American Institute Of Certified Public Accounts (Aicpa) With Answers 2024

Which of the following is not true regarding a Certified Public Accountant? a. Must exhibit ethical character. b. Cannot hold any certificate other than a CPA. c. Must meet education and experience requirements. d. Must pass an examination. e. May also be a Certified Management Accountant. - Correct answer: b. Cannot hold any certificate other than a CPA. 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? - Correct answer: Measurement (Cost) principle All of the following are external users of accounting information except: a. Customers b. Board of directors c. Chief executive officer (CEO) d. Lenders e. Shareholders - Correct answer: c. Chief executive officer (CEO) If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be: - Correct answer: One asset increases $1,300 and another asset decreases $1,300, causing no effect. An example of an investing activity is: a. Selling inventory b. Contribution from owner c. Withdrawals by the owner d. Paying wages of employees e. Purchase of land - Correct answer: e. Purchase of land If equity is $300,000 and liabilities are $192,000, then assets equal: - Correct answer: $492,000 If assets are $99,000 and liabilities are $32,000, then equity equals: - Correct answer: $67,000 Another name for equity is: - Correct answer: Net assets