Accounting Competency Exam Sample Exam
ACCOUNTING COMPETENCY EXAM SAMPLE EXAM
1.
The accounting process does not include: a. b. c. interpreting reporting purchasing d. observing e. classifying
2.
The financial statement or statements that pertain to a stated period of time is (are) the: a. b. c. d. e. balance sheet balance sheet and journals balance sheet and income statement income statement none of the above
3.
External users of financial accounting information include: a. b. c. lenders prospective owners customers d. e. labor unions all of the above
4.
Expenses can be found in the: a. b. c. statement of owner’s equity income statement balance sheet d. e. both b and c all of the above
5.
This account does not appear on the income statement: a. b. c. accumulated depreciation depreciation expense sales revenue d. e. marketing expense interest expense
6.
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. 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
8.
If a company has owner’s equity of $100,000, a. b. c. d. e. 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
9.
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 increase accounts receivable $40,000, decrease owner’s equity $40,000 none of the above
Use the following information to answer the next four questions. Joseph
1.
The accounting process does not include: a. b. c. interpreting reporting purchasing d. observing e. classifying
2.
The financial statement or statements that pertain to a stated period of time is (are) the: a. b. c. d. e. balance sheet balance sheet and journals balance sheet and income statement income statement none of the above
3.
External users of financial accounting information include: a. b. c. lenders prospective owners customers d. e. labor unions all of the above
4.
Expenses can be found in the: a. b. c. statement of owner’s equity income statement balance sheet d. e. both b and c all of the above
5.
This account does not appear on the income statement: a. b. c. accumulated depreciation depreciation expense sales revenue d. e. marketing expense interest expense
6.
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. 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
8.
If a company has owner’s equity of $100,000, a. b. c. d. e. 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
9.
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 increase accounts receivable $40,000, decrease owner’s equity $40,000 none of the above
Use the following information to answer the next four questions. Joseph