Accounting Exam 2 True or False Prep

A visually appealing illustration of a classroom with students studying accounting, featuring textbooks, calculators, and notes, with a focus on financial graphs and balance sheets in the background.

Accounting Exam 2 Prep Quiz

Prepare for your upcoming Accounting Exam with this comprehensive quiz designed to help you solidify your knowledge on key accounting principles and concepts. Each question will test your understanding and application of essential topics, ensuring you're well-equipped for exam success.

Features:

True or False format for quick responses
Diverse range of accounting topics
Self-assessment to gauge your readiness

15 Questions4 MinutesCreated by CalculatingPineapple42

Increasing operating revenue while keeping cost of merchandise sold the same will increase gross profit.

True

False

Alpha Company’s benchmark total operating expense ratio is between 28.0% and 30.0%. A decline in its operating expense ratio from 32.1% to 30.8% is a favorable trend.

True

False

The column totals of an employee earnings record provide the debit and credit amounts needed to journalize a payroll.

True

False

Investors are willing to pay a higher price-earnings ratio for growth stocks than for income stocks.

True

False

A corporation has the legal rights of a person.

True

False

Interest income is recorded only if a note receivable is collected.

True

False

Income stocks typically have a higher dividend yield than growth stocks.

True

False

Preparing the general ledger for the next fiscal period is an application of the Business Entity accounting concept.

True

False

The closing entry for income statement accounts with debit balances closes only the expense accounts.

True

False

A temporary account is closed by transferring its balance out of the account.

True

False

The book value of accounts receivable at year end is an estimate of the amount of accounts receivable the business expects to collect during the next fiscal year.

True

False

The amount of dividends declared during the year is presented on the income statement.

True

False

The purpose of the post-closing trial balance is to prove the general ledger equality of debits and credits.

True

False

A corporation having a net income before federal income tax of $190,000.00 will pay a higher rate of tax than a company having $40,000.00 of net income before federal income tax.

True

False

A company having earnings per share of $14.50 is always more profitable than a company having earnings per share of $3.25.

True

False

Accounting Exam 2 True or False Prep

Accounting Exam 2 Prep Quiz

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