A) Generally Accepted Auditing Procedures. B) Generally Accepted Accounting Principles. C) Generally Accepted Auditing Principles. D) Generally Accepted Accounting Procedures. A) Generally Accepted Auditing Procedures. B) Generally Accepted Accounting Principles. C) Generally Accepted Auditing Principles. D) Generally Accepted Accounting Procedures.

Exam 1: Accounting in Action

Selected transactions for Parton Company are listed below. List the number of the transaction and then describe the effect of each transaction on assets liabilities and owner's equity. Sample: Made initial cash investment in the business. The answer would be-Increase in assets and increase in owner's equity. 1. Paid monthly utility bill. 2. Purchased new display case for cash. 3. Paid cash for repair work on security system. 4. Billed customers for services performed. 5. Received cash from customers billed in 4. 6. Withdrew cash for owner's personal use. 7. Incurred advertising expenses on account. 8. Paid monthly rent. 9. Received cash from customers when service was rendered.

(Essay)

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Question 81

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

(True/False)

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Question 82

Keeping a systematic chronological diary of events that are measured in dollars and cents is called

(Multiple Choice)

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Question 83

Internal users of accounting information include all of the following except

(Multiple Choice)

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Question 84

Drawings ________________ owner's equity but are not expenses.

(Short Answer)

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Question 85

The economic entity assumption requires that the activities

(Multiple Choice)

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Question 86

Designate the terminology that best represents the definition or statement given below.
(Note: No letter should be used more than once)

The methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.

Additions and improvements

The pool of costs that consist of the cost of the beginning inventory and the cost of goods purchased.

Natural resources

Entries at the end of an accounting period to transfer the balances of temporary accounts to permanent owner's equity accounts.

Allowance method

Correct Answer:

Verified

The methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.

The pool of costs that consist of the cost of the beginning inventory and the cost of goods purchased.

Entries at the end of an accounting period to transfer the balances of temporary accounts to permanent owner's equity accounts.

Assets such as timber, oil, coal, and mineral deposits.

A system in which detailed records are not maintained and cost of goods sold is determined only at the end of an accounting period.

Revenue, expense, and drawing accounts whose balances are transferred to owner's capital at the end of an accounting period.

An accounting principle that requires assets be recorded at their historical cost.

An inventory costing method which assumes that the latest units purchased are the first to be allocated to cost of goods sold.

All accounts appearing on the post-closing trial balance.

An assumption that requires that the activities of a company be kept separate and distinct from the activities of its owner.

Accumulated depreciation is an example of this term.

This method of accounting for uncollectible accounts is required when bad debts are significant in size.

An inventory method that records the earliest goods purchased as cost of goods sold.

A depreciation method that produces decreasing periodic depreciation by applying a constant rate to the book value of the asset.

The periodic write-off of an intangible asset.

The left side of an account.

The cost of an asset less its accumulated depreciation.

An assumption that the economic life of a business can be divided into artificial time periods.

The total amount subject to depreciation.

Use of the same accounting principles and methods from period to period by the same business enterprise.

(Matching)

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Question 87

Classify each of these items as an asset (A) liability (L) or owner's equity (OE). $\underline{\quad\quad}$ 1. Accounts receivable $\underline{\quad\quad}$ 2. Accounts payable $\underline{\quad\quad}$ 3. Owner's Capital $\underline{\quad\quad}$ 4. Supplies $\underline{\quad\quad}$ 5. Utilities expense $\underline{\quad\quad}$ 6. Cash $\underline{\quad\quad}$ 7. Notes payable $\underline{\quad\quad}$ 8. Equipment

(Essay)

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Question 88

Which of the following would not be considered an external user of accounting data for the LMN Company?

(Multiple Choice)

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Question 89

At the time an asset is acquired cost and fair value should be the same.

(True/False)

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Question 90

At October 1 Flambo Company reported owner's equity of $68000. During October the owner made additional investments of $10000 and the company posted a net loss of $4000. If owner's equity at October 31 totals $70000 what amount of owner drawings were made during the month?

(Multiple Choice)

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Question 91

The common characteristic possessed by all assets is

(Multiple Choice)

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Question 92

A business organized as a corporation

(Multiple Choice)

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Question 93

GAAP stands for

(Multiple Choice)

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Question 94

Sam Ryo is the proprietor (owner) of Sam's a retailer of golf apparel. When recording the financial transactions of Sam's Sam does not record an entry for a car he purchased for personal use. Sam took out a personal loan to pay for the car. What accounting concept guides Sam's behavior in this situation?

(Multiple Choice)

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Question 95

Big Bite Diner received a bill of $800 from the Blackstone Wine Advertising Agency. The owner K. T. Lang is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

(Multiple Choice)

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Question 96

The accounting process involves all of the following except

(Multiple Choice)

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Question 97

A small neighborhood barber shop that is operated by its owner would likely be organized as a

(Multiple Choice)

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Question 98

Which of the following is true regarding the corporate form of business organization?

(Multiple Choice)

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Question 99

If total liabilities decreased by $30000 and owner's equity decreased by $15000 during a period of time then total assets must change by what amount and direction during that same period?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 240

Exam 1: Accounting in Action

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

Keeping a systematic chronological diary of events that are measured in dollars and cents is called

Internal users of accounting information include all of the following except

Drawings ________________ owner's equity but are not expenses.

The economic entity assumption requires that the activities

Which of the following would not be considered an external user of accounting data for the LMN Company?

At the time an asset is acquired cost and fair value should be the same.

At October 1 Flambo Company reported owner's equity of $68000. During October the owner made additional investments of $10000 and the company posted a net loss of $4000. If owner's equity at October 31 totals $70000 what amount of owner drawings were made during the month?

The common characteristic possessed by all assets is

A business organized as a corporation

GAAP stands for

Big Bite Diner received a bill of $800 from the Blackstone Wine Advertising Agency. The owner K. T. Lang is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

The accounting process involves all of the following except

A small neighborhood barber shop that is operated by its owner would likely be organized as a

Which of the following is true regarding the corporate form of business organization?

If total liabilities decreased by $30000 and owner's equity decreased by $15000 during a period of time then total assets must change by what amount and direction during that same period?

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

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