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Accounting Exam 1 – UAB Questions with Complete Answers
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Accounting Exam 1 – UAB Questions with Complete Answers
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Accounting Exam 1 – UAB Questionswith Complete Answers
The three types of resources available to conversion agents are: - Answer-Financial
resources, Physical resources, Labor resources
The three areas of service provided by public accountants are - Answer-auditing, tax,
and consulting
The private accountant generally works for a specific company. Some of the functions
performed include - Answer-classifying and recording transactions, billing customers,
collecting amounts due, ordering merchandise, paying suppliers, preparing and
analyzing financial statements, developing budgets, assessing performance, and
making decisions.
stockholders equity - Answer-common stock + retained earnings
liability - Answer-an obligation to pay cash in the future
stockholders - Answer-individuals or institutions that have contributed assets or services
to a business in exchange for an ownership n the business
common stock - Answer-certificates that evidence ownership in a company
retained earnings - Answer-assets - liabilities - common stock
creditors - Answer-individuals or institutions that have loaned goods to services to a
business
assets - Answer-economic resources that will be used by a business to produce
revenue
what are assets? - Answer-cash, land, office furniture, trucks, supplies, computers,
building
what are liabilities? - Answer-accounts payable
what are stockholders equity? - Answer-salaries expense, common stock, service
revenue, operating expenses, rent revenue, dividends, gasoline expense, retained
earnings
which items would appear on a balance sheet? - Answer-cash, land, as of December
31, 2019, accounts receivable (ending balance), accounts payable (ending balance),
common stock (eb), retained earnings (eb), total stolkholders equity
, which items would appear on an income statement? - Answer-revenue, expense, net
income, for the period ending December 31, 2019
Which items above would appear on the statement of changes in stockholders' equity? -
Answer-net income, for the period ending dec 19, 2019, common stock eb, retained
earnings bb, dividends, retained earnings eb, beginning common stock
Which items above would appear on the statement of cash flows? - Answer-cash eb,
net financing cash flow, net investing cash flow, for the period ending dec 19, 2019, net
operating cash flow, cash bb, change in cash
Financial accounting standards are known collectively as GAAP. What does that
acronym stand for? - Answer-Generally Accepted Accounting Principles
The balance sheet of a Company reported assets of $50,000, liabilities of $22,000 and
common stock of $15,000. Based on this information only, the amount or balance for
retained earnings must be - Answer-13000
Borrowing cash from the bank is an example of which type of transaction? - Answer-
asset source
Which of the following items appears in the investing activities section of the statement
of cash flows? - Answer-cash outflow for purchase of land
Businesses earn profits by converting financial, physical, and labor resources into
goods and services that satisfy consumer demands. This statement is - Answer-true
Resource owners want to provide resources to businesses with high profit potential
because those businesses will pay higher taxes. This statement is - Answer-false
Accounting provides a service to society by gathering and reporting information about a
company's profit potential. This statement is - Answer-true
The primary purpose of managerial accounting is to prepare financial statements in
accordance with a reporting framework (e.g. GAAP). - Answer-false
Generally Accepted Accounting Principles (GAAP) are designed to provide guidance for
- Answer-financial accounting
Which of the following types of businesses require financial information to operate
effectively? - Answer-for profit businesses, governmental entities, non-profit businesses
Public accountants perform which of the following functions to ensure that financial
information provided by a Company to investors is in accordance with GAAP? - Answer-
conduct and audit
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