Question 1

The stockholders of a corporation elect the board of directors.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Owner's equity equals cumulative net income or loss plus owner investments minus cumulative withdrawals.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Carrying out professional responsibilities with competence and diligence is called

Accepted Answer

A) integrity. 
B) independence. 
C) objectivity. 
D) due care. 
A) integrity. 
B) independence. 
C) objectivity. 
D) due care.

Question 7

How does the statement of owner's equity relate to the income statement and the balance sheet?

Accepted Answer

The statement of owner's equity provides

Question 8

The Securities and Exchange Commission is an accounting information user with an indirect financial interest.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

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

Knowledge of the exchange rate is necessary to apply the money measure concept in case of international transactions.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

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 15

Chin Company's owner's equity equals one-third of the company's total assets.The company's liabilities are $120,000.What is the amount of the company's owner's equity?

Accepted Answer

Assets = Liabilities + Equity

Question 16

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.

Question 17

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 18

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 19

Owner withdrawals are an example of an expense.

Accepted Answer

A) True 
 B)False

Question 20

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

The stockholders of a corporation elect the board of directors.

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

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

Owner's equity equals cumulative net income or loss plus owner investments minus cumulative withdrawals.

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

Carrying out professional responsibilities with competence and diligence is called

How does the statement of owner's equity relate to the income statement and the balance sheet?

The Securities and Exchange Commission is an accounting information user with an indirect financial interest.

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

All of the following statements about corporations are true except

Knowledge of the exchange rate is necessary to apply the money measure concept in case of international transactions.

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

Which of the following accounts is not considered an asset?

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

Chin Company's owner's equity equals one-third of the company's total assets.The company's liabilities are $120,000.What is the amount of the company's owner's equity?

Generally accepted accounting principles

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

Which of the following physically prepare and audit financial reports?

Owner withdrawals are an example of an expense.

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

Supplement: 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

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 1: Accounting Principles and the Financial Statements

The stockholders of a corporation elect the board of directors.

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

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

Owner's equity equals cumulative net income or loss plus owner investments minus cumulative withdrawals.

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

Carrying out professional responsibilities with competence and diligence is called

How does the statement of owner's equity relate to the income statement and the balance sheet?

The Securities and Exchange Commission is an accounting information user with an indirect financial interest.

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

All of the following statements about corporations are true except

Knowledge of the exchange rate is necessary to apply the money measure concept in case of international transactions.

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

Which of the following accounts is not considered an asset?

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

Chin Company's owner's equity equals one-third of the company's total assets.The company's liabilities are $120,000.What is the amount of the company's owner's equity?

Generally accepted accounting principles

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

Which of the following physically prepare and audit financial reports?

Owner withdrawals are an example of an expense.

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

Supplement: 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

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters