20 terms

Quiz Week 3

The income statement shows amounts for:
revenues, gains, expenses and losses.
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?
Managerial accounting.
A concept or principle that relates to transactions is:
original cost
Accrual accounting:
is designed to match revenues and expenses.
Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?
Probability of success of a new product development.
The going concern concept refers to a presumption that:
the entity will continue to operate in the foreseeable future.
Accumulated depreciation on a balance sheet:
Represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business.
Cost accounting is a subset of which of the following?
Managerial accounting.
The provisions of the Sarbanes-Oxley Act of 2002 had the following components:
A, B and C are correct.
The balance sheet of an entity:
shows amounts that are not adjusted for changes in the purchasing power of the dollar.
A fiscal year:
is frequently selected based on the firm's operating cycle.
The principle of consistency means that:
the effect of any change in an accounting method will be disclosed in the financial statements or notes thereto.
At the beginning of the year, paid-in capital was $82 and retained earnings was $47. During the year, the owners invested $24 and dividends of $6 were declared and paid. Retained earnings at the end of the year were $52. Total owners' equity at the end of the year was:
Major classifications of accounting activity would not include:
financial accounting, national accounting, cost accounting.
Which of the following is not an example of a decision or informed judgment that a potential employee could make from accounting information?
Personnel turnover statistics (i.e., hiring and terminations).
Consolidated financial statements report financial position, results of operations, and cash flows for:
a parent corporation and its subsidiaries.
Which of the following is not a transaction to be recorded in the accounting records of an entity?
Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive.
At the beginning of the fiscal year, the balance sheet showed assets of $1,364 and owners' equity of $836. During the year, assets increased $74 and liabilities decreased $38. Owners' equity at the end of the year totaled:
The objectives of financial reporting for nonbusiness enterprises:
Focus on providing information for resource providers, rather than investors.
The purpose of the income statement is to show the:
net income or net loss for the period covered by the statement.