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Chapters 1-4The Accounting Cycle
Chapters 5-8Current Assets
Chapters 9-11Long-Term Assets
Chapters 12-14Liabilities/Equities
Chapters 15-16Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20Managerial/Cost
Chapters 21-24Budgeting/Decisions

Chapters 1-4The Accounting Cycle
Chapters 5-8Current Assets
Chapters 9-11Long-Term Assets
Chapters 12-14Liabilities/Equities
Chapters 15-16Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20Managerial/Cost
Chapters 21-24Budgeting/Decisions

Chapter 1 – Multiple Choice

By admin / May 13, 2015

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Question 1 of 8

1. Question
The accounting profession can be divided into three major categories; specifically, the practice of public accounting, private accounting, and governmental accounting. A somewhat unique and important service of public accountants is:
- Financial accounting.
- Managerial accounting.
- Auditing.
- Cost accounting.
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Question 2 of 8

2. Question
The primary private sector agency that oversees external financial reporting standards is the:
- Financial Accounting Standards Board.
- Federal Bureau of Investigation.
- General Accounting Office.
- Internal Revenue Service.
Correct

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Question 3 of 8

3. Question
Which of the following equations properly represents a derivation of the fundamental accounting equation?
- Assets + liabilities = owner's equity.
- Assets = owner's equity.
- Cash = assets.
- Assets – liabilities = owner's equity.
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Question 4 of 8

4. Question
Wilson Company owns land that cost $100,000. If a “quick sale” of the land was necessary to generate cash, the company feels it would receive only $80,000. The company continues to report the asset on the balance sheet at $100,000. Which of the following concepts justifies this?
- The historical-cost principle.
- The value is tied to objective and verifiable past transactions.
- Neither of the above.
- Both "a" and "b".
Correct

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Question 5 of 8

5. Question
Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?
- Net loss.
- Net income.
- Dividends.
- Investments by stockholders.
Correct

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Question 6 of 8

6. Question
Which of these items would be accounted for as an expense?
- Repayment of a bank loan.
- Dividends to stockholders.
- The purchase of land.
- Payment of the current period's rent.
Correct

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Question 7 of 8

7. Question
Which of the following transactions would have no impact on stockholders’ equity?
- Purchase of land from the proceeds of a bank loan.
- Dividends to stockholders.
- Net loss.
- Investments of cash by stockholders.
Correct

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Question 8 of 8

8. Question
Which of the following would not be included on a balance sheet?
- Accounts receivable.
- Accounts payable.
- Sales.
- Cash.
Correct

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Examples of journal entries for numerous sample transactions

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Typical financial statement accounts with debit/credit rules and disclosure conventions

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Time Value of Money

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