Basics of Accounting Final 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. What accounting principle requires having the ability to rely on documented information to record financial data?

Question 2 2. Which of the following is not an accounting activity?

Question 3 3. How many steps are in the accounting cycle?

Question 4 4. What has technology done to the accounting process?

Question 5 5. What is the name of the first trial balance that must be prepared?

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Question 6 6. Which of the following is NOT a financial statement?

Question 7 7. What statement(s) do external and internal users of accounting information rely on?

Question 8 8. _____ and technology go hand in hand.

Question 9 9. 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 10 10. What is the best explanation of a source document in bookkeeping?

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Question 11 11. What type of accountant must comply with GASB standards?

Question 12 12. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

Question 13 13. Which financial statement is prepared first?

Question 14 14. What does ALOE stand for?

Question 15 15. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

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Question 16 16. Which one of the activities is a bookkeeping activity?

Question 17 17. How many basic accounting principles make up GAAP?

Question 18 18. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Question 19 19. What does the term 'accounting' mean?

Question 20 20. Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Andersen?

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Question 21 21. What type of accountant prepares financial statements for public release and consumption?

Question 22 22. Ethics are defined as _____.

Question 23 23. Why is accounting important to business?

Question 24 24. What accounting principle states that people involved in a transaction should not be personally related?

Question 25 25. What type of accountant doesn't typically communicate financial information to people or entities outside his organization?

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Question 26 26. What was the accounting firm that made unethical choices in the Enron scandal?

Question 27 27. What are the entries called that close temporary accounts?

Question 28 28. 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 29 29. 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 30 30. GAAP sets the standards for the creation of what?

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Question 31 31. What type of accountant deals with the fund system of accounting?

Question 32 32. 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 to defraud the company by embezzling. Is this complying with SOX (Sarbanes-Oxley Act)?

Question 33 33. What must balance in a trial balance?

Question 34 34. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary management differ?

Question 35 35. Which of the following is an example of external users of accounting information?

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Question 36 36. Which one of the following documents is not utilized in bookkeeping?

Question 37 37. What type of accountant is hired by a company to verify the accuracy of the financial records of a company?

Question 38 38. Who investigated Arthur Andersen and Enron?

Question 39 39. Evan owns his own business running a coffee shop in a downtown area. Which principle must he remember that no matter what he does as a business owner, he must keep his personal dealings completely separate transactions?

Question 40 40. What is the formula for the basic accounting equation?

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Question 41 41. What are the rules and regulations that must be followed when reporting all financial data?

Question 42 42. 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 43 43. 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 44 44. 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?

Question 45 45. Which step requires you to prepare financial statements?

Basics of Accounting Final 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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