Introduction to Financial Accounting Exam Bank
Course Introduction
Introduction to Financial Accounting provides students with a foundational understanding of the principles and practices of financial accounting. The course covers essential topics such as the accounting cycle, preparation and analysis of financial statements, and the recording and reporting of business transactions. Emphasis is placed on understanding the conceptual framework underlying accounting, the application of generally accepted accounting principles (GAAP), and the crucial role financial information plays in decision making by internal and external stakeholders. By the end of the course, students will be equipped to interpret and prepare basic financial statements and possess the analytical skills necessary to evaluate the financial health of a business.
Recommended Textbook
Financial Accounting 10th Edition by Walter T. Harrison
Available Study Resources on Quizplus 13 Chapters
2111 Verified Questions
2111 Flashcards
Source URL: https://quizplus.com/study-set/3515 Page 2
Chapter 1: The Financial Statements
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/69830
Sample Questions
Q1) Which of the following have unlimited liability for a company's debts?
A)owners of a corporation
B)members of a limited liability company
C)limited partners in a limited liability partnership
D)general partner in a limited liability partnership
Answer: D
Q2) What is the proper order for the different categories of cash flows reported on the statement of cash flows?
A)Financing activities,investing activities,and operating activities
B)Operating activities,investing activities,and financing activities
C)Operating activities,financing activities,and investing activities
D)Investing activities,financing activities,and operating activities
Answer: B
Q3) Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?
A)Net income
B)Expenses
C)Dividends
D)All of the above
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
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/69825
Sample Questions
Q1) An example of a transposition error is writing:
A)$400 as $40
B)$1,000 as $2,000
C)$300 as $600
D)$1,200 as $2,100
Answer: D
Q2) An owner makes an investment of cash into the business and receives shares of stock.This transaction would include a:
A)debit to Common Stock and a credit to Cash.
B)debit to Cash and a credit to Common Stock.
C)debit to Retained Earnings and a credit to Cash.
D)debit to Common Stock and a credit to Retained Earnings.
Answer: B
Q3) The normal balance of a revenue account is a ________ because revenues increase ________.
A)credit,assets
B)debit,expenses
C)debit,Retained Earnings
D)credit,Retained Earnings
Answer: D
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
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/69824
Sample Questions
Q1) A doctor performed surgery in March and did not receive cash from the patient until July.Under accrual-basis accounting,the doctor recognizes revenue:
A)in March.
B)in July.
C)in either March or July.
D)at a time that cannot be determined from the facts.
Answer: A
Q2) In accrual adjustments,an adjustment is made for payment of an item in advance of use.
A)True
B)False
Answer: False
Q3) Net working capital:
A)represents the company's ability to pay its long-term debts.
B)is computed by subtracting total current liabilities from total current assets.
C)should be a negative number to ensure the profitability of the company.
D)should be the same for all companies.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 5: Short-Term Investments Receivables
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/69822
Sample Questions
Q1) A company has net credit sales of $2,000,000,a beginning balance of net receivables of $202,000,and an ending balance of net receivables of $245,000.What is the company's days' sales in receivables (rounded)?
A)9 days
B)37 days
C)41 days
D)48 days
Q2) Under the allowance method for estimating uncollectible accounts:
A)a company sets up an Allowance for Uncollectible Accounts to estimate the amount of the receivables the company does not expect to collect.
B)the Allowance for Uncollectible Accounts is a contra account to gross Accounts Receivable.
C)the Allowance for Uncollectible Accounts will normally have a credit balance.
D)all of the above.
Q3) In order to effectively evaluate the days' sales in receivables,it should be compared to the company's credit terms.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Inventory Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/69821
Sample Questions
Q1) The Postotnik Construction Company has ending inventory with a historical cost of $630,000.Assume the company uses the perpetual inventory system.The current replacement cost of the inventory is $608,000.The net realizable value is $650,000.Before any adjustments at the end of the period,the cost of goods sold account has a balance of $900,000.What journal entry is required under IFRS?
A)No journal entry is required.
B)debit Cost of Goods Sold $20,000 and credit Inventory $20,000
C)debit Inventory $20,000 and credit Cost of Goods Sold $20,000
D)debit Cost of Goods Sold $22,000 and credit Inventory $22,000
Q2) Under a perpetual inventory system,when a sale is made,the seller prepares:
A)no journal entry.
B)one journal entry only.
C)two journal entries.
D)three journal entries.
Q3) An error in ending inventory creates errors for two accounting periods.
A)True B)False
Q4) The LIFO method assigns the most recent inventory cost to Cost of Goods Sold. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Plant Assets,natural Resources, Intangibles
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/69820
Sample Questions
Q1) Which of the following is a CORRECT statement regarding intangible assets?
A)The useful life of a patent can be longer than its legal life.
B)Patents protect computer software programs.
C)Trademarks are rights to reproduce and sell a work of art.
D)Intangible assets with indefinite lives must be checked annually for any loss in value.
Q2) Weaver Motors purchased a machine that will help diagnose problems with engines.The machine cost $300,000 on January 3,2014 and had a residual value of $30,000,with a useful life of 6 years.
Required:
Calculate the depreciation expense and book value as of December 31,2014 under both the straight-line and double-declining-balance methods.
Q3) How does the journal entry to amortize a copyright affect the accounting equation?
A)increases assets and stockholders' equity
B)decreases assets and stockholders' equity
C)increases assets and decreases stockholders' equity
D)decreases assets and increases stockholders' equity
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 12: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/69827
Sample Questions
Q1) A company is adjusting net income to determine Net Cash Provided by Operating Activities for the statement of cash flows.The indirect method is used.Which statement is FALSE?
A)An increase in a noncash current asset is subtracted from net income.
B)A decrease in a noncash current asset is added to net income.
C)A decrease in a current liability is added to net income.
D)An increase in a current liability is added to net income.
Q2) Northwest Builders,Inc.reported Cost of Goods Sold for the current year of $320,000.During the same period,the Inventory account decreased $15,000 and the Accounts Payable account increased $25,000.The amount of cash paid to suppliers for inventory is:
A)$280,000.
B)$295,000.
C)$305,000.
D)$335,000.
Q3) On the statement of cash flows,cash payments from financing activities include:
A)issuing stock for property.
B)sale of treasury stock.
C)payment of notes payable.
D)purchase of plant assets.
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
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/69826
Sample Questions
Q1) If the sale of plant assets is a company's major source of cash,it may be a sign of financial difficulty.
A)True
B)False
Q2) What is accounts payable turnover?
A)A ratio calculated as Purchases divided by ending balance in Accounts Payable.
B)A ratio calculated as Cost of Goods Sold divided by average Accounts Payable.
C)A ratio calculated as Purchases divided by average Accounts Payable.
D)B and C
Q3) Which of the following is typically used as the base in a vertical analysis of a balance sheet?
A)Total liabilities
B)Total stockholders' equity
C)Total assets
D)Net sales
Q4) In performing vertical analysis,the base for operating expenses is:
A)net sales.
B)gross profit.
C)net income.
D)operating income.
Page 15
To view all questions and flashcards with answers, click on the resource link above.