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Вопрос 1Ответ открыт бесплатно
High Times Corporation owns 300 shares of Low Tide Company’s ordinary shares. Low Tide has 1,000,000 ordinary shares outstanding. High Times Corporation is the:
1investor✓ Правильный ответ
2investee
3parent company.
4controlling company.
✓ Правильный ответ
investor
Вопрос 2
High Times Corporation owns 300 shares of Low Tide Company’s ordinary shares. Low Tide has 1,000,000 ordinary shares outstanding. Low Tide Company is the:
1investor
2investee
3parent company.
4controlling company.
Вопрос 3
How are available-for-sale investments in shares reported on the balance sheet?
1As long-term assets
2As current assets
3As either current assets or long-term assets, depending on when the investment is expected to be sold
4As both long-term assets and shareholders' equity
Вопрос 4
The Unrealized Gains and Losses on Available-for-sale Securities account appear in which financial statement?
1The balance sheet in the assets section
2The balance sheet as part of shareholders' equity
3The income statement as an operating expense
4The balance sheet in the liabilities section
Вопрос 5
With regard to available-for-sale securities, which of the following is used to compute net income?
1Realized gains
2Unrealized gains
3Both unrealized gains and realized gains
4Neither realized gains nor unrealized gains
Вопрос 6Ответ открыт бесплатно
The journal entry to record the receipt of a share dividend arising from an available-for-sale investment held by a company includes:
1a debit to Unrealized Gain on Investment and a credit to Dividend Revenue.
2a debit to Cash and a credit to Dividend Revenue.
3a debit to Cash and a credit to Unrealized Gain on Investments.
4no journal entry. Only a memorandum entry is required.✓ Правильный ответ
✓ Правильный ответ
no journal entry. Only a memorandum entry is required.
Вопрос 7
The journal entry to record the receipt of a cash dividend arising from an available-for-sale investment held by a company includes:
1a debit to Unrealized Gain on Investment and a credit to Dividend Revenue.
2a debit to Cash and a credit to Dividend Revenue.
3a debit to Cash and a credit to Unrealized Gain on Investments.
4no journal entry. Only a memorandum entry is required.
Вопрос 8
The receipt of a cash dividend:
1has no effect on assets or total equity.
2increases assets and increases paid-in-capital.
3increases assets and decreases shareholders' equity.
4increases assets and increases retained earnings.
Вопрос 9
The receipt of a share dividend:
1has no effect on assets or total equity.
2increases assets and increases paid-in-capital.
3increases assets and decreases shareholders' equity.
4increases assets and increases retained earnings.
Вопрос 10Ответ открыт бесплатно
The gain or loss on the sale of an investment classified as "available-for-sale" is measured by comparing the amount received from the sale of investment with the:
1market value of the investment.
2lower-of-cost-or-market value of the investment.
3cost of the investment.✓ Правильный ответ
4amortized cost of the investment.
✓ Правильный ответ
cost of the investment.
Вопрос 11
An investment in ordinary shares acquired during the year at a cost of $20,000 has a year-end market value of $21,250. The year-end adjusting entry requires a:
1debit to Allowance to Adjust Investments to Market for $1,250.
2debit to Long-Term Investments for $1,250.
3debit to Unrealized Gain on Investment for $1,250.
4credit to Allowance to Adjust investment to Market for $1,250.
Вопрос 12
The amount that shareholders have invested in a corporation is called:
1retained earnings.
2investment
3revenue
4paid-in capital.
Вопрос 13Ответ открыт бесплатно
A company makes a $200 sale on account. It later collects the $200 in cash. Under the accrual method of accounting, revenue is recognized:
1when the cash is collected.
2when the sale is made.✓ Правильный ответ
3either when the cash is received or the sale is made.
4at a time that cannot be determined from the facts.
✓ Правильный ответ
when the sale is made.
Вопрос 14
Under accrual accounting, revenue is recorded:
1when the cash is collected, regardless of when the services are performed.
2when the services are performed, regardless of when the cash is received.
3either when the cash is received or the sale is made.
4only if the cash is received at the same time the services are performed.
Вопрос 15
An example of a noncash transaction under the accrual method of accounting does NOT include:
1depreciation expense.
2sales on account.
3collecting cash from customers.
4accrual of expenses incurred, but not yet paid.
Вопрос 16
If a company makes a journal entry to debit Accounts Receivable and credit the Service Revenue account, it is using:
1the cash method of accounting.
2the hybrid method of accounting.
3the accrual method of accounting.
4either the cash or accrual method of accounting.
Вопрос 17Ответ открыт бесплатно
There are two methods used to account for transactions. These methods are:
1deferral and prepaid.
2accrual and deferral.
3cash and deferral.
4cash and accrual.✓ Правильный ответ
✓ Правильный ответ
cash and accrual.
Вопрос 18
Accounts receivable would appear on the:
1Balance Sheet with the current liabilities.
2Balance Sheet with the current assets.
3Income Statement with the revenues.
4Statement of Changes in Equity with the net income.
Вопрос 19
Notes payable (due in 60 days) would appear as a:
1current liability on the Balance Sheet.
2current asset on the Balance Sheet.
3non-current asset on the Balance Sheet.
4non-current liability on the Balance Sheet.
Вопрос 20Ответ открыт бесплатно
Income taxes owed to the federal government would be classified as a(n):
1expense on the Income Statement.
2financing activity on the Statement of Cash Flows.
3current asset on the Balance Sheet.
4current liability on the Balance Sheet.✓ Правильный ответ
✓ Правильный ответ
current liability on the Balance Sheet.
Вопрос 21
Liabilities are divided into two categories—
1current and payable.
2current and future.
3accounts payable and non-current.
4current and non-current.
Вопрос 22
In relation to the cash flow statement, purchases and sales of long-term assets are examples of:
1investing activities.
2accrual activities.
3financing activities.
4operating activities.
Вопрос 23
The Statement of Cash Flows is divided into which three categories?
1Operating, investing, and financing activities
2Planning, executing, and evaluating activities
3Increasing, decreasing, and non-cash activities
4Developing, producing, and marketing activities
Вопрос 24Ответ открыт бесплатно
What is the proper order for the categories of the statement of cash flows?
1Financing activities, investing activities, and operating activities
2Operating activities, investing activities, and financing activities✓ Правильный ответ
3Operating activities, financing activities, and investing activities
4Investing activities, financing activities, and operating activities
✓ Правильный ответ
Operating activities, investing activities, and financing activities
Вопрос 25
The two types of accounting are:
1profit and nonprofit.
2financial and managerial.
3internal and external.
4bookkeeping and decision-oriented.
Вопрос 26
What type of accounting provides information for decision makers outside the entity?
1Bookkeeping
2Managerial accounting.
3Internal auditing.
4Financial accounting.
Вопрос 27Ответ открыт бесплатно
Who ultimately controls a corporation?
1Board of Directors
2The Chief Executive Officer (CEO)
3The shareholders✓ Правильный ответ
4The President
✓ Правильный ответ
The shareholders
Вопрос 28
Financial statements are:
1standard documents issued by outside consultants who are hired to analyze key operations of the business in financial terms.
2the business documents that companies use to report the results of their financial activities to various user groups.
3reports created by management that states it is responsible for the acts of the corporation.
4the mechanical part of accounting.
Вопрос 29
Characteristics of a sole proprietor include:
1multiple owners.
2limited personal liability for all business debts.
3a distinct entity, separate from its owner for accounting purposes.
4formation under state law.
Вопрос 30Ответ открыт бесплатно
A partnership:
1is a taxpaying entity.
2is not a distinct entity, separate from its owners for accounting purposes.
3has mutual agency.✓ Правильный ответ
4has limited liability for the partners.
✓ Правильный ответ
has mutual agency.
Вопрос 31
A limited-liability partnership is made up of:
1partners.
2sole proprietors.
3members.
4shareholders.
Вопрос 32
Advantages of a corporation include:
1a single owner.
2the double taxation of distributed profits.
3limited liability of the shareholders.
4mutual agency.
Вопрос 33
All of the following are forms of business organizations EXCEPT for the:
1proprietorship.
2limited liability partnership.
3limited proprietorship.
4corporation.
Вопрос 34Ответ открыт бесплатно
An entity that is organized according to state legislation and in which ownership units are called shares is a:
1proprietorship.
2corporation.✓ Правильный ответ
3partnership.
4limited liability partnership.
✓ Правильный ответ
corporation.
Вопрос 35
The International Accounting Standards Board is responsible for establishing:
1the code of professional conduct for accountants.
2the International Accounting Standards.
3generally accepted accounting principles.
4the International Financial Reporting Standards.
Вопрос 36
The acronym GAAP stands for:
1generally acceptable authorized pronouncements.
2government authorized accountant principles.
3generally accepted accounting principles.
4government audited accounting pronouncements.
Вопрос 37Ответ открыт бесплатно
Which of the following is NOT a business transaction?
1The company sells goods for cash.
2The company buys land for cash.
3The company hires a new president.✓ Правильный ответ
4The company pays a dividend to its shareholders.
✓ Правильный ответ
The company hires a new president.
Вопрос 38
A record of all the changes in a particular asset, liability, or shareholders’ equity during a period is called a (n):
1transaction
2trial balance.
3journal
4account.
Вопрос 39
Which of the following is NOT an asset account?
1Accounts Receivable
2Prepaid Rent
3Share Capital
4All of these are asset accounts.
Вопрос 40
Any event that has a financial impact on the business and can be measured reliably is a(n):
1income statement.
2transaction.
3asset
4journal
Вопрос 41Ответ открыт бесплатно
The rules for recording accounting transactions do NOT include which of the following?
1Every transaction’s net amount on the left side of the equation must equal the net amount on the right side.
2Both sides of the accounting equation must be affected.✓ Правильный ответ
3Every transaction affects the financial statements of the business.
4Total assets must always equal total liabilities plus total equity.
✓ Правильный ответ
Both sides of the accounting equation must be affected.
Вопрос 42
A corporation’s paid-in capital includes:
1revenues and expenses.
2assets and liabilities.
3capital from shareholders.
4net income.
Вопрос 43
Receivables are classified as:
1increases in earnings.
2decreases in earnings.
3liabilities
4assets
Вопрос 44Ответ открыт бесплатно
An investor who wished to answer the question, "Can the company sell its products?" should investigate the:
1operating activities section of the cash flow statement.
2current and projected inventory levels.
3sales revenue trends and projected sales.✓ Правильный ответ
4net income for the current period and projected net income for the next period.
✓ Правильный ответ
sales revenue trends and projected sales.
Вопрос 45
Generally, three factors influence business and accounting decisions—
1operating, investing, and financing activities.
2assets, liabilities, and equity.
3economic, legal, and ethical.
4revenues, expenses, and dividends.
Вопрос 46
The decision framework for making ethical judgments does NOT consider the following question?
1What is the issue?
2What are the alternatives?
3What alternative maximizes profit?
4Who are the stakeholders?
Вопрос 47
Which of the following is NOT an asset?
1Inventory
2Accounts payable
3Accounts receivable
4Cash
Вопрос 48Ответ открыт бесплатно
Examples of liabilities include:
1accounts payable and accounts receivable.
2accounts payable and land.
3investments and owners’ equity.
4accounts payable and long-term debt.✓ Правильный ответ
✓ Правильный ответ
accounts payable and long-term debt.
Вопрос 49
The type of fraud committed by company managers who make false and misleading entries in the books, making the financial results of the company appear better than they actually are, is called:
1misappropriation of assets.
2fraudulent financial reporting.
3embezzlement
4collusion
Вопрос 50
The type of fraud committed by employees of an entity who steal money from the company and cover it up through erroneous entries in the books is called:
1misappropriation of assets.
2fraudulent financial reporting.
3embezzlement.
4collusion
Вопрос 51Ответ открыт бесплатно
The two most common types of fraud impacting financial statements are:
1fraudulent financial reporting and e-commerce fraud.
2misappropriation of assets and embezzlement.
3fraudulent financial reporting and misappropriation of assets.✓ Правильный ответ
4cooking the books and fraudulent financial reporting.
✓ Правильный ответ
fraudulent financial reporting and misappropriation of assets.
Вопрос 52
All of the following are purposes of internal control EXCEPT:
1to promote operational inefficiency.
2to encourage adherence to company policies.
3to ensure accurate and reliable accounts records.
4to safeguard assets.
Вопрос 53
The company’s ___________ have/has the primary responsibility for establishing and maintaining a company’s system of internal control.
1external auditors
2internal auditors
3top management
4shareholders
Вопрос 54Ответ открыт бесплатно
Which characteristic will NOT be found in an effective system of internal control?
1Competent, reliable, and ethical personnel
2A combination of duties✓ Правильный ответ
3A separation of duties
4Documents and records
✓ Правильный ответ
A combination of duties
Вопрос 55
Which of the following is a limitation of internal control?
1Operational efficiency
2Employee collusion
3Accurate and reliable accounting records
4Safeguarding company assets
Вопрос 56
Factors that would lead an employee to commit a lapping scheme include:
1a proper separation of duties.
2not allowing the bookkeeper to access to cash.
3appropriately monitoring the activities of employees who handle cash.
4allowing employees to not take time off for earned vacations.
Вопрос 57
A bank statement included a NSF check from customer Kim Fields for $2,100. The journal entry to record this reconciling item should:
1debit NSF and credit Cash for $2,100.
2debit Cash and credit Accounts Receivable for $2,100.
3debit Accounts Receivable and credit Cash for $2,100.
4debit Cash and credit NSF for $2,100.
Вопрос 58Ответ открыт бесплатно
If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:
1debit to Cash.✓ Правильный ответ
2credit to Cash.
3debit to Note Receivable.
4debit to Note Payable.
✓ Правильный ответ
debit to Cash.
Вопрос 59
If a bank reconciliation included deposits in transit amounting to $3,700, the journal entry to record this reconciling item:
1should debit Deposit in Transit and credit Cash for $3,700.
2should debit Cash and credit Deposit in Transit for $3,700.
3should debit Accounts Receivable and credit Cash for $3,700.
4is not required.
Вопрос 60
If a bank statement includes an EFT payment of $945 for insurance, the journal entry to record this reconciling item should include a:
1debit to Cash for $945.
2debit to Accounts Payable for $945.
3credit to Cash for $945.
4credit to Prepaid Insurance for $945.
Вопрос 61Ответ открыт бесплатно
The largest expense on the income statement for most merchandising companies is:
1administrative expenses.
2selling expenses.
3cost of goods sold.✓ Правильный ответ
4other expenses.
✓ Правильный ответ
cost of goods sold.
Вопрос 62
In a merchandising company’s income statement, which of the following would NOT be included in the Cost of Goods Sold calculation?
1Shipping costs from the manufacturer to the merchandiser
2Sales commissions
3Returns of inventory purchases
4Sales taxes on inventory purchases, as shown on the invoices
Вопрос 63
In a merchandising business, gross profit is equal to sales revenue minus:
1cost of goods sold, operating expenses and prepaid expenses combined.
2cost of goods sold and operating expenses combined.
3cost of goods sold only.
4cost of goods sold and sales commissions combined.
Вопрос 64
Two accounts that would appear on the financial statements of a merchandising company that are not needed by a service company are:
1cost of goods sold and depreciation.
2cost of goods sold and net income.
3cost of goods sold and inventory.
4inventory and depreciation.
Вопрос 65Ответ открыт бесплатно
Sales revenue is based on the _________ price of the inventory, while cost of goods sold is based on the __________ of the inventory.
1cost, sales
2cost, cost
3sales, sales
4sales, cost✓ Правильный ответ
✓ Правильный ответ
sales, cost
Вопрос 66
The inventory system that uses computer software to keep a running record of inventory on hand is the:
1cost of goods sold inventory system.
2periodic inventory system.
3perpetual inventory system.
4hybrid inventory system.
Вопрос 67
A perpetual inventory system offers which of the following advantages?
1Inventory balances have to be counted to be accurate.
2This system is used for inexpensive goods.
3This system is more expensive than a periodic system.
4This system helps to determine if there is a sufficient supply of inventory on hand to fill customer orders, just by reviewing the inventory records.
Вопрос 68Ответ открыт бесплатно
Under a perpetual inventory system, when a sale is made:
1the company makes a journal entry to record the sale only.
2the company makes a journal entry to record only the cost of goods sold.
3the company makes a journal entry to record the sale and the cost of goods sold.✓ Правильный ответ
4no journal entry needs to be made.
✓ Правильный ответ
the company makes a journal entry to record the sale and the cost of goods sold.
Вопрос 69
How do purchase returns and allowances and purchase discounts affect net purchases?
1Both are added to purchases.
2Both are subtracted from purchases.
3Purchase returns and allowances are added to purchases; purchase discounts are subtracted from purchases.
4Purchase returns and allowances are subtracted from purchases; purchase discounts are added to purchases.
Вопрос 70
What is the formula used to calculate net purchases?
1Purchases less Purchase Returns and Allowances plus Purchase Discounts less freight-in
2Purchases plus Purchase Returns and Allowances less Purchase Discounts plus freight-in
3Purchases less Purchase Returns and Allowances less Purchase Discounts plus freight-in
4Beginning Inventory less Purchases
Вопрос 71
Unlike the periodic inventory system, the perpetual inventory system:
1does not require a physical count of the ending inventory.
2includes only the inventory purchased for cash.
3provides a continuous record of inventory on hand.
4is not required by GAAP.
Вопрос 72Ответ открыт бесплатно
Accounting information is subject to the constraints of:
1balance between qualitative characteristics, comparability and consistency.
2balance between qualitative characteristics, reliability and relevance.
3timeliness, benefits versus cost and balance between qualitative characteristics.✓ Правильный ответ
4timeliness, benefit versus cost, relevance and reliability.
✓ Правильный ответ
timeliness, benefits versus cost and balance between qualitative characteristics.
Вопрос 73
The Management Discussion and Analysis Section of the annual report:
1is required by the SEC.
2is optional but normally included in the annual report.
3is required by the SEC only if the company has suffered from unfavorable trends or there are significant uncertainty concerning liquidity of the company.
4is required by the SEC only if they have a qualified audit opinion.
Вопрос 74
The substance of annual report is:
1grossly pictures and cover page.
2the audited financial statements
3the management analysis.
4the charts and tables
Вопрос 75Ответ открыт бесплатно
Auditor’s opinion that the consolidated financial statements provide a “true and fair view of the net assets, financial position and results of the Group” is also known as:
1qualified opinion.
2adverse opinion
3unqualified opinion.✓ Правильный ответ
4fair opinion
✓ Правильный ответ
unqualified opinion.
Вопрос 76
An unqualified opinion:
1is one made with reservation.
2is one made without reservation
3is made when auditors are not fully qualified to audit the financial statements.
4is given when there is a conflict of interest.
Вопрос 77
A qualified opinion is given when:
1as a whole, the financial statements are fairly presented, except for disagreement on how to treat a particular transaction
2disagreement on how to treat a few transactions
3the auditor is fully satisfied with the preparation of the financial statements.
4the financial statements were objective and transparent
Вопрос 78Ответ открыт бесплатно
Accountants follow guidelines for professional measurement and disclosure of financial information called:
1IASB.
2IFRS✓ Правильный ответ
3FASB
4SEC
✓ Правильный ответ
IFRS
Вопрос 79
International financial reporting standards are set by the:
1IASB
2GAAP
3FASB
4SEC
Вопрос 80
The IASB:
1is working towards a convergence of standards with the FASB.
2will not accept FASB rules.
3does not want US companies to adopt IFRS standards.
4feels that the global use of IFRS will significantly increase costs of doing global business.
Вопрос 81
The heading John Smith, Capital, indicates the owners’ equity of a:
1proprietorship
2corporation
3not-for-profit.
4regulatory body.
Вопрос 82Ответ открыт бесплатно
To be useful, accounting information must have the fundamental qualitative characteristics of:
1understandability, timeliness, reliability and relevance.
2timeliness, comparability, reliability and relevance.
3materiality, understandability, timeliness and comparability.
4understandability, comparability, reliability and relevance.✓ Правильный ответ
✓ Правильный ответ
understandability, comparability, reliability and relevance.
Вопрос 83
All of the following are characteristics of useful accounting information EXCEPT:
1comparability
2relevance
3informative
4reliability
Вопрос 84
When information is important enough to the informed user, so that, if it was omitted or erroneous, it would make a difference in the user’s decision, it is:
1comparable
2material
3timely
4understandable
Вопрос 85Ответ открыт бесплатно
An example of a long-term tangible asset would be:
1office supplies.
2furniture✓ Правильный ответ
3investment in LQH company.
4patents
✓ Правильный ответ
furniture
Вопрос 86
Long-lived tangible assets that are used in the operation of the business are called:
1intangible assets.
2natural resources.
3PPE
4goodwill
Вопрос 87
The only PPE that does not depreciate is:
1office supplies.
2furniture
3land
4patents
Вопрос 88
All amounts paid to acquire a PPE and to get it ready for its intended use are referred to as:
1set up costs.
2Expenditures
3maintenance expense.
4the cost of an asset.
Вопрос 89Ответ открыт бесплатно
Costs that would be included with the purchase of a PPE are:
1the sum of all of the costs incurred to bring the asset to its intended use.✓ Правильный ответ
2only costs that exceed a certain amount.
3only the purchase price.
4only the sales price.
✓ Правильный ответ
the sum of all of the costs incurred to bring the asset to its intended use.
Вопрос 90
Which of the following should be included in the cost of land?
1Construction cost of a parking lot
2Landscaping
3Real estate brokerage commission
4Lighting
Вопрос 91
Which of the following is NOT an intangible asset?
1Copyright
2Goodwill
3Patent
4Mineral rights
Вопрос 92Ответ открыт бесплатно
The cost of installing shrubbery should be recorded as:
1land
2land improvements.✓ Правильный ответ
3land maintenance expense.
4land improvement expense.
✓ Правильный ответ
land improvements.
Вопрос 93
Although located on the land, they are subject to decay and their cost is depreciated. This is the definition of:
1land improvement.
2plant and equipment.
3a building.
4land
Вопрос 94
The cost of assets acquired in a lump-sum purchase must be allocated using which method?
1Book-value method
2Cost method
3Per capita method
4Relative-sales-value-method
Вопрос 95
The major types of transactions that affect retained earnings are:
1paid-in capital and ordinary shares.
2assets and liabilities.
3revenues, expenses, and dividends.
4revenues and liabilities.
Вопрос 96Ответ открыт бесплатно
Payables are classified as:
1increases in earnings.
2decreases in earnings.
3liabilities✓ Правильный ответ
4assets
✓ Правильный ответ
liabilities
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