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Question;1. The;process of identifying, measuring and communicating economic information to;permit informed judgments and decisions by users of the information is called;A.;Accounting;B.;Bookkeeping;C.;Making journal entries;D.;Preparing financial statements;2. Which;of the following phrases most closely relates to bookkeeping?;A.;Identifying and measuring economic information;B.;Communicating economic information;C.;Permitting informed judgments by users;D.;Permitting informed decisions by users;3. Which;of the following most clearly differentiates accounting and bookkeeping?;A.;Bookkeeping always involves information technology, accounting does not.;B.;Accounting always involves information technology, bookkeeping does not.;C.;Bookkeeping is the part of accounting most focused on rules and procedures.;D.;A college degree is required for bookkeeping, but not for accounting.;4. Which;of the following statements about accounting and bookkeeping is most true?;A.;The FASB Conceptual Framework is relevant in accounting, but not in;bookkeeping.;B.;The FASB Conceptual Framework is relevant in bookkeeping, but not in;accounting.;C.;As an element of the AIS, internal controls are irrelevant to bookkeeping.;D.;As an element of the AIS, outputs are relevant to accounting.;5.;Communicating information to external decision makers is accomplished through;as part of the process of ___.;A.;Financial statements, bookkeeping;B.;Financial statements, accounting;C.;Journal entries, bookkeeping;D.;Journal entries, accounting;6. Plant;assets, such as equipment, are reported on financial statements at their book;value, thus exemplifying;A.;The measuring process in accounting only.;B.;The measuring process in bookkeeping only.;C.;The measuring process in both accounting and bookkeeping.;D.;Informed judgments as part of the definition of bookkeeping.;7. An;accountant received a stack of sales invoices. Which of the following;statements is most true?;A.;The stack of sales invoices can help the accountant identify economic;information, which is part of both accounting and bookkeeping.;B.;The accountant is a ?user of information? as the phrase is used in the;definition of bookkeeping only.;C.;The accountant is a ?user of information? as the phrase is used in the;definition of accounting only.;D.;The stack of sales invoices can help the accountant identify economic;information, which is part of bookkeeping, but not accounting.;8. Which;of the following best pairs an element of bookkeeping with an example of the;element?;A.;Identifying economic information, reading a balance sheet;B.;Identifying economic information, preparing a balance sheet;C.;Measuring economic information, reading a balance sheet;D.;Measuring economic information, preparing a balance sheet;9. The;concept of bookkeeping includes: (i) distinguishing relevant from irrelevant;information, (ii) calculating amounts to record in the AIS, (iii) reporting;financial results.;A.;I and II only.;B.;I and III only.;C.;II and III only.;D.;I, II and III.;10. The;definition of accounting has three principal elements. Which of;the following is not one of them?;A.;Distinguishing relevant from irrelevant information;B.;Calculating amounts to record in the AIS;C.;Reporting financial results;D.;Using the information to make informed judgments;11.;Which of the following steps in the accounting cycle occurs first?;A.;Analyze transactions.;B.;Close the temporary accounts to retained earnings.;C.;Prepare an unadjusted trial balance.;D.;Record the transactions in a journal.;12.;Which step in the accounting cycle immediately precedes closing the temporary;accounts?;A.;Analyze transactions.;B.;Prepare an adjusted trial balance.;C.;Prepare financial statements.;D.;Record adjusting entries.;13. In;what way is the fifth step in the accounting cycle different from the seventh;step in the accounting cycle?;A.;The fifth step comes before preparing financial statements, the seventh step;comes afterward.;B.;The fifth step focuses only on permanent accounts, the seventh step focuses;only on temporary accounts.;C.;The fifth step focuses only on temporary accounts, the seventh step focuses;only on permanent accounts.;D.;The seventh step includes the results of internal transactions, the fifth step;does not.;14.;Which of the following is an example of a deferred revenue?;A.;A university receives cash from students prior to the start of classes.;B.;A convenience store sells newspapers to its customers.;C.;Both A and B;D.;Neither A nor B;15.;Please refer to the following unadjusted trial balance in answering Questions;15 and 16.Error!;Hyperlink reference not valid.;1) VLN had unpaid wages;totaling $800 at the end of the accounting period. When VLN?s accountant;makes an adjusting entry for the unpaid wages, the new trial balance totals;will be;A.;$49,600;B.;$51,200;C.;Some other amount;D.;Cannot be determined from the information given;16.;Please refer to the following unadjusted trial balance in answering Questions;15 and 16.Error!;Hyperlink reference not valid.;When VLN completes the ninth step in the;accounting cycle, all of the following accounts will be involved except;A.;Advertising expense;B.;Deferred revenue;C.;Retained earnings;D.;Sales;17.;Adjusting entries for accrued revenues and accrued expenses are similar in;that;A.;They both involve cash flows after service.;B.;They both involve cash flows before service.;C.;They both debit temporary accounts.;D.;They both credit temporary accounts.;18. Most;companies make adjusting entries for depreciation because;A.;Their plant assets lose market value over time.;B.;The matching concept must be upheld in financial statements.;C.;Both A and B.;D.;Neither A nor B.;19.;Which of the following sets includes amounts from a single financial statement?;A.;Cash, sales, interest earned;B.;Cash, accounts receivable, interest earned;C.;Cash, accounts receivable, accounts payable;D.;Sales, accounts receivable, interest earned;20.;Which of the following sets includes examples of the same element of financial;statements?;A.;Accounts payable, deferred revenue, prepaid wages;B.;Accounts receivable, deferred revenue, prepaid wages;C.;Accounts payable, deferred revenue, wages payable;D.;Deferred revenue, wages payable, prepaid wages;21.;Common internal controls associated with source documents include: (i);sequential numbering, (ii) physical security, (iii) equality of debits and;credits.;A.;I and II only;B.;I and III only;C.;II and III only;D.;I, II and III;22.;Requiring ___ on certain source documents is associated with transaction limits;as an internal control.;A.;Sequential numbering;B.;Physical security;C.;Supervisory approval;D.;Internal transaction notifications;23. TCP;Corporation issues a purchase order whenever it buys inventory. Internal;controls associated with the purchase order may include;A.;Sequential numbering;B.;Transaction limits;C.;Both A and B;D.;Neither A nor B;24. As;an internal control measure in the accounting cycle, physical security most;clearly applies to;A.;Source documents;B.;The balance sheet;C.;The income statement;D.;The statement of cash flows;25. Just;before preparing financial statements, an inexperienced accountant recorded the;use of supplies by debiting supplies expense $100 and debiting supplies;$100. Which of the following is most true?;A.;The transaction was recorded correctly.;B.;The unadjusted trial balance will be an effective internal control for;detecting any error.;C.;The adjusted trial balance will be an effective internal control for detecting;any error.;D.;Sequential transaction numbering will be an effective internal control for;detecting any error.;26.;Linda embezzled cash from her employer by forging a signature on a check.;Which of the following internal controls for source documents would most likely;prevent such occurrences in the future?;A.;Sequential numbering;B.;Physical security;C.;Transaction limits;D.;Bank reconciliation;27. As;an internal control for source documents, sequential numbering is most likely;to ___ an error.;A.;Prevent;B.;Detect;C.;Correct;D.;Eliminate;28. As;an internal control for source documents, transaction limits are most likely to;an error.;A.;Prevent;B.;Detect;C.;Correct;D.;Eliminate;29. As a;form of internal control, sequential numbering is most likely to be associated;with which step in the accounting cycle?;A.;First;B.;Fifth;C.;Sixth;D.;Last;30. As a;form of internal control, transaction limits are most likely to be associated;with which step in the accounting cycle?;A.;Second;B.;Fourth;C.;Ninth;D.;Last;31. All;of the following are common coding systems used in organizations except;A.;Block;B.;Hierarchical;C.;Random;D.;Sequential;32.;Which type of coding system helps people remember the meaning of the code?;A.;Sequential;B.;Block;C.;Hierarchical;D.;Mnemonic;33. The;accounting department at a local university uses the prefix ACC for all its;courses, thus exemplifying which type of coding system?;A.;Sequential;B.;Block;C.;Hierarchical;D.;Mnemonic;34.;Courses intended for freshmen at a local university are numbered from 100 to;199, while courses intended for seniors at the same university are numbered;from 400 to 499. Which coding system is the university using?;A.;Sequential;B.;Block;C.;Hierarchical;D.;Mnemonic;35. Most;organizations use purchase orders to authorize inventory and other;purchases. If a company?s purchase order contains a column labeled ?product;code,? it most likely uses what kind of coding?;A.;Sequential;B.;Block;C.;Hierarchical;D.;Mnemonic;36. Most;organizations use purchase orders to authorize inventory and other;purchases. If a company?s purchase order contains a field labeled ?purchase;order number,? it most likely uses what kind of coding?;A.;Sequential;B.;Block;C.;Hierarchical;D.;Mnemonic;37. NTR;Corporation has offices in both Los Angeles and San Francisco. In the Los;Angeles office, the account number for cash is 001.101. In San Francisco;the account number for cash is 002.101. Which of the following statements;is most true?;A.;NTR uses sequential coding for its chart of accounts.;B.;One of the offices should change its account number for cash to promote;consistency and efficiency.;C.;The first set of digits denotes the office.;D.;The second set of digits denotes the office.;38. NTR;Corporation has offices in both Los Angeles and San Francisco. In the Los;Angeles office, the account number for cash is 001.101. In San Francisco;the account number for cash is 002.101. The account number for accounts;receivable in the Los Angeles office is therefore likely to be;A.;001.102;B.;002.102;C.;102.002;D.;002.110;39. ABT;Corporation uses block coding for its chart of accounts, which includes Cash;(101), Land (201), Accounts payable (301) and Retained Earnings (501).;Which of the following account numbers is most likely associated with an;account that will appear on the income statement?;A.;101;B.;102;C.;401;D.;601;40. ABT;Corporation uses block coding for its chart of accounts, which includes Cash;(101), Land (201), Accounts payable (301) and Retained Earnings (501).;Which of the following account numbers is most likely associated with an account;that will appear on the adjusted trial balance but not on the post-closing;trial balance?;A.;203;B.;405;C.;504;D.;701;41.;Human judgment is important in which of the following AIS tasks: (i);designing source documents, (ii) recognizing recordable transactions.;A.;I only;B.;II only;C.;Both I and II;D.;Neither I nor II;42.;Information technology;A.;Has replaced human judgment in accounting.;B.;Has cut down on the tedium associated with many steps in the accounting cycle.;C.;Is an essential element of any AIS.;D.;Is the defining feature of the AIS.;43.;Which of the following statements about human judgment and information;technology in the AIS is most true?;A.;Information technology is a substitute for human judgment.;B.;Human judgment is a substitute for information technology.;C.;Information technology can enhance human judgment.;D.;Both information technology and human judgment are essential in any AIS.;44. In;an AIS, human judgment is important in;A.;The second step of the accounting cycle.;B.;The design and implementation of internal controls.;C.;Both A and B.;D.;Neither A nor B.;45.;Information technology can be an important tool in which of the five generic;elements of an AIS?;A.;Inputs and outputs only;B.;Outputs and storage only;C.;Processes and storage only;D.;Any of the elements;46.;Which type of adjusting entry is most likely to involve human judgment?;A.;Uncollectible accounts;B.;Accrued liabilities;C.;Deferred revenue;D.;Prepaid expenses;47. As;an internal control, RSR Corporation requires two signatures on all checks over;$500, thus illustrating the importance of;A.;Human judgment.;B.;Information technology.;C.;Both human judgment and information technology.;D.;Neither human judgment nor information technology.;48. SRE;Corporation is a software development company, it uses block coding in its;chart of accounts. Which of the following statements is most true?;A.;Information technology may not be necessary to assign new account numbers.;B.;Human judgment may be involved in assigning new account numbers.;C.;Both A and B;D.;Neither A nor B;49. SBL;Corporation?s accounting records were destroyed in a fire. In;reconstructing them;A.;Human judgment will be important, but information technology will not.;B.;Information technology will be important, but human judgment will not.;C.;Both human judgment and information technology may be important.;D.;Neither human judgment nor information technology will be useful.;50. Both;human judgment and information technology are important in accounting;information systems. In which of the following pairs of tasks will;information technology be more critical than human judgment?;A.;Steps 4 and 9 of the accounting cycle;B.;Calculating depreciation and creating a new customer order form in Word;C.;Step 4 of the accounting cycle and calculating depreciation;D.;Step 9 of the accounting cycle and creating a new customer order form in Word

 

Paper#45180 | Written in 18-Jul-2015

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