Exam (elaborations)
Accounting Exam Review Questions with Correct Answers
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- Accounting
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- Accounting
Accounting Exam Review Questions with Correct Answers
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Accounting Exam Review Questionswith Correct Answers
What is market capitalization? - Answer-The total number of outstanding shares
multiplied by the current stock price.
Accounting - Answer-is the process of recording, maintaining, and reporting an
organization's financial transactions and records.
Timely - Answer-In order for financial data and information to be useful, it needs to be
reported in a ________________ and accurate manner.
Investors, Creditors - Answer-Without being able to understand the financial health of a
company, ________________ and ________________ would not be able to make
informed decisions about investing their money in a company.
Government - Answer-________________ relies on tax revenue from companies and
its citizens to fund government operations.
Finance - Answer-_________________ focuses on the management of the assets,
liabilities, and cash flow of an organization, financial analysis like ROI and ROE, and
financial planning of future growth.
1,500,000 - Answer-A company has 100,000 shares outstanding with a current market
price of $15 per share. What is the market capitalization?
Compared - Answer-Accountants should prepare financial information that is delivered
in a consistent format over time, so that when users analyze this information, it can
easily be ________________ to prior periods of time.
language - Answer-Accounting is the ________________ of business.
Bonds - Answer-In addition to raising money by selling stock (equity) on a stock
exchange, some companies can also raise capital in the form of debt, by issuing
_______________ from various debt markets worldwide.
Cost of goods sold - Answer-From an accounting/finance perspective, Business
Managers would find it difficult to price their products and/or services without fully
understanding the product's __________________.
Investors - Answer-If financial information isn't delivered in a consistent format over
time, ________________ would have a more difficult time understanding if a company's
revenues and profits are growing, and by how much.
, Rating Agencies - Answer-Investment analysts and _________________ rely heavily
on proper financial information, so that they can help the everyday investor determine
the risks associated with investing in a company's stock or bonds
Accounting/Finance - Answer-_______________ is one of the six primary business
functions.
Cash - Answer-What is an example of an asset?
What side of the T-Account are credits always recorded? - Answer-Right
Left - Answer-What side of the T-Account are debits always recorded?
Per the double-entry accounting system, every transaction must involve at least
_______ account(s). - Answer-Two
Dr. - Answer-How is "Debit" abbreviated
The left side, also known as the debit side - Answer-What is the normal balance of an
Asset?
The right side, also known as the credit side - Answer-What is the normal balance of a
Liability?
An account's normal balance is always... - Answer-Increased
The right side, aka the credit side - Answer-What is the normal balance of any Owners'
Equity account?
Cr. - Answer-How is "Credit" abbreviated
The left side is debited by $500 - Answer-You invest $500 in your company. Which side
of the Cash T-account is affected and by how much?
The right side is credited by $750 - Answer-Big John Cleaners uses a credit card to pay
a $750 utility bill. Which side of the Credit Card T-account is affected and by how much?
The left side is debited by $1,000 - Answer-Benjamin Taylor uses cash to purchase
$1,000 of equipment for his business called Benjamin's Basketball Coaching. How does
this transaction affect the Equipment T-account for Benjamin's Basketball Coaching?
debit accounts payable, credit cash - Answer-If you use cash to pay down an accounts
payable balance, how will this transaction affect the Cash and Accounts Payable t-
accounts?
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