Financial Accounting 9th Edition by Miller-Nobles Test bank

A-Head: What are the organisations and principles that govern accounting?

78. Which of the following concepts (or principles) directs a business to align inputs and outputs of physical goods or services with one another?

1. Entity concept
2. Accrual basis of accounting
3. Matching principle
4. Going concern assumption

Answer: C
Difficulty: Basic
AACSB: Analytical Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

79. Which of the following concepts (or principles) require an assumption that the entity will remain in operation for the foreseeable future?

1. Going concern assumption
2. Accounting period concept
3. Accrual basis of accounting
4. Entity concept

Answer: A
Difficulty: Basic
AACSB: Analytical Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

80.  Zhang Wei has three different businesses. He has only one bank account for transactions relating to all of his various businesses. Which of the following concepts or principles of accounting is Zhang Wei violating?

1. Entity concept
2. Accounting period concept
3. Accrual basis accounting
4. Going concern concept

Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

True/False: Write 'T' if the statement is true and 'F' if the statement is false.

81. An accountant working in public practice may provide management consulting services.

1. True
2. False

Answer: True
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

82. Accounting firms in public practice are all large, multinational partnerships.

1. True
2. False

Answer: False
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

83. The Australian conceptual framework encompasses non-profit organisations as well as for-profit ones.

1. True
2. False

Answer: True
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

84. Australian Accounting Standards are exactly the same as the International Financial Reporting Standards (IFRS).

1. True
2. False

Answer: False
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

85. In Australia, there is both private and public sector involvement in the standard-setting process.

1. True
2. False

Answer: True
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 6 Describe the organisations and principles that govern accounting
A-Head: What are the organisations and principles that govern accounting?

86. The International Accounting Standards Board is made up of members from the private sector and has no public sector involvement.