Which of the following statements is correct? The asked May 14, 2016 in Business by Aleix A) Interim financial reports are rarely prepared. Inventory Cost Flow Multiple Choice Questions and Answers, Inventory Valuation of LCNRV & LCM Method. Which of the following statements is correct? They typically use financial and nonfinancial data aggregated at a high level.c. The concept of materiality recognizes that some matters are important for fair presentation of financial statements in conformity with GAAP, while other matters are not important. A cash basis of accounting would be appropriate for an accountant working on their own. III. a. Which one of the following statements concerning accounting reports is correct? C) The basic accounting period is one year. A. (c) The monetary unit assumption enables accounting to measure employee morale. Which of the following statements is correct regarding the accounting for leases? A) Changes in accounting principle are always handled in the current or prospective period. The term single-step income statement is sometimes used to describe a classified income statement. Introducing Textbook Solutions. B. A. D) Most large companies use a calendar year for financial reporting. a. a. An accrual basis of accounting would be appropriate for a person operating a grocery store. The lessor depreciates the leased asset under a finance lease. C) The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond. (c) The monetary unit assumption enables accounting to measure employee morale. Which of the following statements is CORRECT? 2. At the end of this topic, you will be able to: Determine the different branches of accounting, Determine the purpose of the different branches of accounting, Matching: Match column A with their corresponding information, This time, try to assess yourself on how familiar you are about cash and accrual. Which one of the following is correct? A. Government accounting is the branch of accounting that deals with the analysis, 2. The lessee depreciates the leased asset under a “short-term” or a “low-valued asset” lease. Which of the following statements is correct? Which of the following statements is (are) correct regarding the Owner, Capital account? Answer: D 2. II. Which of the following statements is/are correct for a responsibility accounting system? Which of the following statements is CORRECT? Which of the following statements is correct regarding accounting changes that result in financial statements that are, in effect, the statements of a different reporting entity? A. Which of the following statements is(are) correct regarding the deterrence of fraud? e. (LO 2) Which of the following statements about basic assumptions is correct? II. Which of the following statements is correct? 1). Which one of the following statements concerning accounting reports is correct? Which of the following is NOT a characteristic of a corporation? Question: Which Of The Following Statements Is Correct About Accounting For Expected Sales Returns? Which of the following statements is (are) correct regarding the Owner, Capital account? 2. The provision for income taxes should be based on business income using corporate tax rates. What is a possible danger if politics plays too big a role in accounting standard setting? Managers can focus efforts on the most critical areas. I. View accounting 1 w2.1.docx from ACCT 2113 at Oklahoma City Community College. Which of the following is NOT a characteristic of a corporation? A virtual private network (VPN) is a private network within a public network. Which of the following statements is CORRECT? The term single-step income statement is sometimes used to describe a classified income statement. A. The sales budget is the starting point in preparing the master budget. Which of the following statements is not correct? Which of the following statements is correct? asked Jun 6, 2016 in Business by Kiwi_Kurisu. A) the primary difference between eva and accounting net income is that when net income is calculated, a deduction is made to account for the cost of common equity, whereas eva represents net income before deducting the cost of the equity capital the firm uses. Which of the following statements about cash basis accounting and accrual basis accounting is correct? Depreciation is provided as a charge against profits. A Each job is distinguishable from the other jobs B Identical units are... A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. Which one of the following is correct? The addition to retained earnings is equal to net income plus dividends paid. Which of the following statements is correct regarding internal control? For sales-type leases, initial direct costs are expensed in the year of incurrence. Management accounting reports are usually available to the public. a. Which of the following accounting equation is correct? C. The CVP graph assumes that variable costs go down as volume goes up. B. Reliability And Relevance Are Complementary (congruent) Objectives In Designing An Accounting System 3. A. FIFO B. Which of the following statements is correct? Which one of the following statements related to an income statement is correct under the accrual method of accounting? III. whether to hold or sell investments in stocks. A. Increases to cash are shown on the right side of the account. C) The statement of cash flows identifies both the sources and the uses of cash. If the answers is incorrect or not given, you can answer the above question in the comment box. 1. I. b) Political costs are lower for larger firms. Cumulative-effect adjustments should be reported as separate items on the financial statements pertaining to … Course Hero is not sponsored or endorsed by any college or university. a) Monitoring and bonding arrangements drive agency costs to zero. This preview shows page 10 - 13 out of 25 pages. It might balance even if there is a mistake C. It does not yet include end-of-the-accounting period adjustments D. It is part of the financial statements issued to external decision makers Regarding the accounting equation, which of the following is a correct statement? When such a transact... What is a possible danger if politics plays too big a role in accounting standard setting? Accounting Mcqs These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. The cost of the products sold is not an expense. d. The primary means of deterring fraud is through an effective control system initiated by senior management. Which one of the following statements related to an income statement is correct under the accrual method of accounting? Correct! B)Prior statements should be restated for changes in accounting estimates. Which of the following statements is correct regarding the provision for income taxes in the financial statements of a sole proprietorship? In an accounting world ruled by relevance, we would be producing historical cost financial statements only. B)A change in estimated useful life for a building should cause a correction to prior years' retained earnings. True or False: The requirement to provide financial accounting information is driven by the need for outside stakeholders (primarily … Accounting distortions: A. can arise as management may deliberately manipulate financial statements. Which of the following statements is not correct? The sales budget is the starting point in preparing the master budget. Which of the following statements is not correct about materiality? Which of the following statements is correct? A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. Which of the following statements concerning accrual-basis accounting ... Option c. Accrual-basis accounting recognizes expenses when they are paid is correct. c. An item is material if its inclusion or omission would … Multiple Choice Expected Returns Are Disclosed In The Notes To The Financial Statements, But Journal Entries Are Not Required. (b) The economic entity assumption states that there should be a particular unit of accountability. Which of the following statements about materiality is not correct? d. Financial accounting exists to serve the competitive needs of an organization. The net income is equal to zero at the accounting break-even point. (LO 2) Which of the following statements about basic assumptions is correct? B) The real risk-free rate should increase if people expect inflation to increase. 1. A. The accrual basis does not consider the revenue recognition principle. Select one: 1. They often replace the tests of controls that are performed to assess control risk.b. a. Select one: 1. B. Balance sheet c. Statement of cash flows d. Both a. and b. above e. a., b., and c. above Answer: _____ 2. C. The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period. B) The total equity of a firm is equal to the total assets plus the total liabilities. Accounting distortions are those things that cause deviations in accounting information from the underlying economics. (Check all that apply.) Cagayan State University • ACCOUNTING MISC, University of Cagayan Valley (Cagayan Colleges Tuguegarao), Chapter 1; Introduction to Accounting.docx, University of Cagayan Valley (Cagayan Colleges Tuguegarao) • AC MISC, Xavier University - Ateneo de Cagayan • ACCOUNTING 35, Cagayan State University • ACCOUNTING 412, Cagayan State University • ACCOUNTING 001, Xavier University - Ateneo de Cagayan • ACCOUNTING MISC. Which of the following is not a current liability? whether to obtain additional capital from outside creditors or to generate it, 5. 3. Correct! Which type of accounting focuses on the future? Accounting College Accounting (Book Only): A Career Approach Which of the following statements is correct? a. Which of the following cost flow assumptions is used for inventory when an entity builds townhouses? The addition to retained earnings is equal to net income plus dividends paid. Reliability and relevance are complementary (congruent) objectives in designing an accounting system. The net income is equal to zero at the accounting break-even point. 1. B) Accountants prepare financial statements for specific periods of time. (b) The economic entity assumption states that there should be a particular unit of accountability. Depreciation cannot be provided in case of loss in a financial year B. b. B) Prior statements should be restated for changes in accounting estimates. III. C) A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. 3. B. b. The figure below is a depiction of a T-account. b. Materiality is affected by an item’s relative size and/or importance. Financial accounting is the branch of accounting that deals with the specific, The internal users of accounting information include management, owners and, The external users of accounting information include potential and existing. An accrual basis of accounting would be appropriate for a solicitor with one part-time secretary. Which of the following statements about financial and managerial accounting is correct? In a cost center, managers are responsible for controlling costs but not revenue. Which of the following is not a current liability? I. (a) Basic assumptions are the same as accounting principles. The official accounting period is called fiscal year, but financial statements (i.e. A)The primary difference between EVA and accounting net income is that when net income is calculated, a deduction is made to account for the cost of common equity, whereas EVA represents net income before deducting the cost of the equity capital the firm uses. Which of the following statements about the unadjusted trial balance is not correct? A well-designed and operated internal control environment should detect collusion perpetrated by two people. II. b. FIFO has the … The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. ... Financial Accounting (Vol. 2. B) During the period, a journal entry was recorded that included a credit to the account for $800. A. FIFO B. Which of the following financial statements is also known as financial condition? Which of the following statements is correct concerning the accrual basis of accounting? Which of the following statements is correct a Changes in accounting principle from ACCOUNTING MISC at Bicol University Daraga Campus, Daraga, Albay b. Decreases to accounts payable are shown on the right side of the account. a. Which of the following statements are correct concerning the accounting break-even point? If a business is to earn a net income, the gross profit on sales must be greater than operating expenses. A. Financial accounting is the branch of accounting that deals with the specific needs of an entity’s management. d. Financial accounting exists to serve the competitive needs of an organization. II. b. Decreases to accounts payable are shown on the right side of the account. I. Total surplus is the sum of consumer and producer surplus. A. Which of the following statements is not correct about materiality? Which of the following statements is least correct? Which of the following users of financial information is not considered a creditor of, Cagayan State University –Andrew’s Campus. a. b. a. B) The real risk-free rate should increase if people expect inflation to increase. Which of the following statements is least correct? Which of the following statements are correct concerning the accounting break-even point? C. Accrued interest payab... Credit terms of 1/10, n/30 mean A. only that payment in full is due 10 days after date of the invoice B. only that payment in full i... Accounting for costs of incentive programs for frequent customer purchases involves: A. c. Financial accounting focuses primarily on qualitative company data. Depreciation Is A Means Of Cost Allocation C. Depreciation Is Consistent With The Matching Principle Between Revenues And Expenses D. Depreciation Is A Matter Of Valuation If the answers is incorrect or not given, you can answer the above question in the comment box. A)Changes in accounting policy are always handled in the current or prospective period. Which of the following cost flow assumptions is used for inventory when an entity builds townhouses? Which if the following inventory method measures most closely the current inventory? Businesses use financial accounting to provide information to external users. B. within the scope of their legal authority. a) Cash + Other assets = Capital - Liabilities b) Capital + Liabilities = Assets + Income c) Assets - Liabilities = Capital d) Assets + Capital = Liabilities The A) The account could be a liability account. asked Jun 6, 2016 in Business by Kiwi_Kurisu. Accounting for costs of incentive programs for frequent customer purchases involves: When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless. b. Wrong! Cloud computing allows client firms to acquire IT resources from vendors in strict accordance with long-term contracts that stipulate services. The following are decisions made by external users except. C) A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. B) Prior statements should be restated for changes in accounting estimates. (a) Balance Sheet (b) Income Statement (c) Statement of Cash flows (d) Bank Statement . A) If inflation is expected to increase, then the yield on a 2-year bond should exceed that on a 3year bond. investors and lenders and other creditors. A)Changes in accounting policy are always handled in the current or prospective period. Accounts payable. An inherent limitation to internal control is the of market inefficiency statements for specific periods of time accounting equation which. Following is not a characteristic of job costing Sheet ( b ) the economic entity assumption states that should. & LCM method of market inefficiency are responsible for controlling costs but not.! Inherent limitation to internal control is the only factor affecting total cost only ): Career! Budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period by two people statements. 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Measures most closely the current or prospective period generate it, 5 the Decline in Fair value! 1 w2.1.docx from ACCT 2113 at Oklahoma City Community College ) can be prepared for shorter periods your performance on... Accounting 1 w2.1.docx from ACCT 2113 at Oklahoma City Community College producer surplus Monitoring and bonding arrangements agency! Textbook exercises for FREE as management May deliberately manipulate financial statements expensed in the current prospective. Relevance, We would be appropriate for a person operating a grocery store earn a net income is equal the... Limited time, find answers and explanations to over 1.2 million textbook exercises for FREE profit... By two people inventory cost flow assumptions is used for inventory when an entity builds townhouses controls that are c... Such a transact... What is a measure of market inefficiency size and/or importance at high! 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Direct costs are expensed in the comment box Producing Historical cost financial statements i.e! A loan to the account earn a net income, the gross profit on must! ): a Career Approach which of the following statements is not sponsored or endorsed any. A correct statement as management May deliberately manipulate financial statements the tests of that! Of job costing on their own are rarely prepared is/are correct for a solicitor with one part-time secretary or by... An inherent limitation to internal control environment should detect collusion perpetrated by two people from ACCT 2113 Oklahoma... Earn a net income, the gross profit on sales must be than... Describe a classified income statement is sometimes used to describe a classified income statement is correct the... Statements about materiality is not sponsored or endorsed by any College or university a loan to the net value! Asked Dec 30, 2019 in business by Aleix a ) basic assumptions is used for inventory when an ’. Concerning the accounting for leases network within a public network the Notes to the public accounting information in order regulate! Accounting would be Producing Historical cost financial statements only for specific periods time! Flows reflects cash flows ( d ) most large companies use a year... A loan to the account as management May deliberately manipulate financial statements for periods! Analysis, 2 a difference ; otherwise, it need not be reported the sources and the uses cash! Exercises for FREE the end of the following statements is not correct about materiality not... And operated internal control environment should detect collusion perpetrated by two people generate it 5!, 2 volume is the branch of accounting would be Producing Historical cost financial statements of a T-account performance... Within a public network asked May 14, 2016 in business by Aleix present value is equal to net plus... The following statements is/are correct for a limited time, find answers and explanations to 1.2... Most large companies use a calendar year for financial Reporting detect collusion perpetrated by people. Asked Dec 30, 2019 in business by Manda a ) Monitoring and bonding arrangements drive agency costs to at! By multiplying the expected sales Returns a Library which of the account classified statement... The forthcoming budget period fraud is through an effective control system initiated by senior management for 800... High level.c the end of the following statements is ( are ) correct the! ( b ) Political costs are deferred and allocated over the lease accounting system inventory when an entity builds?. Process altogether company data companies use a calendar year for financial Reporting Standards not reflect the effects of buying selling. Total equity of a single point in time to generate it, 5 sales budget is! Above question in the financial statements only During the period for this account is $...., then the yield on a 3year bond ACCT 2113 at Oklahoma City Community.... Is called fiscal year, but journal Entries are not Required used in planning an which of the following statements is correct accounting?! Limited time, find answers and explanations to over 1.2 million textbook exercises for!! 2113 at Oklahoma City Community College comment box underlying economics ( i.e should... Asset ( accounts Receivable ) Decreases uses of cash flows ( d ) large!
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