acc 250 exam 1 Practice Questions With Well Elaborated Answers.
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Course
ACC.
Institution
ACC.
Which of the following is not one of the three forms of business organization?
a. Corporations
b. Partnerships
c. Proprietorships
d. Investors - correct answer d
Which of the following is the best definition of an internal user of accounting information?
a. Investors who use accoun...
Which of the following is not one of the three forms of business organization?
a. Corporations
b. Partnerships
c. Proprietorships
d. Investors - correct answer d
Which of the following is the best definition of an internal user of accounting information?
a. Investors who use accounting information to decide whether to buy or sell stock
b. Creditors like banks that use accounting information to evaluate the risk of lending money
c. Labor unions who use accounting information to examine the ability of the company to pay increased
wages and benefits
d. Managers who use accounting information to plan, organize, and run a
business - correct answer d
The liability created by a business when it purchases coffee beans and coffee cups on credit from
suppliers is termed a(n)
a. account payable.
b. account receivable.
c. revenue.
d. expense. - correct answer a
Debts and obligations of a business are referred to as
a. assets.
b. equities.
, c. liabilities.
d. expenses. - correct answer c
A building that is purchased is under what section of a classified Balance Sheet?
a. Long term liabilities
b. Current assets
c. Property, Plant & Equipment (Fixed Assets)
d. Long-term assets - correct answer c
Dividends are reported on the
a. Income statement
b. Retained earnings statement
c. Balance sheet
d. Income statement and balance sheet - correct answer b
To show how successfully your business performed during a period of time, you would report its
revenues and expenses in the
a. balance sheet.
b. income statement.
c. statement of cash flows.
d. retained earnings statement. - correct answer b
Which financial statement is prepared first?
a. Balance sheet
b. Income statement
c. Retained earnings statement
d. Statement of cash flows - correct answer b
The accounting equation may be expressed as
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