Question 1

Accounting ratios are useful as management performance measures.

Accepted Answer

A) True 
 B)False

Question 2

Misleading financial reports are not considered fraudulent if they are the result of the misapplication of accounting principles.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of an audit is to

Accepted Answer

A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP. 
A) determine whether or not a company is a good investment. 
B) comply with income tax regulations. 
C) determine whether or not a company is a good credit risk. 
D) ascertain that the financial statements follow GAAP.

Question 4

Sinoyianis Realty Company had the following balance sheet accounts and balances:  
-If,$6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and owner's equity?

Accepted Answer

A) $28,000 
B) $34,000 
C) $46,000 
D) $52,000 
A) $28,000 
B) $34,000 
C) $46,000 
D) $52,000

Question 5

Which of the following is an agency of the U.S.government?

Accepted Answer

A) IASB 
B) SEC 
C) FASB 
D) AICPA 
A) IASB 
B) SEC 
C) FASB 
D) AICPA

Question 6

Which of the following is a regulatory agency?

Accepted Answer

A) IASB 
B) SEC 
C) FASB 
D) GASB 
A) IASB 
B) SEC 
C) FASB 
D) GASB

Question 7

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 8

Use the following information to calculate at or for the year ended December 31,2014:
(a)net income, (b)owner's capital, (c)total assets,and (d)cash.

Accepted Answer

a.$20,000 - $4,000 - $2,000 = $14,000
b.

Question 9

All of the following are broad principles underlying the accountant's code of professional ethics except

Accepted Answer

A) objectivity 
B) integrity 
C) loyalty 
D) independence 
A) objectivity 
B) integrity 
C) loyalty 
D) independence

Question 10

All of the following statements about corporations are true except

Accepted Answer

A) they are chartered by the state. 
B) ownership is represented by shares of stock. 
C) the sale of stock does not dissolve the business. 
D) the stockholders have direct control of the business. 
A) they are chartered by the state. 
B) ownership is represented by shares of stock. 
C) the sale of stock does not dissolve the business. 
D) the stockholders have direct control of the business.

Question 11

The Federal Reserve Board is an example of a consumer group.

Accepted Answer

A) True 
 B)False

Question 12

Sinoyianis Realty Company had the following balance sheet accounts and balances:  
-What is the balance of the Flora Sinoyianis,Capital account?

Accepted Answer

A) $8,000 
B) $12,000 
C) $28,000 
D) $40,000 
A) $8,000 
B) $12,000 
C) $28,000 
D) $40,000

Question 13

Financial accounting information is used primarily by management.

Accepted Answer

A) True 
 B)False

Question 14

If a company has suffered only net losses since its inception,the owner's equity account will always have a negative balance.

Accepted Answer

A) True 
 B)False

Question 15

Use this information to answer the following question. Here is the balance sheet for Costello Container Company:
 
-If the balance in the Cash account were used to buy more equipment,then the total assets would

Accepted Answer

A) remain unchanged. 
B) increase by $8,000. 
C) decrease by $8,000. 
D) increase by $21,000. 
A) remain unchanged. 
B) increase by $8,000. 
C) decrease by $8,000. 
D) increase by $21,000.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Sinoyianis Realty Company had the following balance sheet accounts and balances:  
-If,$6,000 of Accounts Payable were paid in cash,what would be the balance of the Flora Sinoyianis,Capital account?

Accepted Answer

A) $8,000 
B) $28,000 
C) $36,000 
D) $40,000 
A) $8,000 
B) $28,000 
C) $36,000 
D) $40,000

Question 18

A partnership is dissolved when any partner leaves the business or dies.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following accounts is not considered an asset?

Accepted Answer

A) Accounts Receivable 
B) Inventory 
C) Accounts Payable 
D) Trademark 
A) Accounts Receivable 
B) Inventory 
C) Accounts Payable 
D) Trademark

Question 20

Generally accepted accounting principles

Accepted Answer

A) are changing continually. 
B) are sound in theory but rarely used in practice. 
C) have eliminated all weaknesses in accounting practice. 
D) are accounting rules formulated by the Internal Revenue Service. 
A) are changing continually. 
B) are sound in theory but rarely used in practice. 
C) have eliminated all weaknesses in accounting practice. 
D) are accounting rules formulated by the Internal Revenue Service.

Exam 1: Accounting Principles and the Financial Statements

Accounting ratios are useful as management performance measures.

Misleading financial reports are not considered fraudulent if they are the result of the misapplication of accounting principles.

The purpose of an audit is to

Sinoyianis Realty Company had the following balance sheet accounts and balances: -If,$6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and owner's equity?

Which of the following is an agency of the U.S.government?

Which of the following is a regulatory agency?

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

Use the following information to calculate at or for the year ended December 31,2014: (a)net income, (b)owner's capital, (c)total assets,and (d)cash.

All of the following are broad principles underlying the accountant's code of professional ethics except

All of the following statements about corporations are true except

The Federal Reserve Board is an example of a consumer group.

Sinoyianis Realty Company had the following balance sheet accounts and balances: -What is the balance of the Flora Sinoyianis,Capital account?

Financial accounting information is used primarily by management.

If a company has suffered only net losses since its inception,the owner's equity account will always have a negative balance.

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: -If the balance in the Cash account were used to buy more equipment,then the total assets would

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

Sinoyianis Realty Company had the following balance sheet accounts and balances: -If,$6,000 of Accounts Payable were paid in cash,what would be the balance of the Flora Sinoyianis,Capital account?

A partnership is dissolved when any partner leaves the business or dies.

Which of the following accounts is not considered an asset?

Generally accepted accounting principles

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

Filters