Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st 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 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 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 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, Đề trắc nghiệm có đáp án Tài chính kế toán, Kế toán kiểm toán, kế toán quản trji Test Bank for Managerial Accounting with Answers Đề trắc nghiệm kế toán, trắc nghiệm tài chính, Test bank for Accounting, Test bank with Answer, Test Bank Financial Accounting, Test bank Financial Accounting
Trang 1199 Test Bank for Financial and Managerial Accounting Information for Decisions 5th Editio
True False Questions - Free Text Questions - Multiple Choice
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.
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 at what the company paid for them.
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:
What is the opportunity component of the fraud triangle?
1 A A person thinks that there is a way to commit fraud without much chance of getting caught.
Trang 22 B A person has a really good reason to commit fraud.
3 C A person does not think of the fraudulent activity as bad.
4 D A person persuades two or more other people to assist with the fraud.
5 E A person is concerned about the impact of their actions on society.
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 earn a large profit.
4 D To reduce taxes owed for the business.
5 E To establish credit for a company.
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.
Generally Accepted Accounting Principles:
1 A Focus on the review of a situation.
2 B Do 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 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
The private board that currently has the authority to establish
U.S generally accepted accounting principles is the:
Trang 3Which of the following is the correct sequence for the heading
for ABC Company’s 2013 balance sheet?
1 A ABC Company, For the year ended 12/31/13, Balance Sheet
2 B For the year ended 12/31/13, Balance Sheet, ABC Company
3 C Balance Sheet, 12/31/13, ABC Company
4 D 12/31/13, ABC Company, Balance Sheet
5 E ABC Company, Balance Sheet, 12/31/13
Ethical behavior requires:
1 A That an auditor’s 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.
Which of the following elements are found on the balance
Which accounting assumption assumes that all accounting
information can be 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
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.
Trang 43 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.
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 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, is the:
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.
Recording the items on the financial statements in dollars is
done because of the:
1 A Objectivity principle
2 B Monetary unit principle
3 C Revenue recognition principle
4 D Going-concern principle
5 E Cost principle
6.
Trang 5The 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 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 organization that attempts to create more harmony among
the accounting practices of different countries by
identifying preferred practices and encouraging their
worldwide acceptance is the:
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.
Internal users of accounting information include:
1 A Shareholders
2 B Customers
Trang 63 C Creditors
4 D Government regulators
5 E Production managers
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
3 C Going-concern principle
4 D Objectivity principle
5 E Full disclosure principle
The area of accounting aimed at serving the decision-making
needs of internal users is:
5 E Limited liability corporation
Why are ethics crucial to accounting?
1 A Ethical behavior creates the most profit for the business.
2 B Ethics are a tool which help the accountants balance the accounting equation.
3 C For accounting information to be useful, it must be trusted and therefore the result of ethical decisions.
4 D Ethics are important to consider when applying GAAP but do not apply to international accounting issues.
5 E Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners’ equity.
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.
Trang 74 D Neither has anything to do with accounting.
5 E They both relate only to publicly traded companies.
124 Free Test Bank for Financial and Managerial
Accounting Information for Decisions 5th Edition by Wild Multiple Choice Questions - Page 2
Net income is:
1 A Assets minus liabilities.
2 B The excess of revenues over expenses.
3 C An asset.
4 D The same as revenue.
5 E The excess of expenses over retained earnings.
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
Marian Mosely is the owner of Mosely Accounting Services
Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?
1 A Monetary unit assumption
2 B Going-concern assumption
3 C Cost assumption
4 D Business entity assumption
5 E Full disclosure assumption
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.
Trang 8An 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 Are also called asset management.
5 E Are also called strategic management.
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.
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
If equity is $300,000 and liabilities are $192,000, then assets
Resources owned or controlled by a company that are expected
to yield benefits are:
1 A Assets
Trang 92 B Revenues
3 C Liabilities
4 D Stockholder's equity
5 E Expenses
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.
The owners of a partnership:
1 A Have created an entity that can also be called a sole proprietorship.
2 B Have unlimited liability.
3 C Have to have a written agreement in order to be legal.
4 D Have created a legal organization separate from its owners.
5 E Are called shareholders.
The difference between a company's assets and its liabilities is:
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.
Which of the following accounting principles would prescribe
that all goods and services purchased are recorded at cost?
Trang 10According to generally accepted accounting principles, a
company's balance sheet should show the company's assets at:
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.
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.
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 six 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
Increases in retained earnings from a company's earnings
Trang 11The description of the relation between a company's assets,
liabilities, and equity, which is expressed as Assets =
Liabilities + Equity, is known as the:
1 A Income statement equation.
2 B Accounting equation.
3 C Business equation.
4 D Return on equity ratio.
5 E Net income.
The principle that (A) requires revenue to be recognized at the
time it is earned, (B) allows the inflow of assets
associated with revenue to be in a form other than cash, and (C) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is
5 E Business entity principle
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.
Expenses:
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 creditors' claims on assets.
Decreases in retained earnings that represent costs of assets or
services that are used to earn revenues are called:
1 A Liabilities
2 B Equity
3 C Withdrawals
Trang 124 D Expenses
5 E Contributed capital
On December 15, 2013, Myers Legal Services signed a $50,000
contract with a client to provide legal services to the client in 2014 Which accounting principle would require Myers Legal Services to record the legal fees revenue in
2014 and not 2013?
1 A Monetary unit principle
2 B Going-concern principle
3 C Cost principle
4 D Business entity principle
5 E Revenue recognition principle
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.
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.
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.
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.
Trang 135 E Represents the owners' claims against assets.
Creditors' claims on the assets of a company are called:
124 Free Test Bank for Financial and Managerial
Accounting Information for Decisions 5th Edition by Wild Multiple Choice Questions - Page 3
Compute return on assets given net income of $13,764,
beginning assets of $120,000, and ending assets of
Our company has three times as many assets as it does
liabilities If total liabilities are $55,000, what is the amount
5 E Owners’ equity cannot be determined from the given information.
Use the following information as of December 31 to determine
equity Liabilities: $141,000; Cash: 57,000; Equipment: 206,000; Buildings: 175,000
Trang 14Beginning assets were $437,600, beginning liabilities were
$262,560, common stock issued during the year totaled
$45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities is $$350,000 What are the ending assets for the year?
If the assets of a business increased $15,000 during a period of
time and its equity decreased $4,000 during the same
period, liabilities in the business must have:
A balance sheet lists:
1 A The types and amounts of the revenues and expenses of a business.
2 B Only the information about what happened to retained earnings during a time period.
3 C The types and amounts of assets, liabilities and equity of a business as of a specific date.
4 D The cash inflows and outflows during the period.
5 E The assets and liabilities of a company, but not the equity.
Beta Corporation purchased $100,000 worth of land by paying
10,000 cash and signing a $90,000 mortgage Immediately prior to this transaction the corporation had assets,
liabilities, and owners' equity in the amounts of $150,000,
$30,000, and $120,000 respectively What is the total
amount of Beta Corporation's assets after this transaction has been recorded?
Trang 15The statement of cash flows reports information on:
The statement of retained earnings:
1 A Reports how retained earnings changes at a point in time.
2 B Reports how retained earnings changes over a period of time.
3 C Reports on cash flows for operating, financing and investing activities over a period of time.
4 D Reports on cash flows for operating, financing and investing activities at a point in time
5 E Reports on amounts for assets, liabilities and equity at a point in time.
Ending liabilities are 67,000, beginning equity was $87,000,
common stock issued during year totaled $31,000,
expenses for the year were $22,000, dividends declared totaled $13,000, ending equity for the year is $181,000, and beginning assets for the year were $222,000 What was revenue for the year?
Use the following information as of December 31 to determine
equity Accounts payable: $800; Accounts receivable:700; Cash: 2,300; Wages expense: 9,000; Wages payable:
1,200
1 A $1,000
2 B $3,000
3 C $5,000
Trang 16A corporation purchased a $40,000 delivery truck by paying
4,000 cash and signing a $36,000 note payable
Immediately prior to this transaction the corporation had assets, liabilities, and owners' equity in the amounts of
$75,000, $52,000, and $23,000 respectively What is the total amount of the corporation's assets after this
transaction has been recorded?
Beginning assets were $437,600, beginning liabilities were
$262,560, common stock issued during the year totaled
$45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities is $$350,000 What was the
beginning equity for the year?
FastForward 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%
Trang 171 A Net income divided by average total assets.
2 B The reward for investment.
3 C The uncertainty about the expected return that will be earned from an investment.
4 D Unrelated to expected return.
5 E Derived from the idea of getting something back from an investment.
Acme Company had equity of $55,000 at the end of the current
year During the year the company had a $2,000 net loss and investments by owners in exchange for stock of
$7,000 Compute equity as of the beginning of the year
Photometer Company paid off $30,000 of its accounts payable
in cash What would be the effects of this transaction on the accounting equation?
1 A Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
2 B Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
3 C Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
4 D Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
5 E Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.
How would the accounting equation of Boston Company be
affected by the billing of a client for $10,000 of consulting work completed?
1 A +$10,000 accounts receivable, -$10,000 accounts payable.
2 B +$10,000 accounts receivable, +$10,000 accounts payable.
3 C +$10,000 accounts receivable, +$10,000 cash.
4 D +$10,000 accounts receivable, +$10,000 consulting revenue.
5 E +$10,000 accounts receivable, -$10,000 consulting revenue.
Trang 18The financial statement that describes where a company's cash
came from and how it was spent during the period is the:
1 A Statement of financial position.
2 B Statement of cash flows.
3 C Balance sheet.
4 D Income statement.
5 E Statement of retained earnings.
The financial statement that reports whether the business
earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):
1 A Balance sheet.
2 B Statement of retained earnings.
3 C Statement of cash flows.
4 D Income statement.
5 E Statement of financial position.
Accounts payable appear on which of the following
statements?
1 A Balance sheet.
2 B Income statement.
3 C Statement of retained earnings.
4 D Statement of cash flows.
5 E Transaction statement.
A company's balance sheet shows: cash $22,000, accounts
receivable $16,000, office equipment $50,000, and
accounts payable $17,000 What is the amount of equity?
A company reported total equity of $145,000 on its December
31, 2013, balance sheet The following information is
available for the year ended December 31, 2014: 2014
revenues: $210,000; 2014 expenses: 165,000; Liabilities,
at December 31, 2014: 92,000 What are the total assets of the company at December 31, 2014?
1 A $45,000
Trang 192 B $92,000
3 C $190,000
4 D $210,000
5 E $282,000
If beginning retained earnings was $184,300, the company
distributed $46,000 in dividends and ending retained
earnings was $345,000, what was the net income for the period?
A company has twice as much owner's equity as it does
liabilities If total liabilities are $50,000, what amount of assets are owned by the company?
1 A $50,000
2 B $100,000
3 C $150,000
4 D $200,000
5 E Assets cannot be determined from the given information.
FastForward had cash inflows from operations of $62,500; cash
outflows from investing activities of $47,000; and cash inflows from financing of $25,000 The net change in cash was:
If the assets of a business increased $89,000 during a period of
time and its liabilities increased $67,000 during the same period, equity in the business must have:
Trang 20The statement of cash flows reports on cash flows for:
If net income for the period was $134,250, dividends distributed
were $76,530 and ending retained earnings was $862,520, what was the beginning retained earnings for the period?
Apatha Company has assets of $600,000, liabilities of $250,000,
and equity of $350,000 It buys office equipment on credit for $75,000 The effects of this transaction include:
1 A Assets increase by $75,000 and expenses increase by $75,000.
2 B Assets increase by $75,000 and expenses decrease by $75,000.
3 C Liabilities increase by $75,000 and expenses decrease by $75,000.
4 D Assets decrease by $75,000 and expenses decrease by $75,000.
5 E Assets increase by $75,000 and liabilities increase by $75,000.
Rent expense that is paid with cash appears on which of the
following statements?
1 A Balance sheet
2 B Income statement
3 C Statement of retained earnings
4 D Schedule of accounts receivable
5 E Statement of cash received
Beginning assets were $437,600, beginning liabilities were
$262,560, common stock issued during the year totaled
$45,000, revenue for the year was $414,250, expenses for the year were $280,000, dividends declared was $22,700, and ending liabilities is $$350,000 What is the ending equity for the year?
1 A $700,160
2 B $331,590