Business Accounting
Solved Exam Questions
Course Introduction
Business Accounting provides an introduction to the fundamental principles and practices of accounting within a business context. The course covers essential topics such as financial statement preparation and analysis, the accounting cycle, recording and reporting transactions, and the use of accounting information for managerial decision-making. Students learn how to interpret balance sheets, income statements, and cash flow statements, as well as explore key concepts such as assets, liabilities, revenues, and expenses. By the end of the course, students will understand how accounting practices support effective business operations and decision-making processes.
Recommended Textbook
Financial Accounting 8th Edition by Walter T. Harrison
Available Study Resources on Quizplus
13 Chapters
1996 Verified Questions
1996 Flashcards
Source URL: https://quizplus.com/study-set/3430
Page 2
Chapter 1: The Financial Statements
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/68146
Sample Questions
Q1) Ramos, Inc. has monthly revenues of $30,000 and monthly expenses of $18,000, and the company paid $4,000 in dividends. Therefore, net income for the month is $8,000.
A)True
B)False
Answer: False
Q2) An example of a regulatory body that uses accounting information is the Internal Revenue Service.
A)True
B)False
Answer: True
Q3) The two main components of stockholders' equity are:
A)retained earnings and paid-in capital.
B)assets and liabilities.
C)paid-in capital and assets.
D)net income and retained earnings.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Transaction Analysis
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/68145
Sample Questions
Q1) The Dividends account indicates an increase in common stock.
A)True
B)False
Answer: False
Q2) The rules for recording accounting transactions do NOT include which of the following?
A)Every transaction's net amount on the left side of the equation must equal the net amount on the right side.
B)Both sides of the accounting equation must be affected.
C)Every transaction affects the financial statements of the business.
D)Total assets must always equal total liabilities plus total equity.
Answer: B
Q3) Which of the following is NOT an asset account?
A)Accounts Receivable
B)Prepaid Rent
C)Common Stock
D)All of these are asset accounts.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Accrual Accounting Income
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/68144
Sample Questions
Q1) The term deferral refers to an event where the:
A)recognition of an expense or revenue is recorded after the cash is paid or received.
B)liability for an expense is recorded before the expense is actually incurred.
C)liability for an expense is recorded after the expense is actually incurred.
D)recognition of an expense or revenue is recorded before the cash is paid or received.
Answer: A
Q2) A company pays an employee $1,000 per week for a five day work week. The adjusting entry on December 31, which is a Tuesday, is a:
A)debit to Salaries Expense for $1,000 and a credit to Salaries Payable for $1,000.
B)debit to Salaries Expense for $500 and a credit to Salaries Payable for $500.
C)debit to Salaries Expense for $400 and a credit to Salaries Payable for $400.
D)debit to Salaries Payable for $1,000 and a credit to Salaries Expense for $1,000.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Internal Control Cash
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/68143
Sample Questions
Q1) Albert Company's accountant considered the following items: cash in a checking account, $1,400; cash in a time deposit account, $450; cash pledged as collateral, $250. How much should appear as Cash on the balance sheet?
A)$1,200
B)$1,650
C)$1,850
D)$2,100
Q2) If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:
A)debit to Cash.
B)credit to Cash.
C)debit to Note Receivable.
D)debit to Note Payable.
Q3) All of the following are purposes of internal control EXCEPT:
A)to promote operational inefficiency.
B)to encourage adherence to company policies.
C)to ensure accurate and reliable accounts records.
D)to safeguard assets.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Short-Term Investments Receivables
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/68142
Sample Questions
Q1) A company with net sales of 1,642,500, a beginning balance of net receivables of $187,500, and an ending balance of net receivables of $235,500 has a days' sales in receivables (rounded)of:
A)42 days.
B)47 days.
C)52 days.
D)56 days.
Q2) If the current ratio is 3.2, and the current liabilities are $110,000, what is the amount of current assets?
A) $320,000
B) $352,000
C) $176,000
D) $ 34,375
Q3) Unrealized gains or losses on trading securities are reported on:
A)the income statement as Other Revenue, Gains, and Losses.
B)the balance sheet.
C)the income statement as Revenues or Expenses.
D)none of the financial statements.
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Inventory and Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/68141
Sample Questions
Q1) When inventory prices are falling, the LIFO costing method will generally result in a:
A)lower gross profit than under FIFO.
B)higher gross profit than under FIFO.
C)lower inventory value than under FIFO.
D)lower owners' equity balance than under FIFO.
Q2) The choice of an inventory costing method will affect:
A)the ending inventory.
B)the cost of goods sold.
C)the ending inventory and cost of goods sold.
D)none of the above.
Q3) Ending inventory for the year ended December 31, 2010, is understated. How will this error affect net income for 2010 and 2011?
A)2010 overstated; 2011 understated
B)2010 understated; 2011 overstated
C)2010 overstated; 2011 no effect
D)2010 understated; 2011 no effect
Q4) The cost of the inventory is the net amount of the purchases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Plant Assets Intangibles
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/68140
Sample Questions
Q1) 1.method of depreciation, what is the book value as of December 31, 2013?
A)$161,000
B)$159,000
C)$154,333
D)$146,000
Q2) Accumulated depletion reduces equity, as this account is a contra-revenue account.
A)True
B)False
Q3) Which of the following statements regarding intangible assets is NOT true?
A)Intangible assets are long-lived assets with no physical form.
B)Intangible assets are recorded at their acquisition cost.
C)Intangible assets with a finite life are not amortized.
D)Intangible assets with an indefinite life are not amortized.
Q4) Contra-asset accounts are NOT established to record the accumulated amortization for intangible assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Liabilities
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/68139
Sample Questions
Q1) When recording interest accrued on very short-term notes, the interest can be added to the Notes Payable account.
A)True
B)False
Q2) The future value is always less than the present value.
A)True
B)False
Q3) Any gains or loss on the early retirement of bonds sold should be recorded as a(n):
A)ordinary revenue or expense reported on the income statement.
B)adjustment to financing activity on a statement of cash flows.
C)other income/loss.
D)prior period adjustment, net of tax, shown on the statement of retained earnings.
Q4) A contingent liability is a potential liability, with the dollar amount of the liability dependent on a future event arising out of a past transaction.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Stockholders Equity
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/68138
Sample Questions
Q1) The entry to record the sale of 7,000 shares of treasury stock that cost $11 per share for $13 per share includes a:
A)credit to Paid-in Capital in Excess of Par Value-Common for $98,000.
B)debit to debit to Retained Earnings for $98,000.
C)credit to Paid-in Capital from Treasury Stock transactions for $14,000.
D)debit to Treasury stock for $24,000.
Q2) One unique advantage given to common stockholders over preferred stockholders is the right to the company's assets if the company is dissolved.
A)True
B)False
Q3) Declaration and distribution of stock dividends:
A)increases the total liabilities of the corporation and decreases the total stockholders' equity.
B)increases the stock account and decreases retained earnings.
C)reduces the total liabilities of the corporation.
D)reduces the total assets of the corporation.
Q4) Another name for paid-in capital in excess of par is additional paid-in capital.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Long-Term Investments International Operations
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/68137
Sample Questions
Q1) Held-to-maturity investments are reported on the balance sheet at their:
A)historical cost.
B)par value or stated value.
C)amortized cost.
D)current market value.
Q2) Subsidiary Company borrowed $75,000 from Parent Company on a note payable during the year. Before the consolidation entries were made on the worksheet, the balances in Parent Company's Notes Receivable and Notes Payable accounts were $175,000 and $255,000, respectively. A consolidated balance sheet shows:
A)Notes Receivable of $175,000 and Notes Payable of $330,000.
B)Notes Receivable of $250,000 and Notes Payable of $255,000.
C)Notes Receivable of $100,000 and Notes Payable of $255,000.
D)Notes Receivable of $175,000 and Notes Payable of $180,000.
Q3) If an investment is liquid and the investor intends to convert the investment to cash within one year, the investment will be classified as:
A)long-term.
B)equity.
C)short-term.
D)either long-term or short term.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Income Statement the Statement of
Stockholders Equity
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/68136
Sample Questions
Q1) Management is responsible for:
A)internal control over financial reporting.
B)the preparation of the financial statements.
C)both A and B
D)none of the above.
Q2) The financial statement that reports the changes in all categories of equity during the period is called the:
A)statement of retained earnings.
B)statement of changes in financial position.
C)statement of stockholders' equity.
D)statement of change in total equity.
Q3) A company incurs a loss due to restructuring. This is the first time the company has experienced a restructuring. The loss from this event would be shown as:
A)a normal business occurrence requiring an adjustment to the beginning balance in Retained Earnings.
B) a prior-period adjustment.
C)an extraordinary item.
D)other gains and losses.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/68135
Sample Questions
Q1) All increases in other current assets decreases cash in the statement of cash flows.
A)True
B)False
Q2) 1.Company acquired $209,000 of plant assets during the year. The proceeds from the sale of plant assets were:
A)$839,400.
B)$ 73,200.
C)$ 68,100.
D)$121,100.
Q3) Which of the following would be reported on a statement of cash flows as a financing activity?
A)Distribution of stock dividend
B)Purchase of treasury stock
C)Interest paid on bonds payable
D)All of the above
Q4) Collections on a loan are reported as financing activities on the statement of cash flows.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/68134
Sample Questions
Q1) Which of the following would be useful in determining whether a company can pay its current liabilities?
A)Quick ratio
B)Current ratio
C)Debt ratio
D)Both A and B
Q2) An efficient capital market is one in which market prices fully reflect all information available to the public.
A)True
B)False
Q3) 1.ratio for the year ended December 31, 2011, was:
A)11.88.
B)11.38.
C)22.75.
D)10.88.
Q4) Common-size financial statements represent a form of:
A)trend analysis.
B)horizontal analysis.
C)vertical analysis.
D)ratio analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 15