Question 1

The development of international accounting standards is the primary function of the

Accepted Answer

A)  IRS. 
B)  AICPA. 
C)  IASB. 
D)  PCAOB. 
A)  IRS. 
B)  AICPA. 
C)  IASB. 
D)  PCAOB.

Question 2

All of the following statements about partnerships are true, except

Accepted Answer

A)  partners must share profits and losses equally. 
B)  a change in ownership will dissolve the partnership. 
C)  any partner can enter into a binding agreement with a third party. 
D)  all partners have unlimited liability. 
A)  partners must share profits and losses equally. 
B)  a change in ownership will dissolve the partnership. 
C)  any partner can enter into a binding agreement with a third party. 
D)  all partners have unlimited liability.

Question 3

Which of the following is an example of a financing activity?

Accepted Answer

A)  Employing workers 
B)  Selling equipment 
C)  Paying off a loan 
D)  Purchasing land 
A)  Employing workers 
B)  Selling equipment 
C)  Paying off a loan 
D)  Purchasing land

Question 4

Objectivity means carrying out one's professional responsibilities with competence and diligence.

Accepted Answer

A) True 
 B)False

Question 5

Obtaining funds from a bank is an example of an investing activity.

Accepted Answer

A) True 
 B)False

Question 6

All of the following items would appear on the balance sheet except

Accepted Answer

A)  withdrawals. 
B)  the owner's Capital account. 
C)  Accounts Receivable. 
D)  Patents. 
A)  withdrawals. 
B)  the owner's Capital account. 
C)  Accounts Receivable. 
D)  Patents.

Question 7

The evaluation and interpretation of financial statements and related performance measures is called technical analysis.

Accepted Answer

A) True 
 B)False

Question 8

Management accounting focuses on external decision making.

Accepted Answer

A) True 
 B)False

Question 9

Equipment is an asset that is considered nonmonetary in nature.

Accepted Answer

A) True 
 B)False

Question 10

The Internal Revenue Service is responsible for issuing accounting standards for state and local governments.

Accepted Answer

A) True 
 B)False

Question 11

The group of users of accounting information charged with achieving the goals of the business is its

Accepted Answer

A)  auditors. 
B)  creditors. 
C)  management. 
D)  investors. 
A)  auditors. 
B)  creditors. 
C)  management. 
D)  investors.

Question 12

What is independence, and why is it important for a CPA to maintain it when conducting an audit?

Accepted Answer

Independence means having no financial o

Question 13

For reporting purposes, the personal assets and debts of a business owner should be combined with the assets and debts of the business.

Accepted Answer

A) True 
 B)False

Question 14

Financial position may be assessed by referring to a balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

The statement of cash flows would disclose the withdrawal of cash by the owner

Accepted Answer

A)  in the financing activities section. 
B)  in the investing activities section. 
C)  in the operating activities section. 
D)  nowhere on the statement. 
A)  in the financing activities section. 
B)  in the investing activities section. 
C)  in the operating activities section. 
D)  nowhere on the statement.

Question 16

The primary external users of accounting information are investors and management.

Accepted Answer

A) True 
 B)False

Question 17

Regulatory agencies are considered information users with a direct financial interest.

Accepted Answer

A) True 
 B)False

Question 18

Not-for-profit organizations have no obligation to report their financial performance to outside parties.

Accepted Answer

A) True 
 B)False

Question 19

For accounting purposes, a business and its owners are considered separate entities.

Accepted Answer

A) True 
 B)False

Question 20

Use the following accounts and information to prepare, in good form, an income statement, statement of owner's equity, and balance sheet for Hamlin Industries for the month ended July 31, 2009.
 $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 3,100 & \text { Land } & \$ 35,000 \
\text { Accounts Receivable } & 1,400 & \text { Notes Payable } & 3,300 \
\text { Buildings } & 22,000 & \text { Rent Expense } & 2,400 \
\text { Cash } & 15,600 & \text { Salaries Expense } & 10,000 \
\text { Commissions Earned } & 12,700 & \text { Supplies } & 400 \
\text { Hilda Hamlin, Capital, June } & 77,900 & & \
\text { 30, 2009 } & & & \
\text { Withdrawals } & 8,000 & & \
\text { Insurance Expense } & 2,200 & &
\end{array}$

Accepted Answer

The answer of Use the following accounts and information to...

Exam 1: Uses of Accounting Information and the Financial Statements

The development of international accounting standards is the primary function of the

All of the following statements about partnerships are true, except

Which of the following is an example of a financing activity?

Objectivity means carrying out one's professional responsibilities with competence and diligence.

Obtaining funds from a bank is an example of an investing activity.

All of the following items would appear on the balance sheet except

The evaluation and interpretation of financial statements and related performance measures is called technical analysis.

Management accounting focuses on external decision making.

Equipment is an asset that is considered nonmonetary in nature.

The Internal Revenue Service is responsible for issuing accounting standards for state and local governments.

The group of users of accounting information charged with achieving the goals of the business is its

What is independence, and why is it important for a CPA to maintain it when conducting an audit?

For reporting purposes, the personal assets and debts of a business owner should be combined with the assets and debts of the business.

Financial position may be assessed by referring to a balance sheet.

The statement of cash flows would disclose the withdrawal of cash by the owner

The primary external users of accounting information are investors and management.

Regulatory agencies are considered information users with a direct financial interest.

Not-for-profit organizations have no obligation to report their financial performance to outside parties.

For accounting purposes, a business and its owners are considered separate entities.

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-Based Systems-Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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