UTA Entrance Accounting Exam 2023 WITH 100% 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: $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 balance sheet The balance sheet shows assets, liabilities, and equity which show what is owned and what is owed. 00:29 01:38 What is supposed to "balance" on the balance sheet? assets = liabilities + owner's equity The purpose of financial accounting is to provide financial information to external users The accounting equation is assets = liabilities + equity Which financial statement provides information related to the financial performance of a company during a specific period? income statement The income statement reports earning for a company during a specific time period. A company reports net income when 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 cost of goods sold The government agency with legal authority over financial reporting of U.S. public companies is called securities exchange commission (SEC) FASB has no legal authority Which financial statement reports dividends paid to shareholders? 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 accounts receivable and equipment What financial document is for the specific purpose of reporting cash flows? cash flow statement 00:02 01:38 Which statement provides information on goods and services provided to customers? income statement Providing goods and services to customers is revenues which is only on the income statement. Liabilities are obligations resulting from past transactions Prepaid expenses is an asset because the company owns it the company has paid ahead and therefore has future benefit a past transaction has occurred Economic resources is the technical term for assets