Question 1

Most companies are on a 51-52 week fiscal year.

Accepted Answer

A) True 
 B)False  False

Question 2

The Sarbanes-Oxley Act has had an insignificant effect on the relationship between the company and the internal auditor.

Accepted Answer

A) True 
 B)False  False

Question 3

Match the letter of each Concept Statement with the Concept Statement title.
-Qualitative Characteristics of Accounting Information

Accepted Answer

A) Statement of Financial Accounting Concepts No.1 
B) Statement of Financial Accounting Concepts No.2 
C) Statement of Financial Accounting Concepts No.3 
D) Statement of Financial Accounting Concepts No.4 
E) Statement of Financial Accounting Concepts No.5
F)Statement of Financial Accounting Concepts No.6
G)Statement of Financial Accounting Concepts No.7 
A) Statement of Financial Accounting Concepts No.1 
B) Statement of Financial Accounting Concepts No.2 
C) Statement of Financial Accounting Concepts No.3 
D) Statement of Financial Accounting Concepts No.4 
E) Statement of Financial Accounting Concepts No.5
F)Statement of Financial Accounting Concepts No.6
G)Statement of Financial Accounting Concepts No.7 B

Question 4

The time period assumption indicates that the entity will remain in business for an indefinite period time.

Accepted Answer

A) True 
 B)False

Question 5

The following data relate to Gorr Company for the year ended December 31,2012.Gorr Company uses the accrual basis. $\begin{array}{llcc}
  \text {Sales for cash } &\$200,000  \
 \text {Sales for credit } &220,000\
 \text { Cost of inventory sold } &180,000\
 \text { Collections from customers } &300,000\
 \text { Purchases of inventory on credit} &190,000\
 \text { Payment for purchases} &180,000\
 \text {Selling expenses (accual basis) } &50,000\
 \text { Payment for selling expenses } &60,000
\end{array}$ 
Which of the following represents income for Gorr Company for the year ended December 31,2010?

Accepted Answer

A) $180,000 
B) $185,000 
C) $190,000 
D) $200,000 
E) None of the answers are correct. 
A) $180,000 
B) $185,000 
C) $190,000 
D) $200,000 
E) None of the answers are correct.

Question 6

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-Standard of measure for financial statements.

Accepted Answer

A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices 
A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices

Question 7

The Sarbanes-Oxley Act has materiality implications.

Accepted Answer

A) True 
 B)False

Question 8

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-Requires the entity to give the same treatment to comparable transactions.

Accepted Answer

A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices 
A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices

Question 9

Relevance and reliability are two primary qualities that make accounting information useful for decision making.

Accepted Answer

A) True 
 B)False

Question 10

The cash basis recognizes revenue when cash is received and expenses when cash is paid.

Accepted Answer

A) True 
 B)False

Question 11

Match the letter of each element with the appropriate definition.
-A decrease in the equity of a particular business enterprise resulting from transferring assets,rendering services,or incurring liabilities by the enterprise to owners.Decreases ownership interest (or equity)in an enterprise.

Accepted Answer

A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses 
A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Question 12

Accountants normally recognize revenue when cash is received.

Accepted Answer

A) True 
 B)False

Question 13

By law,the setting of accounting standards is the responsibility of the:

Accepted Answer

A) AICPA Committee on Accounting Procedure. 
B) New York Stock Exchange. 
C) Accounting Principles Board. 
D) Securities and Exchange Commission. 
E) Financial Accounting Standards Board. 
A) AICPA Committee on Accounting Procedure. 
B) New York Stock Exchange. 
C) Accounting Principles Board. 
D) Securities and Exchange Commission. 
E) Financial Accounting Standards Board.

Question 14

Charging off equipment that cost less than $20 would be an example of the application of:

Accepted Answer

A) going concern. 
B) cost. 
C) matching. 
D) materiality. 
E) realization. 
A) going concern. 
B) cost. 
C) matching. 
D) materiality. 
E) realization.

Question 15

Match the letter of each phrase with the appropriate definition.
-Issued by the Accounting Standards Division of the AICPA to influence the development of accounting standards.

Accepted Answer

A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)  
A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)

Question 16

Among the many responsibilities of the PCAOB is to adopt accounting standards.

Accepted Answer

A) True 
 B)False

Question 17

Match the letter of each element with the appropriate definition.
-Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both)from delivering or producing goods,rendering services,or engaging in other activities that constitute the entity's ongoing major or central operations.

Accepted Answer

A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses 
A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Question 18

Match the letter of each phrase with the appropriate definition.
-A professional accounting organization whose members are certified public accountants (CPAs).

Accepted Answer

A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)  
A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)

Question 19

Match the letter of each phrase with the appropriate definition.
-Issued by the SEC and give the SEC's official position on matters relating to financial reports.

Accepted Answer

A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)  
A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)

Question 20

Match the letter of each element with the appropriate definition.
-The residual interest in the assets of an entity after deducting its liabilities.

Accepted Answer

A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses 
A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Most companies are on a 51-52 week fiscal year.

The Sarbanes-Oxley Act has had an insignificant effect on the relationship between the company and the internal auditor.

Match the letter of each Concept Statement with the Concept Statement title. -Qualitative Characteristics of Accounting Information

The time period assumption indicates that the entity will remain in business for an indefinite period time.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Standard of measure for financial statements.

The Sarbanes-Oxley Act has materiality implications.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Requires the entity to give the same treatment to comparable transactions.

Relevance and reliability are two primary qualities that make accounting information useful for decision making.

The cash basis recognizes revenue when cash is received and expenses when cash is paid.

Match the letter of each element with the appropriate definition. -A decrease in the equity of a particular business enterprise resulting from transferring assets,rendering services,or incurring liabilities by the enterprise to owners.Decreases ownership interest (or equity)in an enterprise.

Accountants normally recognize revenue when cash is received.

By law,the setting of accounting standards is the responsibility of the:

Charging off equipment that cost less than $20 would be an example of the application of:

Match the letter of each phrase with the appropriate definition. -Issued by the Accounting Standards Division of the AICPA to influence the development of accounting standards.

Among the many responsibilities of the PCAOB is to adopt accounting standards.

Match the letter of each phrase with the appropriate definition. -A professional accounting organization whose members are certified public accountants (CPAs).

Match the letter of each phrase with the appropriate definition. -Issued by the SEC and give the SEC's official position on matters relating to financial reports.

Match the letter of each element with the appropriate definition. -The residual interest in the assets of an entity after deducting its liabilities.

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 1: Introduction to Financial Reporting

Most companies are on a 51-52 week fiscal year.

The Sarbanes-Oxley Act has had an insignificant effect on the relationship between the company and the internal auditor.

Match the letter of each Concept Statement with the Concept Statement title. -Qualitative Characteristics of Accounting Information

The time period assumption indicates that the entity will remain in business for an indefinite period time.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Standard of measure for financial statements.

The Sarbanes-Oxley Act has materiality implications.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Requires the entity to give the same treatment to comparable transactions.

Relevance and reliability are two primary qualities that make accounting information useful for decision making.

The cash basis recognizes revenue when cash is received and expenses when cash is paid.

Match the letter of each element with the appropriate definition. -A decrease in the equity of a particular business enterprise resulting from transferring assets,rendering services,or incurring liabilities by the enterprise to owners.Decreases ownership interest (or equity)in an enterprise.

Accountants normally recognize revenue when cash is received.

By law,the setting of accounting standards is the responsibility of the:

Charging off equipment that cost less than $20 would be an example of the application of:

Match the letter of each phrase with the appropriate definition. -Issued by the Accounting Standards Division of the AICPA to influence the development of accounting standards.

Among the many responsibilities of the PCAOB is to adopt accounting standards.

Match the letter of each phrase with the appropriate definition. -A professional accounting organization whose members are certified public accountants (CPAs).

Match the letter of each phrase with the appropriate definition. -Issued by the SEC and give the SEC's official position on matters relating to financial reports.

Match the letter of each element with the appropriate definition. -The residual interest in the assets of an entity after deducting its liabilities.

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters