大学会计学原理练习题

1、 True / False Questions 1. Accounting is an informationt system that identifies, records, and communicates relevant, reliable, and comparable formation about an organization's business activities. TRUE2. An accounting information system communicates data to help businesses make be

2、tter decisions. TRUE3. Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users. TRUE4. Internal operating activities include research and development, distribution, and human resources. TRUE s5

3、. External users include lenders, shareholders, customers, and regulators. TRUE6. Regulators often have legal authority over certain activities of organizations. TRUE7. Internal users include lenders, shareholders, brokers and managers. FALSE8. Opportunities in acc

4、ounting include auditing, consulting, market research, and tax planning. TRUE 9. Identifying the proper ethical path is easy. FALSE 10. Good ethics are good business. TRUE11. The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounti

5、ng oversight and stringent internal controls. FALSE 12. Owners of a corporation are called shareholders or stockholders. TRUE 13. In the partnership form of business, the owners are called stockholders. FALSE 14. A sole proprietorship is one or more indiv

6、iduals selling products or services for profit. FALSE 15. Accounting information is communicated to various parties through financial statements. TRUE 16. The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principl

7、es. TRUE17. The business entity principle means that a business will continue operating for an indefinite period of time. FALSE 18. Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements. TRUE 

8、;19. The business entity principle means that a business is accounted for separately from other business entities, including its owner or owners. TRUE20. As a general rule, revenues should not be recognized in the accounting records until it is received in cash. FALSE 21.

9、60;Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice. FALSE 22. General accounting principles arise from long-used accounting practice. TRUE23. A sole proprietorshi

10、p is a business owned by one or more persons. FALSE 24. Unlimited liability is an advantage of a sole proprietorship. FALSE 25 Understanding generally accepted accounting principles is not necessary to use and interpret financial statements. FALSE26. The Inter

11、national Accounting Standards board (IASB) has the authority to impose its standards on companies around the world. FALSE 27. The idea that a business will continue to operate until it can sell its assets to pay its creditors underlies the going-concern assumption. FALSE 28.

12、 A limited liability company offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation. FALSE 29. The Securities and Exchange Commission (SEC) is the government group that establishes reporting requirements for companies that issue sto

13、ck to the public. TRUE 30. The Securities and Exchange Commission (SEC) is the private group that sets both broad and specific accounting standards. FALSE 31. The three common forms of business ownership include sole proprietorship, partnership, and non-profit. FAL

14、SE32. The three major types of business activities are operating, financing, and investing. TRUE 33. Planning is defining an organization's ideas, goals, and actions. TRUE 45. Strategic management is the process of determining the right mix of operating activit

15、ies for the type of organization, its plans, and its markets. TRUE46. Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans. FALSE ve: C6 47. The three major activities of a business are re

16、cording, financing, and investing. FALSE  48. Investing activities are the acquiring and selling of resources that an organization uses to acquire and sell its products or services. TRUE y: C6 49. Owner financing refers to resources contributed by creditors or

17、 lenders. FALSE y 50. Revenues are increases in equity from a company's earning activities. TRUE sy 51. A net loss occurs when revenues exceed expenses. FALSE t 52. Net income occurs when revenues exceed expenses. TRUE t 

18、53. Expenses decrease equity and are the costs of assets or services used to earn revenues. TRUE t 54. Liabilities are the owner's claim on assets. FALSE sy 55. Assets are the resources owned or controlled by a business. TRUE sy 56.

19、0;Withdrawals are expenses. FALSE sy 57. The accounting equation can be restated as: Assets - Equity = Liabilities. TRUE t 58. The accounting equation implies that: Assets + Liabilities = Equity. FALSE t 59. The balance sheet is also called

20、 the statement of financial position because it describes the financial position of the business at a point in time. TRUE sy 60. Revenues occur when expenses exceed assets. FALSE sy 61. A company might provide a service or product on credit. "On credit&qu

21、ot; implies that the cash payment will occur on a later date. TRUE t 62. Owner's investments are gross increases in equity from a company's earnings activities. FALSE t 63. The legitimate claims of a business's creditors take precedence over the cl

22、aims of the business owner. TRUE lt 64. Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses. FALSE t 65. Every business transaction leaves the accounting equation in balance. TRUE sy 66.&#

23、160;An external transaction is an exchange of value within an organization. FALSE sy 67. From an accounting perspective, an event is a happening that affects an entity's accounting equation, but cannot be measured. FALSE sy 68. Owner's equity is increa

24、sed when cash is received from customers in payment of previously recorded accounts receivable. FALSE t 69. An owner's investment in a business always creates an asset (cash), a liability (note payable), and owner's equity (investment.) FALSE t 70. Net

25、 assets always increase when revenue is recorded. TRUE t 71. Return on assets is often stated in ratio form as the amount of average total assets divided by income. FALSE t 72. Return on assets is also known as return on investment. TRUE sy 73.&

26、#160;Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities. TRUE sy 74. Reebok's net income of $117 million and average assets of $1,400 million results in a return on assets of 8.36%. TRUE&

27、#160;t 75. Return on assets measures the effectiveness of an organization's ability to generate profit using its assets. TRUE t: A4 76. Risk is the amount of uncertainty about the return we expect to earn. TRUE gy: A4 77. Generally the lower the

28、risk, the lower the return that can be expected. TRUE g: A4 78. U. S. Government Treasury bonds provide high return and low risk to investors. FALSE g: A4 79. The four basic financial statements include the balance sheet, income statement, statement of owner&#

29、39;s equity, and statement of cash flows. TRUE sy 80. An income statement reports on investing and financing activities. FALSE y 81. A balance sheet covers a period of time such as a month or year. FALSE y 82. The income statement is a fina

30、ncial statement that shows revenues earned and expenses incurred during a specified period of time. TRUE y 83. The statement of cash flows shows the net effect of revenues and expenses for a reporting period. FALSE y 84. The income statement shows the financia

31、l position of a business on a specific date. FALSE y 85. The first section of the income statement reports cash from operations. FALSE y 86. The balance sheet is based on the accounting equation. TRUE y 87. Owner's contributions and wit

32、hdrawals are reported on the income statement. FALSE y 88. Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business. TRUE y 89. Operating activities include long-term borrowing and

33、 repaying cash from lenders, and cash investments or withdrawals by the owner. FALSE y 90. The purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets. FALSE y 91. The income statement rep

34、orts on operating activities at a point in time. FALSE y 92. The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time. TRUE y 93. Chuck Taylor invested $175,000 cash in FastForward. T

35、his amount would be reported in the statement of cash flows under financing activities. TRUE y 94.  Chuck Taylor withdrew $6,000 in cash from FastForward. This amount should be included as an expense on the income statement.  FALSE y   Multiple Choice Question

36、s  95. Accounting is an informationt system that: A. Identifies business activities.B. Records business activities.C. Communicates business activities.D. Helps people make better decisions.E. All of these. y: C1 96. Technology A. Has r

37、eplaced accounting.B. Has not changed the work that accountants do.C. Has closely linked accounting with consulting, planning, and other financial services.D. In accounting has replaced the need for decision makers.E. In accounting is only available to large corporations. AA

38、CSB: TechnologyyAICPA FN: Leveraging Technology: C1 97. The primary objective of financial accounting is: A. To serve the decision-making needs of internal users.B. To provide financial statements to help external users analyze an organization's activities.C. To mon

39、itor and control company activities.D. To provide information on both the costs and benefits of looking after products and services.E. To know what, when, and how much to produce. sy: C2 98. Internal users of accounting information include: A. Shareholders.B. 

40、Managers.C. Lenders.D. Suppliers.E. Customers. sy: C2 99. The area of accounting aimed at serving the decision making needs of internal users is: A. Financial accounting.B. Managerial accounting.C. External auditing.D. SEC reporting.E. Book

41、keeping. sy: C2 100. The operating functions of a business include: A. Research and development.B. Purchasing.C. Marketing.D. Distribution.E. All of these. sy: C2 101. sy: C3 102. Career opportunities in accounting include: A

42、. Auditing.B. Management consulting.C. Tax accounting.D. Cost accounting.E. All of these. sy: C3 103. Career opportunities in accounting include: A. Budgeting.B. Auditing.C. Cost accounting.D. Internal Auditing.E. All of these.

43、60;sy: C3 104. Accounting certifications include the: A. Certified Public Accountant.B. Certified Management Accountant.C. Certified Internal Auditor.D. Personal Financial SpecialistE. All of these. sy: C3 105. A Certified Public Accountant 

44、;A. Must meet education and experience requirementsB. Must pass an examinationC. Must exhibit ethical characterD. May also be a Certified Management Accountant.E. All of these. sy: C3 106. Ethical behavior requires: A. That auditors' pay not depe

45、nd on the figures in the client's reports.B. Auditors to invest in businesses they audit.C. Analysts to report information favorable to their companies.D. Managers to use accounting information to benefit themselves.E. All of these. AACSB: Ethicsl: C4 107. Soci

46、al responsibility: A. Is a concern for the impact of our actions on society.B. Is a code that helps in dealing with confidential information.C. Is required by the SEC.D. Requires that all businesses conduct social audits.E. All of these. AACSB: Ethicsy: C4 108

47、.  AACSB: Ethicsy: C4 109. slt: C5 110. Businesses can take the following form(s): A. Sole proprietorship.B. Common stock.C. Partnership.D. A and C only.E. All of these. sl: C5 111. A corporation: A. Is a business l

48、egally separate from its owners.B. Is controlled by the FASB.C. Has shareholders who have unlimited liability for the acts of the corporation.D. Is the same as a limited liability partnership.E. All of these. sl: C5 112. The rules adopted by the accounting professi

49、on as guides in preparing financial statements are: A. Comprised of both general and specific principles.B. Known as generally accepted accounting principles.C. Abbreviated as GAAP.D. Intended to make information in financial statements relevant, reliable, and comparable.E.&

50、#160;All of these. sy: C5 113. The committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the: A. AICPA.B. FASB.C. CAP.D. SEC.E. 

51、;IASB. sAICPA BB: Global: C5 114. The private group that currently has the authority to establish generally accepted accounting principles is the: A. APB.B. FASB.C. AAA.D. AICPA.E. SEC. slt: C5 115. The accounting assumption that requires e

52、very business to be accounted for separately from other business entities, including its owner or owners is known as the: A. Objectivity principle.B. Business entity assumption.C. Going-concern assumption.D. Revenue recognition principle.E. Cost principle. sl: C5&#

53、160;116. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: A. Going-concern principle.B. Business entity principle.C. Objec

54、tivity principle.D. Cost Principle.E. Monetary unit principle. sl: C5 117. Rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial condition and activities of a business: A. Are comprised of both general and specifi

55、c principles.B. Are known as generally accepted accounting principles.C. Are abbreviated as GAAP.D. Arise from both long-used practices and from rulings of authoritative groups.E. All of these. sy: C5 119. To include the personal assets and transactions of a busine

56、ss's owner in the records and reports of the business would be in conflict with the: A. Objectivity principle.B. Realization principle.C. Business entity principle.D. Going-concern principle.E. Revenue recognition principle. sl: C5 120. The accounting

57、 principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the: A. Accounting equation.B. Cost principle.C. Going-concern principle.D. Realiz

58、ation principle.E. Business entity principle. sl: C5 121. Generally accepted accounting principles: A. Are based on long used accounting practices.B. Are basic assumptions, concepts, and guidelines in preparing financial statements.C. Are detailed rules used i

59、n reporting on business transactions and events.D. Arise from the rulings of authoritative bodies.E. All of these. sl: C5 122. The objectivity principle: A. Means that information is supported by independent, unbiased evidence.B. Means that information can be

60、based on what the preparer thinks is true.C. Means that financial statements should contain information that is optimistic.D. Means that a business may not reorganize revenue until cash is received.E. All of these. sl: C5 123. The rule that (1) requires revenue to be re

61、cognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the

62、: A. Going-concern principle.B. Cost principle.C. Revenue recognition principle.D. Objectivity principle.E. Business entity principle sl: C5 124. The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the: A. Revenue recognition principle.B. Going-concern principle.C. Objectivity principle.D. Busin