finance and accounts
ACCOUNTING COMPETENCY EXAM
SAMPLE EXAM
1.
The accounting process does not include:
a.
b.
c.
2.
d.
e.
labor unions all of the above
statement of owner’s equity income statement balance sheet
d.
e.
both b and c all of the above
This account does not appear on the income statement:
a.
b.
c.
6.
lenders prospective owners customers Expenses can be found in the:
a.
b.
c.
5.
balance sheet balance sheet and journals balance sheet and income statement income statement none of the above
External users of financial accounting information include:
a.
b.
c.
4.
d. observing
e. classifying
The financial statement or statements that pertain to a stated period of time is (are) the:
a.
b.
c.
d.
e.
3.
interpreting reporting purchasing
accumulated depreciation depreciation expense sales revenue
d.
e.
marketing expense interest expense
A brand new company has a building costing $10,000, machinery costing $5,000, cash of
$700, and a bank loan of $7,850. What is the owner’s equity?
a.
b.
c.
$8,850
$15,700
$7,750
d.
e.
cannot be determined
$7,850
7.
An example of an economic exchange includes:
a.
b.
c.
d.
e.
8.
If a company has owner’s equity of $100,000,
a.
b.
c.
d.
e.
9.
a business owner purchases inventory on credit a dry cleaning business cleans 3 dresses for a customer an insurance agent sells a whole life policy a contractor purchases a new truck for cash all of the above
assets minus liabilities equal $100,000 total assets must equal $100,000 net income for the past year was $100,000 a total of $100,000 was invested by the owner none of the above
Providing services on account for $40,000 would:
a.
b.
c.
d.
e.
increase cash $40,000, decrease accounts receivable $40,000 decrease accounts receivable $40,000, decrease owner’s equity $40,000 increase accounts receivable $40,000, increase owner’s equity $40,000
SAMPLE EXAM
1.
The accounting process does not include:
a.
b.
c.
2.
d.
e.
labor unions all of the above
statement of owner’s equity income statement balance sheet
d.
e.
both b and c all of the above
This account does not appear on the income statement:
a.
b.
c.
6.
lenders prospective owners customers Expenses can be found in the:
a.
b.
c.
5.
balance sheet balance sheet and journals balance sheet and income statement income statement none of the above
External users of financial accounting information include:
a.
b.
c.
4.
d. observing
e. classifying
The financial statement or statements that pertain to a stated period of time is (are) the:
a.
b.
c.
d.
e.
3.
interpreting reporting purchasing
accumulated depreciation depreciation expense sales revenue
d.
e.
marketing expense interest expense
A brand new company has a building costing $10,000, machinery costing $5,000, cash of
$700, and a bank loan of $7,850. What is the owner’s equity?
a.
b.
c.
$8,850
$15,700
$7,750
d.
e.
cannot be determined
$7,850
7.
An example of an economic exchange includes:
a.
b.
c.
d.
e.
8.
If a company has owner’s equity of $100,000,
a.
b.
c.
d.
e.
9.
a business owner purchases inventory on credit a dry cleaning business cleans 3 dresses for a customer an insurance agent sells a whole life policy a contractor purchases a new truck for cash all of the above
assets minus liabilities equal $100,000 total assets must equal $100,000 net income for the past year was $100,000 a total of $100,000 was invested by the owner none of the above
Providing services on account for $40,000 would:
a.
b.
c.
d.
e.
increase cash $40,000, decrease accounts receivable $40,000 decrease accounts receivable $40,000, decrease owner’s equity $40,000 increase accounts receivable $40,000, increase owner’s equity $40,000