Chapter 1 Accounting

14 Questions | Total Attempts: 114

Settings
Please wait...
Accounting Quizzes & Trivia

Questions and Answers
  • 1. 
    All of the following statements are true except one. Which statement is false?
    • A. 

      Bookeeping is only a part of accounting

    • B. 

      A proprietorship is a business with several owners

    • C. 

      Professional accountants are held to high standard of ethical conduct

    • D. 

      The organization that formulates GAAP is the Financial Accounting Standards Board

  • 2. 
    The valuation of assets on the balance sheet is generally based on
    • A. 

      Current fair market value as established by independent appraisers

    • B. 

      What it would cost to replace the asset

    • C. 

      Historical cost

    • D. 

      Selling price

  • 3. 
    The accounting equation can be expressed as
    • A. 

      Assets + Liabilities= OE

    • B. 

      OE-A=L

    • C. 

      A-L=OE

    • D. 

      A=L-OE

  • 4. 
    The nature of an asset is best described as
    • A. 

      Something owned by a business that has a ready market value

    • B. 

      Something with physical form that's valued at cost in the accounting records

    • C. 

      An economic resource representing cash or the right to receive cash for the future

    • D. 

      An economic resource that's expected to benefit future operations

  • 5. 
    • A. 

      Balance sheet

    • B. 

      Income statement

    • C. 

      Statement of cash flows

    • D. 

      Both B and C

  • 6. 
    • A. 

      Increase liabilities and decrease OE

    • B. 

      Increase A Increase L

    • C. 

      Decrease A Decrease L

    • D. 

      Increase A Increase OE

  • 7. 
    During the year, ChemClean, Inc., has $140000 in revenues, $75,000 in expenses, and $3,000 in dividend payments. Stockholders' equity changed by 
    • A. 

      + 62,000

    • B. 

      +68,000

    • C. 

      -62,000

    • D. 

      -68,000

  • 8. 
    ChemClean inc. in question 7 had 
    • A. 

      NI of 62,000

    • B. 

      NI of 140,000

    • C. 

      Net loss of 75,000

    • D. 

      Net loss of 65,000

  • 9. 
    Valor Corp. holds cash of $5,000 and owes $29,000 on accounts payable. Valor has accounts receivable of $40,000, inventory of $36,000 and land that costs $50000. How much are Valor's total assets and liabilities?
    • A. 

      A= 126000 L= 29000

    • B. 

      A= 29000 L= 131000

    • C. 

      A= 131000 L= 29000

    • D. 

      A= 131000 L= 84000

  • 10. 
    Which items are reported on the balance sheet?
    • A. 

      Accounts payable

    • B. 

      Inventory

    • C. 

      Retained Earnings

    • D. 

      All of the above

  • 11. 
    During the year, Diaz OE increased from $46,000 to $62,000. Diaz earned NI of $20,000. How much in dividends did Diaz declare during the year?
    • A. 

      16,000

    • B. 

      5,000

    • C. 

      4,000

    • D. 

      0

  • 12. 
    Hall Company had total assets of $360,000 and total stockholder's equity of $120,000 at the beginning of the year. During the year, assets increased by $60,000 and liabilities increased $35,000. Stockholders' equity at the end of the year was
    • A. 

      95000

    • B. 

      150000

    • C. 

      145000

    • D. 

      155000

  • 13. 
    Which of the following is a true statement about International Financial Reporting Standards?
    • A. 

      They are converging gradually with US standards

    • B. 

      THey are not needed for US business since the US already has the strongest accounting standards in the world.

    • C. 

      They are more exact than GAAP

    • D. 

      They are not being applied anywhere in the world yet, but soon they will be.

  • 14. 
    Which of the following is the most accurate statement regarding ethics as applied to decision making in accounting?
    • A. 

      Ethics has no place in accounting, since accounting deals purely with numbers

    • B. 

      It is impossible to learn ethical decision making since it is just something you decide to do or not to do

    • C. 

      Ethics involves making difficult choices under pressure and should be kept in mind making every decision, including those involving accounting

    • D. 

      Ethics is becoming less important as a field of study in business