Accountant Exam

Which of the following is not a core financial statement?

• The Income Statement

• Statement of Cash Flows

• The Trial Balance

• The Balance Sheet

The income statement, which presents the results of operations, can be prepared in many forms including:

• Single-Step Income Statement

• Condensed Income Statement

• Common Sized Income Statement

• All of the above

Which of the following account types increase by debits in double-entry accounting?

• Asset, Expenses, Losses

• Assets, Revenue, Gains

• Expenses, Liabilities, Losses

• Gains, Expenses, Liabilities

Which of the following is true?

• Accounts receivable are found in the current asset section of a balance sheet

• Account receivable increase by credits

• Accounts receivable are generated when a customer makes payments

• Account receivable become more valuable over time

A company that uses the cash basis of accounting will:

• Record revenue when it is collected

• Record revenue when it is earned

• Record revenue at the same time as account receivable

• Record bad debt expense on the income statement

When are liabilities recorded under the accrual basis of accounting?

• When incurred

• When paid

• At the end of the fiscal year

• When bank accounts are reconciled

Which is true about time in accounting?

• Current liabilities are debts payable within 2 years

• Balance sheet reflects a company's financial position at a certain point in time

• The time value of money is a finance concept, not relevant in accounting

• Accounts receivable are more easily collected as time passes

Planning, recording, analyzing, and interpreting financial information.

• Accounting

• Assets

• Equities

• None

A planned process for providing financial information that will be useful to management.

• Accounting equation

• Accounting system

• Transaction

• None

Organized summaries of a business's financial activities.

• Accounting records

• Liability

• Account

• None