Exam (elaborations)
Sample Test for Financial Accounting -Question and Answers
- Course
- Financial Accounting
- Institution
- Financial Accounting
Exam of 4 pages for the course Financial Accounting at Financial Accounting (Question & Answers)
[Show more]
Seller
Follow
Content preview
Sample Test for Financial AccountingMultiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 1. In the annual report, where would a financial statement reader find out if the company’s financial statements
give a fair depiction of its financial position and operating results?
a. Notes to the financial statements
b. Management discussion and analysis section
c. Balance sheet
d. Auditor’s report
e. None of the options listed
____ 2. Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out
its existing objectives and commitments?
a. Monetary unit assumption
b. Economic entity assumption
c. Time period assumption
d. Going concern assumption
e. None of the options listed
Johnny’s Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During
the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of
$10,000.
____ 3. The net income reported by Johnny’s Car Repair Shop for the year was
a. $35,000.
b. $45,000.
c. $20,000.
d. $90,000.
e. none of the options listed
____ 4. The purchase of an office building by issuing long-term notes payable should be reported as a
a. cash outflow in the financing section of the statement of cash flows.
b. cash outflow in the investing section of the statement of cash flows.
c. cash outflow in the operating section of the statement of cash flows.
d. noncash investing and financing activity.
e. none of the options listed
____ 5. If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000, the
amount of net income or net loss for the period was:
a. net loss of $35,000
b. net income of $35,000
c. net income of $14,000
d. net loss of $14,000
e. none of the options listed
____ 6. The deferred income tax liability:
a. Represents income tax payments that are deferred until future years because of temporary
differences between GAAP rules and tax accounting rules.
b. Is a contingent liability.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Collouk. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$14.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now