A.O.L. EXAM 2024/2025 WITH 100%
ACCURATE SOLUTIONS
Which of the following is NOT a trait of a corporation?
a. Can be sued for all of the owner's assets
b. Can be owned by multiple people
c. Often subject to double taxation
d. Limits liability - Precise Answer ✔✔a. Can be sued for all of the
owner's assets
Brown's Business is concerned that another company is trying to take it
over, what can it do prevent this from happening?
a. Repurchase some of its own shares of stock.
b. Sell all outstanding shares of stock.
c. Authorize additional shares of stock to be issued.
d. Create an IPO. - Precise Answer ✔✔a. Repurchase some of its own
shares of stock.
Which of these statements about retained earnings is true?
a. Retained earnings are private and are not released to shareholders.
b. Retained earnings is not a good measure for shareholders to go by to
see how much they'd be entitled to.
c. Retained earnings shows shareholders how much money the company
has.
,d. Retained earnings is not important to shareholders. - Precise Answer
✔✔c. Retained earnings shows shareholders how much money the
company has.
Income tax is paid based on the taxable income. In some cases, the
taxable income is not known until after the tax liability is due. What type
of liability is this?
a. Estimated
b. Current
c. Predated
d. Nonexempt - Precise Answer ✔✔a. Estimated
Which of these bond types are bonds in which a portion of the
outstanding bonds mature or become due at several dates which
typically fall in a series?
a. Serial bond
b. Unsecured bond
c. Convertible bond
d. Registered bond - Precise Answer ✔✔a. Serial bond
Which of the following statements is true regarding a callable bond?
a. A callable bond allows the issuer to call the investor about changes in
the bond's contract.
b. A callable bond allows the issuer to repurchase the bond.
c. A callable bond allows the issuer to turn the bond into stock.
, d. A callable bond allows the investor to sell the bond early. - Precise
Answer ✔✔b. A callable bond allows the issuer to repurchase the bond.
Susie is an accountant for XYZ Tech Firm, and she is preparing the post
closing trial balance. She goes to one of her co-workers to request the
revenue and expense account balances to include in her report. What
will her co-worker tell her?
a. She will remind her that those do not belong in the report since they
are temporary accounts.
b. She will give her the balances so she can transfer them over to the
next accounting period.
c. She will remind her that those do not belong in the report since they
are permanent accounts.
d. She will give her the balances as they are necessary to include in the
report. - Precise Answer ✔✔a. She will remind her that those do not
belong in the report since they are temporary accounts.
What is the most common accounting method used by businesses?
a. Debit
b. Accrual
c. Cash
d. Ledger - Precise Answer ✔✔b. Accrual
Before you can complete the adjusted trial balance, you first have to
create the _____.
a. cash flow statement
ACCURATE SOLUTIONS
Which of the following is NOT a trait of a corporation?
a. Can be sued for all of the owner's assets
b. Can be owned by multiple people
c. Often subject to double taxation
d. Limits liability - Precise Answer ✔✔a. Can be sued for all of the
owner's assets
Brown's Business is concerned that another company is trying to take it
over, what can it do prevent this from happening?
a. Repurchase some of its own shares of stock.
b. Sell all outstanding shares of stock.
c. Authorize additional shares of stock to be issued.
d. Create an IPO. - Precise Answer ✔✔a. Repurchase some of its own
shares of stock.
Which of these statements about retained earnings is true?
a. Retained earnings are private and are not released to shareholders.
b. Retained earnings is not a good measure for shareholders to go by to
see how much they'd be entitled to.
c. Retained earnings shows shareholders how much money the company
has.
,d. Retained earnings is not important to shareholders. - Precise Answer
✔✔c. Retained earnings shows shareholders how much money the
company has.
Income tax is paid based on the taxable income. In some cases, the
taxable income is not known until after the tax liability is due. What type
of liability is this?
a. Estimated
b. Current
c. Predated
d. Nonexempt - Precise Answer ✔✔a. Estimated
Which of these bond types are bonds in which a portion of the
outstanding bonds mature or become due at several dates which
typically fall in a series?
a. Serial bond
b. Unsecured bond
c. Convertible bond
d. Registered bond - Precise Answer ✔✔a. Serial bond
Which of the following statements is true regarding a callable bond?
a. A callable bond allows the issuer to call the investor about changes in
the bond's contract.
b. A callable bond allows the issuer to repurchase the bond.
c. A callable bond allows the issuer to turn the bond into stock.
, d. A callable bond allows the investor to sell the bond early. - Precise
Answer ✔✔b. A callable bond allows the issuer to repurchase the bond.
Susie is an accountant for XYZ Tech Firm, and she is preparing the post
closing trial balance. She goes to one of her co-workers to request the
revenue and expense account balances to include in her report. What
will her co-worker tell her?
a. She will remind her that those do not belong in the report since they
are temporary accounts.
b. She will give her the balances so she can transfer them over to the
next accounting period.
c. She will remind her that those do not belong in the report since they
are permanent accounts.
d. She will give her the balances as they are necessary to include in the
report. - Precise Answer ✔✔a. She will remind her that those do not
belong in the report since they are temporary accounts.
What is the most common accounting method used by businesses?
a. Debit
b. Accrual
c. Cash
d. Ledger - Precise Answer ✔✔b. Accrual
Before you can complete the adjusted trial balance, you first have to
create the _____.
a. cash flow statement
