1
ACCT 5312 STUDY GUIDE EXAM
QUESTIONS WITH VERIFIED
SOLUTIONS 2026/2027
What information do the current generally accepted accounting principles and
auditing standards require the financial statements of an entity to show for the
reporting period? - correct-answer - Financial position at the end of the period
Investments by and distribution owners (i.e., stockholders) during the period
Cash Flows during the period
Earnings for the period
Which of the following is NOT one of the three principal forms of business
organization? - correct-answer - LLC
, 2
The balance sheet is sometimes called the - correct-answer - Statement of
Financial Position
If total liabilities are equal to $8,000 and total stockholders' equity is equal to
4,000 then: - correct-answer - Total assets are equal to $12,000
Assets are _____ future economic benefits obtained or controlled by a particular
entity as a result of _____ - correct-answer - Probable
Past
An entity's earnings for a reporting period are reported on the: - correct-answer -
Income Statement
, 3
Which of the following statements are true about liabilities of a firm? - correct-
answer - Accounts payable is an example of liabilities
Liabilities are probable future sacrifices of economic benefit
What are three principal forms of business organization? - correct-answer -
Corporation
Proprietorship
Partnership
Stockholders' equity is the ownership right of the stockholders in the ____ that
remain after subtracting the ____ of the corporation. - correct-answer - Assets
Liabilities
, 4
The balance sheet: - correct-answer - Is like a snapshot of the organization's
financial position, frozen at a specific point in time.
Which of the following statements are true regarding the balance sheet equation?
- correct-answer - It can be expressed as A=L +SE
It is another term for accounting equation
It must remain in balance after each transaction is recorded
Which of the following statements are true about the assets of a firm? - correct-
answer - Assets represent the amount of resources controlled by the firm
The economic benefits associated with assets must be obtained or controlled by
the firm
ACCT 5312 STUDY GUIDE EXAM
QUESTIONS WITH VERIFIED
SOLUTIONS 2026/2027
What information do the current generally accepted accounting principles and
auditing standards require the financial statements of an entity to show for the
reporting period? - correct-answer - Financial position at the end of the period
Investments by and distribution owners (i.e., stockholders) during the period
Cash Flows during the period
Earnings for the period
Which of the following is NOT one of the three principal forms of business
organization? - correct-answer - LLC
, 2
The balance sheet is sometimes called the - correct-answer - Statement of
Financial Position
If total liabilities are equal to $8,000 and total stockholders' equity is equal to
4,000 then: - correct-answer - Total assets are equal to $12,000
Assets are _____ future economic benefits obtained or controlled by a particular
entity as a result of _____ - correct-answer - Probable
Past
An entity's earnings for a reporting period are reported on the: - correct-answer -
Income Statement
, 3
Which of the following statements are true about liabilities of a firm? - correct-
answer - Accounts payable is an example of liabilities
Liabilities are probable future sacrifices of economic benefit
What are three principal forms of business organization? - correct-answer -
Corporation
Proprietorship
Partnership
Stockholders' equity is the ownership right of the stockholders in the ____ that
remain after subtracting the ____ of the corporation. - correct-answer - Assets
Liabilities
, 4
The balance sheet: - correct-answer - Is like a snapshot of the organization's
financial position, frozen at a specific point in time.
Which of the following statements are true regarding the balance sheet equation?
- correct-answer - It can be expressed as A=L +SE
It is another term for accounting equation
It must remain in balance after each transaction is recorded
Which of the following statements are true about the assets of a firm? - correct-
answer - Assets represent the amount of resources controlled by the firm
The economic benefits associated with assets must be obtained or controlled by
the firm
