Week Five Acc/280 Final Exam

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1) Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?
A.
Analysis
B.
Identification
C.
Communication
D.
Recording

2) Which list below best describes the major services performed by public accountants?
A.
Cost accounting, production scheduling, recruiting
B.
Bookkeeping, mergers, budgets
C.
Employee training, auditing, bookkeeping
D.
Auditing, taxation, management consulting

3) Which of the following is an external user of accounting information?
A.
Managers
B.
Labor unions
C.
Finance directors
D.
Company officers

4) The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that
A.
the SEC and FASB rarely cooperate in developing accounting standards.
B.
they are both governmental agencies.
C.
the SEC is a private organization of accountants.
D.
the SEC often mandates guidelines when no accounting principles exist.

5) Generally accepted accounting principles are
A.
principles that have been proven correct by academic researchers.
B.
income tax regulations of the Internal Revenue Service.
C.
standards that indicate how to report economic events.
D.
theories that are based on physical laws of the universe.

6) The private sector organization involved in developing accounting principles is the
A.
Financial Auditors' Standards Body.
B.
Feasible Accounting Standards Body.
C.
Financial Accounting Studies Board.
D.
Financial Accounting Standards Board.

7) All of the financial statements are for a period of time except the
A.
retained earnings.
B.
balance sheet.
C.
income statement.
D.
statement of cash flows.

8) After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to
A.
stockholders’ equity.
B.
ledger accounts.
C.
the company's bank.
D.
financial statements.

9) Auditing is
A.
a part of accounting that involves only recording of economic events.
B.
an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems.
C.
the examination of financial statements by a CPA in order to express an opinion on their fairness.
D.
conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly.

10) Posting
A.
accumulates the effects of journalized transactions in the individual accounts.
B.
involves transferring all debits and credits on a journal page to the trial balance.
C.
should be performed in account number order.
D.
is accomplished by examining ledger accounts and seeing which ones need updating.

11) The dividends account
A.
must show transactions every accounting period.
B.
is increased with debits and decreased with credits.
C.
appears on the income statement along with the expenses of the business.
D.
is not a proper subdivision of stockholders' equity.

12) An account will have a credit balance if the
A.
first transaction entered was a credit.
B.
debits exceed the credits.
C.
credits exceed the debits.
D.
last transaction entered was a credit.

13) On June 1, 2008 Leno Inc. buys a copier machine for its business and finances this purchase with cash and a note. When journalizing this transaction, the company's accountant will
A.
make a compound entry.
B.
make a simple entry.
C.
use two journal entries.
D.
list the credit entries first, which is proper form for this type of transaction.

14) After journal entries are posted, the reference column
A.
of the general ledger will show journal page numbers.
B.
of the general journal will show "Dr" or "Cr".
C.
of the general...
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