ACCY 200 Midterm 1 UIUC #1 Questions with correct
answers
The balance sheet is sometimes referred to as the:
A)Statement of Financial Position.
B)Statement of Assets and Liabilities.
C)Statement of Changes in Financial Position.
D)Statement of Current Affairs.
E)None of the above - ✔✔A) Statement of Financial Position.
The distinction between a current asset and other assets:
A)is based on how long the asset has been owned.
B)is based on amounts that will be paid to other entities within a year.
C)is based on the ability to determine the current fair value of the asset.
D)is based upon whether the asset is tangible or intangible.
E)is based on when the asset is expected to be converted to cash, or used to
benefit the entity. - ✔✔E)is based on when the asset is expected to be converted
to cash, or used to benefit the entity.
The principle stating that all expenses incurred while earning revenues should be
identified with the revenues when they are earned, and reported for the same
time period is the:
A)cost principle.
B)revenue principle.
C)expense principle.
D)matching principle.
, E)timing principle. - ✔✔D)matching principle.
The principle of consistency means that:
A) there are no alternative methods of accounting for the same transaction.
B) the same accounting methods are used by all firms in an industry.
C) the effect of any change in an accounting method will be disclosed in the
financial statements or notes thereto.
D) the accounting methods used by an entity never change. - ✔✔C) the effect of
any change in an accounting method will be disclosed in the financial statements
or notes thereto.
Stockholders' equity refers to which of the following?
1 A listing of the organization's assets and liabilities.
2 The ownership right of the stockholder(s) of the entity.
3 Probable future sacrifices of economic benefits.
4 The amount of resources controlled by the entity. - ✔✔2 The ownership right of
the stockholder(s) of the entity.
Accrual accounting:
1 is designed to match revenues and expenses.
2 results in the balance sheet showing the fair value of the entity's assets.
3 means that expenses are recorded when they are paid.
4 cannot result in the entity having net income unless cash is received from
customers. - ✔✔1 is designed to match revenues and expenses.
answers
The balance sheet is sometimes referred to as the:
A)Statement of Financial Position.
B)Statement of Assets and Liabilities.
C)Statement of Changes in Financial Position.
D)Statement of Current Affairs.
E)None of the above - ✔✔A) Statement of Financial Position.
The distinction between a current asset and other assets:
A)is based on how long the asset has been owned.
B)is based on amounts that will be paid to other entities within a year.
C)is based on the ability to determine the current fair value of the asset.
D)is based upon whether the asset is tangible or intangible.
E)is based on when the asset is expected to be converted to cash, or used to
benefit the entity. - ✔✔E)is based on when the asset is expected to be converted
to cash, or used to benefit the entity.
The principle stating that all expenses incurred while earning revenues should be
identified with the revenues when they are earned, and reported for the same
time period is the:
A)cost principle.
B)revenue principle.
C)expense principle.
D)matching principle.
, E)timing principle. - ✔✔D)matching principle.
The principle of consistency means that:
A) there are no alternative methods of accounting for the same transaction.
B) the same accounting methods are used by all firms in an industry.
C) the effect of any change in an accounting method will be disclosed in the
financial statements or notes thereto.
D) the accounting methods used by an entity never change. - ✔✔C) the effect of
any change in an accounting method will be disclosed in the financial statements
or notes thereto.
Stockholders' equity refers to which of the following?
1 A listing of the organization's assets and liabilities.
2 The ownership right of the stockholder(s) of the entity.
3 Probable future sacrifices of economic benefits.
4 The amount of resources controlled by the entity. - ✔✔2 The ownership right of
the stockholder(s) of the entity.
Accrual accounting:
1 is designed to match revenues and expenses.
2 results in the balance sheet showing the fair value of the entity's assets.
3 means that expenses are recorded when they are paid.
4 cannot result in the entity having net income unless cash is received from
customers. - ✔✔1 is designed to match revenues and expenses.
