acct 201 - test 1- from quizzes

which of the following would not be considered an internal user of accounting data? -president of the company -controller of the company -production manager -Internal Revenue Service

-Internal Revenue Service

Liabilities of a company would not include -accounts receivable -accounts payable -notes payable -Salaries & wages payable

-accounts receivable

internal users of accounting data include? -company officers -investors -customers -economic planners

-company officers

the accouting process involves all of the following except: -communicating financial info to users by preparing financial reports -recording non-quantifiable economic events -analyzing & interpreting financial reports -identifying economic transactions that are relevant to the business

-recording non-quantifiable economic events

Which of the following is not an asset account? -accumulated depreciation -service revenue -cash -all of the above

-service revenue

which of the following would not appear on a balance sheet? -utilities expense -accounts receivable -retained earnings -wages payable

-utilities expense

Accounting consists of what 3 basic activities?

1. Identification 2. Recording 3. Communicating

who is the primary accounting standard setting body in the Unites States

Financial Accounting Standards Board

what are standards that indicate how to report economic events

Generally Accepted Accounting Principles (GAAP)

T/F the first step in analyzing ethics cases is to recognize an ethical situation and the ethical issues involved

True

paying a $500 dividend in cash. the effect on the specific items in the basic accounting equation

a decrease in R/E/ and a decrease in cash

ethics are the standards of conduct by which one's actions are judged as honest or dishonest right or wrong fair or unfair all of the above

all of the above

what is the intent of the Sarbanes Oxley Act? -reduce unethical corporate behavior -decrease likelihood of future corporate scandals -increase severity of penalties for fraudulent financial activity -all of the above

all of the above

which of the following events is not recorded in the accounting records? -equipment purchased on account -an employee is terminated -a cash investment is made into the business -the owner withdraws cash for personal use

an employee is terminated

the resources a business owns are called ____

assets

Owner's equity is equal to ___ minus _____

assets liabilites

A balance sheets shows _____, ______, and ____ at a certain point in time

assets liabilities owner's equity

the historical cost principle states that _____

assets should be recorded at their cost

All of the financial statements are for a period of time except the____

balance sheet

Beaver company buys a $12,000 van on credit. this transaction will affect the ____

balance sheet

The financial statement that reports assets, liabilities, and owner's equity is the_____

balance sheet

the ending owner's equity amount is shown on both the _____ and ______

balance sheet owner's equity statement

On the last day of the period, Jim Otto Company buys a $900 machine on credit. This transaction will affect the______

balance sheet only

what is a business organized as a separate legal entity under state corporation law having ownership divided into transferable shares of stock

corporation

What are the 3 types of business entities

corporations proprietorships partnerships

people who you owe money too

creditors

what are some examples of external users?

creditors investors

payment of accounts payable decrease ____ and decrease ____

decrease assets decrease liabilities

a net loss results when ______ exceed ____

expenses revenues

who are people outside of the company?

external users

T/F communication consists of keeping a systematic, chronological diary of events, measured in dollar and cents.

false

T/F cost accounting is an activity in public accounting

false

T/F the economic entity assumption applies to corporations but not proprietorships or partnerships.

false

T/F the historical cost principle dictates that companies record assets at their market value

false

T/F the receipt of cash on account will increase total assets.

false

what are some examples of internal users?

finance marketing management Human Resources

which of the following is not part of the accounting process? -communicating -identifying -financial decision making -recording

financial decision making

what is the first activity of the accounting process? communication identification processing recording

identification

revenues and expenses are reported on the ____

income statement

performing service on account will increase _____ and ______

increase assets increase owner's equity

who are people within the company?

internal users

Internal users of accounting information include all of the following except___ company officers investors marketing managers production supervisors

investors

Managerial accounting provides financial information to ______

managers

what assumption requires that only transaction data capable of being expressed in terms of money be included in the accounting records of economic entity

monetary unit assumption

the receipt of cash on account will

not change total assets

the investment of cash by the owner increases _______

owner's equity

If a business purchases advertising on credit which is expected to be used during the current period, then -revenues will increase -assets will increase -liabilities will decrease -owners equity will decrease

owners equity will decrease

a company might carry on many activities that do not represent business transactions such as: -using office supplies -paying wages -placing an order for merchandise with a supplier -borrowing money from the bank

placing an order for merchandise with a supplier

services provided by a ______ ____ include auditing, taxation, and management consulting

public accountant

the first step in solving an ethical dilemma is to _____

recognize an ethical situation and the ethical issues involved

bookkeeping as opposed to accounting, usually involves only _____

recording

keeping a systematic, chronological diary of events, measured in dollars and cents is called____

recording

net income will result during a time period when ____ exceed ____

revenues expenses

a basic assumption of accounting assumes that for the U.S. companies, the dollar is

the common unit of measure for all business transactions

accountants refer to an economic event that affect a company's financial statements as a ____

transaction

T/F Financial accounting provides internal reports to help users make decisions about their companies

true

T/F IFRS is based on a conceptual framework that is similar to that used to develop GAAP.

true

T/F The statement of cash flows provides information on the cash receipts and payments for a specific period of time.

true

T/F a balance sheet is prepared as of a specific date

true

T/F expenses that result from operating the business causes owner's equity to decrease

true

what is an example of an internal transaction

use of office supplies

which of the following is not a step in the accounting process? -identification -verification -recording -communication

verification