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Accounting Practices Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Dan's organization stores their software applications and other information on a group of external computers known as virtual network servers. Employees often refer to this storage space as the _____.

Question 2 2. In our ever-evolving world there have been many advances that have made accounting processes easier to complete; all of the following are examples of technology that have impacted the accounting industry except

Question 3 3. The accounts payable role is responsible for:

Question 4 4. The accounting department is responsible for recording and reporting the _____, both in and out, of a company.

Question 5 5. What are the entries called that close temporary accounts?

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Question 6 6. Monica reads in the newspaper that in the year ended December 31, 2015, Profit For Two Inc made $1 million profit. Monica wants to confirm for herself that this is really the case. What financial statement of Profit For Two Inc should Monica read to confirm the newspaper report?

Question 7 7. Which step requires you to prepare financial statements?

Question 8 8. How many basic accounting principles make up GAAP?

Question 9 9. The accounts receivable role is responsible for:

Question 10 10. What is the name of the first trial balance that must be prepared?

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Question 11 11. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Question 12 12. Which of the following is an example of external users of accounting information?

Question 13 13. With accounting software, Bob is able to complete five times as many transactions as he can manually; this supports the explanation of technology as

Question 14 14. Djokovic is the Chief Information Officer for InfoTech Inc. Murray is the Chief Lending Officer at the Bank where InfoTech has a large bank loan. Which statement is true for both Djokovic and Murray, in connection with InfoTech?

Question 15 15. Michael, the majority shareholder of a company, decided to produce the company's balance sheet whose cash balance included the cash in his own bank account. Would Michael be allowed to do this by GAAP?

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Question 16 16. Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Anderson?

Question 17 17. What was the accounting firm that made unethical choices in the Enron scandal?

Question 18 18. To maintain proper financial controls, the person that records cash receipts should NOT also _____.

Question 19 19. How many steps are in the accounting cycle?

Question 20 20. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

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Question 21 21. Ethics are defined as _____.

Question 22 22. Who investigated Arthur Anderson and Enron?

Question 23 23. _____ and technology go hand in hand.

Question 24 24. What statement(s) do external and internal users of accounting information rely on?

Question 25 25. Which financial statement is prepared first?

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Question 26 26. The accounting department prepares financial reports for _____ and _____ users.

Question 27 27. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 28 28. What has technology done to the accounting process?

Question 29 29. Bob is the CEO of ABC Hydraulics. Bob is committed to ethical business practices. He ensures that his investors are kept well-informed of the state of the company. As part of his commitment to transparency and ethical practices, he prefers that the top level executives don't see the inner workings of the company's financials so that they aren't tempted to try and defraud the company by embezzling. Is this complying with SOX (Sarbanes-Oxley Act)?

Question 30 30. GAAP sets the standards for the creation of what?

Accounting Practices Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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