财务会计题库TheFinancial

1、Financial Accounting, 7eHarrison/HorngrenTest Item FileChapter 1: The Financial StatementsBookkeeping is a type of accounting used primarily by proprietorships.Answer: False LO: 1-1 Diff: 2 EOC: QC 1The three forms of business organizations are proprietorships, partnerships, and for-profit organizat

2、ions.Answer: FalseLO: 1-1Diff: 1EOC: E1-13To convincean investor to investmoney ina particular company, relevant andreliable accountinginformation is requiredAnswer: TrueLO: 1-1Diff: 1EOC: E1-14Limited Liability Companies (LLCs) have members instead of stockholders.Answer: TrueLO: 1-1Diff: 1EOC: E1-

3、13All business owners are personally liable for the debts of their businesses.Answer: FalseLO: 1-1Diff: 1EOC: E1-13A proprietorship is a distinct and separate entity from the proprietor, from both anaccounting and a legalviewpoint.Answer: FalseLO: 1-1 Diff: 2 EOC: E1-13The two types of accounting ar

4、e:A. profit and nonprofit.B. financial and managerial.C. internal and external.D. bookkeeping and decision-oriented.EOC: E1-13Answer: BLO: 1-1Diff: 2According to the author, potential investors need information that is:A. relevant and reliable.B. fair and future-oriented.C. accurate and truthful.D.

5、audited and complete.Answer: ALO: 1-1Diff: 2EOC: E1-14Who ultimately controls a corporation?A. Board of DirectorsB. The Chief Executive Officer (CEO)C. The stockholdersD. The PresidentAnswer: CLO: 1-1Diff: 2EOC: E1-13Financial statements are:A. standard documents issued by outside consultants who ar

6、e hired to analyze key operations of the business in financial terms.B. standard documents that tell us how well a business is performing and where it stands in financial terms.C. reports created by management that states it is responsible for the acts of thecorporation.D. reports issued by outside

7、consultants who are hired to analyze key operations ofthe business.Answer: B LO: 1-1 Diff: 1 EOC: E1-26For which form of business ownership are the owners of a business legally distinct from the business?A. CorporationB. PartnershipC. ProprietorshipD. All of the aboveAnswer: A LO: 1-1 Diff: 1 EOC: E

8、1-13All of the following are forms of business organizations EXCEPT:A. proprietorship.B. limited partnership.C. limited proprietorship.D. limited liability company.Answer: C LO: 1-1 Diff: 1 EOC: E1-13The largest organization of professional accountants in the United States is the:A. Financial Accoun

9、ting Standards Board.B. Securities and Exchange Commission.C. American Institute of Certified Public Accountants.D. Auditing Standards Board.Answer: CLO: 1-1Diff: 2EOC: P1-53BGenerally accepted accounting principles,or GAAP, are the rulesandproceduresestablished by theFinancial Accounting Standards

10、Board, or the FASB.Answer: TrueLO: 1-2Diff: 1EOC: QC 11.2-2 The entity concept is the most basic accounting concept.Answer: TrueLO: 1-2Diff: 1EOC: S1-31.2-3 The stable monetary unit concept means that the type of currency used for the financial statements is NOT expected to change.Answer: FalseLO: 1

11、-2Diff: 2EOC: E1-14Answer: A LO: 1-2 Diff: 2 EOC: E1-141.2-4objectivitySince cost is a reliable measure to use in financial accounting, the principle states that assets and services should be recorded at their actual cost.Answer: False LO: 1-2 Diff: 2 EOC: E1-14The Financial Accounting Standards Boa

12、rd is responsible for establishing:A.the code of professional conduct for accountants.B.the Securities and Exchange Commission.C.generally accepted accounting principles.D.the American Institute of Certified Public Accountants.Answer: CLO: 1-2Diff: 2EOC: QC 1The acronym GAAP stands for:A. generally

13、acceptable authorized pronouncements.B. government authorized accountant principles.C. generally accepted accounting principles.D. government audited accounting pronouncements.Answer: C LO: 1-2 Diff: 2 EOC: E1-27 All of the following are characteristics of useful accounting information EXCEPT:A. inf

14、ormative.B. relevant.C. consistent.D. reliable.The objectivity principle of accounting:A. holds that the entity will remain in operation for the foreseeable future.B. enables accountants to ignore the effect of inflation in the accounting records.C. maintains that each organization or section of an

15、organization stands apart from other organizations and individuals.reliableD. ensures that accounting records and statements are based on the most data available.Answer: DLO: 1-2Diff: 2 EOC: E1-14The stable-monetary-unit concept of accounting:reliableA. ensures that accounting records and statements

16、 are based on the most data available.B. holds that the entity will remain in operation for the foreseeable future.c. maintains that each organization or section of an organization stands apart from other organizations and individuals.d. enables accountants to ignore the effect of inflation in the a

17、ccounting records.Answer: D LO: 1-2 Diff: 2 EOC: E1-14The going-concern concept of accounting:A. enables accountants to ignore the effect of inflation in the accounting records.B. holds that the entity will remain in operation for the foreseeable future.c. maintains that each organization or section

18、 of an organization stands apart from other organizations and individuals.reliabled. ensures that accounting records and statements are based on the most data available.Answer: B LO: 1-2 Diff: 2 EOC: P1-43AThe principle which states that assets acquired by the business should be recorded at their ac

19、tual price isthe:A. cost principle.B. objectivity principle.C. reliability principle.D. stable dollar principle.Answer: A LO: 1-2 Diff: 1 EOC: Q1-30The reliability principle is also called the:A. relevance concept.B. truthfulness concept.C. objectivity principle.D. full and fair principle.Answer: C

20、LO: 1-2 Diff: 2 EOC: E1-14is usuallygoing out ofexecutives.Which of the following statements is FALSE?A. Reliable data may be supported by objective evidence.B. The informed opinion of owners is an important source of objective evidence.C. An independent appraisal, conducted by a licensed profession

21、al, considered reliable.D. Reliable data are verifiable.Answer: B LO: 1-2 Diff: 2 EOC: E1-14The relevant measure of the value of the assets of a company that is business is the:A. book value.B. current market value.C. historical cost.D. recorded value.Answer: BLO: 1-2 Diff: 2 EOC: P1-43AThe CEO of a

22、 business owns a residence in Flagstaff. The company the CEO works for owns a residence in Chandler used for strategic planning meetings by its Which of these properties isconsidered an asset(s) of the business?A. The Flagstaff residence onlyB. The Chandler residence onlyC. Both the Flagstaff and Ch

23、andler residencesD. Neither the Flagstaff nor Chandler residencesAnswer: BLO: 1-2Diff: 2EOC: S1-3amount of business assetswhich can be claimed by the owners.An Oklahoma City business paid $15,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $20,

24、000. When the balance sheet was prepared, the value ofthe equipment later rose to $22,000. What is the relevantmeasure of the value of the equipment?A. Historical cost, $15,000B. Fair market cost, $20,000C. Current market cost, $22,000D. $15,000 on the day of purchase, $22,000 on balance sheet dateA

25、nswer: A LO: 1-2 Diff: 2 EOC: Q1-30The accounting equation expresses the idea that Resources - Insider claims = Outsider claims.Answer: TrueLO: 1-3Diff: 3EOC: S1-5The accounting equation must always be in balance.Answer: TrueLO: 1-3Diff: 1EOC: S1-1Liabilities are divided into outsider claims and ins

26、ider claims.Answer: FalseLO: 1-3Diff: 2EOC: S1-5esents the residualNet assets, as stockholdersequity is often referred to, reprAnswer: TrueLO: 1-3Diff: 2EOC: QC 12Common stock and retained earnings are the main components of paid-in capital.Answer: FalseLO: 1-3 Diff: 2 EOC: S1-10Retained earnings do

27、 not represent cash that is available to a company for future operations and expansion.Answer: TrueLO: 1-3 Diff: 3 EOC: E1-27Net income appears on both the income statement and the statement of retained earnings.Answer: TrueLO: 1-3 Diff: 2 EOC: Q1-39The statement of cash flows is organized in terms

28、of the organization s operating,investing, and financing activities.Answer: TrueLO: 1-3 Diff: 2 EOC: E1-25Expenses are increases in retained earnings that result from operations.Answer: FalseLO: 1-3Diff: 2EOC: S1-7Dividend payments are NOT classified as expenses.Answer: TrueLO: 1-3Diff: 2EOC: S1-9Th

29、e calculation of ending retained earnings considers current net income or net loss and dividends.Answer: TrueLO: 1-3Diff: 2EOC: S1-9The owners equity of proprietorships and partnerships is the same.Answer: False LO: 1-3 Diff: 2 EOC: S1-9The accounting equation can be stated as:A. Assets + Stockholde

30、rs Equity = LiabilitiesB. Assets - Liabiliti es = Stockholders EquityC. Assets = Liabilities - Stockholders EquityD. Assets - Stockholders Equity + Liabilities = ZeroAnswer: B LO: 1-3 Diff: 1 EOC: QC 3Which of the following best describes a liability? Liabilities are:A. a form of paid-in capital.B.

31、future economic benefits to which a company is entitled.C. payables of the corporation.D. economic obligations to owners to be paid at some future date by the corporation. Answer: C LO: 1-3 Diff: 1 EOC: S1-5 The owners interest in the assets of a corporation is known as:A. common stock.B. stockholde

32、rs equity.C. long-term assets.D. operating expenses.Answer: BLO: 1-3Diff: 2EOC: S1-5Claims held by the stockholders of a corporation are also known as:A. retained earnings.B. paid-in capital.C. paid-in capital plus retained earnings.D. net income.Answer: CLO: 1-3Diff: 3EOC: S1-5EOC: S1-6EOC: S1-6Pay

33、ables are classified as:A. increases in earnings.B. decreases in earnings.C. liabilities.D. assets.Answer: C LO: 1-3 Diff: 1Receivables are classified as:A. increases in earnings.B. decreases in earnings.C. liabilities.D. assets.Answer: DLO: 1-3Diff: 1The sum of outsider claims plus insider claims e

34、quals:A. net income.B. total liabilities.C. total assets.D. total stockholders equity.Answer: CLO: 1-3Diff: 3 EOC: S1-5Revenues are:A. decreases in assets resulting from delivering goods or services to customers.B. increases in liabilities resulting from delivering goods or services to customers.C.

35、increasesinretainedearningsresultingfromdeliveringgoods orservicestocustomers.D. decreasesinretainedearningsresultingfromdeliveringgoods orservicestocustomers.Answer: CLO: 1-3Diff: 2EOC:S1-4How do revenues for a period relate to the beginning and ending balances in retained earnings?A. Revenues will

36、 increase the beginning balance of retained earnings for the period.B. Revenues will increase the ending balance of retained earnings for the period.C. Revenues less expenses will either increase or decrease the beginning balance of retained earnings for the period.D. None of these answers are corre

37、ct.Answer: C LO: 1-3 Diff: 2 EOC: S1-9 Expenses are:A. increases in liabilities resulting from purchasing assets.B. increases in assets resulting from operations.C. increases in retained earnings resulting from operations.D. decreases in retained earnings resulting from operations.Answer: D LO: 1-3

38、Diff: 2 EOC: S1-4Dividends:A. are B. always affect net income.C. are distributions to stockholders of assets (usually cash) generated by income.D. are distributionsto stockholders of assets (usually cash) generated by afavorable balance in retained earnings.Answer: CLO: 1-3Diff: 2EOC: E1

39、-16A corporation s paid -in capital consists ofA. revenues and expenses.B. assets and liabilities.C. common stock.D. net income.Answer: CLO: 1-3Diff: 2EOC: S1-10Net income is computed as:A. reve nues - expe nses - divide nds.B. revenues + expenses.C. revenues - expenses.D. reve nues - expe nses + di

40、vide nds.Answer: CLO: 1-3Diff: 2EOC: QC 8Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings?A. Net incomeB. ExpensesC. DividendsD. All of these answers are correct.Answer: ALO: 1-3Diff: 2EOC: P1-44AAt the end of the current accounting period, acco

41、unt balances were as follows: Cash, $180,000; Accounts Receivable, $75,000; Common Stock, $20,000; Retained Earnings, $65,000. Liabilities for the periodwere:A. $ 70,000.B. $170,000.C. $190,000.D. $210,000.Answer: BLO: 1-3Diff: 2EOC: S1-1On January 1, 2009, total assets for Liftoff Technologies were

42、 $125,000; on December31, 2009, total assets were $145,000. On January 1, 2009, total liabilitieswere$110,000; on December 31, 2009, total liabilities were $115,000. What is the amount of the change and the direction of the change in LiftoffTechnologies stockholders equity for2009?A. Decrease of $15

43、,000B. Increase of $15,000C. Increase of $30,000D. Decrease of $30,000Answer: B LO: 1-3 Diff: 2 EOC: QC 12Revenues were $170,000, expenses were $90,000, and cash dividends were $30,000. What was the net income and the change in retained earnings for the period?income was $50,000; change in retained

44、earnings was $50,000B. Net income was $80,000; change in retained earnings was $50,000C. Net income was $80,000; change in retained earnings was $80,000D. Net income was $250,000; change in retained earnings was $250,000Answer: BLO: 1-3Diff: 2EOC: E1-23At the beginning ofthe period,assets were$490,0

45、00 and stockholders equity was$240,000. During theyear, assetsincreasedby $60,000, liabilities increased by$40,000, and stockholders equity increased by$20,000. Beginning liabilities musthave been:A. $230,000.B. $250,000.C. $280,000.D. $300,000.Diff: 3EOC: S1-1Answer: B LO: 1-3during the same period

46、, stockholders equity must:A. increase $145,000.B. decrease $275,000.C. decrease $145,000.D. increase $275,000.Answer: ALO: 1-3Diff: 3EOC: P1-44AIf liabilities increase $120,000 during a given period and stockholders equitydecreases $25,000 during the same period, assets must:A. increase $95,000.B.

47、decrease $95,000.C. decrease $145,000.D. increase $145,000.Answer: ALO: 1-3Diff: 3 EOC: P1-44AStockholdersequity for Commerce-GA Corporation on 01/01/2008 and 12/31/2008 were$60,000 and $75,000,respectively.Assets on 01/01/2008 and 12/31/2008 were $115,000 and$105,000, respectively.Liabilities on 01

48、/01/2008 were $55,000. What is the amount ofliabilities on 12/31/2008?A. $40,000B. $15,000C. $30,000D. The amount is indeterminable from the given information.Answer: CLO: 1-3 Diff: 3 EOC: S1-1Ramos, Inc. has monthly revenues of $30,000 and monthly expenses of $18,000, and the company paid $4,000 in

49、 dividends; therefore net income for the month is $8,000.Answer: FalseLO: 1-4 Diff: 2 EOC: S1-8Able Co. has $500,000 in assets and $400,000 in liabilities; therefore the equity is $900,000.Answer: FalseLO: 1-4 Diff: 1 EOC: S1-1Yummy Inc. has beginning retained earnings of $10,000, net income of $50,

50、000, anddividends paid of$5,000; therefore the ending retained Earnings is $65,000.Answer: FalseLO: 1-4 Diff: 2 EOC: S1-8Dividends appear on the:A. statement of retained earnings.B. both the statement of retained earnings and the income statement.C. income statement.D. balance sheet.Answer: ALO: 1-4

51、 Diff: 2 EOC: S1-12Assets appear on the:A. balance sheet.B. income statement.C. statement of retained earnings.D. both balance sheet and the statement of retained earnings.Answer: ALO: 1-4 Diff: 1 EOC: S1-12Common stock appears on the:A. balance sheet.C. statement of cash flows and the statement of

52、retained earnings.B. income statement.D. None of the above are correct.Answer: A LO: 1-4 Diff: 1 EOC: S1-12A company s gross profit for the period is reported on the:A. balance sheet.B. income statement.C. statement of cash flows.D. statement of retained earnings.Answer: B LO: 1-4 Diff: 1 EOC: S1-8G

53、ains and losses appear on which of the financial statements listed below?A. Balance sheetB. Income statementC. Statement of cash flowsD. Statement of retained earningsAnswer: B LO: 1-4 Diff: 1 EOC: S1-8The ending balance in Retained Earnings appears on the:A. balance sheet only.B. balance sheet and

54、statement of retained earnings.D. income statement and statement of cash flows.Answer: BLO: 1-4Diff: 2EOC: P1-49ACash dividends:A. decrease revenue on the income statement.B. decrease retained earnings on the statement of retained earnings.C. increase expenses on the income statement.D. decrease ope

55、rating activities on the statement of cash flows.Answer: BLO: 1-4Diff: 2EOC: S1-9decrease inWhich of the following financial statements shows the net increase or cash during the period?A. Balance sheet onlyB. Statement of operationsC. Statement of retained earnings and balance sheetD. Statement of cash flowsAnswer: DLO: 1-4Diff: 1EOC: S1-12An investor wishing to assess a company s financial position at the