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101 the international accounting standards board iasb a hopes to create harmony amon 4296396

 

101.The International Accounting Standards Board (IASB): 
 
 

A.Hopes to create harmony among accounting practices of different countries to improve comparability.

B.Is the government group that establishes reporting requirements for companies that issue stock to the investing public.

C.Has the authority to impose its standards on companies around the world.

D.Is the only source of generally accepted accounting principles (GAAP).

E.Only applies to companies that are members of the European Union.

102.The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000? 
 
 

A.Monetary unit assumption.

B.Going-concern assumption.

C.Cost principle.

D.Business entity assumption.

E.Revenue recognition principle.

103.On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received? 
 
 

A.Monetary unit assumption.

B.Going-concern assumption.

C.Cost principle.

D.Business entity assumption.

E.Revenue recognition principle.

104.Marsha Bogswell is the owner of Bogswell Legal Services. Which accounting principle requires Marsha to keep her personal financial information separate from the financial information of Bogswell Legal Services? 
 
 

A.Monetary unit assumption.

B.Going-concern assumption.

C.Cost principle.

D.Business entity assumption.

E.Matching principle.

105.A limited partnership: 
 
 

A.Includes a general partner with unlimited liability.

B.Is subject to double taxation.

C.Has owners called stockholders.

D.Is the same as a corporation.

E.May only have two partners.

106.A partnership: 
 
 

A.Is also called a sole proprietorship.

B.Has unlimited liability for its partners.

C.Has to have a written agreement in order to be legal.

D.Is a legal organization separate from its owners.

E.Has owners called shareholders.

107.Which of the following accounting principles require that all goods and services purchased be recorded at actual cost? 
 
 

A.Going-concern assumption.

B.Matching principle.

C.Cost principle.

D.Business entity assumption.

E.Consideration assumption.

108.Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported? 
 
 

A.Going-concern assumption.

B.Matching principle.

C.Cost principle.

D.Business entity assumption.

E.Consideration assumption.

109.Revenue is properly recognized: 
 
 

A.When the customer makes an order.

B.Only if the transaction creates an account receivable.

C.At the end of the accounting period.

D.Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price.

E.When cash from a sale is received.

110.Which of the following purposes would financial statements serve for external users? 
 
 

A.To find information about projected costs and revenues of proposed products.

B.To assess employee performance and compensation.

C.To assist in monitoring consumer needs and price concerns.

D.To fulfill regulatory requirements for companies whose stock is sold to the public.

E.To determine purchasing needs.

 

 

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