet
3. Statement of Stockholders' Equity
4. Statement of Cash Flows
A. 1
B. 1 and 2
C. 1, 2, and 3
D. 1, 2, 3, and 4 - Answer D. 1, 2, 3, and 4
Which of the following is false regarding the links between the financial statements?
, C. The total Stockholders' Equity on the Balance Sheet flows from the Statement of
Stockholders' Equity.
D. As expenses increase on the Income Statement, ending Retained Earnings on the Statement
of Stockholders' Equity decreases. - Answer B. The cash on the Balance Sheet is equal to the
cash at the beginning of the period on the Statement of Cash Flows.
J&J has beginning Retained Earnings of $60 million, Ending Retained Earnings of $55 million, and
Dividends of $17 million. What was their Net Income?
A. $5 million
B. $12 million
C. $22 million
D. $17 million - Answer B. $12 million
J&J reports operating cash flows of $155 million, investing cash flows of $35 million, beginning
cash of $500 million, and ending cash of $605 million.
What must their cash inflows (outflows) from financing be?
A. $50 million
B. ($85 million)
C. ($50 million)
D. $85 million - Answer B. ($85 million)
Who is responsible for creating the accounting
standards?
A. SEC
B. FASB
C. IFRS
D. PCAOB
E. IFRS - A
F. IFRS - S - Answer B. FASB
