ACC 557 Week 2 Quiz – Strayer NEW
Click On The Link Below To
Purchase A+ Graded Material
Instant Download
All
possible questions with answers
ACC 557
Quiz 1 Chapter 1 Week 2 perfect Solution
Owners
of business firms are the only people who need accounting information.
LO1 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Transactions
that can be measured in dollars and cents are recorded in the financial
information system.
Ans: LO1
BT: K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
hiring of a new company president is an economic event recorded by the
financial information system.
LO1 BT:
C Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Management
of a business enterprise is the major external user of information.
LO2 BT:
K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Accounting
communicates financial information about a business enterprise to both internal
and external users.
Ans: LO2
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Accounting
information is used only by external users with a financial interest in a
business enterprise.
LO2 BT:
C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Financial
statements are the major means of communicating accounting information to
interested parties.
Ans: LO2
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Bookkeeping
and accounting are one and the same because the bookkeeping function includes
the accounting process.
LO2 BT:
C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
origins of accounting are attributed to Luca Pacioli, a famous mathematician.
Ans: LO2
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
study of accounting will be useful only if a student is interested in working
for a profit-oriented business firm.
LO2 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Private
accountants are accountants who are not employees of business enterprises.
LO2 BT:K
Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
study of accounting is not useful for a business career unless your career
objective is to become an accountant.
LO2 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
A
working knowledge of accounting is not relevant to a lawyer or an architect.
LO2 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Expressing
an opinion as to the fairness of the information presented in financial
statements is a service performed by CPAs.
Ans: LO2
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Accountants
rely on a fundamental business concept—ethical behavior—in reporting financial
information.
Ans: LO3
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
primary accounting standard-setting body in the United States is the
International Accounting Standards Board.
LO4 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
Financial Accounting Standards Board is a part of the Securities and Exchange
Commission.
LO4 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
Securities and Exchange Commission oversees U.S. financial markets and
accounting standard-setting bodies.
Ans: LO4
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The cost
and fair value of an asset are the same at the time of acquisition and in all
subsequent periods.
LO4 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Even though
a partnership is not a separate legal entity, for accounting purposes the
partnership affairs should be kept separate from the personal activities of the
owners.
Ans: LO5
BT: C Difficulty; Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
A
partnership must have more than one owner.
Ans: LO5
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
economic entity assumption requires that the activities of an entity be kept
separate and distinct from the activities of its owner and all other economic
entities.
Ans: LO5
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
monetary unit assumption states that transactions that can be measured in terms
of money should be recorded in the accounting records.
Ans: LO5
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
In order
to possess future service potential, an asset must have physical substance.
LO6 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Owners'
claims to total business assets take precedence over the claims of creditors
because owners invest assets in the business and are liable for losses.
LO6 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
basic accounting equation states that Assets = Liabilities.
LO6 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Accountants
record both internal and external transactions.
Ans: LO7
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Internal
transactions do not affect the basic accounting equation because they are
economic events that occur entirely within one company.
LO7 BT:
C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
purchase of store equipment for cash reduces stockholders’ equity by an equal
amount.
LO7 BT:
C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
purchase of office equipment on credit increases total assets and total
liabilities.
Ans: LO7
BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
primary purpose of the statement of cash flows is to provide information about
the cash receipts and cash payments of a company during a period.
Ans: LO8
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Net
income for the period is determined by subtracting total expenses and drawings
from total revenues.
LO8 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
income statement is sometimes referred to as the statement of operations.
Ans: LO8
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
A
balance sheet reports the assets and liabilities of a company for a specific
period of time.
LO8 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
ending retained earnings balance is reported on both the retained earnings
statement and the balance sheet.
Ans: LO8
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Identifying
is the process of keeping a chronological diary of events measured in dollars
and cents.
LO1 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Management
consulting includes examining the financial statements of companies and
expressing an opinion as to the fairness of their presentation.
LO2 BT:
K Difficulty; Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Accountants
do not have to worry about issues of ethics.
LO3 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Ethics AICPA BB: Critical Thinking AICPA
FN: Reporting
At the
time an asset is acquired, cost and fair value should be the same.
Ans: LO4
BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
monetary unit assumption requires that all dollar amounts be rounded to the
nearest dollar.
LO5 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
basic accounting equation is in balance when the creditor and ownership claims
against the business equal the assets.
Ans: LO6
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
External
transactions involve economic events between the company and some other enterprise
or party.
Ans: LO7
BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
In the
retained earnings statement, revenues are listed first, followed by expenses,
and net income (or net loss).
LO8 BT:
K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
MULTIPLE
CHOICE QUESTIONS
Accountants
refer to an economic event as a
purchase.
sale.
transaction.
change
in ownership.
Ans: LO1
BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
process of recording transactions has become more efficient because
fewer
events can be quantified in financial terms.
computers
are used in processing business events.
more
people have been hired to record business transactions.
business
events are recorded only at the end of the year.
LO1 BT:
K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
Communication
of economic events is the part of the accounting process that involves
identifying
economic events.
quantifying
transactions into dollars and cents.
preparing
accounting reports.
recording
and classifying information.
Ans: LO1
BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Which of
the following events cannot be quantified into dollars and cents and recorded
as an accounting transaction?
The
appointment of a new CPA firm to perform an audit.
The
purchase of a new computer.
The sale
of store equipment.
Payment
of income taxes.
LO1 BT:
C Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The use
of computers in recording business events
has made
the recording process more efficient.
does not
use the same principles as manual accounting systems.
has
greatly impacted the identification stage of the accounting process.
is
economical only for large businesses.
LO1 BT:
K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB: Critical
Thinking AICPA FN: Reporting
The
accounting process involves all of the following except
identifying
economic transactions that are relevant to the business.
communicating
financial information to users by preparing financial reports.
recording
nonquantifiable economic events.
analyzing
and interpreting financial reports.
Ans: LO1
BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
The
accounting process is correctly sequenced as
identification,
communication, recording.
recording,
communication, identification.
identification,
recording, communication.
communication,
recording, identification.
Ans: LO1
BT: K Difficulty: Easy TOT: 1.0 min. AACSB: Reflective Thinking AICPA BB:
Critical Thinking AICPA FN: Reporting
Which of
the following techniques are not used by accountants to interpret and report
financial information?
Graphs.
Special
memos for each class of external users.
Comments
Post a Comment