test 20 questions this is a timed test and it needs to be done in 30 mins!!!!
Question 1
By definition, which type of organization has stockholders?
Partnerships
Sole Proprietorships
Merchandisers
Corporations
1 points
Question 2
The concept that dictates accountants to assume the business will continue to operate into the future is:
Going Concern
Materiality
Historical Cost
Conservatism
1 points
Question 3
The Maximum Experience Company acquired a building for $500,000. Maximum Experience had an appraisal done and found that the building was worth $575,000. The seller had paid $300,000 for the building six years ago. Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?
Revenue recognition principle
Business entity principle
Cost principle
Going-concern principle
1 points
Question 4
On December 15, 2013, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2014. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2014 and not 2013?
Monetary unit principle
Cost principle
Revenue recognition principle
Going-concern principle
1 points
Question 5
Marian Mosely is the owner of Mosely Accounting Services. Which accounting assumption requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services?
Cost assumption
Business entity assumption
Going-concern assumption
Full disclosure assumption
1 points
Question 6
The primary objective of financial accounting is to:
Provide financial statements to help external users analyze and interpret an organization’s activities.
Monitor and control company activities.
Provide information on both the costs and benefits of managing products and services.
Serve the decision-making needs of internal users.
1 points
Question 7
Generally accepted accounting Principles:
Intend to make information on the financial statements relevant, reliable, and comparable.
Oversees Security and Exchange Commission
Focus on the review of a situation.
Never change.
1 points
Question 8
Which of the following is
NOT a part of SOX?
Public Company Accounting Oversight Board
Includes standards for all United States boards, management, and accounting firms
Auditor independence
Corporate senior executives take responsibility for accuracy and completeness
1 points
Question 9
All of the following are advantages of the corporate form of business
EXCEPT :
Limited liability of owners
Ease of raising capital
Flow through taxation of owners
Double taxation of dividends
1 points
Question 10
The Income Statement shows:
Assets, liabilities, and equity of a company
The results of operations over a period of time
Financial position of an organization at a point in time
a reconciliation of the beginning and ending balance of the statement of retained earnings
1 points
Question 11
The accounting equation is best stated as:
Assets=Liabilities+Equity
Equity=Liabilities-assets
Liabilities=Assets+Equity
Assets=Liabilites-equity
1 points
Question 12
Hunting & Fishing Corporation has revenues of $100,000, expenses of $80,000, and dividends of $12,000 for the year. What is their net income?
$20,000
$92,000
$112,000
$88,000
1 points
Question 13
Revenues, expenses and dividends are all a part of:
Liabilities
The Income Statement
Assets
Retained Earnings
1 points
Question 14
Miranda opens her business by investing $12,000. How does this affect the accounting equation?
Increase Cash and decrease Equity
Increase Cash and Increase Equity
Decrease Cash and Increase Equity
Increase Equity and Decrease Liabilities
1 points
Question 15
A net income or loss is originally shown on the:
Balance Sheet
Income statement
Statement of Retained Earnings
Cash Flow Statement
1 points
Question 16
Which of the following statements illustrates the accounting equation?
Balance Sheet
Cash Flow Statement
Income statement
Statement of Retained Earnings
1 points
Question 17
If equity is $300,000 and liabilities are $192,000, then assets equal:
$492,000
$108,000
$192,000
$300,000
1 points
Question 18
Accounts payable appear on which of the following statements?
Statement of cash flows
Statement of retained earnings
Balance sheet
Income statement
1 points
Question 19
How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?
+$10,000 accounts receivable, +$10,000 cash.
+$10,000 accounts receivable, +$10,000 revenue.
+$10,000 accounts receivable, -$10,000 accounts payable.
+$10,000 accounts receivable, +$10,000 accounts payable.
1 points
Question 20
The financial statement that describes where a company’s cash came from and how it was spent during the period is the:
Statement of cash flows.
Income statement.
Balance sheet.
Statement of financial position.