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Mid Term Accounting Quiz The officer of a corporation responsible for the firms
published financial statements A+ Complete Answer
1. The officer of a corporation responsible for the firms published financial statements
would be most concerned about pronouncements of the:
A. FASB.
B. AICPA.
C. GASB.
D. SEC.
E. IRS.
2. Which of the following is not a characteristic or limitation of the kind of information
that financial reporting by business enterprises can provide?
A. The information results in approximate, rather than exact, measures.
B. The information largely reflects the financial effects of transactions that have already
happened.
C. The information is provided and used at a cost.
D. All of the above are characteristics or limitations of the kind of information that
financial reporting by business enterprises can provide.
3. The ethical concept of independence means that an accountant employed:
A. By a corporation cannot prepare financial statements for use by the companys bank.
B. By one company cannot work part-time for another company.
C. By an auditing firm cannot own any stock in the company being audited.
D. By one company cannot accept a job with another company in the same industry.
4. The objectives of financial reporting for non-business enterprises:
A. Are exactly the same as those for business enterprises.
B. Focus on providing information for resource providers, rather than investors.
C. Have more of an internal utilization rather than external reporting focus.
D. Do not give consideration to the cost of providing information.
5. The ethical concept of integrity means that an individual must:
A. Sign a pledge to abide by all laws and regulations.
B. Report to a supervisor any violation of the code of conduct of her company that is
observed.
C. Read, understand, and agree to follow all provisions of her employers code of
conduct.
D. Attempt to be honest and forthright in dealings and communications with others.
6. Which of the following is an objective of financial reporting by business enterprises?
A. Financial reporting should provide assurance that all liabilities of business
enterprises will be paid.
B. Financial reporting should show the timing and amount of future cash dividends to
potential investors.
C. The primary focus of financial reporting is information about the assets of the entity.
D. Financial reporting should provide information about the economic resources of an
enterprise, the claims to those resources, and changes in those resources and claims to
them.
7. Which of the following is true about the IASB?
A. Created to promote world acceptance and observation of accounting and financial
reports.
B. The IASB is a private body and the pronouncements cannot be enforced.
C. Both A and B are correct.
D. None of the above is correct.
8. The provisions of the Sarbanes-Oxley Act of 2002 had the following components:
A. Enforce auditing.
B. Attestation.
C. Quality control.
D. None of the above are provisions.
E. A, B and C are correct.
9. Expenses are:
A. cash disbursements.
B. decreases in net assets from uninsured accidents.
C. decreases in net assets from dividends to stockholders.
D. decreases in net assets resulting from usual operating activities.
10. The purpose of the income statement is to show the:
A. change in the fair market value of the assets from the prior income statement.
B. market value per share of stock at the date of the statement.
C. revenues collected during the period covered by the statement.
D. net income or net loss for the period covered by the statement.
11. The Statement of Changes in Owners Equity shows:
A. the change in cash during a year.
B. revenues, expenses, and liabilities for the period.
C. net income and dividends for the period.
D. paid-in capital and long-term debt at the end of the period.
12. Paid-in Capital represents:
A. Earnings retained for use in the business.
B. The amount invested in the entity by the owners.
C. Market value of the entitys common stock.
D. Net assets of the entity at the date of the statement.
C. Available-for-sale.
D. All of the above.
49. When a firm uses the LIFO inventory cost flow assumption:
A. cost of goods sold will be greater than if FIFO were used.
B. net income will be greater than if FIFO were used.
C. cost of goods sold will be the same as if FIFO were used.
D. better matching of revenue and expense is achieved than under FIFO.
50. Accounts receivable are reported at:
A. Net realizable value.
B. Historical cost.
C. Weighted average cost.
D. Market value.