Which of the following did not result from the Sarbanes-Oxley Act?
a. Top management must now certify the accuracy of financial information.
b. Penalties for fraudulent activity increased.
c. Independence of auditors increased.
d. Tax rates on corporations increased. - Answer Tax rates on corporations increased
Net income will result during a time period when:
a. Assets exceed liabilities.
b. Assets exceed revenues.
c. Expenses exceed revenues.
d. Revenues exceed expenses. - Answer Revenues exceed expenses
Which of the following financial statements is prepared as of a specific date?
a. Balance sheet.
b. Income statement.
c. Retained earnings statement.
d. Statement of cash flows. - Answer Balance sheet
Cash, and other resources that are reasonably expected to be realized in cash or sold or
consumed in the business within one year or the operating cycle, are called:
a. Current assets.
b. Intangible assets.
c. Long-term investments.
d. Property, plant, and equipment. - Answer Current assets
Patents and copyrights are:
, Which of the following is not a long-term liability?
a. Bonds payable.
b. Current maturities of long-term obligations.
c. Long-term notes payable.
d. Mortgages payable. - Answer Current maturities of long-term obligations
The primary GAAP standard setter is:
a. PETA
b. FASB
c. IASB
d. SEC - Answer FASB
What is the primary criterion by which accounting information can be judged?
a. Consistency.
b. Predictive value.
c. Usefulness for decision making.
d. Comparability. - Answer Usefulness for decision making
Debits:
a. Increase both assets and liabilities.
b. Decrease both assets and liabilities.
c. Increase assets and decrease liabilities.
d. Decrease assets and increase liabilities. - Answer Increase assets and decrease liabilities
Accounts that normally have debit balances are:
a. Top management must now certify the accuracy of financial information.
b. Penalties for fraudulent activity increased.
c. Independence of auditors increased.
d. Tax rates on corporations increased. - Answer Tax rates on corporations increased
Net income will result during a time period when:
a. Assets exceed liabilities.
b. Assets exceed revenues.
c. Expenses exceed revenues.
d. Revenues exceed expenses. - Answer Revenues exceed expenses
Which of the following financial statements is prepared as of a specific date?
a. Balance sheet.
b. Income statement.
c. Retained earnings statement.
d. Statement of cash flows. - Answer Balance sheet
Cash, and other resources that are reasonably expected to be realized in cash or sold or
consumed in the business within one year or the operating cycle, are called:
a. Current assets.
b. Intangible assets.
c. Long-term investments.
d. Property, plant, and equipment. - Answer Current assets
Patents and copyrights are:
, Which of the following is not a long-term liability?
a. Bonds payable.
b. Current maturities of long-term obligations.
c. Long-term notes payable.
d. Mortgages payable. - Answer Current maturities of long-term obligations
The primary GAAP standard setter is:
a. PETA
b. FASB
c. IASB
d. SEC - Answer FASB
What is the primary criterion by which accounting information can be judged?
a. Consistency.
b. Predictive value.
c. Usefulness for decision making.
d. Comparability. - Answer Usefulness for decision making
Debits:
a. Increase both assets and liabilities.
b. Decrease both assets and liabilities.
c. Increase assets and decrease liabilities.
d. Decrease assets and increase liabilities. - Answer Increase assets and decrease liabilities
Accounts that normally have debit balances are:
