Exam 1: Accounting Principles and the Financial Statements

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

Regulatory agencies are considered information users with an indirect financial interest.

Equity is reduced when owner's withdrawals exceed net income.

Revenues have the effect of increasing owner's capital.

Companies whose securities are sold to the general public must adhere to standards established by the Securities and Exchange Commission.

Which of the following financial statements is concerned with the enterprise at a point in time?

For accounting purposes,a business and its owner are considered the same entity.

Responsibility for ethical financial reporting rests solely with the accountant.

An auditor maintains no direct financial interest in the company he or she is auditing.The principle being followed is

The following users of accounting information have a direct financial interest in a business except

The personal resources of any partner can be called upon to pay the obligations of the partnership.

An accounting measurement is concerned with all except which of the following?

The processing stage of accounting is accomplished by the recording of data.

At the beginning of the year,Shannon Company's assets were $150,000 and its owner's equity was $100,000.During the year,assets decreased $30,000 and liabilities increased $15,000.What was the owner's equity at the end of the year?

Less than 20 percent of the U.S.economy is generated by governmental and not-for-profit organizations.

The communication stage of accounting is accomplished by

Creditors' equities is another term for liabilities.

The statement of cash flows discloses significant events related to the operating,investing,and financing activities of a business.

The Sarbanes-Oxley Act of 2002 came,in part,as a result of

The correct order of the three stages of accounting is