Accounting is an information and measurement system that does all of the following except
Identifies business activities
Records business activities
Communicates business activities
Eliminates the need for interpreting financial data
Helps people make better decisions correct an...
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Accounting is an information and measurement system that does all of the following except
Identifies business activities
Records business activities
Communicates business activities
Eliminates the need for interpreting financial data
Helps people make better decisions correct answers Eliminates the need for interpreting financial
data
Technology:
Has replaced accounting
Has not improved the clerical accuracy of accounting
"Reduces the time, effort and cost of recordkeeping"
In accounting has replaced the need for decision makers
In accounting is only available to large corporations correct answers Reduces the time, effort and
cost of recordkeeping"
The primary objective of financial accounting is to:
Serve the decision-making needs of internal users
Provide accounting information that serves external users
Monitor and control company activities
Provide information on both the costs and benefits of looking after products and services.
"Know what, when, and how much product to produce" correct answers Provide accounting
information that serves external users
A corporation is
A business legally separate from its owners
Controlled by the FASB
,Not responsible for its own acts and own debts
The same as a limited liability partnership
Not subject to double taxation correct answers A business legally separate from its owners
The conceptual framework that the Financial Accounting Standards Board (FASB) and the
International Accounting Standards Board (IASB) are attempting to converge and enhance
includes the following broad areas to guide standard setting except:
Objectives
Qualitative characteristics
Uniformity
Elements
Recognition and measurement correct answers Uniformity
The accounting concept that requires every business to be accounted for separately from other
business entities, including its owner or owners is known as the:"
Time-period assumption
Business entity assumption
Going-concern assumption
Revenue recognition principle
Cost principle correct answers Business entity assumption
"The rule that requires financial statements to reflect the assumption that the business will
continue operating instead of being closed or sold, unless evidence shows that it will not
continue, is the:"
Going-concern assumption
Business entity assumption
Objectivity principle
Cost Principle
Monetary unit assumption correct answers Going-concern assumption
, "If a company is considering the purchase of a parcel of land that was acquired by the seller for
$85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by
the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be
recorded in the purchaser's books at:"
"95,000"
"$137,000 "
"$138,500 "
"$140,000 "
"$150,000 " correct answers 137,000
To include the personal assets and transactions of a business's stockholders in the records and
reports of the business would be in conflict with the:
Objectivity principle
Monetary unit assumption
Business entity assumption
Going-concern assumption
Revenue recognition principle correct answers Business entity assumption
"On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash
$20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable,
$9,300. What is the amount of stockholders' equity as of May 31 of the current year?"
"$8,300 "
"$13,050 "
"$20,500 "
"$31,100 "
"$40,400 " correct answers 31,100
The accounting process begins with:
Analysis of business transactions and source documents
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