Question 1

What is the responsibility of the independent auditor? Who is responsible for the content of the published financial statements?

Accepted Answer

The responsibility of the independent au

Question 2

Taxing authorities are considered accounting information users with a direct financial interest.

Accepted Answer

A) True 
 B)False

Question 3

Accountants consider money the common unit of measure for all business transactions.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following physically prepare and audit financial reports?

Accepted Answer

A) accountants 
B) managers 
C) chief executives 
D) board of directors 
A) accountants 
B) managers 
C) chief executives 
D) board of directors

Question 6

Upshaw Company had a balance of $160,000 in Sue Upshaw,Capital on December 31,2013.During 2014,the company reported a net income of $84,000 after taxes,and the owner withdrew $32,000,while making no additional investments.Prepare the company's statement of owner's equity for the year ended December 31,2014.

Accepted Answer

The answer of Upshaw Company had a balance of $160,000...

Question 7

Use this information to answer the following question. Here is the balance sheet for Costello Container Company:
 
-If the equipment were sold for $13,000,then the Jose Costello,Capital account would

Accepted Answer

A) increase by $37,000. 
B) increase by $13,000. 
C) decrease by $13,000. 
D) stay the same. 
A) increase by $37,000. 
B) increase by $13,000. 
C) decrease by $13,000. 
D) stay the same.

Question 8

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

Accepted Answer

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

Question 9

All of the following are considered nonexchange transactions except

Accepted Answer

A) the day-by-day accumulation of interest. 
B) the wear and tear on machinery. 
C) the sale of goods and services. 
D) losses from fire,flood,and theft. 
A) the day-by-day accumulation of interest. 
B) the wear and tear on machinery. 
C) the sale of goods and services. 
D) losses from fire,flood,and theft.

Question 10

Criminal penalties can be imposed on those who prepare fraudulent financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Staff accountants express their duty to ensure financial reports are not false or misleading in the management report that appears as part of the company's annual report.

Accepted Answer

A) True 
 B)False

Question 12

The purchase of land is an example of a(n)

Accepted Answer

A) investing activity. 
B) operating activity. 
C) capital activity. 
D) financing activity. 
A) investing activity. 
B) operating activity. 
C) capital activity. 
D) financing activity.

Question 13

Sinoyianis Realty Company had the following balance sheet accounts and balances:  
-If the equipment were sold for $14,000,what would be the total of owner's equity?

Accepted Answer

A) $8,000 
B) $22,000 
C) $36,000 
D) $40,000 
A) $8,000 
B) $22,000 
C) $36,000 
D) $40,000

Question 14

The purchase of land with cash would be disclosed on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 15

Sole proprietorships in the United States generate more business (in terms of receipts)than partnerships and corporations put together.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Paying taxes to the government 
B) Selling equipment 
C) Obtaining a bank loan 
D) Purchasing land 
A) Paying taxes to the government 
B) Selling equipment 
C) Obtaining a bank loan 
D) Purchasing land

Question 17

The personal assets and liabilities of an owner are not shown on the business's financial statements because of the

Accepted Answer

A) separate entity concept. 
B) sole proprietorship concept. 
C) financial position concept. 
D) objectivity concept. 
A) separate entity concept. 
B) sole proprietorship concept. 
C) financial position concept. 
D) objectivity concept.

Question 18

Which of the following forms of organization are considered to be separate entities by accountants?

Accepted Answer

A) Partnerships only 
B) Sole proprietorships only 
C) Corporations only 
D) Sole proprietorships,partnerships,and corporations 
A) Partnerships only 
B) Sole proprietorships only 
C) Corporations only 
D) Sole proprietorships,partnerships,and corporations

Question 19

Feldman Company had a balance of $360,000 in Saul Feldman,Capital on December 31,2013.During 2014,the company reported a net income of $48,000,and the owner withdrew $36,000 during the year,while making no additional investments.Prepare the company's statement of owner's equity for the year ended December 31,2014.

Accepted Answer

The answer of Feldman Company had a balance of $360,000...

Question 20

All of the following statements are true about the Sarbanes-Oxley Act except

Accepted Answer

A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession. 
A) it applies to publicly traded companies. 
B) it shields chief executives from criminal penalties. 
C) it orders the SEC to draw up certain rules. 
D) its primary goal is to regulate financial reporting and the accounting profession.

Exam 1: Accounting Principles and the Financial Statements

What is the responsibility of the independent auditor? Who is responsible for the content of the published financial statements?

Taxing authorities are considered accounting information users with a direct financial interest.

Accountants consider money the common unit of measure for all business transactions.

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

Which of the following physically prepare and audit financial reports?

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: -If the equipment were sold for $13,000,then the Jose Costello,Capital account would

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

All of the following are considered nonexchange transactions except

Criminal penalties can be imposed on those who prepare fraudulent financial statements.

Staff accountants express their duty to ensure financial reports are not false or misleading in the management report that appears as part of the company's annual report.

The purchase of land is an example of a(n)

Sinoyianis Realty Company had the following balance sheet accounts and balances: -If the equipment were sold for $14,000,what would be the total of owner's equity?

The purchase of land with cash would be disclosed on the statement of cash flows.

Sole proprietorships in the United States generate more business (in terms of receipts)than partnerships and corporations put together.

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

The personal assets and liabilities of an owner are not shown on the business's financial statements because of the

Which of the following forms of organization are considered to be separate entities by accountants?

All of the following statements are true about the Sarbanes-Oxley Act except

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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