1
Williams Final IWU Accounting Questions
with Answers (100% Correct Answers)
A commercial real estate broker may be interested in
-cash flow statements of a real estate property.
-future earning potential of a real estate property.
-reserves for long term improvements set aside by the current management.
-all of these. Answer: All
If a senior executive asks his or her subordinate to enagage in wilful accounting
deception, the employee
-should follow the boss' orders but maintain a diary and list the incident for
later defense if needed under a federal inquiry.
-should not follow their superior's instructions and if possible bring the matter
to the attention of the legal counsel.
-should follow their boss' orders and should not tell anyone.
-should resign from their position immediately. Answer: should not follow their
superior's instructions and if possible bring the matter to the attention of the
legal counsel.
Which of the following statements is not true regarding the Sarbanes-Oxley Act
(SOX)?
T-he goal of the Act is to decrease the likelihood of unethical corporate
behavior.
-The Act has resulted in increased penalties for financial fraud by top
management.
,2
-The Act calls for decreased independence of outside auditors reviewing
corporate financial statements.
-The Act calls for increased oversight responsibilities for boards of directors.
Answer: The Act calls for decreased independence of outside auditors
reviewing corporate financial statements.
Buying and selling products are examples of
-delivering activities.
-financing activities.
-operating activities.
-investing activities. Answer: operating activites
Dividends paid
-decrease revenues.
-increase assets.
-decrease retained earnings.
-increase expenses. Answer: Decrease Retained Earnings
To show how successfully your business performed during a period of time,
you would report its revenues and expenses in the
-retained earnings statement.
-balance sheet.
-income statement.
-statement of cash flows. Answer: Income Statement
Which of the following financial statements is concerned with the company at
a point in time?
, 3
-Retained Earnings statement
-Statement of cash flows
-Balance sheet
-Income statement Answer: Balance Sheet
An income statement shows
-revenues, liabilities, and stockholders' equity.
expenses, dividends, and -stockholders' equity.
-assets, liabilities, and stockholders' equity.
-revenues, expenses, and net income. Answer: Revenues, expense, and net
income
Collection of a $470 Accounts Receivable
-decreases a liability $470; increases stockholders' equity $470.
-decreases an asset $470; decreases a liability $470.
-increases an asset $470; decreases a liability $470.
-increases an asset $470; decreases an asset $470. Answer: -increases an asset
$470; decreases an asset $470.
If a company buys a $760 machine on credit, this transaction will affect the
-income statement, retained earnings statement, and balance sheet.
-income statement and retained earnings statement only.
-income statement only.
-balance sheet only. Answer: Balance sheet only
A T-account is
Williams Final IWU Accounting Questions
with Answers (100% Correct Answers)
A commercial real estate broker may be interested in
-cash flow statements of a real estate property.
-future earning potential of a real estate property.
-reserves for long term improvements set aside by the current management.
-all of these. Answer: All
If a senior executive asks his or her subordinate to enagage in wilful accounting
deception, the employee
-should follow the boss' orders but maintain a diary and list the incident for
later defense if needed under a federal inquiry.
-should not follow their superior's instructions and if possible bring the matter
to the attention of the legal counsel.
-should follow their boss' orders and should not tell anyone.
-should resign from their position immediately. Answer: should not follow their
superior's instructions and if possible bring the matter to the attention of the
legal counsel.
Which of the following statements is not true regarding the Sarbanes-Oxley Act
(SOX)?
T-he goal of the Act is to decrease the likelihood of unethical corporate
behavior.
-The Act has resulted in increased penalties for financial fraud by top
management.
,2
-The Act calls for decreased independence of outside auditors reviewing
corporate financial statements.
-The Act calls for increased oversight responsibilities for boards of directors.
Answer: The Act calls for decreased independence of outside auditors
reviewing corporate financial statements.
Buying and selling products are examples of
-delivering activities.
-financing activities.
-operating activities.
-investing activities. Answer: operating activites
Dividends paid
-decrease revenues.
-increase assets.
-decrease retained earnings.
-increase expenses. Answer: Decrease Retained Earnings
To show how successfully your business performed during a period of time,
you would report its revenues and expenses in the
-retained earnings statement.
-balance sheet.
-income statement.
-statement of cash flows. Answer: Income Statement
Which of the following financial statements is concerned with the company at
a point in time?
, 3
-Retained Earnings statement
-Statement of cash flows
-Balance sheet
-Income statement Answer: Balance Sheet
An income statement shows
-revenues, liabilities, and stockholders' equity.
expenses, dividends, and -stockholders' equity.
-assets, liabilities, and stockholders' equity.
-revenues, expenses, and net income. Answer: Revenues, expense, and net
income
Collection of a $470 Accounts Receivable
-decreases a liability $470; increases stockholders' equity $470.
-decreases an asset $470; decreases a liability $470.
-increases an asset $470; decreases a liability $470.
-increases an asset $470; decreases an asset $470. Answer: -increases an asset
$470; decreases an asset $470.
If a company buys a $760 machine on credit, this transaction will affect the
-income statement, retained earnings statement, and balance sheet.
-income statement and retained earnings statement only.
-income statement only.
-balance sheet only. Answer: Balance sheet only
A T-account is
