Small Business Accounting 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. Who investigated Arthur Andersen and Enron?

Question 2 2. Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Andersen?

Question 3 3. Ethics are defined as _____.

Question 4 4. 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 5 5. What was the accounting firm that made unethical choices in the Enron scandal?

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Question 6 6. 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 7 7. Which of the following is an example of external users of accounting information?

Question 8 8. 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 9 9. What statement(s) do external and internal users of accounting information rely on?

Question 10 10. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

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Question 11 11. Which of the following is not an accounting activity?

Question 12 12. Which one of the activities is a bookkeeping activity?

Question 13 13. Which one of the following documents is not utilized in bookkeeping?

Question 14 14. What must balance in a trial balance?

Question 15 15. What is the best explanation of a source document in bookkeeping?

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Question 16 16. What is the final step of the accounting cycle?

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

Question 18 18. How is the general journal different from the general ledger?

Question 19 19. How do you know when an account is in balance?

Question 20 20. What types of reports are created during the accounting cycle for the use of management?

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Question 21 21. Marking an item against the profits of a company at the time that it is purchased is known as which one of the following?

Question 22 22. Rachel works for an electronics company. She purchases a device for testing the electronics. What should be done with this purchase?

Question 23 23. Which of the following is a benefit of capitalizing a purchase?

Question 24 24. Delineating a purchase as an asset of the company is referred to as _____.

Question 25 25. How should Post-It notes, which are quickly used up, be treated in accounting?

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Question 26 26. Which of the following is true for cloud accounting software?

Question 27 27. Where does desktop accounting software store your financial data?

Question 28 28. Where does cloud accounting software store your financial data?

Question 29 29. At which of the following locations can you access cloud accounting software?

Question 30 30. At which of the following locations can you access desktop accounting software?

Small Business Accounting 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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