Question 1

Which of the following is NOT one of the four basic financial statements covered in Accounting I?

Accepted Answer

Statement of Tax Liabilities

Question 2

A student is analyzing a company’s annual report for their individual project. Which financial statement would best help them determine the company’s profitability over the past year?

Accepted Answer

Income Statement

Question 3

Which equation correctly represents the accounting equation?

Accepted Answer

$$Assets = Liabilities + Owner\'s Equity$$

Question 4

If a company purchases inventory on credit, which accounts are affected?

Accepted Answer

Inventory increases; Accounts Payable increases

Question 5

Which of the following best describes a fixed cost?

Accepted Answer

A cost that remains constant regardless of production volume

Question 6

A company uses job-order costing. Which of the following would most likely be assigned to a specific job?

Accepted Answer

Direct materials

Question 7

Which formula is used to calculate gross profit?

Accepted Answer

$$Gross\ Profit = Net\ Sales - Cost\ of\ Goods\ Sold$$

Question 8

Which of the following is an example of a variable cost?

Accepted Answer

Direct materials used in production

Question 9

A student missed an exam due to illness and provided a physician’s note. According to the syllabus, what is the most likely outcome?

Accepted Answer

The student can make up the exam before the next class.

Question 10

Which of the following best describes the purpose of the Statement of Cash Flows?

Accepted Answer

To show the company’s cash inflows and outflows over a period

Question 11

Which cost system is most appropriate for a company manufacturing custom furniture?

Accepted Answer

Job-order costing

Question 12

If a company’s total fixed costs are $$10,000 and the contribution margin per unit is 50$$, how many units must be sold to break even?

Accepted Answer

$$Break\ Even\ Units = \frac{10,000}{50} = 200$$

Question 13

Which of the following is a key feature of activity-based costing (ABC)?

Accepted Answer

Costs are allocated based on activities that drive costs

Question 14

Which of the following actions would violate the academic integrity policy described in the syllabus?

Accepted Answer

Using AI tools to complete an exam

Question 15

A company’s balance sheet shows total assets of $$120,000 and total liabilities of 80$$,000. What is the owner’s equity?

Accepted Answer

$$Owner\'s\ Equity = 120,000 - 80,000 = 40,000$$

Question 16

Which of the following is a mixed cost?

Accepted Answer

A cost that has both fixed and variable components

Question 17

Which of the following best describes the purpose of financial statement analysis?

Accepted Answer

To interpret financial data and make informed business decisions

Question 18

A student wants to access the online homework system for this course. What is the correct website to register?

Accepted Answer

https://mlm.pearson.com/enrollment/li29057

Question 19

Which of the following is NOT a recommended action if you miss a class according to the syllabus?

Accepted Answer

Assume you will automatically be excused

Question 20

Which of the following is a primary responsibility of students in this course, as outlined in the syllabus?

Accepted Answer

Complete all assignments by the due date

Principles of Accounting I: Course Outline and Study Guide

Study Guide - Practice Questions

Study Guide - Flashcards