Accounting

CHAPTER 2 THE ACCOUNTING EQUATION AND TRANSACTION ANALYSIS TRUE-FALSE STATEMENTS 1. In order to possess future service potential, an asset must have physical substance. Ans: F LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: None AICPA FC: Measurement Analysis and Interpretation Subtopic: Assets 2. Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses. Ans: F ...

Chapter 1 Governmental and Nonprofit Accounting Environment and Characteristics Learning Objectives – Coverage by Question True / False Multiple Choice Exercises Problems LO1 – Understand the difference between governmental and nonprofit entities and commercial businesses. 1-7 1-10 2 LO2 – Understand objectives and distinctive characteristics of financial reporting for governments and nonprofit entities. 8-15 10-16 1-2 LO3 – Understand the sources of generally accepted accou...

Chapter 1 Governmental and Nonprofit Accounting Environment and Characteristics QUESTIONS Q1-1. Not-for-profit organizations: (a) receive contributions of significant amounts of resources from resource providers who do not expect equivalent pecuniary return; (b) operate for purposes other than to provide goods and services at a profit; and (c) lack ownership interests like those of a business enterprise. Q1-2. Governmental entities include the federal government; general-purpose po...

Horngren's Cost Accounting: A Managerial Emphasis, 17e by Datar/Rajan Chapter 2 An Introduction to Cost Terms and Purposes Objective 2.1 1) Which of the following would be considered an actual cost of a current period? A) the $25 of materials in a manufactured chair that is ready to be shipped to the customer B) the $22 of direct material cost per unit assumed in the actual budget of a manufacturer of chairs C) the expected cost of materials for a chair as a result of engineering s...

Ethical Obligations and Decision-Making, 5e (Mintz) Chapter 1 Ethical Reasoning: Implications for Accounting 1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs? A) Truthfulness B) Integrity C) Loyalty D) Due care Answer: B Difficulty: 1 Easy Topic: Integrity: The Basis of Accounting Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment. Bloom's: Apply AACSB: Ethics ...

File: Chapter 02 - Consolidation of Financial Information Multiple Choice: [QUESTION] 1. At the date of an acquisition which is not a bargain purchase, the acquisition method A) Consolidates the subsidiary’s assets at fair value and the liabilities at book value. B) Consolidates all subsidiary assets and liabilities at book value. C) Consolidates all subsidiary assets and liabilities at fair value. D) Consolidates current assets and liabilities at book value, and long-term asse...

Chapter 2 Review of the Accounting Process QUESTIONS FOR REVIEW OF KEY TOPICSQuestion 2–1External events involve an exchange transaction between the company and a separate economic entity. For every external transaction, the company is receiving something in exchange for something else. Internal events do not involve an exchange transaction but do affect the financial position of the company. Examples of external events are the purchase of inventory, a sale to a customer, and the bor...

CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 Define cost object and give three examples. A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2-2 Define direct costs and indirect costs. Direct costs of a cost object are related to the particular cost object and can be traced to that cost object in an economically feasible (cost-effecti...