140 test bank for financial accounting information for decisions 7th

Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Test Bank for Survey of Accounting 6th Free Test Bank for Fundamental Financial and Managerial Accounting Concepts Test Bank for International Accounting 4th Edition Free Test Bank for Financial Accounting Tools for Business Decision Making 6three Test Bank for Introduction to Financial Accounting 11th Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao Test Bank for Managerial Accounting with Answers Miễn phí Đề thi trắc nghiệm có đáp án, Test Bank for Management Accounting, Bank with Answers for Advanced Accounting,trắc nghiệm tài chính kế toán, free test bank, đề thi kế toán, đề thi tài chính DN Free download Test bank with Answers for Finance Accounting, Managerial Accounting

140 Test Bank for Financial Accounting Information for Decisions 7th Edition by Wild

Multiple Choice Questions

An example of a financing activity is:

1. A Buying office supplies

2. B Obtaining a long-term loan

3. C Buying office equipment

4. D Selling inventory

5. E Buying land

Our company has three times as many assets as it does

liabilities If total liabilities are $55,000, what is the amount of

5. E Owners’ equity cannot be determined from the given information

An example of an investing activity is:

1. A Paying wages of employees

2. B Paying dividends

3. C Purchasing land

4. D Selling inventory

5. E Contribution from owner

A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth

$140,000, and purchased for $137,000 The land should be

recorded in the purchaser's books at:

The major activities of a business include:

1. A Operating, investing, making a profit

2. B Investing, making a profit, operating - Given

3. C Making a profit, operating, borrowing

4. D Operating, investing, financing

5. E Investing, making a profit, financing

The distribution of assets to stockholders is called a(n):

4. D Are also called asset management

5. E Are also called strategic management

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?

1. A Monetary unit principle - Given

2. B Going-concern principle

3. C Cost principle

4. D Business entity principle

5. E Revenue recognition principle

The International Accounting Standards Board (IASB):

1. A Hopes to create harmony among accounting practices of different countries

2. B Is the government group that establishes reporting requirements for companies that issue stock to the public

3. C Has the authority to impose its standards on companies

4. D Is the only source of U.S generally accepted accounting principles (GAAP)

5. E Applies only to companies that are members of the European Union

Planning activities:

1. A Are the means organizations must use to pay for resources

2. B Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services

3. C Involve defining the ideas, goals, and actions of an organization

4. D Are the carrying out of an organization's plans

5. E Involve using resources to research, develop, purchase, produce, and market products and services.

Social responsibility:

1. A Is a concern for the impact of one's actions on society as a whole

2. B Is a code that helps in dealing with confidential information

3. C Is required by the SEC

4. D Requires that all businesses conduct social audits

5. E Is mandated by the federal government

The objectivity principle:

1. A Means that information is supported by independent, unbiased evidence

2. B Means that information can be based on what the preparer thinks is true

3. C Means that financial statement should contain information that is

optimistic

4. D Means that a business may not recognize revenue until cash is received

5. E Means the assets acquired must be recorded at what the company paid for them

Which of the following elements are found on the income

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?

1. A Monetary unit principle

2. B Going-concern principle

3. C Cost principle

4. D Business entity principle

5. E Revenue recognition principle

A company has twice as much owner's equity as it does liabilities

If total liabilities are $50,000, what amount of assets are owned

5. E Assets cannot be determined from the given information

To include the personal assets and transactions of a business's owner in the records and reports of the business would be in

conflict with the:

1. A Objectivity principle

2. B Realization principle

3. C Business entity principle

4. D Going-concern principle

5. E Revenue recognition principle

Recording the items on the financial statements in dollars is done because of the:

1. A Objectivity principle

2. B Monetary unit principle

3. C Revenue recognition principle

1. A To establish a business.

2. B To identify, record, and communicate business transactions

3. C To earn a large profit

4. D To reduce taxes owed for the business

5. E To establish credit for a company

Net income:

1. A Occurs when revenues exceed expenses

2. B Is the same as revenue

3. C Equals resources owned or controlled by a company

4. D Occurs when expenses exceed assets

5. E Represents assets taken from a company for an owner's personal use

Businesses can take all of the following forms except:

1. A Sole proprietorship

2. B Common stock

3. C Partnership

4. D Corporation

5. E Limited liability corporation

Generally accepted accounting Principles:

1. A Focus on the review of a situation

2. B Do not require financial statements

3. C Never change

4. D Intend to make information on the financial statements relevant, reliable, and comparable

5. E Oversees Security and Exchange Commission

Resources owned or controlled by a company that are expected

to yield benefits are:

The question of when revenue should be recognized on the

income statement (according to GAAP) is addressed by the:

1. A Revenue recognition principle

2. B Going-concern principle

3. C Objectivity principle

4. D Business entity principle

5. E Cost principle

The accounting principle that requires accounting information to

be based on actual cost and requires assets and services to be recorded initially at the amount of cash or cash equivalent given

5. E Business entity principle

If liabilities are $51,500 and assets are $173,425, then equity equals:

What is the opportunity component of the fraud triangle?

1. A A person thinks that there is a way to commit fraud without much chance

of getting caught

2. B A person has a really good reason to commit fraud

3. C A person does not think of the fraudulent activity as bad

4. D A person persuades two or more other people to assist with the fraud

5. E A person is concerned about the impact of their actions on society

The organization that attempts to create more harmony among the accounting practices of different countries by identifying

preferred practices and encouraging their worldwide acceptance

2. B The excess of expenses over assets.

3. C Resources owned or controlled by a company

4. D Increases in retained earnings from a company's earning activities

5. E The costs of assets or services used

Internal users of accounting information include:

1. A Is a legal entity separate and distinct from its owners

2. B Must have many owners

3. C Has shareholders who have unlimited liability for the acts of the

corporation

4. D Is the same as a limited liability partnership

5. E Does not have to pay taxes

An asset is:

1. A Only acquired with cash

2. B Something the company owns

3. C Only contributed by stockholders

4. D A company’s obligation to pay

5. E Is also called contributed capital

Why are ethics crucial to accounting?

1. A Ethical behavior creates the most profit for the business

2. B Ethics are a tool that helps the accountants balance the accounting equation

3. C For accounting information to be useful, it must be trusted and therefore the result of ethical decisions

4. D Ethics are important to consider when applying GAAP, but do not apply

to international accounting issues

5. E Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners’ equity

Technological advancement

1. A Has replaced accounting

2. B Has not changed the work that accountants do

3. C Has freed accounting professionals to concentrate more on the analysis and interpretation of information

4. D In accounting has replaced the need for decision makers

5. E In accounting is only available to large corporations

The principle prescribing that financial statements reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not

5. E Monetary unit principle

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?

1. A Monetary unit assumption

2. B Going-concern assumption

3. C Cost assumption

4. D Business entity assumption

5. E Full disclosure assumption

Which of the following statements best describes the relationship

of U.S GAAP and IFRS?

1. A They are identical

2. B They are entirely different conceptual frameworks

3. C They are similar but not identical

4. D Neither has anything to do with accounting

5. E They both relate only to publicly traded companies

Which of the following accounting principles dictates when

expenses are recognized?

1. A Revenue recognition principle

2. B Monetary unit principle

3. C Business entity principle

4. D Matching principle

5. E Full disclosure principle

Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:

The area of accounting aimed at serving the decision-making needs of internal users is:

Which of the following statements is not true about assets?

1. A They are economic resources owned or controlled by the business

2. B They are expected to provide future benefits to the business

3. C They appear on the balance sheet

4. D They appear on the statement of retained earnings

5. E Claims on them are shared between creditors and owners

Expenses:

1. A Increase retained earnings

2. B Are increases in retained earnings from a company's earning activity

3. C Are the costs of assets or services used to earn revenues

4. D Occur when retained earnings exceed revenue

5. E Are creditors' claims on assets

Congress passed the Sarbanes-Oxley Act to

1. A Provide jobs to U.S accountants and limit the number of jobs sent outside the country

2. B Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts

3. C Help curb financial abuses at companies that issue their stock to the public

4. D Force auditors to attest to the absolute accuracy of the financial

statements

5. E Require that all companies publicly disclose their internal control plans

Revenue is properly recognized:

1. A When the customer's order is received

2. B Only if the transaction creates an account receivable

3. C At the end of the accounting period

4. D Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price

5. E When cash from a sale is received

The description of the relation between a company's assets,

liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

1. A Income statement equation.

1. A Business entity principle

2. B Monetary unit principle

3. C Going-concern principle

4. D Objectivity principle

5. E Full disclosure principle

A limited partnership:

1. A Includes a general partner with unlimited liability

2. B Is subject to double taxation

3. C Has owners called stockholders

4. D Is the same as a corporation

5. E Must only have two partners

Which accounting assumption assumes that all accounting information can be reported monthly or yearly?

1. A Business entity assumption

2. B Monetary unit assumption

3. C Value assumption

4. D Cost assumption

5. E Time period assumption

Another name for equity is:

An example of an operating activity is:

1. A Paying wages

2. B Purchasing office equipment

3. C Borrowing money from a bank

4. D Selling stock

5. E Paying off a loan - Given

Which of the following elements are found on the balance sheet?

1. A ABC Company, For the year ended 12/31/13, Balance Sheet

2. B For the year ended 12/31/13, Balance Sheet, ABC Company

3. C Balance Sheet, 12/31/13, ABC Company

4. D 12/31/13, ABC Company, Balance Sheet

5. E ABC Company, Balance Sheet, 12/31/13

Identifying business activities requires selecting transactions and events relevant to an organization Which of the following events would be recorded in the accounting records of Acme Car Wash?

1. A Acme washes 500 cars

2. B J.B Smith, a customer, buys lunch at the restaurant next door to Acme while waiting for her car to be washed

3. C Clean Company, a supplier, sells 50 pounds of soap to ABC Company

4. D Sudsey Company, a supplier, goes out of business

5. E Acme hires Andrea as a receptionist

The owners of a partnership:

1. A Have created an entity that can also be called a sole proprietorship

2. B Have unlimited liability

3. C Have to have a written agreement in order to be legal

4. D Have created a legal organization separate from its owners

5. E Are called shareholders

Net income is:

1. A Assets minus liabilities

2. B The excess of revenues over expenses

3. C An asset

4. D The same as revenue

5. E The excess of expenses over retained earnings.

Creditors' claims on the assets of a company are called:

2. B Represents the amount of assets owners put into a business

3. C Equals assets minus liabilities

4. D Is the excess of revenues over expenses

5. E Represents the owners' claims against assets

According to generally accepted accounting principles, a

company's balance sheet should show the company's assets at:

1. A The cash equivalent value of what was given up

2. B The current market value of the assets at the balance sheet date

3. C The cash paid to acquire them, even if something other than cash was given in the exchange

4. D The best estimate from a certified internal auditor

5. E The objective value to external users

The difference between a company's assets and its liabilities is:

Ethical behavior requires:

1. A That an auditor’s pay not depend on the figures in the client's reports

2. B Auditors to invest in businesses they audit

3. C Analysts to report information favorable to their companies

4. D Managers to use accounting information to benefit themselves

5. E That an auditor provides a favorable opinion.

The primary objective of financial accounting is to:

1. A Serve the decision-making needs of internal users

2. B Provide financial statements to help external users analyze and interpret

an organization's activities

3. C Monitor and control company activities

4. D Provide information on both the costs and benefits of managing products and services

5. E Know what, when and how much to produce

The principle that (A) requires revenue to be recognized at the time it is earned, (B) allows the inflow of assets associated with revenue to be in a form other than cash, and (C) 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:

1. A Going-concern principle

2. B Cost principle

3. C Revenue recognition principle

4. D Objectivity principle

5. E Business entity principle

140 Free Test Bank for Financial Accounting

Information for Decisions 7th Edition by Wild Multiple Choice Questions - Page 2

The income statement reports all of the following except:

1. A Revenues earned by a business

2. B Expenses incurred by a business

3. C Assets owned by a business

4. D Net income or loss earned by a business

5. E The time period over which the earnings occurred

Claire Spa receives a check for $250 for services previously

rendered on account How would Claire Spa record this

transaction?

1. A Cash increases by $250 and Spa Services Revenue increases by $250

2. B Accounts Receivable increases by $250 and Spa Services Revenue increases by $250

3. C Cash increases by $250 and Spa Services Revenue decreases by $250

4. D Cash increases by $250 and Accounts Receivable increases by $250

5. E Cash increases by $250 and Accounts Receivable decreases by $250

If net income for the period was $134,250, dividends distributed were $76,530, and ending retained earnings was $862,520, what was the beginning retained earnings for the period?

1. A Cash decreases by $300 and Utilities Expense increases by $300

2. B Accounts Payable increases by $300 and Utilities Expense increases by

$300

3. C Accounts Payable decreases by $300 and Utilities Expense increases by

$300

4. D Cash decreases by $300 and Accounts Payable decreases by $300

5. E Cash increases by $300 and Utility Expense decreases by $300

Chao Xu starts a consulting business called Networkers Xu

invests $10,000 cash and $5,000 of equipment in Networkers in exchange for its common stock How would Networkers record this transaction?

1. A Cash increases by $10,000, Equipment increases by $5,000, and

Consulting Revenue increases by $15,000

2. B Cash increases by $10,000, Equipment increases by $5,000, and

Consulting Revenue decreases by $15,000

3. C Cash increases by $10,000, Equipment increases by $5,000, and

Common Stock decreases by $15,000 - Given

4. D Cash increases by $10,000, Equipment increases by $5,000, and

Common Stock increases by $15,000

5. E Cash increases by $10,000, Equipment decreases by $5,000, and

Common Stock increases by $5,000

Ending liabilities were $67,000, beginning equity was $87,000, common stock issued during year totaled $31,000, expenses for the year were $22,000, dividends declared totaled $13,000,

ending equity for the year was $181,000, and beginning assets for the year were $222,000 What was net income for the year?

1. A $ 41,000

2. B $ 76,000