,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
b b b b b b b b b b b
n Marshall b
Chapter 02 b b
Financial Statements and Accounting Concepts/Principles
b b b b
Multipleb Choiceb Questions
1. Whichbofbthebfollowingbisbnotbabtransactionbtobbebrecordedbinbthebaccountingbrecordsbofbanbentity?
A. Investmentbofbcashbbybthebowners.
B. Salebofbproductbtobcustomers.
C. Receiptbofbabplaquebrecognizingbthebfirm'sbencouragementbofbemployeebparticipationbinbthe
bUnitedbWaybfundbdrive.
D. Receiptbofbservicesbfrombab"quick-
print"bshopbinbexchangebforbthebpromisebtobprovidebadvertisingbdesignbservicesbofbeq
uivalentbvalue.
2. Thebbalancebsheetbmightbalsobbebcalled:
A. StatementbofbFinancialbPosition.
B. StatementbofbAssets.
C. StatementbofbChangesbinbFinancialbPosition.
D. Nonebofbthebabove.
3. Transactionsbarebsummarizedbin:
A. Thebnotesbforbthebfinancialbstatements.
B. Thebindependentbauditor'sbopinionbletter.
C. Thebentity'sbaccounts.
D. Nonebofbthebabove.
2-1
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4. Abfiscalbyear:
A. isbalwaysbthebsamebasbthebcalendarbyear.
B. isbfrequentlybselectedbbasedbonbthebfirm'sboperatingbcycle.
C. mustbalwaysbendbonbthebsamebdatebeachbyear.
D. mustbendbonbtheblastbdaybofbabmonth.
5. Whichbofbthebfollowingbisbnotbabprincipalbformbofbbusinessborganization?
A. Partnership.
B. Solebproprietorship.
C. Limitedbunregisteredbbusiness.
D. Corporation.
E. Nonebofbthebabove.
6. Thebtimebframebassociatedbwithbabbalancebsheetbis:
A. abpointbinbtimebinbthebpast.
B. abone-yearbpastbperiodbofbtime.
C. absinglebdatebinbthebfuture.
D. abfunctionbofbthebinformationbincludedbinbit.
7. CurrentbU.S.bGenerallybAcceptedbAccountingbPrinciplesbandbauditingbstandardsbrequirebthe
financialbstatementsbofbanbentitybforbthebreportingbperiodbtobinclude:
b
A. Earningsbandbgrossbreceiptsbofbcashbforbthebperiod.
B. Projectedbearningsbforbthebsubsequentbperiod.
C. Financialbpositionbatbthebendbofbthebperiod.
D. Currentbfairbvaluesbofballbassetsbatbthebendbofbthebperiod.
2-2
Copyrightb©b2017bMcGraw-
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n Marshall b
8. Thebbalancebsheetbequationbcanbbebrepresentedbby:
A. Assetsb=bLiabilitiesb+bStockholders'bEquity
B. Assetsb-bLiabilitiesb=bStockholders'bEquity
C. NetbAssetsb=bStockholders'bEquity
D. Allbofbthebabove.
9. Stockholders'bequitybrefersbtobwhichbofbthebfollowing?
A. Ablistingbofbtheborganization'sbassetsbandbliabilities.
B. Thebownershipbrightbofbthebstockholder(s)bofbthebentity.
C. Probablebfuturebsacrificesbofbeconomicbbenefits.
D. Allbofbthebabove.
E. Nonebofbthebabove.
10. Accumulatedbdepreciationbonbabbalancebsheet:
A. isbpartbofbstockholders'bequity.
B. representsbthebportionbofbthebcostbofbanbassetbthatbisbassumedbtobhavebbeenb"usedbup"binbthe
processbofboperatingbthebbusiness.
b
C. representsbcashbthatbwillbbebusedbtobreplacebwornboutbequipment.
D. recognizesbthebeconomicblossbinbvaluebofbanbassetbbecausebofbitsbageborbuse.
11. Thebdistinctionbbetweenbabcurrentbassetbandbotherbassets:
A. isbbasedbonbhowblongbthebassetbhasbbeenbowned.
B. isbbasedbonbamountsbthatbwillbbebpaidbtobotherbentitiesbwithinbabyear.
C. isbbasedbonbthebabilitybtobdeterminebthebcurrentbfairbvaluebofbthebasset.
D. isbbasedbonbwhenbthebassetbisbexpectedbtobbebconvertedbtobcash,borbusedbtobbenefitbthebentity.
2-3
Copyrightb©b2017bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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b b b b b b b b b b b
n Marshall b
Chapter 02 b b
Financial Statements and Accounting Concepts/Principles
b b b b
Multipleb Choiceb Questions
1. Whichbofbthebfollowingbisbnotbabtransactionbtobbebrecordedbinbthebaccountingbrecordsbofbanbentity?
A. Investmentbofbcashbbybthebowners.
B. Salebofbproductbtobcustomers.
C. Receiptbofbabplaquebrecognizingbthebfirm'sbencouragementbofbemployeebparticipationbinbthe
bUnitedbWaybfundbdrive.
D. Receiptbofbservicesbfrombab"quick-
print"bshopbinbexchangebforbthebpromisebtobprovidebadvertisingbdesignbservicesbofbeq
uivalentbvalue.
2. Thebbalancebsheetbmightbalsobbebcalled:
A. StatementbofbFinancialbPosition.
B. StatementbofbAssets.
C. StatementbofbChangesbinbFinancialbPosition.
D. Nonebofbthebabove.
3. Transactionsbarebsummarizedbin:
A. Thebnotesbforbthebfinancialbstatements.
B. Thebindependentbauditor'sbopinionbletter.
C. Thebentity'sbaccounts.
D. Nonebofbthebabove.
2-1
Copyrightb©b2017bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
b b b b b b b b b b b
n Marshall b
4. Abfiscalbyear:
A. isbalwaysbthebsamebasbthebcalendarbyear.
B. isbfrequentlybselectedbbasedbonbthebfirm'sboperatingbcycle.
C. mustbalwaysbendbonbthebsamebdatebeachbyear.
D. mustbendbonbtheblastbdaybofbabmonth.
5. Whichbofbthebfollowingbisbnotbabprincipalbformbofbbusinessborganization?
A. Partnership.
B. Solebproprietorship.
C. Limitedbunregisteredbbusiness.
D. Corporation.
E. Nonebofbthebabove.
6. Thebtimebframebassociatedbwithbabbalancebsheetbis:
A. abpointbinbtimebinbthebpast.
B. abone-yearbpastbperiodbofbtime.
C. absinglebdatebinbthebfuture.
D. abfunctionbofbthebinformationbincludedbinbit.
7. CurrentbU.S.bGenerallybAcceptedbAccountingbPrinciplesbandbauditingbstandardsbrequirebthe
financialbstatementsbofbanbentitybforbthebreportingbperiodbtobinclude:
b
A. Earningsbandbgrossbreceiptsbofbcashbforbthebperiod.
B. Projectedbearningsbforbthebsubsequentbperiod.
C. Financialbpositionbatbthebendbofbthebperiod.
D. Currentbfairbvaluesbofballbassetsbatbthebendbofbthebperiod.
2-2
Copyrightb©b2017bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
b b b b b b b b b b b
n Marshall b
8. Thebbalancebsheetbequationbcanbbebrepresentedbby:
A. Assetsb=bLiabilitiesb+bStockholders'bEquity
B. Assetsb-bLiabilitiesb=bStockholders'bEquity
C. NetbAssetsb=bStockholders'bEquity
D. Allbofbthebabove.
9. Stockholders'bequitybrefersbtobwhichbofbthebfollowing?
A. Ablistingbofbtheborganization'sbassetsbandbliabilities.
B. Thebownershipbrightbofbthebstockholder(s)bofbthebentity.
C. Probablebfuturebsacrificesbofbeconomicbbenefits.
D. Allbofbthebabove.
E. Nonebofbthebabove.
10. Accumulatedbdepreciationbonbabbalancebsheet:
A. isbpartbofbstockholders'bequity.
B. representsbthebportionbofbthebcostbofbanbassetbthatbisbassumedbtobhavebbeenb"usedbup"binbthe
processbofboperatingbthebbusiness.
b
C. representsbcashbthatbwillbbebusedbtobreplacebwornboutbequipment.
D. recognizesbthebeconomicblossbinbvaluebofbanbassetbbecausebofbitsbageborbuse.
11. Thebdistinctionbbetweenbabcurrentbassetbandbotherbassets:
A. isbbasedbonbhowblongbthebassetbhasbbeenbowned.
B. isbbasedbonbamountsbthatbwillbbebpaidbtobotherbentitiesbwithinbabyear.
C. isbbasedbonbthebabilitybtobdeterminebthebcurrentbfairbvaluebofbthebasset.
D. isbbasedbonbwhenbthebassetbisbexpectedbtobbebconvertedbtobcash,borbusedbtobbenefitbthebentity.
2-3
Copyrightb©b2017bMcGraw-
HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofb McGraw-HillbEducation.
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