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Accounting Basics 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. Explain the purpose of an income statement.

Question 2 2. What type of accountant deals with the fund system of accounting?

Question 3 3. Activities that involve the purchase and sale of long-term assets as well as making or giving loans are known as:

Question 4 4. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

Question 5 5. What is the statement of cash flows?

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Question 6 6. Which of the following is an example of external users of accounting information?

Question 7 7. 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 8 8. Which of the following is not one of the four financial statements generated in the accounting cycle?

Question 9 9. The Balance Sheet includes:

Question 10 10. One of the principles of GAAP refers to the intent of a business to continue operations into the foreseeable future and not to liquidate the business. This is known as:

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Question 11 11. What occurs if the amount of revenue that came in was more than the amount of expenses that went out?

Question 12 12. 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 13 13. What are measures of the efficiency and productivity of a business that are calculated using information found on the financial statements?

Question 14 14. Internal, external or governmental auditors conduct to verify the accuracy of a company's financial, operational or compliance records

Question 15 15. What is the section of the statement of cash flows that includes activities that occur during the normal day-to-day operations of a company?

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Question 16 16. What type of accountant is hired by a company to verify the accuracy of the financial records of a company?

Question 17 17. The step-by-step accounting process that follows a specific pattern and usually takes 12 months to complete is called the:

Question 18 18. Which of the following are things that you own?

Question 19 19. Assets, liabilities and owner's equity are reported on which financial statement report?

Question 20 20. _____ and technology go hand in hand.

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Question 21 21. What is the difference between a Statement of Cash Flows and Income Statement?

Question 22 22. What is the balance sheet equation?

Question 23 23. Which costing method assumes that the most recent inventory items purchased are the first ones to be sold, and inventory items purchased first are sold last?

Question 24 24. Bookkeeping involves the collection and entry of data of financial transactions from:

Question 25 25. 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 26 26. Sam sells his inventory from a booth. He grabs whichever item he can and, at the end of the month, has sold everything. Which costing method would Sam use?

Question 27 27. Why is accounting important to business?

Question 28 28. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

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. How many steps are in the accounting cycle?

Accounting Basics Chapter 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!

Business 100: Intro to Business  /  Business Courses
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