财务会计概念与应用题库Stu14Chapmaq

1、财务会计概念与应用题库stu. 14 chap maq14 chapters mc。chapter 11. the functions of an accounting system include all of the following except to:a. gather marketing data.b. handle routine bookkeeping tasks.c. structure information so that it can be used to evaluate performance of a business.d. analyze transaction

2、s.2 accounting information is useful for several kinds of decisions. for which decision situation would accounting information not be useful?a. bankers evaluating the riskiness of ioans.b. corporate managers controlling costs.c. production managers evaluating the quality of materials used in manufac

3、turing.d. corporate managers setting prices.3 the primary users of external financial reports are:a. those who direct day-to-day operations of a business enterprise.b. individuals who have an economic interest in the firm but who are not part of management.c. managers of an enteiprise who plan, impl

4、ement plans, and control costs.d. none of the above.4 which primary financial statement shows a business enterprises resources, obligations, and equities?a. statement of cash flowsb. balance sheetc. income statementd. statement of retained earnings5 which primary financial statement shows a business

5、 enterprises excess of revenues over expenses?a. statement of cash flowsb. balance sheetc. income statementd. statement of retained earnings6 which of the following is not true of the securities and exchange commission (sec)?a. the sec is charged with protecting investors from losing money.b. congre

6、ss has given the sec specific legal authority to establish accounting standards.c. as a result of the accounting scandals of 2001-2002. the sec was given more authority to set standards.d. the sec could take over the role of standard setting in accounting if the fasb loses credibility.7 which of the

7、 following is not tnie regarding the international accounting standards board (iasb)?a. iasb standards are gaining increasing acceptance throughout the world.b. the purpose of the iasb is to harmonize conflicting accounting standards of various countries.c. the accounting standards produced by the i

8、asb are referred to as international financial reporting standards (ifrss) note: the 200 country reference was not cited in the text.d. the iasb standards are accepted in the united states.8 several organizations have developed codes of ethics for accountants. which of the following organizations di

9、d not develop a code of ethics for accountants?a. american institute of certified public accountants (aicpa)b. institute of management accountants (ima)c. securities exchange commission (sec)d. all of the above developed a code of ethics for accountants.9 technology has impacted accounting in many w

10、ays. which of the following is not a change in accounting due to technology?a. technology has replaced judgment.b. technology has allowed users access to more than just summarized data.c. technology allows more detailed information to be gathered.d. technology has reduced the likelihood of errors in

11、 accounting data.chapter 21 .obligations to pay cash, transfer other assets, or provide services are:a. assets.b. liabilities.c. equities.d. expenses.b2 the interrelationships among the financial statements is called:a. disclosure.b. articulation.c. recognition.d. reconciliation.3 the statement of f

12、inancial position is also known as the:a. statement of cash flows.b. balance sheet.c. income statement.d. retained earnings statement.4 which of the following is not normally considered to be an asset?a. retained earningsb. cashc. buildingsd. accounts receivable5 if a company has $15,000 in assets a

13、nd $10,000 in equities, then liabilities are: a. $25,000.b. $10,000.c. $5.000.d.$0.6 assets consumed through business operations are called:a. liabilities.b. expenses.c. equities.d. net income.7 gross profit is calculated as:a. sales - cost of goods sold.b. sales - operating expenses.c. sales - all

14、expenses.d. sales - income tax expense.8 when preparing a statement of cash flows, activities associated with buying and selling assets are:a. operating activities.b. investing activities.c. financing activities.d. revenue activities.9 if a corporation has assets of $250,000, liabilities of $70,000,

15、 and capital stock of $120.000, what is the amount of retained earnings?a. $30.000b. $0c. $60.000d. $140,00010 the idea that the business will continue to operate for the foreseeable future is known as the:a. arms-length transaction assumption.b. entity concept.c. going concern assumption.d. monetar

16、y measurement concept.11 the idea that a business is considered to be separate from its individual owners is known as the:a. arms-length transaction assumption.b. entity concept.c. going concern assumption.d. monetary measurement concept.12 in order for the data of a transaction to be accurately rep

17、resented, an assumption must be made that the transaction was conducted between buyer and seller with no bias toward either party. this concept is called the:a. arms-length transaction assumption.b. entity concept.c. going concern assumption.d. monetary measurement concept.chapter 31 when owners inv

18、est money in their business, the effect on the accounting equation is that the investment:a. increases assets and decreases owners1 equity.b. increases assets and increases liabilities.c. decreases assets and decreases owners* equity.d. increases assets and increases owners* equity.2 the purchase of

19、 inventory on credit:a. increases assets and decreases liabilities.b. increases liabilities and decreases assets.c. increases assets and increases liabilities.d. decreases assets and decreases liabilities.3 a revenue account is increased with:a. debits.b. credits.c. equities.d. none of the above.4 a

20、 companys retained earnings balance is increased by:a. net income.b. expenses.c. investments by owners.d. the declaration and payment of dividends.5 which of the following accounts would normally have a debit balance?a. revenuesb. expensesc. liabilitiesd. ownefs equity6 when transactions are posted

21、from the book of original entry, they are posted to the:a. general journal.b. general ledger.c. work sheets.d. trial balance.7 bosso company repaid a note payable of $20.000 and the interest due of $400. the journal entry to record this transaction would include a:a. debit to cash.b. credit to notes

22、 payable.c. debit to interest expense.d. credit to interest revenue.8 the journal entry to record the payment of wages in the amount of $52,000 to workers could include a:a. debit to wages expense.b. credit to accounts payable.c. debit to cash.d. credit to wages expense.9 the entry to record the col

23、lection of cash from customers would include a:a. debit to accounts receivable.b. debit to sales revenue.c. credit to cash.d. debit to cash.10 when a company earns revenue from sales to customers, the effects on the accounting equation may be:a. assets are increased, equities are decreased.b. assets

24、 are decreased, equities are decreased.c. assets are decreased, equities are increased.d. assets are increased, equities are increased.11 wagner inc. had a beginning cash balance of $14.000 on january l 2005. during january, the company recorded debits of $23,000 and credits of $25.000 to the cash a

25、ccount. the ending cash balance on january 31 would be a:a. debit balance of $16,000.b. credit balance of $16,000.c. debit balance of $12,000.d. credit balance of $12,000.12 on march 1, 2005, the cruston company had a beginning balance in the accounts payable account of $30,000. during march, the co

26、mpany recorded debits of $52.000 and credits of $47.000 to accounts payable. the ending accounts payable balance on march 31 would be a:a. debit balance of $35,000.b. credit balance of $35,000.c. debit balance of $25,000.d. credit balance of $25,000.13 the term compound entry means that the journal

27、entry has:a. more than two accounts involved in the entry.b. a debit amount greater than the credit amount.c. a credit amount greater than the debit amount.d. a debit amount less than a credit amount.14 after preparing its trial balance, the wright-way company found that total debits equaled total c

28、redits. this equality would assure the company that:a. there are no errors in the accounting records.b. no transactions were omitted from the accounting records.c. no transactions were recorded incorrectly.d. the accounting equation is in balance.chapter 41 the idea that the expenses incurred to gen

29、erate revenue for a given period should be matched against that revenue is called the:a. revenue recognition principle.b. realization concept.c. time period concept.d. matching principle.2 the process of dividing a companys operations into separate and distinct time periods so that reports can be pr

30、epared on a timely basis is the:a. fiscal year concept.b. revenue recognition principle.c. matching concept.d. time period concept.3 during 2005, the latrex corporation had cash and credit sales of $47,000 and $45,500 respectively. the company also collected accounts receivable of $26.700 and incurr

31、ed expenses of $68,500, 80 percent of which were paid during the year. in addition. latrex paid $24.000 for a12-inonth building rental, beginning on july 1, 2005. latrex*s accrual-basis net income (loss) for 2005 was:a. $12,000.b. $25.700.c. $0.d. $38,700.4 no matter the type of adjusting entry, whi

32、ch of the following accounts would not be affected by an adjusting entry?a. cashb. unearned revenuec. rent expensed. prepaid insurance5 a revenue that is collected before it has been earned is called a(n):a. accrued revenue.b. unrecorded revenue.c. deferred revenue.d. unearned revenue.6 expense item

33、s that have been incurred during a period but not recorded by the end of the period are:a. prepaid liabilities.b. prepaid expenses.c. deferred expenses.d. unrecorded liabilities.7 when preparing an adjusting entry for an unrecorded liability, there will normally be a:a. credit to an expense account.

34、b. debit to an expense account.c. debit to a prepaid asset account.d. credit to a revenue account.8 on october 1, 2005, the wolfzorn company was paid $14,000 for a job that would not be completed until march l 2006. on the date they were paid. wolfzorn credited a revenue account and debited cash. if

35、 wolfzorn fails to make an adjusting entry on december 31, 2005, the effects will be:a. understatement of revenues and overstatement of assets.b. understatement of revenues and overstatement of liabilities.c. overstatement of revenues and overstatement of liabilities.d. overstatement of revenues and

36、 understatement of liabilities.9 on september 1, 2005, blackburn corporation prepaid rent for a one-year period. debiting a prepaid rent account. if blackburn fails to make an adjusting entry on december 31, 2005, the effects will be:a. overstatement of assets and understatement of expenses.b. overs

37、tatement of assets and overstatement of expenses.c. understatement of assets and understatement of expenses.d. understatement of assets and overstatement of expenses.10 at year-end. gnmdwerk companys supplies account had a debit balance of s4,200. however, a count of the supplies revealed that the a

38、ctual balance was $2,300. the adjusting entry to record supplies used would include a:a. debit of $2,300 to the supplies expense account.b. debit of $1,900 to the supplies expense account.c. credit of $2300 to the supplies expense account.d. credit of $1,900 to the supplies expense account.11 hammon

39、d inc. had a credit balance of $1.800 in the unearned rent account on january 1, 2000. at the end of 2000. the credit balance in that account was $1.400. hammonds income statement reported rent revenue in the amount of $32,500 for the year. how much cash was received from rentals during the year?a.

40、$32,900b. $32,100c. $29,700d. unable to determine from the information given.12 which of the following is not a nominal account?a. advertising expenseb. consulting revenuec. rent expensed. retained earnings13 the set of entries that brings all nominal account balances to zero are called:a. adjusting

41、 entries.b. journal entries.c. closing entries.d. zeroing entries.chapter 51 recording $500 of advertising expense as prepaid rent will result in:a. an understatement of assets and an understatement of expenses.b. an overstatement of assets and an overstatement of expenses.c. an overstatement of ass

42、ets and an understatement of expenses.d. none of the above.2 failure to record the used portion of prepaid rent during the month has the following effect on the financial statements prepared at months end:a. overstates liabilities.b. overstates net income.c. understates assets.d. understates owners

43、equity.3 a purchase of $900 of supplies on account was journalized and posted as a $900 debit to supplies on hand and a $900 credit to accounts receivable. the entry to correct this error is:a. a $900 debit to accounts payable and a $900 credit to accounts receivable.b. a $900 debit to supplies on h

44、and and a $900 credit to accounts payable.c. a $900 debit to accounts receivable and a $900 credit to accounts payable.d. a $900 debit to accounts receivable and a $900 credit to supplies on hand.4 if an employee steals cash from a company and tries to cover up his actions by recording a fictitious

45、debit to miscellaneous expense and a credit to cash, then:a. expenses will be understated.b. net income will be overstated.c. net income will be understated.d. net income will be stated correctly.5 which of the following errors would be detected by preparing a trial balance?a. entering a debit to ac

46、counts receivable as a debit to cash.b. entering a transaction more than once.c. recording the debit part of a transaction, but not the credit part.d. all of the above.6 which one of the following errors causes net income to be understated?a. failure to record collection of an account receivable.b.

47、failure to record depreciation expense.c. failure to accrue revenue earned but not billed.d. failure to record the expired amount of prepaid rent.7 a company paid its rent for two years in advance on september l debiting prepaid rent for the full amount. if no adjusting entry is made at the end of t

48、he year, how does this affect the year-end financial statements?a. overstates revenueb. overstates expensesc. understates assetsd. overstates net income8 which of the following is not a valid control procedure?a. segregation of dutiesb. adequate documents and recordsc. independent checks on performa

49、nced. management assurances9 which of the following is tnie regarding an external auditors responsibility to find fraud?a. auditors are required to find all fraud.b. auditors must provide reasonable assurance that they have found all fraud.c. auditors must provide reasonable assurance that significa

50、nt fraud is not present in the financial statements.d. auditors have no responsibility to find fraud.10 companies that sell stock on the stock exchanges are required to obtain an independent audit of their accounting system and records. this audit must be conducted by a:a. certified internal auditor

51、.b. certified external auditor.c. certified professional accountant.d. certified public accountant.chapter 61 which type of the major activities of a business are best described as those events that occur less frequently than operating activities and the amounts involved are usually quite large?a. f

52、inancing activitiesb. earning activitiesc. investing activitiesd. none of the above2 the entry required to record a sales return by a customer could consist of:a. a debit to sales revenue and a credit to accounts receivable.b. a debit to sales returns and allowances and a credit to accounts receivab

53、le.c. debit to sales returns and allowances and a credit to inventory;d. debits to sales returns and allowances and cost of goods sold and credits to accounts receivable and inventory.e. clancy company sold $12.000 of merchandise to lee jones, with terms 2/10, n/30. if lee paid for one-third of the

54、merchandise within the discount period and two-thirds after the discount period, he paid a total of:a. $12,000.b. $11,760.c. $11,920.d. $11,852.4 goliath company had the following account balances: sales revenue, $150,000; sales returns and allowances, $3,000; sales discounts, $3,600; and bad debts,

55、 $600. given these balances, the amount of net sales is:a. $150,000.b. $147,000.c. $143,400.d. $142,800.5 when the direct write-off method of recognizing bad debt expense is used, the entry at the time of collection of a small account previously written off would:a. increase net income.b. increase t

56、he allowance for bad debt.c. decrease net income.d. decrease the allowance for bad debt.6 when the allowance method of recognizing bad debt expense is used, which of the following accounts would not be used to write off an account that is uncollectible?a. bad debt expenseb. accounts receivablec. all

57、owance for bad debtsd. all of the above accounts are used in the allowance method.7 when the allowance method of recognizing bad debt expense is used, the entry to write off a specific customer account would:a. increase net income.b. have no effect on net income.c. increase the accounts receivable balance and increase net income.d. decrease the accounts receivable balance and decrease net income.8 when the allowance method is used to account for uncollectible accounts, the net amount of accounts receivable:a. increases w