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Accounting Fundamentals 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. What is the difference between a Statement of Cash Flows and Income Statement?

Question 2 2. The Securities and Exchange Commission created a special group called the _____ to set the guidelines that all accounting professionals must follow.

Question 3 3. Examining the source documents is the _____ step in the accounting cycle.

Question 4 4. The items that a company owes are called:

Question 5 5. Which of the following represents the accounting equation?

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Question 6 6. What is the first step in an accounting cycle called?

Question 7 7. How many basic accounting principles make up GAAP?

Question 8 8. A majority investor in ABC Motors wants to see how much money the company is reinvesting in itself. In which financial statement will the investor find this information?

Question 9 9. Identify the person that performs the financial statement audit?

Question 10 10. Which financial statement is prepared first?

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Question 11 11. Which of the following financial reports tells how much money that was made was reinvested in the company?

Question 12 12. What account is created just to be used for the closing entries?

Question 13 13. The goal of the post-closing trial balance is to make sure that the sum of all debits equals the sum of all _____.

Question 14 14. What is the money that an owner has personally invested in their company called?

Question 15 15. GAAP sets the standards for the creation of what?

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Question 16 16. What is the biggest difference between cash basis accounting and accrual basis accounting?

Question 17 17. Identify the person that reviews the audit report of a company to see if the company is being compliant with the law?

Question 18 18. Which of the following is NOT an asset for a company?

Question 19 19. In her role as an accountant for ABC Manufacturing Janis has uncovered a pattern of errors made by one clerk in the parts department. How should Janis handle this situation?

Question 20 20. Calvin owns a flower business and has to pay an electricity bill amounting to $290. How will his account officer record the transaction?

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Question 21 21. Which accounting method is best for keeping track of cash inflows and cash outflows?

Question 22 22. What are the entries called that close temporary accounts?

Question 23 23. Which accounts have balances that are zeroed out at the end of each accounting period?

Question 24 24. The method of accounting that recognizes revenue when money is received and expenses when bills are paid is called:

Question 25 25. What is an example of a source document?

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Question 26 26. Bob is an accountant with ABC Gas. Over the last 6 months, Bob has made intentional errors in his financial reporting in order to earn more money for himself. Who evaluates and will punish Bob's indiscretion?

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. Why is a Balance Sheet an important financial statement?

Question 29 29. What type of accounts will always be a part of the chart of accounts?

Question 30 30. On which financial statement are expenses reported?

Accounting Fundamentals 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!

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