Charging off equipment that cost less than $20 would be an example of the application of: a. |going concern| b. |cost| c. |matching| d. |materiality| e. |realization| ANS:D 2. The going concern assumption: a. |is applicable to all financial statements| b. |primarily involves periodic income measurement| c. |allows for the statements to be prepared under generally accepted accounting principles| d. |requires that accounting procedures be the same from period to period| e. |none of the answers are correct|
Understating assets and revenues is justified based on: a. |realization assumption| b. |matching| c. |consistency| d. |realization| e. |none of the answers are correct| ANS:E 4. The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is: a. |time period| b. |business entity| c. |historical cost| d. |transaction| e. |none of the answers are correct| ANS:A 5. Valuing assets at their liquidation values is not consistent with: a. |conservatism| b. |materiality| c. |going concern| d. |time period| . |none of the answers are correct| ANS:C 6. The business being separate and distinct from the owners is an integral part of the: a. |time period assumption| b. |going concern assumption| c. |business entity assumption| d. |realization assumption| e. |none of the answers are correct| ANS:C 7.
The principle that assumes the reader of the financial statements is not interested in the liquidation values is: a. |conservatism| b. |matching| c. |time period| d. |realization| e. |none of the answers are correct| ANS:E 8. An accounting period that ends when operations are at a low ebb is: a. a calendar year| b. |a fiscal year| c. |the natural business year| d. |an operating year| e. |none of the answers are correct| ANS:C 9. The accounting principle that assumes that inflation will not take place or will be immaterial is: a. |monetary unit| b. |historical cost| c. |realization| d. |going concern| e. |none of the answers are correct| ANS:A 10. Valuing inventory at the lower of cost or market is an application of the: a. |time period assumption| b. |realization principle| c. |going concern principle| d. |conservatism principle| e. |none of the answers are correct| ANS:D 11.
The Term Paper on Victorian Period – a Time of Change (1837 -1901)
“All art is at once surface and symbol. Those who go beneath the surface do so at their own peril. Those who read the symbol do so at their own peril.”–by Oscar Wilde, Preface, “The Picture of Dorian Gray” The Victorian Period revolves around the political career of Queen Victoria. She was crowned in 1837 and died in 1901 (which put a definite end to her political ...
The realization principle leads accountants to usually recognize revenue at: a. |the end of production| b. |during production| c. |the receipt of cash| d. |the point of sale| e. |none of the answers are correct| ANS:D 12. The comment that “items that are not material may be recorded in the financial statements in the most economical and expedient manner possible” is representative of: a. |matching| b. |conservatism| c. |realization| d. |materiality| e. |none of the answers are correct| ANS:D 13. The assumption that deals with when to recognize the costs that are associated with the revenue that is being recognized is: a. matching| b. |going concern| c. |consistency| d. |materiality| e. |none of the answers are correct| ANS:A 14. The most significant current source of generally accepted accounting principles is the: a. |New York Stock Exchange| b. |Accounting Principles Board| c. |Accounting Research Studies| d. |AICPA committee on Accounting Procedure| e. |Financial Accounting Standards Board| ANS:E 15. All but one of the following statements indicates a difference between the Financial Accounting Standards Board (FASB) and prior approaches. Select the one that is not a difference. a. The FASB is independent of the AICPA. | b. |
The Essay on Accounting Data Business Company Financial
What is the role of accounting and financial decision making in Business? Why is essential to consider accounting data in relation to other factors in other decisions in all situations. The word ACCOUNTING can firstly be defined as the collection, recording, compiling and forecasting of financial information. There are two different strands in accounting, and these are FINANCIAL accounting and ...
The size of the board is much smaller. | c. |The FASB has broader representation. | d. |The FASB is the primary board for the development of generally accepted accounting principles. | e. |Members of the FASB serve on a full-time basis. | ANS:D 16. The Accounting Principles Board issued Opinions between: a. |1959-1973| b. |1939-1959| c. |1973-present| d. |1966-1976| e. |none of the answers are correct| ANS:A 17. The Financial Accounting Standards Board has issued statements between: a. |1960-1973| b. |1939-1959| c. |1973-present| d. 1966-1976| e. |none of the answers are correct| ANS:C 18. Accountants face a problem of when to recognize revenue. Which of the following methods of recognizing revenue is not used in practice? a. |point of sale| b. |point of order acceptance| c. |end of production| d. |receipt of cash| e. |revenue recognized during production| ANS:B 19.
The organization that has by federal law the responsibility to adopt auditing standards is the: a. |New York Stock Exchange| b. |Public Company Accounting Oversight Board| c. |Accounting Principles Board| d. |Financial Accounting Standards Board| . |AICPA Committee on Accounting Procedure| ANS:B 20. By law, the setting of accounting standards is the responsibility of the: a. |AICPA Committee on Accounting Procedure| b. |New York Stock Exchange| c. |Accounting Principles Board| d. |Securities and Exchange Commission| e. |Financial Accounting Standards Board| ANS:D 21. The assumption that allows accountants to accept some inaccuracy, because of incomplete information about the future, in exchange for more timely reporting is: a. |conservatism| b. |time period| c. |business entity| d. |materiality| e. |realization| ANS:B 22.
