Preview

Acct 301

Powerful Essays
Open Document
Open Document
1730 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Acct 301
Test 1 Chapters 1-4
Student: ___________________________________________________________________________
1. A cause-and-effect relationship is implicit in the:
A. Realization principle.
B. Historical cost principle.
C. Matching principle.
D. Going concern assumption. 2. Accounting standard setting has been characterized as:
A. A political process.
B. Using the scientific method.
C. Pure deductive reasoning.
D. Pure inductive reasoning. 3. The FASB 's conceptual framework 's qualitative characteristics of accounting information include:
A. Historical cost.
B. Realization.
C. Faithful representation.
D. Full disclosure. 4. Fundamental qualitative characteristics of accounting information are:
A. Relevance and comparability.
B. Comparability and consistency.
C. Faithful representation and relevance.
D. Neutrality and consistency. 5. The possibility that the capital markets ' focus on periodic profits may tempt a company 's management to bend or even break accounting rules to inflate reported net income is an example of:
A. An ethical dilemma.
B. An accounting theory issue.
C. A technical accounting issue.
D. None of the above is correct. 6. The assumption that in the absence of contrary information a business entity will continue indefinitely is the:
A. Periodicity assumption.
B. Entity assumption.
C. Going concern assumption.
D. Historical cost assumption. 7. Ace Bonding Company purchased merchandise inventory on account. The inventory costs $2,000 and is expected to sell for $3,000. How should Ace record the purchase? A. Option A
B. Option B
C. Option C
D. Option D Note: The $3,000 sales price is irrelevant for this example as no sale takes place. Here we are only concerned with recording the acquisition of inventory.
8. The adjusting entry required when amounts previously recorded as unearned revenues are earned includes:
A. A debit to a liability.
B. A debit to an asset.
C. A credit to a

You May Also Find These Documents Helpful

  • Good Essays

    Weekly Reflection Acc290

    • 439 Words
    • 2 Pages

    The importance of knowing how to adjust entries is to ensure that the revenue and matching principles are followed (Kimmel, Weygandt, & Kieso, 2009). It is necessary because when a trial balance is prepared, the information may not be current. The adjustments need to be made when financial statements are prepared because it is counter-productive to record some events on a daily basis. The entries affected by adjusting entries are prepaid expenses, insurance, depreciation, and supplies (Kimmel, Weygandt, & Kieso, 2009).…

    • 439 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Week 8 Acc 290

    • 582 Words
    • 3 Pages

    BE5-2: Pocras Company buys merchandise on account from Wedell Company. The selling price of the goods is $900 and the cost of the goods sold is $590. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies.…

    • 582 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Acc 491

    • 1256 Words
    • 6 Pages

    | (Analytical procedures) In audit planning the audit of Construction Industry Resources, Inc., a building supply company. You have completed analytic procedures relevant to purchases and inventory. The results of these procedures are included in Figure 8.13.Figure 8.13. Selected Financial Information ($000)…

    • 1256 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Acc 201

    • 272 Words
    • 2 Pages

    |(Actual input quantity x Actual price) |(Actual input quantity x Budgeted price) |(Budgeted input quantity |…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Acc 543

    • 1057 Words
    • 5 Pages

    Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the tasks of determining which decisions provide the greatest returns.…

    • 1057 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    b. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account.…

    • 643 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Hrm 531 Week 3 Quiz

    • 4852 Words
    • 20 Pages

    87. On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the…

    • 4852 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Thuduc Centrifugal Concrete Workshop is established on May 1989, directly under Power Construction Company No.2 – Vietnam Electricity Coorporation, a professional manufacturer on industrial concrete products (major are poles).…

    • 5574 Words
    • 23 Pages
    Powerful Essays
  • Satisfactory Essays

    Financial statements

    • 634 Words
    • 3 Pages

    Relevance and reliability are two of the four key qualitative characteristics of financial accounting information. The others being understandability and comparability.…

    • 634 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Finance Practice

    • 276 Words
    • 2 Pages

    3. Which of the following are examples of judgments made in the accounting reporting process?…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Acct 429

    • 320 Words
    • 1 Page

    A tax issue that has been brought to me for assistance regarding an audit notice from the IRS for Peaceful Inc.…

    • 320 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    301

    • 644 Words
    • 2 Pages

    C) It is important for a social worker to use the feedbackto improve their practice because if it is ignored bad practice will continue, the service user will feel ignored and no longer valid, it relates to practice, it will…

    • 644 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Business owners can use accounting information to conduct a financial analysis of their companies’ operations. Accounting information often has quantitative and qualitative characteristics. Quantitative characteristics refer to the calculation of financial transactions. Qualitative characteristics include the business owner’s perceived importance of financial information. Business owners often require financial information when making business decisions. Incorrect or inappropriate information can hamper decision-making or cause business owners to make incorrect assessments about their companies.…

    • 578 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. The four principal qualitative characteristics are understandability, relevance, reliability and comparability. It is also pointed out that these qualitative characteristics may need to be balanced against one another. (John Wiley& Sons Australia, Ltd, 2009) The relative importance of the characteristics in different cases is a matter of professional judgment.…

    • 846 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    acct 551

    • 1639 Words
    • 8 Pages

    E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet.…

    • 1639 Words
    • 8 Pages
    Powerful Essays