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1. 1What is a benefit of technology in modern business practice?

   1. AIt makes up for a lack of understanding of accounting.
   2. BIt increases the time, effort, and cost of recording transactions
   3. Cechnology does not make more information available to users.
   4. DIt makes information more available to users.
2. 2select all internal users

   1. Aofficers
   2. Bmanagers
   3. Csharholders
   4. Dsales staff
   5. Econtrollers
   6. Flenders
   7. Gcustomers
3. 3select all external users

   1. Alenders
   2. Bshareholders
   3. Cproduction manager
   4. Dgovernments
   5. Emanagers
   6. Fconsumer groups
   7. Gcustomers
4. 4Certified Public Accountants:

   1. A
      Are required to exhibit ethical character.
      
   2. BReceive a certificate that denotes their professional standing
   3. C Must meet education and experience requirements and pass an examination.
   4. DAlll of the above
5. 5Which of the following is true about ethics?

   1. AFor information to be useful, it must be trusted.
   2. BEthics are beliefs that distinguish right from wrong.
   3. CEthics are accepted standards of good and bad behavior.
   4. DIdentifying the proper ethical path is sometimes difficult.
   5. EALL OF THE ABOVE
6. 6
   Which form of ownership provides all owners with the least amount of risk to their personal assets?

   1. Apartner ship
   2. Bsole proprietorship
   3. Ccorporation
7. 7Going-concern assumption

   1. AA business is distinct from its owners.
   2. BA business has an indefinite life span.
      
   3. CAccounting information is based on actual cost
8. 8Business entity assumption

   1. ARevenue is recognized (that is, recorded) when cash is received from customers for goods or services provided.
   2. BTransactions and events can be expressed in monetary, or money, units.
   3. CA business is distinct from its owners.
9. 9Measurement principle

   1. AAccounting information is based on actual cost
   2. BA business is distinct from its owners.
   3. CTransactions and events can be expressed in monetary, or money, units.
10. 10Revenue recognition principle

    1. ARevenue is recognized (that is, recorded) when cash is received from customers for goods or services provided.
    2. Brevenue is recognized (or recorded) when earned; proceeds from selling products or services need not be in cash.
    3. Cransactions and events can be expressed in monetary, or money, units.

11. 11Monetary unit assumption

    1. AA business is distinct from its owners.
       
    2. BA business has an indefinite life span.
    3. CTransactions and events can be expressed in monetary, or money, units.
    4. DAccounting information is based on actual cost
12. 12The measurement principle means that accounting information is based on actual cost because cost is considered to be:

    1. Abiased
    2. Bsubjective
    3. Cobjective
13. 13Which of the following represent creditors' claim on the assets of a company?

    1. Aequity
    2. Baccounts receivable
    3. Cliabilities
    4. Dassets
14. 14
    If assets increased by $5,000 and equity increased by $1,000 during the accounting period, then how did liabilities change?
    

    1. Aincreased by 4000
    2. Bdecreased by 4000
    3. Cincreased by 6000
15. 15The owner of a computer services business was able to acquire a new computer, valued at $5,000, by establishing an account with the computer vendor, Com Pewters Unlimited. There was no down payment. How does this transaction impact the accounting equation?

    1. AIncrease an asset, increase equity
    2. BIncrease an asset, increase a liability
    3. CDecrease an asset, decrease equity
    4. DIncrease one asset and decrease another asset
16. 16
    Keith Manich deposited $5,000 in a bank account he established for a pet store that he is going to own and operate as KM's Pets, Incorporated. How does this transaction impact the accounting equation?
    

    1. ADecrease an asset and decrease equity
    2. BIncrease an asset and increase a liability
    3. CIncrease an asset and increase equity
17. 17A local fast-food outlet hired a first-year accounting student to work as its cashier (the person who collects cash from customers). The company pays the student after she works for a week. How does this transaction impact the accounting equation?

    1. AIncrease one asset and decrease another asset
    2. BDecrease an asset, decrease owner's equity
    3. CDecrease an asset, decrease a liability
       
18. 18Cash dividends are declared and paid to the stockholders of the corporation. How does this transaction impact the accounting equation?

    1. AIncrease one asset and decrease another asset
    2. BDecrease an asset, decrease a liability
    3. CDecrease an asset, decrease equity
19. 19Which of the following financial statements does not cover a period of time?

    1. Abalance sheet
    2. Bincome statement
    3. Ccash flows
20. 20what is accounting?

    1. Ais an information and measurement system that identifies, records and communicates relevant, reliable, and comparable information about an organization's business activities.
    2. Bthe recording of transitions and events, either manually or electronically
    3. Caccounting information that are not directly involved in running the organization. (shareholders, investors, lenders, directors, customers, suppliers, regulators, lawyers, brokers and the press) They have limited access to an organizations information.
21. 21what is accounting?

    1. Ais an information and measurement system that identifies, records and communicates relevant, reliable, and comparable information about an organization's business activities.
    2. Bthe recording of transitions and events, either manually or electronically
    3. Caccounting information that are not directly involved in running the organization. (shareholders, investors, lenders, directors, customers, suppliers, regulators, lawyers, brokers and the press) They have limited access to an organizations information.

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Quiz on Untitled, created by sarah.vissing on 10/06/2014.

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