UTA Entrance Accounting Exam Questions and Answers
If net income after tax is $42,000, the tax rate is
30%, and total expenses not including tax Which of the following is considered and
expense are $126,000, revenues must be: - expense?
ANSWER -$186,000
prepaid expense
Find what the net income was before taxes and cost of goods sold
add it to expenses to get the total revenue. sales
building - ANSWER -cost of goods sold
The financial statement that reports what the
company owns and what the company owes is The government agency with legal authority over
the - ANSWER -balance sheet financial reporting of U.S. public companies is
called - ANSWER -securities exchange
The balance sheet shows assets, liabilities, and commission (SEC)
equity which show what is owned and what is
owed. FASB has no legal authority
What is supposed to "balance" on the balance Which financial statement reports dividends paid
sheet? - ANSWER -assets = liabilities + to shareholders? - ANSWER -statement of
owner's equity owners equity
Dividends are not reported on the income
The purpose of financial accounting is to provide statement, it is not an expense. They are netted
- ANSWER -financial information to into retained earnings on the balance sheet.
external users
assets typically include - ANSWER -
The accounting equation is - ANSWER - accounts receivable and equipment
assets = liabilities + equity
What financial document is for the specific
Which financial statement provides information purpose of reporting cash flows? -
related to the financial performance of a ANSWER -cash flow statement
company during a specific period? -
ANSWER -income statement
Which statement provides information on goods
The income statement reports earning for a and services provided to customers? -
company during a specific time period. ANSWER -income statement
Providing goods and services to customers is
A company reports net income when - revenues which is only on the income statement.
ANSWER -services provided are greater
than the cost to provide the services
Liabilities are - ANSWER -obligations
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, UTA Entrance Accounting Exam Questions and Answers
resulting from past transactions balance sheet, income statement, statement of
stockholder's equity, and statement of cash flows
Prepaid expenses is an asset because -
ANSWER -the company owns it Balance Sheet - ANSWER -States what
the company has paid ahead and therefore has your business owns (assets) and owes (liabilities)
future benefit on a specific date. Assets minus liabilities is the
a past transaction has occurred amount owed.
Economic resources is the technical term for - Income Statement - ANSWER -Shows how
ANSWER -assets much the business earned during a period of
time. this is what you have earned from providing
goods and services less what it costs.
An examination of accounting records to
determine if the records and reports are in
accordance with generally accepted accounting Statements of Owner's Equity - ANSWER -
standards is called - ANSWER -an audit shows the activity of shareholder's (owners)
during a period of time. Shows receipt of funds
from shareholders and payments back to
What increases retained earnings? - shareholders in the form of dividends. shows the
ANSWER -revenues earnings of the business that go to the
shareholders
retained earnings is increased by net income.
Cash Flow Statement - ANSWER -Shows
Which financial statement reports what the the source of cash and what the cash was used
company owes suppliers? - ANSWER - for during a period of time (cash and income are
balance sheet not the same)
Which of the following is not a liability? Retained Earnings - ANSWER -the amount
of cumulative profits and losses kept by the
unearned revenues company since the first day of operations.
accounts payable
taxes payable Beginning Retained Earnings
sales - ANSWER -sales +Net Income or -Net Loss
-Dividends paid
=Ending Retained Earnings
The purpose of Financial Accounting is to: (3) -
ANSWER -record, summarize, and report
transactions of the company Cash flow statement sections - ANSWER -
operating activities, investing activities, financing
activities.
4 primary financial statements - ANSWER -
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If net income after tax is $42,000, the tax rate is
30%, and total expenses not including tax Which of the following is considered and
expense are $126,000, revenues must be: - expense?
ANSWER -$186,000
prepaid expense
Find what the net income was before taxes and cost of goods sold
add it to expenses to get the total revenue. sales
building - ANSWER -cost of goods sold
The financial statement that reports what the
company owns and what the company owes is The government agency with legal authority over
the - ANSWER -balance sheet financial reporting of U.S. public companies is
called - ANSWER -securities exchange
The balance sheet shows assets, liabilities, and commission (SEC)
equity which show what is owned and what is
owed. FASB has no legal authority
What is supposed to "balance" on the balance Which financial statement reports dividends paid
sheet? - ANSWER -assets = liabilities + to shareholders? - ANSWER -statement of
owner's equity owners equity
Dividends are not reported on the income
The purpose of financial accounting is to provide statement, it is not an expense. They are netted
- ANSWER -financial information to into retained earnings on the balance sheet.
external users
assets typically include - ANSWER -
The accounting equation is - ANSWER - accounts receivable and equipment
assets = liabilities + equity
What financial document is for the specific
Which financial statement provides information purpose of reporting cash flows? -
related to the financial performance of a ANSWER -cash flow statement
company during a specific period? -
ANSWER -income statement
Which statement provides information on goods
The income statement reports earning for a and services provided to customers? -
company during a specific time period. ANSWER -income statement
Providing goods and services to customers is
A company reports net income when - revenues which is only on the income statement.
ANSWER -services provided are greater
than the cost to provide the services
Liabilities are - ANSWER -obligations
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, UTA Entrance Accounting Exam Questions and Answers
resulting from past transactions balance sheet, income statement, statement of
stockholder's equity, and statement of cash flows
Prepaid expenses is an asset because -
ANSWER -the company owns it Balance Sheet - ANSWER -States what
the company has paid ahead and therefore has your business owns (assets) and owes (liabilities)
future benefit on a specific date. Assets minus liabilities is the
a past transaction has occurred amount owed.
Economic resources is the technical term for - Income Statement - ANSWER -Shows how
ANSWER -assets much the business earned during a period of
time. this is what you have earned from providing
goods and services less what it costs.
An examination of accounting records to
determine if the records and reports are in
accordance with generally accepted accounting Statements of Owner's Equity - ANSWER -
standards is called - ANSWER -an audit shows the activity of shareholder's (owners)
during a period of time. Shows receipt of funds
from shareholders and payments back to
What increases retained earnings? - shareholders in the form of dividends. shows the
ANSWER -revenues earnings of the business that go to the
shareholders
retained earnings is increased by net income.
Cash Flow Statement - ANSWER -Shows
Which financial statement reports what the the source of cash and what the cash was used
company owes suppliers? - ANSWER - for during a period of time (cash and income are
balance sheet not the same)
Which of the following is not a liability? Retained Earnings - ANSWER -the amount
of cumulative profits and losses kept by the
unearned revenues company since the first day of operations.
accounts payable
taxes payable Beginning Retained Earnings
sales - ANSWER -sales +Net Income or -Net Loss
-Dividends paid
=Ending Retained Earnings
The purpose of Financial Accounting is to: (3) -
ANSWER -record, summarize, and report
transactions of the company Cash flow statement sections - ANSWER -
operating activities, investing activities, financing
activities.
4 primary financial statements - ANSWER -
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