选择题复习题.doc

1. The primary objective of financial reporting is . A. to present information in an ethical manner B. to provide information to the federal government C. to provide information useful for investment and lending decisions D. to provide information useful to managers in making daily decisions2. On July 31, $3600 is paid for a one-year insurance policy. On December 31, the adjusting entry for prepaid insurance would include .A. a debit to Insurance Expense, $3600 B. a credit to Prepaid Insurance, $3600 C. a debit to Insurance Expense, $1500 D. a credit to Prepaid Insurance, $21003. All of the following are controls over cash received in a store except .A. the clerk should have access to the cash register tape to make corrections when necessary B. the customer should be able to see the amounts entered into the register C. it should be a requirement that a receipt be given to the customer D. the cash drawer should open only when the sale clerk enters an amount on the keys4. Which of the following statements is true?A. Revenues are assets because they represent economic benefitsB. Assets are economic resources that are expected to benefit future periodsC. The accounting equation can be stated as Assets + Liabilities = Owners EquityD. Liabilities are economic obligations to insiders5. Which of these statements is false?A. Increases in assets and increases in revenue are recorded with a debitB. Increases in liabilities and increases in owners equity are recorded with a creditC. Increases in both assets and withdrawals are recorded with a debitD. Decreases in liabilities and increases in expenses are recorded with a debit6. An adjusting entry could contain all of the following except .A. a debit to Unearned Revenue B. a credit to Cash C. a debit to Interest Receivable D. a credit to Salary Payable 7. The entry required to close withdrawals at the end of the period should include a .A. debit to income Summary B. credit to Capital C. debit to Capital D. debit to Withdrawals8. The principle or concept that holds that an entity will remain in operation for foreseeable future is the .A. going-concern concept B. stable-monetary-unit conceptC. reliability principleD. cost principle9. All of the following are controls over cash received in a store except .A. The clerk should have access to the cash register tape to make corrections when necessaryB. The customer should be able to see the amounts entered into the registerC. It should be a requirement that a receipt be given to the customerD. The cash drawer should open only when the sale clerk enters an amount on the keys10. The entry to record the sale of $100 of merchandise with terms of 2/10 n/30 will include a .A. debit to Sales for $98 B. debit to Cash $100C. debit to Account Receivable of $100 D. debit to Sales Discount for $211. The weighted average for the year inventory cost flow method is applicable to which of the following inventory systems? Periodic PerpetualA. Yes YesB. Yes No C. No YesD. No No 12. Accelerated depreciation methods are used primarily in ?A. Income tax returns B. The financial statements of small businesses C. The financial statements of publicly owned corporations D. Companies with computer-based accounting systems13.Cox Company began the month of July with a balance in Accounts Receivable of $51600. During July, Cox reported cash sales of $50000, credit sales on account of $228000, collections from customers on account, $201400, and write-offs of $750. Uncollectible Account expense for July was estimated to be 1% of credit sales. The balance in Accounts Receivable on July 31 is .A. $77450 B. $75170 C. $75920 D. 8055014. A capital lease is recorded in the accounting records of the lessee by an entry ?A. Debiting Rent Expense and crediting Cash each time a lease payment is made B. Debiting Cash and crediting Rental Revenue each time a lease payment is received C. Debiting an asset account and crediting a liability account for the present value of the future lease payments D. Debiting an asset account and crediting Sales for the present value of the future lease payments15. Warner Corporation reported net income in excess of its net cash flow from operations. A possible explanation of this difference is .A. Depreciation expenseB. Non-operating gainsC. A decrease in income tax rates D. A decrease in accounts receivable over the period 16. Recording an expense when it is paid instead of when incurred is a violation of .A. The matching principle B. The time period conceptC. The reliability concept D. The revenue principle17. Which of these is (are) an example of an asset account?A. Service Revenue B. Withdrawals C. Supplies D. All of the above18. The ending Cash account balance is $57600. During the period, cash receipts equal $124300. If the cash payments during the period total $135100, then the beginning Cash amount must have .A. $68400 B. 46800 C. 181900 D. Cannot be determined 19. Which of the following statements is true?A. Gross profitCost of goods sold = Net salesB. Net sales + Gross profit = Cost of goods soldC. Gross profit = Net salesCost of goods soldD. Net sales + Cost of goods sold = Gross profit20. Which of the following factors would not be considered in the selection of LIFO as an inventory costing method?A. Tax benefits B. Matching C. Physical flow D. Improved cash flow21. Which of the following is not affected by the inventory valuation method used by a business?A. Amounts owed for income taxes B. Cost of merchandise sold C. Amounts paid to acquire merchandise D. Net income of the business22. Typical liability accounts include .A. accounts payable, bank loan, wage payable and drawings B. accounts payable, bank overdraft, wages payable and stationeryC. accounts receivable, bank overdraft, wages payable and unearned revenue D. accounts payable, borrowing from the public, bank overdraft, wages payable23. An adjusting entry could contain all of the following except .A. a debit to Unearned Revenue B. a credit to Cash C. a debit to Interest Receivable D. a credit to Salary Payable 24. After bonds have been issued, their market value can be expected to .A. Rise as any premium is amortized B. Fall if interest rates rise C. Fall as any discount is amortized D. Rise if interest rates rise25. Tiger Company borrowed $20000 from its bank for a period of six months at an annual interest rate of 12%, all due at maturity date. The interest on this loan is stated separately. Which of the following is recorded at the date of borrowing?A. Note payable B. Interest Payable C. Prepaid Interest D. Interest Expense26. If the indirect method is used to present the statement of cash flows of a business enterprise, depreciation expense is .A. Presented as an addition to net income in the operating section of the statement B. Presented as a deduction from net income in the operating section of the statement C. Reported as a cash outflow in the investing section of the statement D. Not disclosed on the statement 27. When using the indirect method to prepare the statement of cash flows, the amortization of goodwill should be presented as a(n) .A. Cash flow from investing activities B. Cash flow from financing activities C. Deduction from net income D. Addition to net income28. Depreciation of a plant asset is the process of .A. Asset valuation for statement of financial position purposes B. Allocating the cost of the asset to the periods of useC. Accumulating a fund for the replacement of the assetD. Asset valuation based on current replacement cost data29. Which of the following statements best describe the purpose of internal control?A. To provide assurance that the entire business operates in accordance with managements plans and policies B. To prevent fraud C. To ensure that expenses and cash outlays are held to a minimum D. To provide adequate subdivision of duties within the organization30. When an asset is depreciated by the straight-line method for financial reporting purposes and an accelerated method for tax purposes, its tax basis normally is .A. Higher than its book value B. Equal to its book value C. Less than its book value D. Equal to its current market value31. Treasury stock transactions may result in .A. Increases in the balance of retained earnings B. Increases or decreases in the amount of net income C. Decrease in the balance of retained earnings D. Increases or decrease in the amount of shares authorized to be issued 32. Unlike a stoke split, a stock dividend requires a formal journa