Question 1

Generally accepted accounting principles are

Accepted Answer

A) income tax regulations of the Internal Revenue Service. 
B) standards that indicate how to report economic events. 
C) theories that are based on physical laws of the universe. 
D) principles that have been proven correct by academic researchers. 
A) income tax regulations of the Internal Revenue Service. 
B) standards that indicate how to report economic events. 
C) theories that are based on physical laws of the universe. 
D) principles that have been proven correct by academic researchers.

Question 2

Proprietorships, partnerships, and corporations

Accepted Answer

A) are the three most common forms of business organizations in the U.S. 
B) are the three most common forms of business organizations internationally. 
C) are used in different proportions in different countries. 
D) all of these answers are correct. 
A) are the three most common forms of business organizations in the U.S. 
B) are the three most common forms of business organizations internationally. 
C) are used in different proportions in different countries. 
D) all of these answers are correct.

Question 3

International standards are developed by the

Accepted Answer

A) IFRS. 
B) GAAP. 
C) IASB. 
D) FASB. 
A) IFRS. 
B) GAAP. 
C) IASB. 
D) FASB.

Question 4

The process of recording transactions has become more efficient because

Accepted Answer

A) fewer events can be quantified in financial terms. 
B) computers are used in processing business events. 
C) more people have been hired to record business transactions. 
D) business events are recorded only at the end of the year. 
A) fewer events can be quantified in financial terms. 
B) computers are used in processing business events. 
C) more people have been hired to record business transactions. 
D) business events are recorded only at the end of the year.

Question 5

The assumption that the unit of measure remains sufficiently constant over time is part of the

Accepted Answer

A) economic entity assumption. 
B) cost principle. 
C) historical cost principle. 
D) monetary unit assumption. 
A) economic entity assumption. 
B) cost principle. 
C) historical cost principle. 
D) monetary unit assumption.

Question 6

The internal control standards applicable to Sarbanes-Oxley apply to

Accepted Answer

A) all U.S.and international companies. 
B) U.S.and international companies listed on U.S.exchanges. 
C) International companies listed on U.S.exchanges. 
D) U.S.companies listed on U.S.exchanges. 
A) all U.S.and international companies. 
B) U.S.and international companies listed on U.S.exchanges. 
C) International companies listed on U.S.exchanges. 
D) U.S.companies listed on U.S.exchanges.

Question 7

External transactions involve economic events between the company and some other enterprise or party.

Accepted Answer

A) True 
 B)False

Question 8

In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as

Accepted Answer

A) convergence 
B) monetary unit assumption 
C) the cost principle 
D) the fair value principle 
A) convergence 
B) monetary unit assumption 
C) the cost principle 
D) the fair value principle

Question 9

The income statement is sometimes referred to as the statement of operations.

Accepted Answer

A) True 
 B)False

Question 10

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

Accepted Answer

A) True 
 B)False

Question 11

Misra Company compiled the following financial information as of December 31, 2015:   Misra's assets on December 31, 2015 are

Accepted Answer

A) $180,000. 
B) $250,000. 
C) $360,000. 
A) $180,000. 
B) $250,000. 
C) $360,000.

Question 12

The proprietorship form of business organization

Accepted Answer

A) must have at least three owners in most states. 
B) represents the largest number of businesses in the United States. 
C) combines the records of the business with the personal records of the owner. 
D) is characterized by a legal distinction between the business as an economic unit and the owner. 
A) must have at least three owners in most states. 
B) represents the largest number of businesses in the United States. 
C) combines the records of the business with the personal records of the owner. 
D) is characterized by a legal distinction between the business as an economic unit and the owner.

Question 13

Which one of the following is not an external user of accounting information?

Accepted Answer

A) Regulatory agencies. 
B) Customers. 
C) Investors. 
D) All of these are external users. 
A) Regulatory agencies. 
B) Customers. 
C) Investors. 
D) All of these are external users.

Question 14

Revenues would not result from

Accepted Answer

A) sale of merchandise. 
B) issuance of common stock. 
C) performance of services. 
D) rental of property. 
A) sale of merchandise. 
B) issuance of common stock. 
C) performance of services. 
D) rental of property.

Question 15

Barsuk Company began the year with stockholders' equity of $108,000. During the year, Barsuk issued stock for $147,000, recorded expenses of $420,000, and paid dividends of $28,000. If Barsuk's ending stockholders' equity was $290,000, what was the company's revenue for the year?

Accepted Answer

A) $455,000. 
B) $483,000. 
C) $602,000. 
D) $630,000. 
A) $455,000. 
B) $483,000. 
C) $602,000. 
D) $630,000.

Question 16

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at

Accepted Answer

A) $100 million. 
B) $600 million. 
C) $400 million. 
D) $500 million. 
A) $100 million. 
B) $600 million. 
C) $400 million. 
D) $500 million.

Question 17

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

Accepted Answer

A) True 
 B)False

Question 18

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $240,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. Stockholders' equity at the end of the year was

Accepted Answer

A) $90,000. 
B) $240,000. 
C) $300,000. 
D) $360,000. 
A) $90,000. 
B) $240,000. 
C) $300,000. 
D) $360,000.

Question 19

If services are rendered for credit, then

Accepted Answer

A) assets will decrease. 
B) liabilities will increase. 
C) stockholders' equity will increase. 
D) liabilities will decrease. 
A) assets will decrease. 
B) liabilities will increase. 
C) stockholders' equity will increase. 
D) liabilities will decrease.

Question 20

Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000. During the year, the business recorded $48,000 in catering revenues and $30,000 in expenses. Stahl issued stock of $9,000 and paid dividends of $15,000 during the year. The stockholders' equity at the end of the year was

Accepted Answer

A) $33,000. 
B) $54,000. 
C) $57,000. 
D) $63,000. 
A) $33,000. 
B) $54,000. 
C) $57,000. 
D) $63,000.

Generally accepted accounting principles are

Proprietorships, partnerships, and corporations

International standards are developed by the

The process of recording transactions has become more efficient because

The assumption that the unit of measure remains sufficiently constant over time is part of the

The internal control standards applicable to Sarbanes-Oxley apply to

External transactions involve economic events between the company and some other enterprise or party.

In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as

The income statement is sometimes referred to as the statement of operations.

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

Misra Company compiled the following financial information as of December 31, 2015: Misra's assets on December 31, 2015 are

The proprietorship form of business organization

Which one of the following is not an external user of accounting information?

Revenues would not result from

Barsuk Company began the year with stockholders' equity of $108,000. During the year, Barsuk issued stock for $147,000, recorded expenses of $420,000, and paid dividends of $28,000. If Barsuk's ending stockholders' equity was $290,000, what was the company's revenue for the year?

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $240,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. Stockholders' equity at the end of the year was

If services are rendered for credit, then

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Accounting in Action

Generally accepted accounting principles are

Proprietorships, partnerships, and corporations

International standards are developed by the

The process of recording transactions has become more efficient because

The assumption that the unit of measure remains sufficiently constant over time is part of the

The internal control standards applicable to Sarbanes-Oxley apply to

External transactions involve economic events between the company and some other enterprise or party.

In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as

The income statement is sometimes referred to as the statement of operations.

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

Misra Company compiled the following financial information as of December 31, 2015: Misra's assets on December 31, 2015 are

The proprietorship form of business organization

Which one of the following is not an external user of accounting information?

Revenues would not result from

Barsuk Company began the year with stockholders' equity of $108,000. During the year, Barsuk issued stock for $147,000, recorded expenses of $420,000, and paid dividends of $28,000. If Barsuk's ending stockholders' equity was $290,000, what was the company's revenue for the year?

The Duce Company has five plants nationwide that cost a total of $100 million. The current fair value of the plants is $500 million. The plants will be recorded and reported as assets at

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

Fat Possum's Service Shop started the year with total assets of $330,000 and total liabilities of $240,000. During the year, the business recorded $630,000 in revenues, $420,000 in expenses, and paid dividends of $60,000. Stockholders' equity at the end of the year was

If services are rendered for credit, then

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Filters