ACC 290 Week 1 Practice Quiz

ACC 290 Week 1 Practice Quiz

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 ACC 290 Week 1 Practice Quiz


Complete the Week 1 Practice Quiz in WileyPLUS



Practice Question 05

In which forms of business organization are the owners personally liable for all the debts of the business?

Sole proprietorships and corporations


Sole proprietorships and partnerships


Partnership and corporation


All of the answer choices are correct




Practice Question 10

Which of the following is not an external user of accounting data?



Economic planners


Labor unions


Chief Financial Officer





Practice Question 26

The financial statements for Harold Corporation contained the following information:

Accounts receivable

$ 5,000

Sales revenue




Salaries and wages expense


Rent expense


How much was Harold’s net income?












Practice Question 29

In which of the following sequences are the financial statements usually prepared?

Balance sheet, statement of cash flows, income statement and retained earnings statement.


Balance sheet, retained earnings statement, statement of cash flows, and income statement.


Income statement, retained earnings statement, balance sheet, and statement of cash flows.


Income statement, balance sheet, retained earnings statement, and statement of cash flows.





Practice Question 48

Which of the following are not considered to be primary users of financial statements in countries outside the U.S.?

Economic advisors 


Private investors


Central government planners


Tax authorities



Practice Question 14

For 2017, Stoneland Corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. There were no preferred stock dividends. How much was the 2017 earnings per share?














Practice Question 23

The following ratios are available for Leer Inc. and Stable Inc.

Current Ratio

Debt to Assets Ratio

Earnings per Share

Leer Inc.




Stable Inc.




Compared to Stable Inc., Leer Inc. has

lower liquidity, higher solvency, and higher profitability.


higher liquidity, higher solvency, but profitability cannot be compared based on information provided.


higher liquidity, lower solvency, and higher profitability.


higher liquidity and lower solvency, but profitability cannot be compared based on information provided.






Practice Question 18

At December 31, 2017, Shorts Company had retained earnings of $2,184,000. During 2017, the company issued stock for $98,000, and paid dividends of $34,000. Net income for 2017 was $402,000. How much was the retained earnings balance at the beginning of 2017?












Practice Question 27

Which of the following ratios measures the ability of the company to survive over a long period of time?

Profitability ratios


Current ratios


Liquidity ratios


Solvency ratios




Practice Question 38

What are the accounting rules that have substantial authoritative support and are recognized as a general guide for financial reporting purposes in the U. S.?

Generally accepted auditing principles


Generally accepted accounting principles


General accounting principles


Generally accepted accounting standards
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