|
|
|
Accounting with tables and multiple choice questions.pdf
Accounting_with_tables_and_multiple_choice_questions.pdf
Showing 6-7 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 - 6
29.
The purchase of store equipment for cash reduces the owner's equity by an equal
amount.
30.
The purchase of office equipment on credit increases total assets and total liabilities.
31.
The primary purpose of the statement of cash flows is to provide information about the
cash receipts and cash payments of a company during a period.
32.
Net income for the period is determined by subtracting total expenses and drawings from
total revenues.
Additional True-False Questions
33.
Identifying is the process of keeping a chronological diary of events measured in dollars
and cents.
34.
Management consulting includes examining the financial statements of companies and
expressing an opinion as to the fairness of their presentation.
35.
Accountants do not have to worry about issues of ethics.
36.
At the time an asset is acquired, cost and value should be the same.
37.
The monetary unit assumption requires that all dollar amounts be rounded to the nearest
dollar.
38.
The basic accounting equation is in balance when the creditor and ownership claims
against the business equal the assets.
39.
External transactions involve economic events between the company and some other
enterprise or party.
40.
In the owner's equity statement, revenues are listed first, followed by expenses, and net
income (or net loss).
Answers to True-False Statements
Item
Ans.
Item
Ans.
Item
Ans.
Item
Ans.
Item
Ans.
Item
Ans.
Item
Ans.
1.
F
7.
T
13.
F
19.
F
25.
F
31.
T
37.
F
2.
T
8.
F
14.
T
20.
T
26.
F
32.
F
38.
T
3.
F
9.
T
15.
T
21.
T
27.
T
33.
F
39.
T
4.
F
10.
F
16.
F
22.
T
28.
F
34.
F
40.
F
5.
T
11.
F
17.
F
23.
T
29.
F
35.
F
6.
F
12.
F
18.
T
24.
F
30.
T
36.
T
Accounting in Action
1 - 7
MULTIPLE CHOICE QUESTIONS
41.
Accountants refer to an economic event as a
a. purchase.
b. sale.
c. transaction.
d. change in ownership.
42.
The process of recording transactions has become more efficient because
a.
fewer events can be quantified in financial terms.
b.
computers are used in processing business events.
c.
more people have been hired to record business transactions.
d.
business events are recorded only at the end of the year.
43.
Communication of economic events is the part of the accounting process that involves
a. identifying economic events.
b.
quantifying transactions into dollars and cents.
c. preparing accounting reports.
d. recording and classifying information.
44.
Which of the following events cannot be quantified into dollars and cents and recorded as
an accounting transaction?
a.
The appointment of a new CPA firm to perform an audit.
b.
The purchase of a new computer.
c.
The sale of store equipment.
d. Payment of income taxes.
45.
The use of computers in recording business events
a.
has made the recording process more efficient.
b.
does not use the same principles as manual accounting systems.
c.
has greatly impacted the identification stage of the accounting process.
d.
is economical only for large businesses.
46.
The accounting process involves all of the following except
a.
identifying economic transactions that are relevant to the business.
b.
communicating financial information to users by preparing financial reports.
c.
recording nonquantifiable economic events.
d.
analyzing and interpreting financial reports.
47.
The accounting process is correctly sequenced as
a. identification, communication, recording.
b. recording, communication, identification.
c. identification, recording, communication.
d. communication, recording, identification.
48.
Which of the following techniques are
not
used by accountants to interpret and report
financial information?
a. Graphs
b.
Special memos for each class of external users
c. Charts
d. Ratios
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
