|
|
|
Accounting with tables and multiple choice questions.pdf
Accounting_with_tables_and_multiple_choice_questions.pdf
Showing 10-11 out of 53
CHAPTER 1 ACCOUNTING IN ACTION SUMMARY OF QUESTI
CHAPTER 1 ACCOUNTING IN ACTION SUMMARY OF QUESTI
CHAPTER 1 ACCOUNTING IN ACTION SU...
CHAPTER 1 ACCOUNTING IN ACTION SUMMARY OF QUESTI
Test Bank for Accounting Principles, Eighth Edition
1 - 10
65.
The cost principle requires that when assets are acquired, they be recorded at
a. appraisal value.
b. exchange price paid.
c. selling price.
d. list price.
66.
The cost of an asset and its fair market value are
a. never the same.
b.
the same when the asset is sold.
c.
irrelevant when the asset is used by the business in its operations.
d.
the same on the date of acquisition.
67.
The body of theory underlying accounting is
not
based on
a. physical laws of nature.
b. concepts.
c. principles.
d. definitions.
68.
The private sector organization involved in developing accounting principles is the
a. Feasible Accounting Standards Body.
b. Financial Accounting Studies Board.
c.
Financial Accounting Standards Board.
d. Financial Auditors' Standards Body.
69.
The SEC and FASB are two organizations that are primarily responsible for establishing
generally accepted accounting principles. It is true that
a.
they are both governmental agencies.
b.
the SEC is a private organization of accountants.
c.
the SEC often mandates guidelines when no accounting principles exist.
d.
the SEC and FASB rarely cooperate in developing accounting standards.
70.
GAAP stands for
a. Generally Accepted Auditing Procedures.
b. Generally Accepted Accounting Principles.
c.
Generally Accepted Auditing Principles.
d. Generally Accepted Accounting Procedures.
71.
Which of the following is
not
a characteristic of the cost principle?
a. Reliability
b. Subjectivity
c. Objectivity
d. Verifiability
72.
The ACE Company has five plants nationwide that cost $100 million. The current market
value of the plants is $500 million. The plants will be recorded and reported as assets at
a. $100 million.
b. $600 million.
c. $400 million.
d. $500 million.
Accounting in Action
1 - 11
73.
All of the following are advantages cost has over other valuations
except
that it
a. is reliable.
b. can be objectively measured.
c. can be verified.
d. is relevant.
74.
The proprietorship form of business organization
a.
must have at least three owners in most states.
b.
represents the largest number of businesses in the United States.
c.
combines the records of the business with the personal records of the owner.
d.
is characterized by a legal distinction between the business as an economic unit and
the owner.
75.
The economic entity assumption requires that the activities
a.
of different entities can be combined if all the entities are corporations.
b.
must be reported to the Securities and Exchange Commission.
c.
of a sole proprietorship cannot be distinguished from the personal economic events of
its owners.
d.
of an entity be kept separate from the activities of its owner.
76.
A business organized as a corporation
a.
is not a separate legal entity in most states.
b.
requires that stockholders be personally liable for the debts of the business.
c.
is owned by its stockholders.
d.
terminates when one of its original stockholders dies.
77.
The partnership form of business organization
a.
is a separate legal entity.
b.
is a common form of organization for service-type businesses.
c.
enjoys an unlimited life.
d. has limited liability.
78.
Which of the following is
not
an advantage of the corporate form of business organization?
a. Limited liability of stockholders
b. Transferability of ownership
c.
Unlimited personal liability for stockholders
d. Unlimited life
79.
A small neighborhood barber shop that is operated by its owner would likely be organized
as a
a. joint venture.
b. partnership.
c. corporation.
d. proprietorship.
80.
Joan and Sara met at law school and decide to start a small law practice after graduation.
They agree to split revenues and expenses evenly. The most common form of business
organization for a business such as this would be a
a. joint venture.
b. partnership.
c. corporation.
d. proprietorship.
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
Yale University
Yale_University
School:
azez
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more
Students also viewed documents
lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106
