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Accounting test questions and answers (rated 100% correct).
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Accounting test questions and answers(rated 100% correct).
A conflict of interest refers to the tension between ANS - responsibilities of two competing roles
A statement of responsibility declares that ANS - top management are responsible for the financial
statements and the statements are prepared in accordance with GAAP
Accounting transactions are originally recorded in the ANS - journal or database
all investments not classified as trading securities or held to maturity securities are classified as ANS -
available for sale securities
An accrual refers to an event that ANS - when an expense or revenue is recorded before the cash
settlement
an audit is useful to stockholders because it ensures that ANS - the financial statements are free from
material error
an investor who wishes to know whether a company is successful in using its assets to earn income for
individuals who finance the business should review the ANS - return on assets
available for sale investments in stock are reported on the balance sheet as ANS - their current market
value
cash paid or received for long term assets should be reported as ANS - investing activities
changes in current assets or current liabilities should be reported as ANS - operating activities
, dividends paid to the stockholders will ANS - decrease assets and decrease stockholders equity
Earnings per share is calculated as ANS - net income divided by the average number of shares of
common stock outstanding throughout the year
for which form of business ownership are the the business owners legally distinct from the business
ANS - a corporation
if a bond is issued at a smaller percentage than the market rate it is a ANS - discount
in merchandising business gross profit is equal to sales revenue minus ANS - cost of goods sold
Not counting treasury stock and other comprehensive income, stockholders equity is divided into ANS -
contributed capital and retained earnings
on the statement of cash flows the cash paid to acquire another company is known as ANS - investing
outflow
Paid in capital is also known as ANS - additional contributed capital
Stockholders equity increases as a result of ANS - owner investments, and net income during a period
the accounting book value of an asset is defined as ANS - cost minus accumulated depreciation
The FASB is responsible for establishing ANS - GAAP
the interest rate that investors demand for loaning their money is called ANS - effective rate of interest
The largest organization of professional accountants ANS - AICPA
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