126 test bank for financial and managerial accounting information for decisions 4th

Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Test Bank for Survey of Accounting 6th Free Test Bank for Fundamental Financial and Managerial Accounting Concepts Test Bank for International Accounting 4th Edition Free Test Bank for Financial Accounting Tools for Business Decision Making 6three Test Bank for Introduction to Financial Accounting 11th Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao Test Bank for Managerial Accounting with Answers Miễn phí Đề thi trắc nghiệm có đáp án, Test Bank for Management Accounting, Bank with Answers for Advanced Accounting,trắc nghiệm tài chính kế toán, free test bank, đề thi kế toán, đề thi tài chính DN Free download Test bank with Answers for Finance Accounting, Managerial Accounting

126 Test Bank for Financial and Managerial Accounting Information for Decisions 4th

Multiple Choice Questions-Page 1

Social responsibility:

1 A Is a concern for the impact of one's actions on society as a whole

2 B Is a code that helps in dealing with confidential information

3 C Is required by the SEC

4 D Requires that all businesses conduct social audits

5 E Is mandated by the federal government

Which of the following is the correct sequence for the heading for ABC Company's 2010 Balance Sheet?

1 A ABC Company, For the year ended 12/31/10, Balance Sheet

2 B For the year ended 12/31/10, Balance Sheet, ABC Company

3 C Balance Sheet, 12/31/10, ABC Company

4 D 12/31/10, ABC Company, Balance Sheet

5 E ABC Company, Balance Sheet, 12/31/10

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in

conflict with the:

1 A Objectivity principle

2 B Realization principle

3 C Business entity principle

4 D Going-concern principle

5 E Revenue recognition principle

The objectivity principle:

1 A Means that information is supported by independent, unbiased evidence

2 B Means that information can be based on what the preparer thinks is true

3 C Means that financial statement should contain information that is optimistic

4 D Means that a business may not recognize revenue until cash is received

5 E Means the assets acquired must be recorded and what the company paid for them

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be

recorded initially at the amount of cash or cash-equivalent given in exchange is the:

1 A Accounting equation

2 B Cost principle

3 C Going-concern principle

4 D Realization principle

5 E Business entity principle

Generally Accepted Accounting Principles:

1 A Focus on the review of a situation

2 B Does not require financial statements

3 C Never change

4 D Intend to make information on the financial statements relevant, reliable and comparable

5 E Oversees Security and Exchange Commission

Which of the following elements are found on the Balance Sheet?

1 A Is a legal entity separate and distinct from its owners

2 B Must have many owners

3 C Has shareholders who have unlimited liability for the acts of the corporation

4 D Is the same as a limited liability partnership

5 E Does not have to pay taxes

Which of the following is the primary purpose of accounting?

1 A To establish a business

2 B To identify, record and communicate business transactions

3 C To deceive stockholders

4 D To keep from paying taxes

5 E To establish credit for a company

Businesses can take all of the following forms except:

1 A Sole proprietorship

2 B Common stock

3 C Partnership

4 D Corporation

5 E Limited Liability Corporation

Internal users of accounting information include:

1 A Shareholders

2 B Customers

3 C Creditors

4 D Government regulators

5 E Line Supervisor

A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth

$140,000 and purchased for $137,000 The land should be

recorded in the purchaser's books at:

1 A Has replaced accounting

2 B Has not changed the work that accountants do

3 C Has freed accounting professionals to concentrate more on the analysis and interpretation of information

4 D In accounting has replaced the need for decision makers

5 E In accounting is only available to large corporations

The financing functions of a business include:

1 A Research and development

2 B Purchasing

3 C Marketing

4 D Distribution

5 E Selling common stock

Which of the following elements are found on the income

Which accounting assumption assumes that all accounting

information is reported monthly or yearly?

1 A Business entity assumption

2 B Monetary unit assumption

3 C Value assumption

4 D Cost assumption

5 E Time period assumption

Ethical behavior requires:

1 A That an auditors' pay not depend on the figures in the client's reports

2 B Auditors to invest in businesses they audit

3 C Analysts to report information favorable to their companies

4 D Managers to use accounting information to benefit themselves

5 E That an auditor provides a favorable opinion

Identifying business activities requires selecting transactions and events relevant to an organization Which of the following events would be recorded in the accounting records of Acme Car Wash?

1 A Acme washes 500 cars

2 B J.B Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be washed

3 C Clean Company, a supplier, sells 50 pounds of soap to ABC Company

4 D Sudsey Company, a supplier, goes out of business

5 E Acme hires Andrea as a receptionist

The primary objective of financial accounting is:

1 A To serve the decision-making needs of internal users

2 B To provide financial statements to help external users analyze and interpret

an organization's activities

3 C To monitor and control company activities

4 D To provide information on both the costs and benefits of managing products and services

5 E To know what, when and how much to produce

Which of the following statements is true of external information users?

1 A They are directly involved in managing the organization

2 B Their needs are met by the managerial area of accounting

3 C They have limited access to an organization's accounting information

4 D They use accounting information to help improve the efficiency and

effectiveness of an organization

5 E They are the only users of accounting information who rely on internal controls to monitor company activities

An Asset is:

1 A only acquired with cash

2 B something the company owns

3 C only contributed by stockholders

4 D a company's obligation to pay

5 E is also called contributed capital

The principle that (1) requires revenue to be recognized at the time

it is earned, (2) allows the inflow of assets associated with revenue

to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services

5 E Business entity principle

The accounting guideline prescribing that financial statement

information be supported by independent, unbiased evidence other than someone's belief or opinion is the:

1 A Business entity principle

2 B Monetary unit principle

The area of accounting aimed at serving the decision making needs

of internal users is:

2 B Monetary unit principle

3 C Revenue recognition principle

4 D Going-concern principle

5 E Cost principle

The principle prescribing that financial statements reflect the

assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue

5 E Monetary unit principle

Which of the following statements best describes the relationship of U.S GAAP and IFRS?

1 A They are identical

2 B They are entirely different conceptual frameworks

3 C They are similar but not identical

4 D Neither has anything to do with accounting

5 E They both relate only to publicly traded companies

Which of the following accounting principles dictates when

expenses are recognized?

1 A Revenue recognition principle

2 B Monetary unit principle

3 C Business entity principle

4 D Matching principle

5 E Full disclosure principle

126 Free Test Bank for Financial and Managerial

Accounting Information for Decisions 4th Edition by Wild Multiple Choice Questions-Page 2

An example of an operating activity is:

1 A Paying wages

2 B Purchasing office equipment

3 C Borrowing money from a bank

4 D Selling stock

5 E Paying off a loan

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

An example of an investing activity is:

1 A Paying wages of employees

2 B Paying dividends

3 C Purchasing land

4 D Selling inventory

5 E Contribution from owner

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:

1 A Revenue recognition principle

2 B Going-concern principle

3 C Objectivity principle

4 D Business entity principle

5 E Cost principle

Assets = Liabilities + Equity is known as the:

1 A Income statement equation

2 B Cost principle

3 C Objectivity principle

4 D Accounting equation

5 E Transaction principle

The International Accounting Standards Board (IASB)

1 A Hopes to create harmony among accounting practices of different countries

2 B Is the government group that establishes reporting requirements for

companies that issue stock to the public

3 C Has the authority to impose its standards on companies

4 D Is the only source of U.S generally accepted accounting principles (GAAP)

5 E Applies only to companies that are members of the European Union

On December 15, 2008, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2009 Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2009 and not 2008?

1 A Monetary unit principle

2 B Going-concern principle

3 C Cost principle

4 D Business entity principle

5 E Revenue recognition principle

An example of a financing activity is:

1 A Buying office supplies

2 B Obtaining a long-term loan

3 C Buying office equipment

4 D Selling inventory

5 E Buying land

Revenues are:

1 A The same as net income

2 B The excess of expenses over assets

3 C Resources owned or controlled by a company

4 D Increases in retained earnings from a company's earning activities

5 E The costs of assets or services used

The difference between a company's assets and its liabilities or its net assets is:

The major activities of a business include:

1 A Operating, Investing, Making a Profit

2 B Investing, Making a Profit, Operating

3 C Making a Profit, Operating, Borrowing

4 D Operating, Investing, Financing

5 E Investing, Making a Profit, Financing

Net Income:

1 A Decreases equity

2 B Represents the amount of assets owners put into a business

3 C Equals assets minus liabilities

4 D Is the excess of revenues over expenses

5 E Represents the owners' claims against assets

Planning activities:

1 A Are the means organizations must use to pay for resources

2 B Involve the acquiring and disposing of resources that an organization uses

to acquire and sell its products or services

3 C Involve defining the ideas, goals and actions of an organization

4 D Are the carrying out of an organization's plans

5 E Involve using resources to research, develop, purchase, produce and market products and services

The description of the relation between a company's assets,

liabilities and equity, which is expressed as Assets = Liabilities + Equity are known as the:

1 A Income statement equation

1 A Increase retained earnings

2 B Are increases in retained earnings from a company's earning activity

3 C Are the costs of assets or services used to earn revenues

4 D Occur when retained earnings exceed revenue

5 E Are creditor's claims on assets

Marian Mosely is the owner of Mosely Accounting Services Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely

Accounting Services?

1 A Monetary unit principle

2 B Going-concern principle

3 C Cost principle

4 D Business entity principle

5 E None of these Since Marian is a sole proprietor, she is not required to separate her personal financial information from the financial information of Mosely Accounting Services

Which of the following accounting principles would prescribe that all goods and services purchased is recorded at cost?

If liabilities are $51,500 and assets are $173,425, then equity

The Maximum Experience Company acquired a building for

$500,000 Maximum Experience had an appraisal done and found that the building was worth $575,000 The seller had paid $300,000 for the building 6 years ago Which accounting principle would

prescribe that Maximum Experience record the building on its

records at $500,000?

1 A Monetary unit principle

2 B Going-concern principle

3 C Cost principle

4 D Business entity principle

5 E Revenue recognition principle

If equity is $300,000 and liabilities are $192,000, then assets equal:

4 D Business entity principle

5 E Revenue recognition principle

Revenue is properly recognized:

1 A When the customer's order is received

2 B Only if the transaction creates an account receivable

3 C At the end of the accounting period

4 D Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price

5 E When cash from a sale is received

Resources owned or controlled by a company that are expected to yield benefits are:

1 A The cash equivalent value of what was given up

2 B The current market value of the assets at the balance sheet date

3 C The cash paid to acquire them, even if something other than cash was given in the exchange

4 D The best estimate from a certified internal auditor

5 E The objective value to external users

Congress passed the Sarbanes-Oxley Act to

1 A Provide jobs to U.S accountants and limit the number of jobs sent outside the country

2 B Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts

3 C Help curb financial abuses at companies that issue their stock to the public

4 D Force auditors to attest to the absolute accuracy of the financial statements

5 E Require that all companies publicly disclose their internal control plans

A limited partnership:

1 A Includes a general partner with unlimited liability

2 B Is subject to double taxation

3 C Has owners called stockholders

4 D Is the same as a corporation

5 E Must only have two partners

Operating activities:

1 A Are the means organizations must use to pay for resources like land,

buildings and equipment

2 B Involve using resources to research, develop, purchase, produce, distribute and market products and services

3 C Involve acquiring and disposing of resources that a business uses to

acquire and sell its products or services

4 D Are also called asset management

5 E Are also called strategic management

Net income:

1 A Occurs when revenues exceed expenses

2 B Is the same as revenue

3 C Equals resources owned or controlled by a company

4 D Occurs when expenses exceed assets

5 E Represents assets taken from a company for an owner's personal use

126 Free Test Bank for Financial and Managerial

Accounting Information for Decisions 4th Edition by Wild Multiple Choice Questions-Page 3

If assets are $365,000 and equity is $120,000, then liabilities are:

An exchange of value between two entities is called:

1 A The accounting equation

Fast-Forward has net income of $18,955 and assets at the

beginning of the year of $200,000 Its assets at the end of the year total $246,000 Compute its return on assets

1 A 7.7%

2 B 8.5%

3 C 9.5%