Accounting is the information system that measures business activity,
processes the data intoreports, and communicates the
results to decisions makers.
Accounting is the information system that measures business activity,
processes the data intoreports, and communicates the
results to decisions makers.
TRUE
Which of the following organizations has the primary
responsibility for formulating accounting standards?
A) CMA B) SEC C) AICPA D) FASB
Which of the following organizations has the primary
responsibility for formulating accounting standards?
D) FASB
Which of the following concepts (or principles) would be most likely to require that data be verifiable; that
is, can be confirmed by an independent observer?
A) entity concept B) going-concern concept
C) cost principle D) reliability concept
Which of the following concepts (or principles) would be most likely to
require that data beverifiable; that is, can be confirmed
by an independent observer?D) reliability concept
Ownerʹs equity is $150, 000 and total liabilities are $90, 000. What would
total assets be?A) $240, 000 B) $60, 000
C) $300, 000 D) $180,000
Ownerʹs equity is $150, 000 and total liabilities are $90, 000. What would
total assets be?A) $240, 000
Which of the following is a licensed accountant who serves the general
public rather than oneparticular company?
A) CPA B) SEC C) CMA D) FASB
Which of the following is a licensed accountant who serves the general
public rather than oneparticular company?
A) CPA
Which of the following concepts (or principles) would be most likely to require that a person with three different businesses keep three
different checking accounts?A) cost principle B) entity concept
C) reliability concept D) going-concern concept
Which of the following concepts (or principles) would be most likely to require that a person with three different businesses keep three
different checking accounts?
B) entity concept
Assets are $270, 000 and ownerʹs equity is $90, 000. What would
liabilities be?A) $180,000 B) $270,000 C) $60,000 D) $360,000
Accountants often refer to GAAP. What do the letters GAAP stand for
when discussing accounting?A) Generally accepted accounting
principles.B) Grandmaʹs awesome apple pie.C) Generate accurate accounting
policies.D) Global accommodation accounting
principles.
Accountants often refer to GAAP. What do the letters GAAP stand for
when discussing accounting?A) Generally accepted accounting
principles.
Which of the following concepts (principles) would be most likely to require that an item be recorded at
the amount actually paid?A) going-concern concept
B) reliability conceptC) cost principle D) entity concept
The owner withdraws cash from the business. How does this withdrawal
affect theaccounting equation?A) Assets decrease; ownerʹs equity
increasesB) No effect on the assets, liabilities,
or ownerʹs equityC) Assets increase; liabilities
decreaseD) Assets decrease; ownerʹs equity
decreases
The owner withdraws cash from the business. How does this withdrawal
affect the accounting equation?
D) Assets decrease; ownerʹs equity decreases
Which of the following concepts (principles) would be most likely to require that an item be recorded at
the amount actually paid?
C) cost principle
Businesses can be organized in a variety of forms. The types of business forms found in the
U.S. include all of the following except one. Which one is NOT
included?A) Tax shelter B) Proprietorship C)
Partnership D) Corporation
Businesses can be organized in a variety of forms. The types of business forms found in the
U.S. include all of the following except one. Which one is NOT
included?A) Tax shelter
Which of the following concepts (principles) would be most likely to
require an assumption that the entity will remain in operation for the
foreseeable future?A) reliability concept
B) cost principleC) entity concept
D) going-concern concept
Which of the following concepts (principles) would be most likely to
require an assumption that the entity will remain in operation for the
foreseeable future?
D) going-concern concept
Each financial statement has a heading giving three pieces of data. Which of the following items is NOT
included in these headings?A) name of the preparer of the
statement B) date or time period covered
C) name of the business D) name of the financial statement
Each financial statement has a heading giving three pieces of data. Which of the following items is NOT
included in these headings?
A) name of the preparer of the statement
Which of the following is a correct accounting equation?
A) Assets = Liabilities + Ownerʹs equity
B) Assets + Revenue = Liabilities + Expenses
C) Assets + Liabilities = Ownerʹs equity
D) Assets + Revenue = Ownerʹs equity
Which of the following financial statements reports that total assets
equal total liabilities plus total ownerʹs equity?
A) statement of ownerʹs equity B) statement of cash flows.
C) balance sheet. D) income statement.
Which of the following financial statements reports that total assets
equal total liabilities plus total ownerʹs equity?
C) balance sheet.
Which of the following is the detailed record of the changes in a particular
asset, liability, or ownerʹs equity?A) Trial balance
B) Journal C) Account D) Ledger
Which of the following is the detailed record of the changes in a particular
asset, liability, or ownerʹs equity?
C) Account
Which of the following accounts is a liability?
A) Salary Expense B) Accounts PayableC) Service Revenue D) Prepaid Expenses
Under which of the following inventory costing methods is ending inventory
based on the costof the most recent purchases?
D) First in first out
Which of the following is a list of all the accounts with their balances?
A) Journal B) Account
C) Trial balance D) Ledger
Which of the following accounts is NOT an example of an asset?
A) Building B) Accounts Receivable
C) Cash D) Notes Payable
Which of the following groups of accounts have a normal debit balance?
A) Assets and liabilities B) Liabilities and ownerʹs equity
C) Revenues and expenses D) Assets and expenses
Under which of the following inventory costing methods is the cost of goods sold based on the average cost of the
purchases during the period?A) Specific unit cost
B) Average costC) Last in first out D) First in first out
Under which of the following inventory costing methods is the cost of goods sold based on the average cost of the
purchases during the period?
B) Average cost
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