Financial Accounting: Help & Review 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!

Page 1

Question 1 1. The Securities and Exchange Commission created a special group called the _____ to set the guidelines that all accounting professionals must follow.

Question 2 2. The guidelines for financial reporting that all accounting professionals must follow are called _____.

Question 3 3. _____ human error is the result of honest mistakes and are not planned actions.

Question 4 4. What procedures are put in place within an organization to ensure business is carried out in an orderly, effective, and accurate manner?

Question 5 5. GAAP sets the standards for the creation of what?

Page 2

Question 6 6. Procedures that are put in place within an organization to ensure business is carried out in an orderly, effective and accurate manner are called _____.

Question 7 7. Which of the following represents the accounting equation?

Question 8 8. The most important thing to remember when analyzing business transactions is that all debits and credits _____.

Question 9 9. What is the formula for the basic accounting equation?

Question 10 10. 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?

Page 3

Question 11 11. A loss that occurs from honest mistakes being made by individuals is called a(n) _____ loss.

Question 12 12. _____ human error is the result of planned actions.

Question 13 13. Which of the following is NOT a financial statement?

Question 14 14. How many basic accounting principles make up GAAP?

Question 15 15. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Page 4

Question 16 16. Calvin owns a flower business and has to pay an electricity bill amounting to $290. How will his account officer record the transaction?

Question 17 17. What is the first step in an accounting cycle called?

Question 18 18. A company's financial statements include an income statement, a statement of retained earnings, a statement of cash flows and a _____.

Question 19 19. GAAP standards require that a(n) _____ be included in the notes to the financial statements.

Question 20 20. Jan is the accounting manager for ABC Manufacturing. In her role she instructs newly hired accountants in the use of internal controls. Why would she stress the importance of accuracy when they are creating financial documents?

Page 5

Question 21 21. Which of the following is a limitation of internal controls?

Question 22 22. The first step in the audit process requires that an auditor look at the manner in which financial documents are transferred to the accounting department. Why is this necessary?

Question 23 23. What does the term 'accounting' mean?

Question 24 24. Jarett orders and purchases two laptops for his company usage on account. The ordered laptops amounted to $1,200. Identify the two accounts that are used for this transaction.

Question 25 25. To deliberately omit or misstate financial information with the intent of deceiving investors and creditors is _____.

Page 6

Question 26 26. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 27 27. Why is the most important thing an auditor can do is form an opinion?

Question 28 28. Two people have differing opinions on the reporting period for a company's income. What typical problem are they most likely experiencing with their financial information?

Question 29 29. 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 30 30. Why is an auditor important in the world of accounting?

Financial Accounting: Help & Review 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!

Corporate Finance: Help & Review  /  Business Courses
Support