Liberty University ACCT 370 Quiz 2 (100% Correct)
Included many different versions (8 Different versions set, 1000+ MCQ Answers Key) to get an A on your grade.
The below shown few sample Questions.
1. The change in equity of an entity during a period from transactions and other events from non-owner sources is known as:
A. net income.
B. net operating income.
C. comprehensive income.
D. net change in assets.
2. The Additional Paid-In Capital account is reported on the balance sheet at the:
A) original sales price of the stock minus the par value.
B) current market value of the stock minus par value
.C) net realizable value of the stock minus par value.
D) discounted present value of the future dividends minus par value.
3. The allowance for uncollectibles account is classified as:
A) a contra-revenue account.
B) a contra-equity account.
C) a contra-expense account.
D) a contra-asset account.
4. Which of the following items will not cause the company’s ROA to increase?
A. Reducing company assets without impacting sales.
B. Reducing costs.
C. Increasing the selling price per unit.
D. Increasing company assets.
5.Which of the following parties are responsible for the detection of errors and accounting irregularities in a company’s financial statements?
A. external auditors.
B. the SEC staff during their review process.
C. internal audit staff and audit committee of the board of directors.
D. all of these answer choices are correct.
6. Which of the following statements best describes expenses?
A. They are recorded in the accounting period when they are "earned" and become "measurable."
B. They consist of amounts paid for consumable items and services rendered to the organization during the accounting period.
C. They are the expired costs or assets "used up" during the accounting period.
D. They consist of cash payments to employees during the period for services rendered.
7. Which of the following statements is not true?
A. The indirect method begins with net income.
B. Cash flows from operating activities will differ between the direct and indirect methods.
C. Most firms use the indirect method to prepare the statement of cash flows.
D. The direct method presents cash inflows and outflows.
8. Which of the following statements is not true regarding cash flow from operating activities?
A. Most firms use the indirect method for presentation.
B. Each line item in a direct method cash flow statement is actually a cash flow.
C. The direct method begins with net income and then shows the differences between operating cash flow and net income.
D. There are two methods for presenting cash flow from operating activities.
9. Which one of the following successful strategies will increase the Return on Assets (ROA)?
A. Increase the investment in assets used in the business.
B. Increase the profit margin.
C. Decrease sales volume.
D. Increase the annual depreciation amounts of long-lived assets.
10. Working capital accounts include:
A. all assets.
B. all assets and liabilities.
C. current assets and all liabilities.
D. current assets and current liabilities.
