A. current cost method
B. historical cost principle
C. fair value method
D. value in use method
E. fulfilment method
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
139. A corporation
A. is a legal entity separate and distinct from its owners
B. is regulated by Canada revenue agency
C. has shareholders who have unlimited liability for the acts of the corporation
D. can only have two owners
E. is not a legal entity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
140. A partnership
A. is also called a sole proprietorship
B. has unlimited liability.
C. has to have a written agreement in order to be legal
D. is a legal organization separate from its owners
E. is a non-business organization
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-02 Describe forms of business organization.
Topic: 01-05 Business Organizations
141. Ethics
A. are beliefs that separate right from wrong
B. and law often coincide
C. help to prevent conflicts of interest
D. are very important considerations for accountants
E. All of these
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-15 Understanding Ethics
142. If the liabilities of a business increased $8,000 during a period of time and equity in the business decreased $4,000 during the same period, the assets of the business must have
A. Decreased $12,000
B. Decreased $4,000
C. Increased $12,000
D. Increased $4,000
E. Increased $6,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
143. If the assets of a business increased $9,000 during a period of time and its liabilities increased $5,000 during the same period, equity in the business must have
A. Increased $14,000
B. Decreased $14,000
C. Increased $4,000
D. Decreased $4,00
E. Decreased $6,000.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
144. The organization established to try to achieve global agreement on the use of a common set of accounting principles is called
A. Accounting Standards Board
B. Abbreviated as IFRS
C. International Accounting Standards Board
D. Generally accepted accounting principles
E. All of these
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
145. An audit
A. is required for every business
B. is an independent review of an organization's accounting systems and records
C. is performed to add credibility to the financial statements
D. is only performed for companies with computerized accounting system
E. is an independent review of an organization's accounting systems and records and is performed to add credibility to the financial statements.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-10 Financial Accounting
146. Accounting information is considered to be relevant when it
A. can be depended on to represent the economic conditions and events that it is intended to represent
B. is capable of making a difference in a decision
C. is understandable by reasonably informed users of accounting information
D. is verifiable and neutral
E. is free from bias
Accessibility: Keyboard Navigation