CSET Business - Accounting Principles 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. GAAP sets the standards for the creation of what?

Question 2 2. 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 3 3. What was the accounting firm that made unethical choices in the Enron scandal?

Question 4 4. Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Andersen?

Question 5 5. What does the term 'accounting' mean?

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Question 6 6. Why is accounting important to business?

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

Question 8 8. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary measurement differ?

Question 9 9. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Question 10 10. With accounting software, Bob is able to complete five times as many transactions as he can manually; this supports the explanation of technology as

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Question 11 11. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 12 12. Which financial statement tells whether a company made or lost money in a given time period?

Question 13 13. What are financial statements?

Question 14 14. Who investigated Arthur Andersen and Enron?

Question 15 15. What has technology done to the accounting process?

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Question 16 16. What is the money that an owner has personally invested in their company called?

Question 17 17. 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 18 18. According to the accounting equation, accounts are balanced when assets:

Question 19 19. 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 20 20. Which of the following is an example of external users of accounting information?

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Question 21 21. Which of the following financial reports tells how much money that was made was reinvested in the company?

Question 22 22. A company had total revenue of $20,000 for the month ending March 31. In the same time period, the company had $12,000 in expenses. What was the company's net income or net loss?

Question 23 23. The items that a company owes are called:

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

Question 25 25. What is the formula for the basic accounting equation?

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Question 26 26. Which of the following is NOT a financial statement?

Question 27 27. What is the difference between a Statement of Cash Flows and Income Statement?

Question 28 28. Ethics are defined as _____.

Question 29 29. Which of the following are part of the accounting equation?

Question 30 30. Which financial statement shows how much money that a company made was retained and reinvested in the company?

CSET Business - Accounting Principles 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!

CSET Business Subtest II (176): Practice & Study Guide  /  Business Courses
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