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TEST BANK For Intermediate Accounting
3rd Edition, by Gordon, Raedy &
Sannella, Verified Chapters 1 - 22,
Complete Newest Version
Glasser Corp. sold goods on account. The journal entry to record this transaction
includes (Select all that apply.) - ans--credit revenue
-credit inventory
-debit cost of goods sold
-debit accounts receivable
In a periodic inventory system, cost of goods sold is debited for the cost of
inventory sold - ans-at the end of the accounting period
Crater Corp. uses a separate dividend account to record dividends declared. When
a dividend is declared and paid, the journal entry will include (Select all that apply.)
- ans-debit to dividends
credit to cash
Flounder Corp. sold $12,000 of goods on account. The entry to record this
transaction would include a debit to - ans-accounts receivable.*
If a company uses the temporary account dividends then when a dividend is paid to
shareholders: - ans-dividends is debited
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Internal users of accounting information - ans-...
external users of accounting information - ans-Investors, creditors, employees,
labor unions, customers, suppliers, government regulatory agencies, financial
intermediaries
financial accounting - ans-Provides relevant financial information to various external
users.
managerial accounting - ans-deals with the concepts and methods used to provide
information to an organization's internal users
GAAP - ans-set of both broad and specific guidelines that companies should follow
when measuring and reporting the information in their financial statements and
related notes
SEC - ans-responsible for setting accounting and reporting standards for companies
whose securities are publicly traded
FASB - ans-the current private sector body that has been delegated the task of
setting accounting standards.
IASB - ans-objectives are to develop a single set of high-quality understandable
global accounting standards, to promote the use of those standards, and to bring
about the convergence of national accounting standards and international
accounting standards
IFRS - ans-developed by the IASB and used by more than 100 countries
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SOX - ans-law provides for the regulation of the key players in the financial
reporting process
Initial market transactions - ans-involves issuance of stocks and bonds by the
corporation
Secondary market transactions - ans-involves the transfer of stocks and bonds
between individuals and institutions
Maltec Corporation has started placing its quarterly financial statements on its web
page, thereby reducing by 10 days the time to get information to investors and
creditors. The qualitative concept improved is: - ans-Timeliness
Timeliness - ans-information that is available to users early enough to allow its use
in the decision process
Consistency - ans-permits valid comparisons between different periods
Faithful representation - ans-exists when there is agreement between a measure or
description and the phenomenon it purports to represent
Comparability - ans-the ability to help users see similarities and differences among
events and conditions
Astro Turf Company recognizes an expense, cost of goods sold, in the period the
product is manufactured. - ans-The matching principle
TEST BANK For Intermediate Accounting
3rd Edition, by Gordon, Raedy &
Sannella, Verified Chapters 1 - 22,
Complete Newest Version
Glasser Corp. sold goods on account. The journal entry to record this transaction
includes (Select all that apply.) - ans--credit revenue
-credit inventory
-debit cost of goods sold
-debit accounts receivable
In a periodic inventory system, cost of goods sold is debited for the cost of
inventory sold - ans-at the end of the accounting period
Crater Corp. uses a separate dividend account to record dividends declared. When
a dividend is declared and paid, the journal entry will include (Select all that apply.)
- ans-debit to dividends
credit to cash
Flounder Corp. sold $12,000 of goods on account. The entry to record this
transaction would include a debit to - ans-accounts receivable.*
If a company uses the temporary account dividends then when a dividend is paid to
shareholders: - ans-dividends is debited
, Page |2
Internal users of accounting information - ans-...
external users of accounting information - ans-Investors, creditors, employees,
labor unions, customers, suppliers, government regulatory agencies, financial
intermediaries
financial accounting - ans-Provides relevant financial information to various external
users.
managerial accounting - ans-deals with the concepts and methods used to provide
information to an organization's internal users
GAAP - ans-set of both broad and specific guidelines that companies should follow
when measuring and reporting the information in their financial statements and
related notes
SEC - ans-responsible for setting accounting and reporting standards for companies
whose securities are publicly traded
FASB - ans-the current private sector body that has been delegated the task of
setting accounting standards.
IASB - ans-objectives are to develop a single set of high-quality understandable
global accounting standards, to promote the use of those standards, and to bring
about the convergence of national accounting standards and international
accounting standards
IFRS - ans-developed by the IASB and used by more than 100 countries
, Page |3
SOX - ans-law provides for the regulation of the key players in the financial
reporting process
Initial market transactions - ans-involves issuance of stocks and bonds by the
corporation
Secondary market transactions - ans-involves the transfer of stocks and bonds
between individuals and institutions
Maltec Corporation has started placing its quarterly financial statements on its web
page, thereby reducing by 10 days the time to get information to investors and
creditors. The qualitative concept improved is: - ans-Timeliness
Timeliness - ans-information that is available to users early enough to allow its use
in the decision process
Consistency - ans-permits valid comparisons between different periods
Faithful representation - ans-exists when there is agreement between a measure or
description and the phenomenon it purports to represent
Comparability - ans-the ability to help users see similarities and differences among
events and conditions
Astro Turf Company recognizes an expense, cost of goods sold, in the period the
product is manufactured. - ans-The matching principle
