The General Fund pays an invoice for telecommunications that includes charges owed by the Water Utility Enterprise Fund. The Enterprise Fund subsequently remits its share of the telecommunications charges to the General Fund. The General Fund records the amount received from the Enterprise Fund as:
(A)An increase to revenue.
(B)An increase to Operating Transfers In.
(C)A decrease in expenses.
(D)A decrease in Expenditures.
Cartman's Cats has $1,000,000 in assets after purchasing Big Bertha's Birds, along with $500,000 in liabilities. It has 500 shares capital stock outstanding. What is the book value of each share of stock? Mark one answer:
(A)$1,000 (B)$50 (C)$500 (D)$2,000 (E)$500,000
Correct Answer: A
When can I take the CPA Exam
The CPA Exam is offered four times each year: January 1 – March 10, April 1 – June 10, July 1 – September 10 and October 1 – December 10.
The purpose of the trial balance is to:
(A)Check the solvency of the company (B)Identify credits and debits (C)Analyze the accounting period (D)Verify that credits equal debits (E)Find misclassified transactions
Correct Answer: D
More CPA Exam Questions
- 1Which of the following transactions have a negative impact on cash? Mark one answer:
- 2According to COSO, which of the following components addresses the need to respond in an organized manner to significant changes resulting from international exposure, acquisitions, or executive transitions?
- 3Which of the following is responsible for identifying problems and proposing initial solutions?
- 4Bart's Brewskies saw sales of $50,000 in December-primarily due to New Year's Eve celebrations. Bart determined that 30% of his sales are paid in cash, while the rest are billed for their brewskies. Of the money owed, 40% is paid December, while the remaining is paid the following month. What is the increase of Accounts Receivable on New Year's Eve?
- 5Cartman's Cats had a total of 100,000 shares of common stock issued. In February, they reacquired 20,000 shares and did not retire them. How many shares of outstanding stock do they currently have? Mark one answer: