Accounting Exam Review

How do you calculate the dollar change in a horizontal analysis ?

• Current year amount - prior year amount

• Prior year amount - current year amount

• Current year / prior year amount

• Prior year amount / current year amount

How do you calculate the percentage change in a horizontal analysis ?

• Dollar Change - Prior Year Amount

• Prior Year Amount / Dollar Change

• Dollar Change/ Prior Year Amount

• Prior Year Amount - Dollar Change

What amount is used to record treasury stock ?

• The Amount of Shares

• Par Value

• Common Stock

• Cost

What general ledger account is used when stock is sold for more than par value ?

• Cash

• Additional Paid In Capital (APID)

• Discount

• Gain on Sale

On which date does a company make a journal entry to pay dividends ?

• The Date of Declaration

• The Date of Payment

• The Date of Record

• The Date of Issuance

How do you calculate the percentages in a vertical analysis of a balance sheet ?

• Dollar Amount - Total Assets

• Dollar Amount/ Total Assets

• Total Assets/ Dollar Amount

• Dollar Amount x Total Assets

How do you calculate the percentages in a vertical analysis of an income statement ?

• Dollar Amount / Total Sales

• Total Sales / Dollar Amount

• Dollar Amount x Total Sales

• Dollar Amount - Total Sales

What type of stockholders get paid dividends first ?

• Stakeholders

• Common Stockholders

• Preferred Stockholders

• Treasury Stockholders

When is Additional Paid - In Capital used ?

• When Treasury Stock is purchased at a price different than the cost

• When Treasury Stock is purchased at the same price of the cost

• When Treasury Stock is reissued at the same price of the cost

• When Treasury Stock is reissued at a price different than the cost

On which date does a company make a journal entry to record dividends ?

• The Date of Declaration

• The Date of Record

• The Date of Issuance

• The Date of Payment