Exam 1: Accounting As a Form of Communication

When selecting between the best alternatives regarding an ethical dilemma in accounting all of the following should be considered except:

GAAP stands for Generally Accepted Auditing Procedures.

The federal government agency with the ultimate authority to determine the rules in preparing statements for companies whose stock is sold to the public is the __________________________________________________.

Which one of the following is an assumption made in the preparation of financial statements?

Here is a list of accounts and their balances that appear on the Thomas Company's income statement and balance sheet. REQUIRED: Identify which of these are: (a)Assets (b)Liabilities (c)Expenses (d)Revenues

A partnership is a business owned by two individuals;if three or more individuals organize a business,it must be established as a corporation.

Ramos Corp.started business at the beginning of the year,with assets of $600,000 and stockholders' equity of $240,000.By the end of the year,assets increased by $80,000 and liabilities increased by $60,000.Other than net income or loss,the only change in stockholders' equity was dividends declared and paid of $55,000. A)What was the amount of Ramos Corp.stockholders' equity at the end of the year? B)What was the amount of Ramos Corp.net income or net loss for the year?

Gyro's Shop reported a net loss of $15,000 and total expenses of $80,000.How much are total revenues?

From an ethical standpoint,if various alternatives are available to report a transaction,what are some of the questions an accountant should ask about the alternatives?

Which of the following organizations is responsible for setting auditing standards followed by public accounting firms in conducting independent audits of financial statements?

Which one of the following groups is considered an internal user of financial statements?

Another name for profits or earnings of a business is _________________________.

Information must be timely to be relevant.

Which of the following best describes the term "expenses"?

The concept that assumes that an entity is not in the process of liquidation is _________________________.

Which financial statement would you refer to in order to determine whether a company owed funds to creditors?

When an entity's revenues exceed its expenses for a period of time,the entity will report a net loss.

The income statement is sometimes called the statement of financial position.

Which organization,in addition to the Financial Accounting Standards Board (FASB),occasionally issues authoritative rules for financial statements?

All of the following are important provisions of the Sarbanes-Oxley Act except: