FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

PDF Download

FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

7 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -36 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: A balance sheet reports financial information on a specific date and includes the assets, liabilities, and owner's equity. (p. 199)

Answer:

true Question 2: Information needed to prepare an income statement comes from the Account Title column and the Income Statement columns of a work sheet. (p. 192)

Answer:

true Question 3: A balance sheet reports information about the elements of the accounting equation.(p. 201)

Answer:

true Question 4: The area of accounting that focuses on reporting information to internal users.

Answer:

managerial accounting

Question 5: No company should have a vertical analysis ratio for total expenses higher than 48.0%. (p. 196)

Answer:

false Question 6: The income statement for a service business has five sections: heading, Revenue, Expenses, Net Income or Net Loss, and Capital. (p. 192)

Answer:

false

Question 7: The calculation and interpretation of a financial ratio.

Answer:

ratio analysis Question 8: An income statement reports information on a specific date, indicating the financial condition of a business. (p. 192)

Answer:

false Question 9: Financial ratios on an income statement are calculated by dividing sales and total expenses by net income. (p. 195)

Answer:

false

Question 10: Any persons or groups who will be affected by an action.

Answer:

stake holders Question 11: Reporting an amount on a financial statement as a percentage of another item on the same financial statement.

Answer:

vertical analysis

Question 12: The position of the total asset line on the balance sheet is determined after the Equities section is prepared. (p. 202)

Answer:

true Question 13: A financial ratio is a comparison between two components of financial information.(p. 195)

Answer:

true Question 14: The area of accounting that focuses on reporting information to external users

Answer:

financial accounting Question 15: Double lines are ruled across the balance sheet columns to show that the column totals have been verified as correct. (p. 202)

Answer:

true

Question 16: The ratio of net income to total sales.

Answer:

return on sales Question 17: The owner's capital amount reported on a balance sheet is calculated as: capital account balance plus drawing account balance less net income. (p. 202)

Answer:

false Question 18: A budgeting strategy of setting aside at least 10% of after-tax income for saving and investing.

Answer:

pay yourself first

Question 19: Double lines ruled across both amount columns of an income statement indicate that the amount has been verified. (p. 194)

Answer:

true Question 20: Information needed to prepare a balance sheet's Liabilities section is obtained from a work sheet's Account Title column and

Answer:

Balance Sheet Credit column.

Question 21: A comparison between two components of financial information.

Answer:

financial ratio Question 22: A positive balance that remains after total expenses are subtracted from total income.

Answer:

surplus Question 23: If a business wanted to show how the current capital balance was calculated, it would

Answer:

list the beginning capital balance, the net income, the withdrawals, and the ending capital balance on the balance sheet.Question 24: Information needed to prepare a balance sheet's Assets section is obtained from a work sheet's Account Title column and

Answer:

Balance Sheet Debit column Question 25: The Matching Expenses with Revenue accounting concept is applied when the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period. (p. 192)

Answer:

true