FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting in Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

Multiple Choice

Review LaterAdd Note

Review Later

The International Accounting Standards Board (IASB) :

A) Only applies to companies that are members of the European Union.
B) Is the only source of generally accepted accounting principles (GAAP) .
C) Has the authority to impose its standards on companies around the world.
D) Hopes to create harmony among accounting practices of different countries to improve comparability.
E) Is the government group that establishes reporting requirements for companies that issue stock to the investing public.

F) A) and D)
G) C) and E)

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

Internal operating activities include research and development, distribution, and human resources.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

The three major types of business activities are operating, financing, and investing.

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?

Owner financing refers to resources contributed by creditors or lenders.

________ explains changes in the owner's claim on the business's assets from net income or loss, owner investments, and owner withdrawals over a period of time.

The cost-benefit constraint prescribes that only information with benefits of disclosure less than the costs of providing it, need be disclosed.

All of the following are classified as liabilities except:

The Securities and Exchange Commission (SEC) is a government agency that has legal authority to establish GAAP.

All of the following are true regarding ethics except:

What distinguishes liabilities from equity?

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

The monetary assumption:

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Use the following information as of December 31 to determine equity. $\begin{array} { l r } \text { Cash } & \$ 57,000 \\\text { Buildings } & 175,000 \\\text { Equipment } & 206,000 \\\text { Liabilities } & 141,000\end{array}$

A limited liability company offers the limited liability of a corporation and the tax treatment of a partnership or proprietorship.

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Match the following terms with the appropriate definition. a. Financial accounting b. Ethics c. Recordkeeping d. Internal users e. Accounting f. Certified Public Accountant (CPA) g. Fraud triangle h. Managerial accounting i. External users ____ 1. An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities. ____ 2. The part of accounting that involves recording transactions and events, either electronically or manually. ____ 3. Persons using accounting information who are not directly involved in running the organization. ____ 4. Persons using accounting information who are directly involved in managing and operating the organization. ____ 5. The area of accounting that serves the decision-making needs of internal users. ____ 6. The area of accounting aimed at serving external users by providing them with general-purpose financial statements. ____ 7. Accounting specialists that have met educational and experience requirements, passed an examination and exhibit ethical characteristics to achieve a professional certification. ____ 8. Beliefs that distinguish right from wrong, considered accepted standards of good and bad behavior. ____ 9. A model that asserts the factors that must exist for a person to commit fraud.