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basic Accounting




Lesson 1;Financial Accounting;When you feel confident that you have mastered the material in;Lesson 1, go to and submit;your answers online. If you don?t have access to the Internet;you can phone in or mail in your exam. Submit your answers for;this examination as soon as you complete it. Do not wait until;another examination is ready.;1. When planning for retirement, _______ assess the company?s;ability to offer long-term job prospects and an attractive;retirement benefits package.;A. social clubs C. state governments;B. not-for-profit entities D. employees;2. Which of the following is not a kind of accounting considered;in your textbook?;A. Financial C. National;B. Managerial D. Public;3. Which classification of accounting is most concerned with the;use of economic and financial information to plan and control;many of the activities of the entity?;A. Managerial C. Financial;B. Public D. Income tax;4. Cost accounting is a subset of;A. internal auditing. C. cost analysis.;B. public auditing. D. managerial accounting.;5. During the 1970?1980 period, the _______ operated as a governmental body to;establish standards applicable to government contracts. It was abolished in 1981;although its standards remained in effect.;A. NASB C. CASB;B. CANN D. AICPA;6. The balance sheet equation can be represented by all of the following except which;one?;A. A = L + OE;B. Assets ? Liabilities = Owners? Equity;C. Net Assets = Owners? Equity;D. A = L ? OE;7. The time frame associated with an income statement is a;A. point in time in the past.;B. past period of time.;C. future period of time.;D. function of the information included in it.;8. On January 31, an entity?s balance sheet showed total assets of $750 and liabilities of;$250. Owners? equity at January 31 was;A. $250. C. $750.;B. $500. D. $1,000.;9. The return on investment measure of performance;A. isn?t as important a measure of management effectiveness as the amount of net;income.;B. relates dividends paid to the entity?s assets.;C. involves net income divided by sales, which is called margin.;D. is calculated by dividing average assets for a period by the amount of net income;for the period.;10. Rate of return and _______ related to an investment go hand in hand.;A. asset assessment C. falling interest;B. riskiness D. time signature;11. An advantage of the DuPont model for calculating ROI is that it;A. focuses on asset utilization as well as net income.;B. is easier to use than the straightforward ROI formula.;C. uses average assets, and the straightforward ROI formula doesn?t.;D. uses owners? equity.;12. Which of the following best states what return on equity is?;A. It will be the same as return on investment.;B. It relates dividends and turnover.;C. It relates dividends and owners? equity.;D. It relates net income and average owners? equity.;13. Which of the following will a debit entry do?;A. Decrease an asset account C. Increase paid-in capital;B. Increase a liability account D. Increase an expense account;14. The journal is sometimes referred to as the book of;A. original entry. C. dead letters.;B. final answer. D. raw materials.;15. _______ accounting is historical scorekeeping, it is not future oriented.;A. Comptroller C. Budget;B. Financial D. Entity;16. _______ are distributions of earnings that have been made to the owners, and reduce;retained earnings.;A. Dividends C. Cash flows;B. Assets D. Par values;17. Financial statement ratios support informed judgments and decision making most;effectively when;A. viewed for a single year.;B. viewed as a trend of entity data.;C. compared to an industry average for the most recent year.;D. the trend of entity data is compared to the trend of industry data.;18. What could an expanded version of the accounting equation be?;A. A + Rev = L + OE ? Exp;B. A ? L = Paid-in Capital ? Rev ? Exp;C. A = L + Paid-in Capital + Beginning Retained Earnings + Rev ? Exp;D. A = L + Paid-in Capital ? Rev + Exp;19. To _______an account is to make a debit entry to the account.;A. charge C. balance;B. take D. post;20. The bookkeeping/accounting process begins with;A. decreases. C. increases.;B. transactions. D. questions;Lesson 2;The Balance Sheet;1. The principal reason for reconciling the cash balance per;books with the balance shown on the bank statement is to;A. determine the amount of cash in the account actually;available to the entity.;B. satisfy generally accepted accounting principles.;C. verify the amount of petty cash on hand.;D. determine whether the entity has issued an NSF check.;2. The allowance for uncollectible accounts is a/an;A. debit. C. expense.;B. contra asset. D. contra revenue.;3. _______ is/are frequently combined with _______ in the;balance sheet for reporting purposes.;A. Interest Receivable, Notes Receivable;B. Uncollectibles, collectibles;C. Working capital, retired capital;D. Customer expense, company collateral;4. The balance sheet valuation of inventories is;A. lower of selling price or cost.;B. lower of cost or market.;C. lower of realizable value or selling price.;D. cost, regardless of the cost of replacing the inventory.;5. Which inventory accounting system has been made much more feasible as a result of;computer system developments?;A. Physical C. Perpetual;B. Periodic D. Just-in-time;6. When a firm buys land on which there?s a building, and the building is torn down so;that an appropriate new building can be constructed on the land;A. any of the purchase cost allocated to the old building is reported as a loss.;B. the cost assigned to the land excludes the cost of the old building.;C. the total cost of the land and old building are capitalized as land cost.;D. any of the purchase cost allocated to the old building is capitalized as part of the;cost of the new building.;7. In financial accounting, _______ is an application of the matching concept.;A. depreciation C. acquisition;B. appreciation D. recognition;8. The net book value of a depreciable asset is the;A. fair-market value of the asset.;B. amount for which the asset should be insured.;C. difference between the asset?s cost and accumulated depreciation.;D. difference between the asset?s cost and depreciation expense.;9. If an organization has an obligation to pay $5,000 to a supplier two years from now;the present value of the obligation;A. is less than $5,000.;B. is $5,000.;C. is more than $5,000.;D. could be calculated using an annuity factor from the present-value tables.;10. Depreciation, in accounting, is a process that results in;A. depreciable assets being reported in the balance sheet at their fair-market value.;B. accumulating cash for the replacement of the asset.;C. an accurate measurement of the economic usefulness of an asset.;D. spreading the cost of an asset over its useful life to the entity.;11. A transaction that?s likely to cause an increase in a current liability is;A. payment of accrued wages. C. depreciation of equipment.;B. accrual of interest expense. D. accrual of bad-debts expense.;12. Another name for bonds payable reported on the balance sheet at their carrying value;is the bonds?;A. increased net income. C. semiannual premium.;B. decreased working capital. D. book value.;13. When the financial statements of the parent company and its subsidiaries are;combined, this process is called


Paper#80314 | Written in 18-Jul-2015

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