Accounting: Exam Questions
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The following questions are meant to help you practice answering multiple choice questions over the A201 material. These questions are not meant to be a substitute for a thorough review of the course material including reading the chapters, answering end of chapter exercises, and reviewing course notes.
1) Which one of the following groups of accounts contains only assets? a) Equipment, patents, accounts receivable b) Accounts receivable, building, retained earnings c) Accounts payable, notes payable, contributed capital d) Retained earnings, goodwill, and accounts payable 2) At the end of 2001, Kazlo Company has total assets and liabilities at $40,000 and $13,000, respectively. Kazlo reported net income for 2002 in the amount of $10,000. How much is stockholders’ equity at the end of 2002? e) $20,000 f) $22,000 g) $31,000 h) $37,000. 3) The major accounting difference between interest paid to creditors and dividends paid to owners is that interest paid i) decreases retained earnings and dividends paid increases retained earnings. j) impacts cash flows, while dividends do not. k) is not on the income statement while dividends paid are. l) is on the income statement and dividends paid are not.
4) Watson Company has retained earnings of $12,000, total assets totaling $38,000, and total liabilities of $20,000. How much is total stockholders’ equity? m) $6,000 n) $12,000 o) $18,000 p) $32,000 5) If the beginning and ending balances in retained earnings are $12,000 and $10,000, respectively, and dividends during the year are $10,000, then net income for the year is q) $14,000. r) $8,000. s) $18,000. t) $32,000.
6) By recognizing the economic effects of inflation on the accounting financial statements, which accounting assumption is
The following questions are meant to help you practice answering multiple choice questions over the A201 material. These questions are not meant to be a substitute for a thorough review of the course material including reading the chapters, answering end of chapter exercises, and reviewing course notes.
1) Which one of the following groups of accounts contains only assets? a) Equipment, patents, accounts receivable b) Accounts receivable, building, retained earnings c) Accounts payable, notes payable, contributed capital d) Retained earnings, goodwill, and accounts payable 2) At the end of 2001, Kazlo Company has total assets and liabilities at $40,000 and $13,000, respectively. Kazlo reported net income for 2002 in the amount of $10,000. How much is stockholders’ equity at the end of 2002? e) $20,000 f) $22,000 g) $31,000 h) $37,000. 3) The major accounting difference between interest paid to creditors and dividends paid to owners is that interest paid i) decreases retained earnings and dividends paid increases retained earnings. j) impacts cash flows, while dividends do not. k) is not on the income statement while dividends paid are. l) is on the income statement and dividends paid are not.
4) Watson Company has retained earnings of $12,000, total assets totaling $38,000, and total liabilities of $20,000. How much is total stockholders’ equity? m) $6,000 n) $12,000 o) $18,000 p) $32,000 5) If the beginning and ending balances in retained earnings are $12,000 and $10,000, respectively, and dividends during the year are $10,000, then net income for the year is q) $14,000. r) $8,000. s) $18,000. t) $32,000.
6) By recognizing the economic effects of inflation on the accounting financial statements, which accounting assumption is